Business Vocabulary

The Macmi an Business Grammar
and Vocabulary Series
Build the skills and language you need to succeed in business - as a start-to-finish course
or as supplementary grammar and vocabulary material for the business English classroom.
Adva ced
. ..
Business English
--
A<lvDncod
CEF B2/C
BEC Higher
TOEFL e 235-275
.~ "fl11t;OO~
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... ...
~y
TOEIC~
701-910
BULATS 75-89
f.)
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~
Intermediat /
Up er I termedia e
CEF B1/B2
BEC Vantage
TOEFL ~ 176-234
TOEIC~ 541-700
BULATS 60-74
Pre-intermediate /
Intermediate
CEF A2/Bl
BEC Preliminary
TOEFL" 126-175
TOEIC'" 381-540
BULATS 40-59
by Paul Emmerson
Also available:
Business
Skills
Titles
www.businessenglishonline.net
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2013 2012 2011 201 2009

10 9 8 7 6 5 4 3 2
5
Paul Emmerson
Voe
Intermediate to Upper-intermediate
The words & phrases you need to succeed
MACMILLAN
Contents
BUSINESS TOPICS
c.ia
31
The economy
The business cycle
International trade
10
Setting up and growing a business
12
Company types and corporate governance
14
Global issues for the 21st century
16
Management styles and qualities
18
Organizing time and work
20
Planning and setting objectives
22
11
Insurance and risk management
24
26
Pr
12 Manufacturing and engineering
28
13 Inside a factory
30
14 Procurement and purchasing
32
15 Supply chain management and logistics
34
16 Lean production
36
17 Quality
38
66
32 Investing in stocks
68
33 Recruitment
70
34 Pay and benefits
72
35 Issues in the workplace
EFFECTIVE COMMUNICATIO
IV"'-"'-"men
10 Leading and motivating
Financial markets
You an
your jo
36 Your background and career
76
37 Your company
78
38 Your job
80
el phoni g
39 Telephoning making and taking calls
82
40 Telephoning messages
84
41
Telephoning checking, clarifying, active

listening
,
86
42 Telephoning arranging a meeting
88
43 Telephoning complaints
90
44 Telephoning review
92
mail
m rketing
45 Emails - basics
94
46 Emails - internal communication
96
47 Emails - commercial
98
18 Sales
40
19 Customer service
42
20 Markets and marketing
44
21 Product
46
22 Distribution (place)
48
23 Promotion
50
24 Price
52
Pre enta ion
25 Marketing management
54
51 Presentations opening
106
52 Presentations main body
10
53 Presentations closing and questions
110
54 Presentations trends I
112
55 Presentations trends II
114
56 Presentations review
116
26 Income statement
56
27 Balance sheet
58
28 Cash flow statement
60
29 Managing cash flow
62
30 Profitability
64
48 Emails - customer issues
100
49 Emails - arranging a visit
102
50 Emails - review
104
Me ti gs
LISTENING SCRIPTS
t exercises
156
57 Meetings - opinions
118
Listen and r
58 Meetings - making things clear
120
Interviews wi h business people
157
59 Meetings - problem-solving
122
60 Meetings - leading a meeting
124
ANSWER KEY
164
61 Meetings - negotiating I
126
62 Meetings - negotiating II
128
63 Meetings - diplomatic language
130
64 Meetings - review
132
Business reports and proposals

65 Business reports and proposals - reports I
134
66 Business I"eports and pmposals - reports II
136
Business reports and pl"oposals - proposals I
138
68 Business reports and pl"oposals - proposals II 140
69 Business reports and proposals -
142
linking words
70 Business reports and proposals - review
144
SPEAKING PRACTICE
Discussion topics
146
WRITING PRACTICE
Writing tasks
151
LISTENING PRACTICE
Interviews with busi ess p ople. exercises

Interview with a private equi y investor
153
Interview with an entr preneur
1 53
Interview with a management trainee
153
InterView with a supply chain manager
153
Interview with a sales manager
1 54
Interview
154
Interview with a finance director
154
!nte iew with a human resources director
155
WI
h a marketing director
con m
Whatdriv . th, world economy? The simp]"! answeJ to

n mer spending', nd what drives
ansumer sp~nding? Some nmbinati n of the factor' blow
i' g- nerally con idered to provide a reasonabl answer
thi' que lion i"
GOP growth for different countries

ross domesli product (G P) measure lhe 5il of a
country's canomy. It rep es~nts the total alue of all goods
and S r\'ice produced over a specific time period, Growth in
Dr is ne of the primary indicators 1I 'cd to gauge
(= me<'1_ ure) the health of a country's e anomy Usually, Dr
is e pI' ssed as a comparison to the pI' vious quart ,r or year.
Government trade pol icy

Th two poles of gov mment policy are liberalization and
prot cti ni'm,
'Liberalization' is a ,ociated ith free markets, open
mclers, d regulati nand t111:' free movement of capital
ar und the world.
'Protecti nism' i ass iated with government
intervention, subsidies, quotas and t, riffs, nd re:;tri lions
on the movement ot capitaL
ali nal governments d h, ve sum g nuin chl ices here,
even if they are constrained bv the olicy of their l' bional
trading bloc (cg the EU, A A, ASEA ), In the end most
countries hi1v(~ a mixed c no my which is somewhere
I etw en th two extrem s,
Generally spea ing, free market<; promote growth in the
w rid e on my, and protected mark ts sIoy\! own the
pro 5 (although th may h VE' a ben ficial e f ct on
particular indtL.'ltries inside a C untry),
Consumer confidence
If onsllmer' are onfident c bo t ton orr w, they iJlspend
more. he main factors affeCting can um r confidence arc
the level of unemployment - if people's jobs are at risk, or
the don't have a job, they will spend less - and house pnces
- if people's houses are worLh more than the paid for them,
they feel rich and will spend more freely
Interest rates
Interest raks are set by entral Banks, Wh'n int r'st rate
arc Jaw, oosumers and busine::i"es can borrow money
cheaply and there is a sbmulus to the economy But the
hf'ap credit also caw; s inflation and too much liquidity in
th , system, This liq uidity lea 'to bubble' in stock market,
hOll 'ing mark ts, tc. When th C nrral Bank ees the need
to control infl bon and coel growth a little, it rei s interest
rates.
Exchange rates
Currencies fluctuate against each other: the ellra <lg<linst the
doll<lr, the yen against the yuan. This is due to many omplex
faclors uch as the underlying strength of th
'on m"
interest rate diff-TentiilL and peculati m. Having a strong
currenc make imporl:$ ch ap for domestic consumer, but
hurts exporters (whose products b con e mol'
pen i\ e
overseas),
The business cycle

'coDomies go through eye! s of growth and contraction
(= slowdown), This is cov red in unit2,
Effects of globalization
Er
omie
i andal
WorldWide supply
chains, markets
and products
Worldwide
fmcncial markets;
easier access to
external financing
in f,
ur
ical
Closer
relationships
between
governments
b liz ion
Gen ral prosperity: lower prices, more employment

higher' standard of living
Increase
pportunity and sodaI ! personal mobility,
Improvements for poor countries: life expect ncy, infant

mortahty, literacy, partiCipa ion of women in society,
fo m tional
Rapid flow of
information
across the globe
-ultural
Cross-cultural
contac ; travel
and tourism;
immigration;
access to foreign
products and
ideas
in
cological
Glo al
environmental
challenges
needing
international
co-operation
lobalizati n
Inequality of wealth within nations - not much 'trickle

down effect' (when financial benefi s ar'e passed down
from big business to consumers and ordinary people)
Human costs: injustice due to increased power of local
elites, erosion of traditional cultures,
EnVironmental damage,
1 THE ECONOMY
Exercises
1 Find a word in the text opposite that matches each
definition below. The words appear in order.
1 ma es something work; provides the power for something
2 removing the rules and laws that control business activity

3 money lhat the government pays to support Industries or
reduce the cost of products
II offiCial limits on the amoun of something
5
6
7
8
taxes on goods coming Into d country

limited, restricted
the amount of money In circulation
oeflods of time when people pay more than the real value
of something; balls of air in a liquid
9 with an Important effect. but one that isn't easy to notice
10 (formaf) the degree of difference b tween things
11 when people have money and everything they need for a

good life
12 he ability to read and write
Make phrases by matching an item from each column.

1 consumer
2 free
3 growth
movement of capital
~ and co. ntraction
4 life
5 open
6 standard
7 environmental
8 goods
9 in erest
10 cheap
11 sooal
12 underlying
anufacturing In the US slowed more Ihan forecast

In October as factOries received fewer orders and
production contracted, an industry report showed today
Manufacturing is on the verge of stalling as the deepening
housing slump eakens demand tor construction equipment,
furniture and appliances. BUI, on a more positive note, the
weaker dollar is boosting exports and 11elping campanie
that d much of their business overseas
These figures make It clear why the Fed cut interest
rales by a quarter point last week. In heir statement, Fed
policy makers said that. 'the oullook for the economy is
uncertain, even atter solid growth last quarter They added
hat. 'upside risk to inflation roughly balance the downside
risks lo growth.
Find a word in the text that means:

(five words) nearly stopping in its progres
Now do the same for the words in 'Effects of

globalization' opposite,
Read the article about the us economy, then answer

the questions below. Check any unknown words in a
dictionary.
2 period when something is much less successful than before
3 helping something t~ Increase

4 (short form) Central Bank of the USA
5 approximately
See page 146 for some discussion topics.
borders
spending
of living
expectancy
rates
strength
and services
mobility
damage
credit
Use phrases from 1.2 to complete the sentences

below. The phrases are not in order.
1 The economy will grow if
"1
is rising.
2 Consumers and businesses can tak on too mu h debt if
here is easy access to
3 Economic growth brings material comforts, but also higher

pnces for he basic necessities of life. In other words, your
goes up, but so do s your
cost of living
4 Economies go hrough cycles of
(= boom and bus ),
5 The main tool available to a Central Bank is its ability to set
I> Over the long term, exchange rates de end on the
of the economy.
The busme!)s world
On
cycle
Hi tory ~how~ that there i c busines~ cle that repeat" a~aLn clnd agclin, although of -our~(' the detclils ,'ary
each time. Look at the diagram bela...... The outer circle is th cycle of cc nomic expansion and contracllon.
The ne.'t Circle Inside shows some sectors of the economy that tend to do well at particular limes during thiS cycle.
The circle mside that show interest rate and inflatIon. finall.', the inner irde shows the stock market cv Ie.
Growth
l ,t'" go round th diagram, starting < t twelve o'clock. This
pi1int mark, the end of weakness in thL' economy and the
t.'arly "ign' qf growth. What ha~ c us d th St.' green shoot?
n . . elu'" is int're 't rates, which b tto ed out around
elt.'\'cn o'dock. Low int re"t rates mean ch ap borrowLng for
indiViduals and ompanies. Amongst the qui kest sectors to
respond are onsumer disC!' ti nary kg r tau rant , leisur ,
ITa ' I) and technuJogy.
Once there re earl. sigm of growth, tran"portation pi ,up
(more good. ilre being shipp d), and industr -pends mol'
on capital g d (eg machinery). During thLs period, inflation
start- to ris ,and so bonds -uEfer. Bonds pay a fixed rate 0
intere.'it t their bondholders, and the alue of this intere tis
eroded over time as inflatio g-oe up.
The peak of the cycle

II good things must ome t illi end. It's six o'clock on
the diagr-'1m. By now inOation h ,become a prabl m, nd
C 'ntral Ban h. e rais d jnter -t rates to de,)1 \ ith it. That
me, ns Lh.~L credit is tight, and borrowing is cxp 'lisive.
me
stock market recognizes lhal thc end is coming, nnd peak.

j st b fore the final peak in the economy. 111\'csto I1im
switch 10 more defensive stocks lik' consu mer staples kg
1'0 'd, how,ehold products) and utilities,
Contraction
ow it's. v n u'cl k and \\' 've entered the period of
contra tion. Stock markets r falling. But Central Banks
, 'e the danger and ar low ring interest rates, to encourage
spending and a 'aid a recessiun. Bonds espond po~iti\'ely
to the drop in rates, and they als benefit from a 'Hight to
..,afety' effect as invest rs become cautious ab ut ~toc.k .
The bottom of the cycle

EventLL: Uy, financials start to rt:cover s the' nl! Ipate mol'
borrowing, and Ulen the general slo k market finu. a b tt< m
about six to nine months in advance of n uptum i th real
('cunom .. Just like at th' top )f the cy Ie, th m rk t 'eems
to know that a turn in the r al econ m is c mingo
w the
econom is st rling to show sign' uf SIT ngth end the wholt!
cycle repeilts again.
2 THE BUSINESS CYCLE
Exercises
Put the words in italics in order 1-4.
a The economy, starting at twelve o'clock on the
diagram, shows.
contraction
expansion
government debt
labour market
policy makers
Side-effects
a dowmurn
an upturn
b The stock market, starting at eleven o'clock on the

diagram,
bottoms
peaks
recovers
turns down
Match each sector of the economy 1-10 with an

industry group a-j.
1
2
3
4
5
BasIc materials
Capital goods
CommerCIal services
Consumer discretionary
Consumer staples
6
7
8
9
10
Energy
Flnanual
Technology
Transportation
Utilities
a
b
c
d
e
hotels, restaurants
steel, chemicals
employment agencies, auditing
machinery, equipment
household goods, ood retailing
banking, insurance
9 software, communications equipment
h oil production, gas production
I electrtclty,
ater
airlines, logistICs
Underline the correct words in italics. Check any

unknown words in a dictionary. Some ideas below are
also covered in unit 1.
4
5
6
7
8
Complete the text about dealing with the business

cycle with the phrases in the box.
The consumer discretionary sector of th economy starts to

recover when interest rate are high / low, and lust before
he general economy picks up / turns down.
Investors favour the consumer staples sector at the
beginning / end of the growth c1e, Just a the markets are
picking up / turnmg down.
If a government or company wants to borrow mon y, it
can issue a bond / an obligation. Investors receive a fixed /
variable rate of interest over a fixed period of time, and then
get their original investment back at the end,
A rise III interest rates makes borrOWing cheaper / more
expensIve. ThiS cools / stimulates the economy.
Central Banks lower interes rates if they think the economy
is likely to grow / contract, and will act aggressively if they
thmk there is danger of a boom / reces,i n.
Stock markets tend to anticipate / move in line with / react
to changes in the real economy.
Interest rates tend to bottom out before / after both the
stOck markets and the real economy.
A rising market is called a bear / bull market. People who
think that a particular market is going to rise in the future
are described as bemg bullish / bull-like on that market.
ne l borrowmg
tax cuts
What can central bankers and government

1
do! Can they prevent
a contraction from turning Into a lecession? What tools
are available to them! The follOWing three are the most
important
Interest rate adjustments

The strongest an fastest tool In a weakening economy
IS the Central Bank ' ability to cut interest rates
For companie and individuals With existmg bank
loans, repayments are reduced; for others,
2
becomes less
expensive. Most Central Banks drop rates by quarter-points
or, at crucial times, half-points Lowering rates still takes two
or three quarters to benefit an economy, and it does also
have unfortunate 3
The negative consequences are that it weakens a nation's
currency, and that any, growth it causes may be Inflationary.
Economic stimulus
A nalional government can choose to spend money
- usually money it must borrow - on all sorts of projects In
order to simulate the economy. This puts money back Into
people's pockets so that they can buy goods and seNlces to
boost the economy. 4
are another way of achieving the same effect The problem
arises wh n these measures lead to high levels of
5
. Eventually that
debt Will have to be repaid
Regulatory reforms
A country can implement reform to the law in order to
stimulate growth These Include measures to enhance
competition, to liberalize tne
6
, to make It easier to
start a n w bUSiness, etc.
The busm
S5
world
Int
ational trad
Deciding to export
Why export? TIle two most important reasons are likely to be:
10 increase ales and revenue. xporting ~ ill Jl w Y II
to take advantage of any und r-li C c pacity, inG ase
pr duction, r ducc unit cost- thwugh economies of seal

and increa e profits if things ~o 'AI It.
[0 diver ify. Rt'lying 011 just your own dam stic market is
risky. Sellin~ to other countrie' allows you to spread the
risk.
But b fore deciding t exp rt there is a lot )f researd1 to be
don n the for ign l11<:lrket:
Ba kground: economic situation, political stability,
curl'f'ncy ri k.
Market size cmd likely pro lct demand.
C mp titian: similar produ ts alread i th m ['keL
Distribution chann Is: agents (who act on your behalf ilnd
receive a ommission, ut don't buy g ods on their own
account), or distributor (\ ho ctuaJly purchase go d
fr m, tl for resale, like a Wholesaler).
Promotion>:!! material: sales and support material needed
in the loca I language.
Customer servic : proce ur - for enquiries, complaints,
warrant, -Iaim ,ser icin , t.
gal reljuirem nts: technicaL ~af ty ,1J1d environmental
standard_ .
The first step i.n exporting is likely to involve an intern1 >diary

( go locC1] agent, distributor). TI1CY will have I ',] knowledge
and COl tacts in tI unfamiliar market. if thing go \ II,
th xporter may then decid' to establish iQ, own presncc
in the foreign market 'u h as setting lip a sales ofFi e ilnd
rehollse his all w direct cont;lCt with customers, faster
delivery,md more c ntr I of the local market.
Two key issues for an exporter <11"<: a) the method u~ payment
- see the table below - and b who pays for transportation.
This latt 'r issue is covered in the contract b specifying th .
relevant Incoterm (International Commercial Term) for that
particular' con ignmcnt (= quantity ot goods shippt>d at the
same time).
Other options
E porting is one way to ell you goods into il f reign milrket,
but there are other options available to larger compcll1ie :
Joint venture: two ompanies (a foreign company and
a I cal pc rtner) work together but keep their 0\ n 1 gal
id 'ntity.
F reign irect Investment (FDI): a bw;iness sets up
op rations in a foreign country, or acquires (= buys) c
I I company.
Li en ing: d con ,Pdny sells the right to use a patented
miJnufacturing process, or 80m ommcrcial expertise,
or a trademark, in exchange for a fee or a ro ally. One
particular case of this is Franchi ing.
lette of credit (L/C)

Cash-in-advance (Pre-p yment)
The importer pays the invoice in
advance. before shipment Where
they only pay a part in advance. It'S
called a 'down payment'
One bank 9 arantees payment to

another bank The importer pays
when the ex orter presents certain
listed documents to their bank
Typical documents needed are
tra sportation documen s (eg bill
of lading). insurance documents.
commercial documents (eg invoice)
Open ccount
Tile supplier ships the goods. and
the importer pays later according
to the terms of the contr ct. ThiS is
more risky. and is only used if the
importer has established a good
credit history.
10
Documen ary collection

A cheaper variation of an UC The
two banks make no guarantees
but sim Iy handle the exchange 01
documents.
Consignment purchase
Tile importer receives the goods
and holds them in stock. but only
pays for tr em after they have een
sold to the end users
3 INTERNATIONAL TRAOE
Exercises
Complete the text about Incoterms with the words in
the box. Notice the glossary at the bottom.
. Find a word in the text opposite that matches each

1 (three words) spreading costs over a larger number of
Units, and therefore producing things more cheaply
clearance
us roms documentation freight
transit
truck
handlmg
loadmg
premises
terminal
2 (three words) instead of you, or as a representative of you
What are Incaterms?

written promise that a company will repair something if It
breaks; guarantee
11 big bUilding where large amounts of goods are stored
5 special skills or k owledge

6 name or deSign on a product that
Incoterms stat~ the responsibilities of buyer and seller in
r lation to marin transportation - not Just the shipping
costs, but all other associated costs such as insurance,
1
duties, and ground
SllOWS
it's made by a
The buyer pays for the sea crossing
particular company
7 money paid for professional serVices, or a one-time amount

8 money paid to someone whose ideas or inventions you're
using
Now do the same for the words in 'Financing
international trade' opposite.

9 document requesting payment (also called a 'bill')
10 (three words) list giving details of goods that a hlP, etc is
carrying, also acts as a contract to transport those goods
2 rei on
~ spread
a act
') establish a prese ce
6 keep your own
7 handle the ex hange
8 pay according
If the price i FAS, then the seller also covers the cost of
inland transport (by 4
or rail) to the
port of shIpment, and of unloading the containers onto the
dock The buyer pays for 5
onto the
ship plus all the costs from that point.
FOB is almost the same, except here the seller pays for
loading onto the ship, not the buyer
The seller pays for the sea crossing
Make phrases by matching an item from each

column.
1 take advantage
A pnce quoted EXW is where the seller makes the goods

, and the
available at their own 3
buyer collects them there. The buyer has responsibility for all
the other transport costs and risks from that POIn onwards
just your domestic market

on somebody's behalf
of any under-used capacity
the risk
to the terms of the contract
of documents
legal identity
in a foreign market
Study the methods of payment shown in the box

opposite. Then complete the diagram by writing the five
methods on the horizontal axis.
Hgher
Now the goods a on the ship. If the price has been set
a that the seller also pays th 6
(= goods and the system of moving these goods) costs,
then there are further Incoterms to be used
With CFR the seller pays the freight costs and handles the
export 7
(= paperwork), but does
not pay the insLlfance while t.he goods are In
B
at sea With (IF the seller pays
insurance as well But in both cases their responsibility
ends at the port of destinati n, while the good are still on
board. The buyer has responsibility for unloading fees, local
, the import licence,
storage at a 9
duties and taxes, the custom broker's fees and onward
delivery to the buyer's own premises.
In the final case, DDP, it's the seller who pays for
everything, and who also has to handle any customs
HJ
problems. The buyer has no
additional cost, or- risks at all - but of course the price
quoted in the contract will reflect thisl
RISK
Glossary
ower\--
TYPES OF FINANONG
EXW Ex works
FAS Free Alongside hip
FOB: Free On Board
CFR Cost & Freight
(iF Cost, Insurance & Freight
DDP Delivered Duty Paid

The bUSiness world
11
pa
Initial idea
Someone has an idea for a new busine (a 'start-up').
Maybe thev spot il gap in the market, or mJybe they
hl\' an idea that is similar to existing offers, but with a
ompetitive edge. Potential sourc of finan for thib new
bU5in~ include s If-funding, backers 'uch a friends and
family memb r ,a bank loan, and a venhlr capital firm,
A bank will
at t ')mc sort of ecurity in ca e the I an i:;

not repai ,andometim s he person' . house i ff red
a coUateral.
e fourth option, venture apital ( ), is
attractive or businesse" with a high profil potential in the
medium term, but hig-h start-up cosLs. 1\ C company will
offer hmds and take on the risk of lhe business failing, but
in change will want a large number of shares. The aim
to sell these later, wh n th usincs. goes public.
When financing i. in plac ,th bu 'iness is r gistered a$
legal
tity: sole trader, partn r hip, limited company, etc.
unit 5.
Early months and growth phase

ow the bu. int: can start trading. The risk of failure
in the first twu years is very high. ften the probl m
isn't sale, but ea 'h flow: the company has to wait for its
invoic t be paid, and meanwhile tlp debt are piling
up The bank \\lilt only xt od its line of credit up t a
point
But h pefuJly the business hi es a critical mass of
customers, and establi hes it II in the m rkelplace. It
enter a gr wth pha . This early growth tends to be
organic - lumo er it crea es, th~ company emplo. s more
~taff, it develops a su ply netw rk, etc The majority of
mall companies just continue in thi" way - growing or
shrinkll1g ear by year depending on their manageriill
skills and g neral market conditions.
Se ling the business

. wever, th r are other possibiljti.es. Th found r of
the bllin 5S may decide to sell th busines a a going
concern. They mi~t sell to a competitor, or to a company
wanting to expand into that market. The bu ers h re
are look.ing to grow through a. trategy of acquisitions
(= takeov rs), n It mative to the strateg of org ni
growth.
IPO
Anoth 'r possibility is that th found rs may decide to
gu p\.Iblic (= Hoal/list on the stock exchange). H re,
the' sell thei.r origi.nal privately-held, har at an lPO
(initial publi offering) This brings in il hug amo tnt of
m n ,y, some going direct! t thl:' own 'rs ab reward for
t ir hard work, the rest going back into the business as
reinvestment.
12
in
TEN REASONS WHY A NEW BUSINESS CAN FAil
Cause: Starting a business

With a good Idea, some
money and a lot of
enthusiasm - but no serious
research
I
Solution: Take time

to research the market
thoroughly before you start
trading
'
Cause: buying too much

stock, customers paying
late or not at all, suppliers
needing to be paid on time
Solution: produ I.' realistic

cash flow forecasts and pay
slric attention to budgets
Cause: Sticking with your

own original Ideas for too
long
Solution: Activ Iy seek the

views of customers, and act
on what they say
..
Cause: false economy a
cheap lease IJ1 the wrong
neighbourhood
Solution: remember that

accessibility for customers is
crucial
Cause: thinking that a good

product will sell Itself
Solution: be creative,
constantly review the
marketing plan
.
.
.. .
Cause: being too ambitious
Solution: be realistic
.- .
..
Cause: spending your seed

money too soon
Solution: planning, keeping

some cash In reserve
Cause: behaviour of some

mployees
Solution: training,
monitoring, company culture
..
- -
Cause: assuming that you

have customer loyalty
Solution: watch
competitors cia ely
...
Cause: ornplacency after
initial uccess, lack of
innovation
Solution: b flexible,
recognize opportunities,
adapt
4 SETIING UP AND GROWING A BUSINESS
Exercses
Find a word in the text opposite that matches each
Fill in each gap with one word from each box,

written together,
1 small advantage
over
2 eople who support a plan, espe lally by providing money

charge
3 property or money that you promise to give someone if you

cannot repay a debt
4 (formal; two words) business that is a single unit from a

legal or accounting point of view
5 documents giving detaIls of product~ that some ne
has bought. and requesting payment for them
6 phrasal verb} incr aSlng in a way that IS difficult to manage

7 income, re enue
8 (three words) a successful business
9 companies hat have been bought by other companies
Now do the same for the words in 'Ten reasons why a

rlew business can fail' opposite.
10 carefully and completely
11 (informal, phrasal verb) continuing to do something
without changing It
12 (two words) something that is cheap but could have bad
results
13 small area of a town

14 (two words) money that is used to start a new busIness
15 being faithful to a product / brand / company, etc
16 being too satisfied and confident, so that you stop trying
LO Improve
column.
1 achieve--.........
\
2 wall
3 grow
4 employ
5 spot
6 ake on
7 bring in
8 enter
9 exten a line
10 go
11 grow
12 sell
a gap In the market
more staff
for inVOices to be paid
a critical mass
the risk of the business failing
or shrink year by year
of credit
the bUSiness as a going concern
public
a huge amount of money
a growth phase
organically or by acquiSitions
cut
under
estimate
~
ride
spend
take
perform
If you grow a bUSiness too quickly and take on too much

risk, you
2 If you sell goods at a lower price than your competl ors, you
your competitors
3 If you don't make as much money as expected, or
you're less successfulm your Job than expected, you
4 If your company goes past another in terms of sales, profits,

market share, etc, then you
it.
S If you use too much money, or more than you planned, you
6 If you ask a client for too Iittl money (usually by mistake).
you
them.
7 If you use your authorit to reject somebody's deosion, you
them
8 If you think that something is smaller or less important than
it
it really is, you
Read the text about franchising, then answer the
questions below.
ould you Ilk to start a new bUSiness, perhaps runnmg
a small retail outlet? Franchising is an obvious option
How does it work? The paren company (the 'franchisor)
offers you (the 'franchisee') Its trademark products and
bUSiness methods You pay them an initial ee to use lhe
name, and then pay a percentage of the turnover as well
You will need to fulfill certain corporate identity standards
such as those relating to furniture or staff uniforms It's hard
work. but the advantages are many you're buying a well
known brand and the risk IS minimized
From the franchisors pOlllt of view the benefits are clear
They can leave the day-la-day running of the business to
you, while getting a share of your turnover,
Find a word from the text that means:

1 any place where a product IS sold
2 money you pay to do something (or to a professional person

tor their work)
3 do something promised; reach
levels of quality or achievement
S operating and managing
Th buslO ss world
om any type a d corporate governance

Company types
In Ielv\-, there are various type" of busines entity. For eJch
one there ar ifferent legaJ arrangements lo register the
company, dIfferent requirements for presenting accounts, etc.
The main business tvpes an~:
ole trader (UK) / ole proprietorship (US)
A single person owns and perales a bLl-in s. Legally,
the business hilS no separate existence from it,; own I'
(proprietor). This mean' lhat all the debt'> of the bLlsinL'ss
the debts of the own'r.
vote to cl.:ept or reject the div idend, 'ote on replacements

for retiring B ar members, etc. But, In practice, the situation
molY e different. In particular, most hares are held by large
institutions, and these may simpl ' sell their stake if the
aren't happy, instead of trying to change the Board.
In reali many Board member.- are d o. en by thl' C 0
and the shareholders simply approve these n ember.
Corporate governance
<HC
Partnership (UK and US)
Two or n are people work tog ther and share the risks, I d
pnlfits.just like a sale proprietor, the partners Me fully Ii ble
for (= respon 'ible for) Illy debts the business ha5. Thi~ is
referred t in law as 'unlimited liability'.
his whole issue of the role of the Board, how senior

managers are responsible to sharehold rs, and hmv the
compc ny is run, is referred to as 'corporat(~ governance'.
Traditional! ,differenl regions or thE' world hay had
cliff rent modeb f corporate govt.mLlnc .
Company (U and UK) / Corporation (US)
The busines i" a legit] entit that i" separatc from its owner:;
- the shareholders. he owner' are not fully liable for the
dcbb> of the bU.'iiness. Instead, their liability (= potential risk)
i- I' stricted to their share capila\.111is is th amount of cash
thai they have ontributed l the company. This is referred to
in law as 'limited Jiabilit '.
Th re Jre two main types of companie :

rli\'ale cumpany: the shar's (AmE sl ck-) are f~rivLlt
in tile sense that th y annat b bougl t by m mbers of
the public. The '1St m jorit)' of companies f II into this
category. They're often 'm ller companjes, with shares
held by few busin ss ,ssoci, tes or family members.
Public company: the shLlres an~ openly traded on a public
stock exchan~e. These are the large, often well-known
businesses. The word 'public' hould n t be c ntu 'd with
'state-owned'. A' lale- wned ntcrprise' ( OE) is owned
by th govemment.
The Board
Public ompanies are antI' lied b, a board of directors ('the
Board'), ell' ted by the shareholders. Not ~Il BO<:1rds are fully
independent, but in general their role 's to:
Set long-term strategy.
ppoint a hi f Xl' utiv
fficer (CEO) and other
members f the senior management team to run the
company day-t -day.
Ask question about any sl1ort- l r medium-term trat"'gy
de 'eloped by the CEO, n t then support it once thl.: . have
ag 'd.
Overs 'c the preparation at th financi I statements.
Appoint and ensure the ind pendence 0 til company's
oludito ,'.
0' rsec and manage ri k.
l an annual di iJend.
Who dlO) e$ thc Board? In theory, it's the 'hareholders.
t the nnual Cen ral Meeting (ArnE Annual Meeting of
Stockholders) the sharel olders can question Board member,
14
Anglo-American model: separation of ownership (ie

shareholders) and control (ie managers); priority given to Ihe
interests of shareholder.
European / Japanese model: similar to the AngloAmerican
model. but a greater recognition of the interests of other
stakeholders such as employees, suppliers, customers, lenders
(eg banks), and the community.
East Asian / Latin model: family-owned companies with no
independent Board or outside shareholders.
owadays this tr, diti.onal pattern is breaking down, and

er, lhe follOWing basic
the situation is more mixed. Ho
prin 'pltes of corporate go ml1l1 arc widely accepted:
Respect for the right of hareh IdeI"
de I' definition of the rt Ie" and I' spon ibilities f Board
members.
Integrity and ethic, l behaviour.
Di -closure (= gi ing full informution) and lransparen y.
6 COMPANY TYPES AND CORPORATE GOVERNANCE
Exercises
5
Underline the correct words in italics.
1 Money that a person or company owes 15 debt / liability

The word debts / liabilities, when used in the plural and in a
formal context, has the same meaning - but it can also have
a wider meaning of 'legal responsibilities'
2 The word owner / proprietor means that you legally have
something - anything The word owner / proprietor means
that you ha e a business (and IS more formal).
3 If you and your busines partners all have he same risks
at the same time, then you divide / sh re the risks. If you
separate the risks Into smaller parts or different categories,
then you divide / share them (= spilt them)
4 A shareholder / stakeholder / stockholder IS someone who
owns part of a busllless, III British English A shareholder /
stakeholder / stockholder is the same, in American English
A shareholder / stakeholder / stockholder is anyone who has
an interest In the SL ccess of a plan, system or organization
5 If you'r a shareholder in a company, then every year you
receive an income / a profit / a dividend paid out of the
company's Income / profits / dividends.
Read the definition below and find the word in the
text. (It appears twic.e.)

(formal) 'a general term for any institution, company,
partnership, government agency, or any other organization
which eXists in law as a separate and complete unit.'
Fill in the missing letters.
4
5
6
If you're completely liable for something, then you're f

y
liable.
If you're liable for something in law, then you're Ie lIy
liable.
If you as an individual are liable for something, then you're
per
ally liable.
If you may be liable for something, then you'r pot
,ally
hable.
If you keep shares for a long time, then you h

them
If you buy and sell shares, then you tr

them.
Now do the same for the 'Corporate governance' section.

5 the quality of being honest and having high moral standards
6 dOing lhings In a way that allows other people to know
exactly what you're dOing
Make word partnerships by matching one item from

each box. Then use the word partnerships to complete
the text below.
detailed
entity
legal
limited
non-profit
legis/ation
liability
organization
The letters that follow a company name can tell you about
Its status in law.
In the UK, a private company has 'Ltd' after its name
of Its owners) and
(because of the'
a publiC company has PLC (standing for Public Limited
Company).
In the US, 'LLC' (Limited Liability Company) and 'Corp' are
approximate eqUivalents to 'Ltd' and 'PLC, although the
7
governing company formation is
different in the two co'untries.
The letters 'Inc' (meaning 'Incorporated') are also used In

the US, and they cover a very broad range of organizations
that IS separate
They can refer to any 3
from its owners such as a private company, a publiC
company, a 4
, or a sports club
Cover everything on these two pages with a piece of

paper, Write down the full form of these abbreviations:
CEO, AGM, PLC, LLC.
Find a word in 'The Board' section opposite that
matches each definition below.
1 watch the progress of something to mak ur It'S done
correctly; supervise
2 external firms that officially examine the finanCial records
of a company to see that they're true and correct
3 an amount of the profits that the company pays to
shareholders
.1 money invested in a business
"All
j" jafior of
a &ap on our liability'"
The u in
5S
wor d
1:;
bal
sue for the 21
Geopolitics and the world economy

What big-picture issues ilre likely to dominate
geopolitics and the world l:conom . in the 'oming
decades 7 Here are some suggestions:
tury
Management and business
The growth of the BRI s

The big story of the 21st century i the r wth f
Brazil, Ru s1a, India and China (plus the Middl East).
his is certain t translate into in reased geopolitical
influenc for Lhe. e countries.
The decline of the dollar
ne impact of the previous trend is that the dl)l1ar
willI) e its status as the world's re erve curr ncy.
Centr [banks will hold fewer dollars, and oil will
be priced in a rang ofurrencies. But whilt el e will
happen in the currency area? Wlll a common Asian or
La in Anpri an cun ncyemerge? nd what about the
internal confli"t over the lIro - should it be strong to
fight intlation r weak tn 11 lp exporter .
Climate change
[ bal wamun i happ ning. H~)wevcr, an solution
that hold' back the progress of de eJoping countries
15 likelv to be resisted. D veloping countries an
accuse the developed n tions of hypocrisy - w tern
countries have illready been thr ugh tl ei ind trial
phase and n w have the luxury of thinking about
sustainable growth. D veloping nations don't havc
this luxury.
Peak oil
lob 1oil production is going t peak very soun
there's just n t enough left in the ground. 0 suppl) is
shrinking. Ah1, de 'l'l ping nations are hungry for oil
- for transport, inelll'ltry, t. 50 emand is rising. Put
together fallin supply and ri "ing demand and you
get one thing: much higher price- for th fore eenble
future.
Energy security and altentative energy
Some countries have a lot of en rgy rcsources, others
don't. And if you don't, you h
a In jOt' geopolitic< [
problem. It's called dep ndency. Put this issue
together with peak oil, and it pints in ne dir ction:
alternative eneq;;y. But orne green achvi ts nre
unrealistic about this - solar, wind, lid, I, etc an on 1y
meet a frac 'on of the world's energy n eds. The one
technol gy that might make a difference is nuclear.
An that, of course, is ontroversial.
For me, branding and design are the key issues. Customers
can easily find good quality and valu -for-money - all our
competitors offer this. To survive, you need more than this,
you need branding. Without a strong brand, you have no
customer loyalty and no pricing power. And linked to branding
is design - customers will pay for design. These are the major
battlefields in modern business, not cost or quality.
In our organization, finding and developing talent is going

to be a major issue. There's a declining birthrate, and the
increased mobility of labour means that workers can choose
where they work and for whom. So taLent is going to be in
short supply. And that's particularly true for knowledge workers
and creatives. We will need to find ways to motivate them and
retain th m inside our organization.
In the modern workplace, managing diversity is going to

b come increasingly complex. We've ot issues of gender,
ethnicit and ag . We try to make equal opportunities work,
but we haven't done as well as we'd like. And now we have
new problems of multicultural management across national
borders. Imagine the problems when team members from
different cultural backgrounds hold virtual meetings on the
web without the chance to get to know each other in person.
The issue that we talk about more and more these days is CSR
- corporate social responsibility. I'm talking about fair trade,
the environmental impact of business, the effect on locaL
com munities, sustainable development, labour practices and
stuff like that. Campaigns by activists can affect your profits
and destroy your brand.
In many industries a major issue is the threat caused by the

Internet. Basically, if it can be digitized, it can be pirated.
The music and software industries have already been hit badly
by this, the film industry is next and publishing will follow.
Shortages of other resources and commodities

h bad n w ontimlCS_ As well as a shorta~e of
enerK, we're also [ort of wat r (in China, Southern
mope and the iddle ast). And as living standards
ris, e'll find that many gricu!turn[ commodities
(eg wheat, corn, meat) arc in h rt -upp!y as w II.
1ft
Generally speaking, globalization has been good for business.

But now there is a backlash against globalization amongst
the public. This is creating political pressures for protectionism
and for local sourcing to protect jobs. For us that means
reduced access to world markets and higher costs.
6 GLOBAL ISSUES FOR THE 21ST CENTURY
xercises
column.
I geopohtlcal
warming
2 climate
3 global
4 sustainable
----- IIlfluence
growth
change
5 peak
6 green
7 major
8 living
activists
standards
9
10
11
12
worker
power
impact
birthrate
011
battlefield
pricing
declining
knowledge
environmental
Complete the beginning of each phrase with its

correct ending.
1
2
3
4
5
6
8
9
10
beshort~
be hungry~
be In short
have a common Asian
price oil In
accuse someone
in he coming
for the foreseeable
hold
have access
supply
future
decades
of resources
for resources
of hypocrisy
to world markets
a virtual meeting
currency
dollars
Find a word from the section 'Management and

business' opposite that matches the definitions below.
The words appear in order.
fill in the gaps with a different form of the word

in brackets. The new form may be a noun (singular or
plural), verb or adjective. Some words are not in the text.
1 Global
(warm) and the

(destroy) of the environment are
(threat) the plane1.
2 Green
(active) and other pressure
groups are becoming Increasingly
(influence) In determining the
(environment) policies of large companies.
3 Genetic
(engineer) IS very
(controversy), but many
developing nations see it as the only way to ensure
continuing
(grow) In agricultural
(produce).
(economy) strategy
4 Their government's
(industrialize) ThiS has
is one of rapid
(strong) and
both
(weak)
Complete the text about fair trade with the words in

the box.
access
(human resources) keep someone
5 the fact of being either male or female
capable of continuing for a long time at the same level
a strong,
negative reaction to something that was previously

popular
B getting a product or component from somewhere
premium
Creating opportunities for economically disadvantaged

producers by paying fair pri e It is a strategy for
reducing 3
Developing producers' independence by opening
~
to new markets and building
management skills.
Safe and healthy wor Ing conditions
5
equality
Go d environmental practices and responsible methods
of production.
being faithful, always giving support
3 people who use their imagination or skills to make things
poverty
subsidy
Fair trade IS an 0 ganized social movement which promotes

for laboul, social POliCY,
environmentalism and sustainable development
Key 2
of fair trade are
1 good quality (or quantity) In relation to the price
I)
gender
overproduction
principle
standards
But fair trade has its critiCS People say that too much of the
price paid by consumers goes to the
retailers And over the long term fair trade operates as a
hidden 7
It puts a price floor under a
commodity and therefore encourages S
This can eventually lead to lower prices for growers
everywhere.
The usmess world
1i
eme
sty.
uali ies
Management styles
Person specification
Every manager will be different, but over the yeeHs

managem nt th ory h, s established three broad cate,"ories of
mal1ilgem 'nl style:
When !coking for candidates or a partIcular job, many

companies produce both a job specification and a person
speci ication This helps recruitment agencies and / or the
human. resource deparlment to find suitabl eople. Th
per on specification will include th" skills needed, experi nee
needed and personal qualities of the ide"l candidate. The
C <lrnple below shows the fin. I section, persondl qualities,
The authoritarian manager
nlis person is stnct, demanding, controlling Jnd probably

loa rigid in lheir views. TI,ey lake a lop-down approach But
some staf like this - they know wfprc lhey stilnd an whal
their responsibililies are. Their jobs are dearly defined.
The consensual manager
TIlis person believes in consultation, and in coaching ilnd
mentoring their staff to help th m devdop. Subordinates
ll. ually like U,is type of manag r, b It the milnager m", laLk
\ ision < nd fail to show kader~hip.
The hands-off manager

TItis perRon delegates everything, or JUSl leaves pr blen1S
in the 11 lpe tilat they go i1wny. They will justify their st Ie
a:; emp(,)\>\ierment (ie giving control nver deLisions t other
people), but suburdinates will feel a lack of guidcmce and
support. Liaison between colle, gues (co-workers) will be
uncoordina ted.
An important point is thal management style might renect
the compallY culhlre as much as the pcrsonillity of the
individucll. So a hierarchical compan o with a burei1LlCratic
decision-making process will suit n type of mallilger. On
the other hand, a decentralized company where low-level
manai::,<~rs can take the iniliali c will suit another.
We also have to remember that different business situations
will require difrer 'nt management qualib s:
Consider the manager who is methodical, systemnbc and
organiz'd. Is that, lways, good thing? a be there ilre
ituiltion' wher it" better to be inhlitive ilnd flexible, or
to take cieci ions quickly witho It kno ing all the fads.
Consider the mrnager who is a good team layer,
co-operative iln:! supportive, ls that illways a good thing?
Milybe there are situatiol1S where it's better to work on
your OVVl1, being elf-motivated and proactive.
PERSO
SPECIFICATION
, I ,
Ie
The ideal candidate will be able
to
demonstrate the follOWing
skills:
An ability to ...
Pe ana q
Business knowledge
The ideal candidate will:
have a good understanding of the market
keep up
to
date with developments In the field
Strategic ability
be able co translate company strategy into individual
business unit objectives
be able to balance conflicting business interests within the
organization
Organizational ability
be a good adm1l1iscracor
be a good time-manager
be conscientious and thorough
be a good team-builder
Relation to subordinates
The Ideal candidate will:
have an ability to motivate
Qualities or skills?
know when co delegate and when co refer upwards
Here is something interesting to think about: notice that in

the text above there is reference to styles ilnd '1t1alities, not
tLJ skiUs. This distinction is importLlnt. Qualities ar' a part of
your character and personality - they were presenl ilt birth or
formed early in yow: life and you will hnd it hard to change
these things. Skills, howevC'r, are things you can lea m -like
h w to speak another language, or give a good presentation.
Skills an b develop d and impro ed through practice and
xperience, 1.J1Ialibe much les so. n,at rais 5 m ny i 'sues
for training, personal development and car er choi 'e.
keep good lines of communication

have an 'open door' policy
be a good listener
have an ability to control and give feedback in an
appropdate way
Character
like challenges
be prepared
to
rake risks
be honest and transparent
be single-minded and determined
be able to recover qUickly after a setback
stay calm undel- pressure
7 MANAGEMENT STYLES AND QUALITIES
Exercises
7.1 Find a word in the text opposite that matches each
1 expecting other people to obey rules completely
2 needing a lot of your time and energy

3 involving the agreement of most people in a group;
democratic
4 giving training or advice for a specific Job or task
5 adviSing nd helping someone more generally over a
longer time period
6 exchange of Information between people so that they
work well tog ther
7 where people and jobs are divided into many levels of
Importance
8 taking action before it's needed, rather than waiting until
problems develop
Now do the same for the words in 'Person specification'

opposite.
9 showing a lot of care and attention
10 including every possible detail and avoidillg mistakes
11 wanting to do something very much so that you Will not

let anything stop you
12 a problern hat delays or stops progress
Change each adjective into an opposite meaning

by filling in the letters. If there is a prefix. it may be
de-, dis-, in- or un-,
1 simple
bureau
c
2 centralized
centralized
3 co-operative
4 coordinated
5 direct
5 flexible
7 hands-off
8 honest
9 IntUitive
10 methodi I
11 organized
12 stressed
13 supportive
14 top-down
15 transparent
helpful
co-operative /
coordinated
direct
flexible / Ii d
hands
honest
al
rat
carel
organized / me y
ed / c m
re
supportive
b
clear
Choose the best adjective from those in 7.2 (both

columns) to describe these managers.
1 He's under a lot of pressure and looks warned all the time
He's really
2 Once she's made a plan, she doesn't like changing It She's a
bit
3 He likes to get involved and do hings, rather than just
talking about them or making other people do them He's
velY
4 Her desk is so untidy - papers everywhere I It's really
5 He produces complicated rules fO!' everything HiS approach

is very
6 She's honest and open and doesn't try to hide anything
She's very

column.
on your own and be self-motivated
the initiative
know
"'-....."
work
...... vision and fail to show leadership
take
where you stand
keep
quickly after a setback
give
general strategy into specific objectives
recover
up to date With developments in the field
translate
feedback in an appropriate way
1 lack--.........
2
3
4
5
6
7
8
7 5 Complete the text about teams with the words in

the box.
breathing
carry out feedback
iSSUIng
progress
report back
guiding
running
The ability to lead teams IS a key skill 111 the modern

business world The team leader has to move be ween a
vanety of approaches 1
instructions.
and supervis:ng closely at times. 2
and
encouraging and offering advice at other times
The team leader
overall 3
of course responsible for monitoring

, but once the team is up and
4
, and the objectives and team roles are
clearly defined, then he or she may be able to take a back
seat for short periods of time.
IS
Team members like to feel that they can
5
their roles without the leader
6
down their neck all the time
However, they do need to 1

regularly,
and the team leader IS expected to give them constructive
8
on their performance
M n 9 ment
1';J
Org nz 9 ime and work

At U1e plannin~ stage of;) project the amount of work required can I ok hightening. To make it manageable, you
ne d to d 'vel lp n overall time frame (timescale) f r the proje t and schedule (timetable) t h \ the d te
or times "vhn it dividu I things should happen. Hopetully, thra gil good time management, you wilJ be head
f sdledllle. Anyway, as 10ng:1s y u're on schedule, there's no problem. What you definitely don't want is to b
behind ~hed ule. rhat mans you'll be und r < lot of stress, and wh n you're totally stressed out, your work will
uffer. Y(lU might have to work long hOUfS to catdl up. nd if you'r
manager, you probably won't g t paid
overtime - it's just e pt'cted of OLi.
L
f cour e, it's not always yOUf fault. There can be delays for all sorts of reasons. Things can take long r than
planned because of circumstances beyond your control. In that case ... well, deadlines might become guidelines.
Wh<lt can you do to improve ytlUr time mane gement? Here are some tips:
Ti
Use a diary (AmE - dlenaar) to plan your tim~. Sottware
packages such as Outlook rnrluae Ihi~ fUflClIC'll, blJt many
peop.e prefer J wall chart vith 'uckers and colour coding (l
how different adivlti
Make il realist; plan ,mel then prioritlzp thE' tasks D the 'A ta; s
fir> -the Impor ant, unpl asan\, or timf>-rnnsuming ones. Then
you II urn 0 lhe less Il11p0rliln ones wi h,~ lear mind Donr
qet dis racted by dOIr>g the small, easy t"sk, first
lise checkhsrs
Know nd use the Iling s stem on your compu er r roperly

A lot of he orkflow in business involves electronic paperwork,
elf d y. u ne d 0 know how to ccess doc. lments, modify them.
. hare lhem and archive rhern
Delegate
Don't try 0 b a perfecUOnisl In everything I akes lime to
get things absolutely right, nd time is money. Shalt cu s r ,~n
be acceptable; 'quick and d,rty'solulion may be OK. rry ()
blann" quality, cost and time.
But of cour'e you kmJw all that, and Oll have already implement 'd these sugge tions. YOll u e careful
time management to plan yom workl ad. You never put off unpleasant tasks Of 10 e concentration. Becau e
o this, yo r work is timulating and rewarding. You do everything with calm and foclls. At the end of
each day you go home with
n e of chi-.vement. You ay to your If, 'The world is <l better place today
becaLl e of what I did in my job.' Right?
Planning
e Ing and achie ing targets
Improving proouetivi y
Controlhng, delegating nd gIving feedback
DeCision-making
.Jatrsfying cuStomer needs
Managing quality
Managing change
Pia ning staffin_ neds, an recrui1ll1g and selecting new ,taff

Developing the eam, supper Ing an guiding individuals
Delegatin dnd monitoring
Mo ivatlng
Managing conflict
Carrying out performance reVle, s
e arding achievement
20
Preparrng and negotiating budgets

M nrtoring the budget
lontroilin com
aking investment decisions
(hailing and/or participating in meetings

Replying to email,
Telephoning
Accessing Information on the company IT netwo k
Reading and writing reports and proposals
Keeping files up 0 date
Sp aking in public, giving presentations
........1'
I flip mlent
Managing your bos~

Developing your skills and competenCies
Attending conferences and eminars
Reading about recen ideas and developmen s in your field
Minimizing stress
8 ORGANIZING TIME AND WORK
Exercises
8.1 Fill in the missing letters.
The project IS going very well In fad, we're
d
of schedule The workf w is organized efficiently,
and we have a big wall ch
with sti
rs
showing the different stages of the project and what
e eryone should b doing I like our team leader - she
has established the general gu
lines for our work,
but she leaves it up to us to pr
tize our tasks on
a day-to-day basIs Of course, there are always
eha
nges to fa e, but so far we've been able to
m t those challenges. It's a great experience. I find
the work sti
ating and rew
ing It's given me a
real s
e of ch
ment
4 Please
ten working days for delivery
5 Last week I
six hours 0 ertime They're
going to pay me time-and-iJ-hCllf
6 This really isn't important - we'll
too
much time if we do it Let's lUst leave i
7 That's an excellent Idea - we could
around two weeks on our planned schedule by dOing It.
8 I got distracted this ahernoon. I'll have to
time by staying late at the office
tonight
Look at 'What do managers manage?' opposite.
Find a word that is used in two ways
a) a plan of how to spend money. and b) the money itself
2 Find a formal word that is used in the field of human

resources to mean 'speCific knowledge and skills' In other
ords, knowledge and skills that are used for a particular
task In a particular Job
Read the text about delegating, then answer the

questions below.
2
The work
d in this project 15 far bigger than
anyone expected. There's a lot of unexpected
pa
work that is very time-con
ing to complete
d
fnings are not gOing well. In fad, we're
schedule. We might even miss the dea
Everyone IS totally s
ed
. People al'e
taking sh
-c s and quality is suffering It's Just so
frustrating, and it's not even our fault - It'S entilely due
ces b
d our control The only
to C1rCU
way we're going to finish this work Within the given
time fr
is by finding some kind of qu
and
di
solution I know it isn't ideal, but what else
can we dOl
II managers have constraints on their lime- so many
tasks seem urgfllnt and vital. and yet no one person
can tackle them all Delegation is the answer.
Once you've appointed the person responsible for the
particular ta k, you need to brief them thoroughly How
much autonomy are you going to allow them? How often
should they report back to you With progress updates, and
in what detail? And who else needs to be in the loop? After
all, It's not lust you who needs to know what's happening
Control will be a key issue What happens if they hit an
unexpecled snag? You can'ltake all the responsibllit away
from them - figuring out, olutions to problems will be a
challenge and a motivation for them However, you do need
to make sure that tasks are completed successfullv.

1 IIiTiits
2 deal With
3 give necessary information
4 (four words) be part of a group of people that has Information
2 Complete the sentences with the verbs in the box.

They are all used with time expressions.
allow
find
make up
put in
run out of save
spend
waste
How much time do you

on reading
books about management!
I know you're busy, but I wonder If you could
some time tomorrow to check my
report)
That's rt. We have to finish now. We've
time.
about something
5 (informal) problem
6 (phrasal verb) being able to understand; solving
8.5 Read the following sentence and decide if it's

grammatically correct.
Once you've appointed the responsible for the particular task,
you need to brief them thoroughly
Compare with the third sentence in the text above.

Managemen.
2J
PI
ng a d se ing objectives
What is a plan"
plan:
has obj ti\ e- whi h an be mea ured.
answers questions that stakeholders ( 'g shareholders,
banks, "mployees) wiJl ask.
builds ill option.
identifies and quantifies risks.
shows how to minimize those risk (and perhaps indud

a co tingcn y plan for what h ppens if things go wrong).
all)w progres to 'e m asurcd.
1 Summary and main conclusions
2 Introducti n
2.1
Other points to note are:

TI1a.l there is a .ost t planning in terms of management,
time and research.
That all plans make as'umptions, alth ugh these are often
n t stated explicitly.
hat there are s( me ve,~ speciric types of busine s
planning (eg project 11 anag ment is a distinct busin .5
function in its own right).
Elements of a plan
ampr hen ive busines plan for a large company might
involve the f IJowing:
Internal, nalysis: this cov rs the strengths and eakne ses
of th or~allization, historic I perf rrnan e, tr'nds in the
busin ss activity and current r~source .
External analysis: this co 'ers markets, customer,
the competiti n, tax, legislation, the g neral b(]~iness
environment, te.
Gap analysis: tJ1' stJrt. with the key issues rais d in the
first t 0 points above, and highlight those areas where
l:h 're is c gap betw n wht:'re y LI are now and where you
want to be.
A tion plan: what n cds to b", done to close th gaps? Do
products need to be improved? oes technology need to
be upgrad d? D staff need to be retrained?
R~l>urcc ass sment: what the action plc1n needs in t nns
of human resourc s, material resources (eg plant, space
inside buildings, equipment), IT r",sources and finimcial
re ourees.
Targets: p clfic target for financial r turns, costs, market
share, sales, growth, custe mer sati faction, qU<:l!ity, etc.
Financial issues: cash flow foreca ts, proj 'cted profit and
I s (P&L).
Cun'ent situation
2.2 Need for change
3'
3 Internal analys
3.1
Internal strengths
3.2
Internal weaknesses
4 Market analysis
4.1
External opportunities
4.2
External threats
5 Marketing plan
5.1
New product ideas
n(
5.2
Pricing issues
ct
5.3
Sales targets and market share targets
5.4 Geographical diversification

5.5
Improvements to distribution channel
5.6 Advertising campaigns
2
3
4
5
6
6 Oper tiona plan

6.1
New plant and equipment
6.2
Efficiency of production process
6.3
Productivity issues
6.4 Ideas for saving costs

6.5
7.1
Cash flow forecast
7.2
Profit and loss forecast
ents
1
2
ncials
ad
Outsourcing proposals
6 6 Quality issues
Look at the Contents page of the business plan on the right.

It is the killd of plan that a small or medium-sized bu "iness
might pro uce to d fine its strategy )i!;oing forward. The plan
might al 0 be needed to sh w to a bank if new funding is
I' quir'd.
")")
Business Plan: Contents
An nrganizi'ltion's vision ( . pically 5-10 years) shape" its

strategy (2-5 ears), which in turn shape it plans (1 year).
81
Human resources
8.2
Capital investment
83
IT
pp ndlce
9 PLANNING A 0 SETIING OBJEcrlVES
Exercises
1 all those people who have an mterest In the success of a

plan, system or organization
2 (two words) a course of action that you will lak If
something bad happens in the future
3 beliefs that are used as the basis for an Idea, bUl whicll
may not be correct
4 gradual changes or developments, tendencies
5 (formal) law:
6 makes people notice something and think about It
factory or bUilding where an industrial process takes

place, and all its heavy machinery
8 things that you try to achieve
9 (two words) phrase often used in a business context to
mean 'In he future'

7
Now do the same for the 'Contents' page opposite.

10 prediction
.2 One verb from each group does not go with the
noun at the end. Cross it out.
Check any unknown words in a dictionary.
1 cur, estImate, Implement recover costs

2 access, achieve, g t hold of, withhold information
3 consider, keep open, meet suggest options
4 be based on, carry out do, make research
5 Identify, minimize, quantify, reach rrsks
6 boost forecast, generate, set up sales
3 Match a group of verbs 1-3 and a group of
adjectives a-< to the nouns below.
1 achieve, exceed, fall short of, mee , re ch

2 clarify, deal with, discuss, explore, focus on, raise, tackle
3 come up with, go ahead with, Implement, keep to, put
forward, shelve
a ambitious, contingency, detailed, five-poin , I ng-terrn,
realistic, strategic, three-year
b ambitious, annual. high, initial, realistic, sales
c basic, central, c mplex, crucial. main, side, unresolved, Vital
target
plan
9
Rewrite the sentences using a verb + an adjective
from exercise 9.3. Keep the same meaning.
1 We will go above the target we had at the beginning

We WIll
our
target
2 We Will go below our yearly target.
We Will
our
target
3 We deCided to start the plan for the next three years.
We deoded to
the
plan,
4 We will have to 51 p OUr plans for the future (although we
might continue with them later),
We will have to
our
plans
5 The issue that they wanted us to conSider is very
complicated.
The issue that they
5 very
9
Match a group of verbs 1-3 and a group of
adjectives a-< to the nouns below.
1 arrange, follow, go according to, revi~e. stick to
2 achieve, fail in, fulfil, meet. reacl" set

3 approve, cut, increase, plan, reduce, stick to, submi
a clear, key, limited, ton~-term. major, overall. pmnary, speci ic

b annual. draft, fixed, limited, low, tight, marketing
c ambitiOUS, busy, strict, tight weekly
schedule
budget
9. Rewrite the sentences using a verb + an adjective

from exercise 9.5. Keep the same meaning.
1 At thiS poin we Just need to dedde our general objectives
At this poin we just need to

our
objectives
2 We must keep to the schedule - there's only Just enough
time
We must
the schedule - it's very
3 I have to give a provisional budget 0 that they can make a
decision (It can be hanged later)

I have to
a
budget
issue
"Damn. I think I all! Plan B, "
Managemen
:!~
mo Iva
W at is leadership in business?
Clearly, an ntrcpreneur show - leadership. They t rt their
own b~ in _, and th n build it up from scr tell. But the
head of a t am, department or large org-aoiL hon an aJ 0
how leadership. What do these eople have in common?
A good way to answer this is to look at the difference
between leader hip and m nagemcnt. 0 simplify greatly:
Leaders look at Ih big piclur I w Ieome change, are good
at mot!vatmg and influencing, and work v ell alan (or at
the head of teams).
Managers 10 k al the detaib, wei (me 'lability, ar go I
at sup rvising, amI work weI[ as team members.
In additi n, manag r tend to get Iheir authority fron Iheir

role (a b( ss ith subordinates), while leader' get th ir
authority from Ih 'ir personalil,. I eo Ie JU t lurn to lead 'r
for guidanc', regilrdles' of Lh ir position. They ha 'e c\ qua IiI
of pers nal im a t.
Eight characteristics
a good leader
Vi i n: this means genera ing idea~ about the ely ahead,
dnd then g tling buy-in (= om itment to

he red goal)
from othe peopl .
Motivation: s ell as 0 vioLls IhillgS like salary, thi.
includes paise, appr ci tion nd rec gnition.
motional intelligen e: Ihis L1sed to be called empalhy or

intuition. II means 'readmg people' - knowing what Lhey
ant or need.
Empowering others: tell peopl what you expect from
th m, gi\'e them the toob th y nc Ii to. u ceed, and then
get oul f their way. Learn 10 listen; noth'ng is more
cmpo\ ring than bemg heard.
Bing tru 'Iworthy: your behaVIOur ~h()uld be t:on istent
witl your beliefs, th. rwise people \o\'on't l'it y\) l.
ctions peak louder than words.
Taking ri ks and managing hange: leaders need to be
change agents - in a ia t-mo ing wor! ,any organization
that stands sbU will fail. But cl ange brings resistance.
Leaders have to ex lain why change i nc essary,
slabli h a pro '5, involve everyone, pro 'ide support,
communi ate the outcomes and 'har the bel1l~fits.
F cu and f0!low-through: this involv . setting priorities
and oing what you say yOLl will do. Unforhmately, many
Je.:lder~ are poor finishers.
A sense of hum ur: the ability to hugh at your elf i~ c1
good way t bring \lthe al ng with YOli. 11 demon trate.
a de ree of sdf-kn \ ledge.
80%
lOO'!'.
A survey by Kaisen
Consulting asked people
in a wide range of industry
sectors what made them
feel good at work. Here are
the results:
.
IGood wotik'o9 IIt~2.ph.ro
1~
IEmpowerment,
'10
Notice the dominance of the top three categories:

A sense of achievement, and haVing that achievement
recognized. appear to be str n motivators Positive working
relationships are also important. Notice also that 'financial
reward' was only ranked sixt . This is quite surprising.
The researchers then asked people what made them feel
bad at work. Here, the most common res onse by f r was
a negative experience with colleagues'. A range of other
factors were also menlioned: lack of recognition. company
politics. stress, bonng work. etc. Items thaI were mentioned
less often included lack of support, haVing a bad boss, lack
of direction and unsatisfactory levels of pay. These did not
seem to be importanl demotivalors
2-1
The researchers drew the following conclusions about

motivation:
In a task-oriented bUSiness world, it's important to
remember that relationships and the 'emotional' dlmen510n
to work are very important.
Recognition and positive feedback are the xygen of
motivation.
Employes ask, 'What's in it for me)' Business success and
customer satisfaction did not ppear as motivational factors
Motivation and demotivation are not qual and exact
opposites. For example, while 'a hievement' was the
strongest motivator, 'failure' w s rarely mentioned as a
demotivator
10 LEADING AND MOTIVATING
Exercises
o Find a word in the first two sections of the text
opposite that matches each definition below. The words
appear in order.
1 (rvvo words) from the beginning
3 manage
change in a fast-moving world isn't

easy.
b This situation IS out of control. It's ompletely
2 (three words) the whole situation, not just one part of it

4 satisfy
3 the
ay in which someone is involved in an adivity; position
a A Job well done gives me a great feeling of
4 understanding how other' people feel

5 knowledge that is based on feelings rather than facts
b My wo king conditions are errible They're just totally
6 giving someone more control over their life and work
5 analyze
a She's good at separating a complex problem into its parts
.- she's very
b On the whole, I gree With your
7 able to be trusted
8 results
1 2 The text mentions 'praise. appreciation and
recognition' as being a part of motivation. Which one of

these is the strongest motivator?
Learners of English often use the word
'sympathetic' when talking about someone such as
a good leader. Put a tick (,I) by the definition which
matches how a native-speaker uses this word.
1 friendly, OIce
2 Willing to understand someone's problems and help them
Make phrases from the 'Motivation' section of the

text by matching an item from each column.
1 posltlve:--------.
Z negative
3 sense of
4 lack of
5 company
6 physical
7 1ilsk
8 fmancial
achievement (motivator)
feedback from your boss (motivator)
recognition (demotlvator)
experiences with colleagues (demotlvator)
oriented bUSiness world
pohtlcs
reward
environmen t
Complete each sentence with the correct form of

the word in italics. Sometimes you will need to use a
negative form (de-. uno).
1
lead
a It's the
b It's he market
c She showed excellent
company in the field

ability.
1 6 Read the text about influencing, then answer the

questions below.
eaders are good at influencing people, It's a hidden skill
- very important. but often ignored Influencing may
take tile form of persuading people to adopt their Ideas,
inspiring people to achieve certain goals. or creating
relationships.
Influencing requires a IX of interpersonal, communication,

presentation and assertiveness skill . And most importantly,
you need 10 be able to adapt and modify your personal
style when you see the effect It'S having on others. Yo
can't fmce your ideas on other people - tIley have to feel
acknowledged, understood and appreciated.
There's a kind of buzz around a good Influencer. They don't
moan, blame nd complain They see what needs doing
and then start talking to others to try to get agreement and
action.

1 reach, ucceed in getting
2 ability to express your Ideas firmly and confidently
3 heard and accepted

4 (informal) feeling of pleasure or exotement
5 (informal) complain in an annoying way
2 motivate
i1
Sense of achievement is probably the number one

fador
I lett m Job because it offered no new challenges, I was
bored and
Management
23
ur:::lln~o.
a a
d ris
E\'ery bu,;in ss fac sri k', nd many 0 these al'e insur<lble.

lnsurance may be obligatory, or optional, but it is certainly
a part uf prudent ri k m nagE'I11ent. Ther' ar two basic
l./pes of business il1SUfilnce: liability insurall e end property
insuran e.
Liab'lity insurance
Li bilily insurance overs d mage caused to other people.
An employee might suffer cl "vurk-related accident, or a
\ i itor might lip on a polished floor < nd bre k < n < rm.
In either asc, they can su~' yOll cll1d will try to prove
negligence (= failur lCl take enough arc). Th r is also
producl liability insurance (in case someone sue ou after
llsing a product), and professional indemnit insurance
(. mE malpractice insurance) in case a client u s you f r
maj.,jng
0_ tty mi. take while ,dvising them.
Property insurance
Property inurance cover' damage to the insured's own
property. Damage might be caused by fir ,vandalism, t.
The company might abo need automobile insuranct'.
Some policie in lude the -ervices of a lawyer (AmE
attornev) in th e ent that you're sued, while others don't.
And it's imp rtant to remember that your prot chon is
limited to lh m, xirnum on the policy. If a court award
damages that x eed this figure, then you're liable for the
differencc.
me
Policies
When you take OLlt an insurance policy (Ie 'ontract), y u
make a regular pH ment i111 d a 'prcmium' to an insur r.
The policy states how m leh will b paid and under which
cirCLlmstan es. Read it car fully, d1eck the mall print, and
in particuldf check any exclusion clauses. After a 'ear, befon'
the antra t e pires, you will be sent a r newal noli .
Insuran.e is available throug-h several hannels: ag nts (who
work directly for one insurance company), indep 'n lent
brokers (who search for the best poli , amongst many
alternatives) and dirl'ct selling (often over the Internet).
Agents and brokers work on commissi n.
Claims
If you need to make a claim, you fill olll a f rm al1d wait f~)r
it tu be processed. If the insurance company suspects that
y u're underinsured, r cl, iming too mu h mon y, th 'y can
appoint a loss adjuster (Am llaims adjuster) to examine
the situation. ventually, th y pa, out and YllU receive your
compensation.
Ii an insurer feds that they have taken On lao much risk, then
they can go to a reinsurance company to provide O\'er for
themselves.
Integration problems arising from a mel-ger
St-r.ttPCJic
Or'
acquisltJon.
Changes in the market such as a new competitor or changes in demand.

New technologies that threaten your business model.
Political / Economic instability in an export m, rket
Breakdown of key equipment
Supply dlain pl-oblems: late delivel-y, quality Issues. etc.
IT f( ilure: loss of da . dama e due to virus

POOI-
I'
h ckers.
accounting that fails to shovv the I-eal financial situaLion
Employee issues: recruitment difficulties, lack of people
ncial
ith the ngh skillset, etc.
Cash novv (ie liquidity) problems.
Bad debt
Increased bank charges on a loan (more expensi e credit).
Changes in foreign exchange rates.
Embezzlement (= when someone steals money fmm their own company).
New employment legislation.
New health and safety legislation
11 INSURANCE AND RISK MANAGEMENT
Exercises
11. Find a word in the text opposite that matches each
1 sensible and careful
2 legal responsibility for something
3 start a legal process to get r loney from som one
4 formal protection against loss or damage
5 dehberately damaging things

6 (two words) makes a decision to give someone
compensation
7 (two words) sections of a contract that say what Isn't

covered by the contract
8 (t 0 words) written reminder that a contract is olng to

end oon and you must pay if you want It to continue
9 (phrasal verb) give money as the result of an in urance

claim
10 money that someone receives becaus of damage they
have suffered
Now do the same for words in 'But you can't insure

against' opposite.
11 (two words) money that will never be collected from
customers
12 (formal) the p actice of obeying a law
1
column.
, be legally--.........
2 try to prove
3 award
4 be liable
5 take out
6 take on
7 be sent
8 check
for the difference

""
damages
"------obliged to do something
negligence
a renewal notice
an insurance policy
the small print
too much risk
1
Cross out the item which has a different meaning
to the others.
1 to dispute, file, put in, submit a claim
2 to meet, pay. reject, settle a claim
3 considerable, high, potential, serious, significant risk
4 to avoid, face, run, take a risk
5 to assess, measure, minimize, weigh up the risks
1 How much is he insuran e to I on your carl

2 Do you have lilsurance for I to anyone to drive the carl
3 You have to take out I take up bUilding and contents
Insurance as a condition of the mo gage
4 This policy provides insurance against I In favour of loss or
damage by I up to 5 ,000
5 We' e insured all our IT equipment for I ith over a million
euros.
6 Can you claim tI e damage by I on your Insurance I
7 They did I made a claim for I of damages.
8 There is a risk to I of consumers by I from these products
We will have to withdraw them from the mark t
9 We are t I with risk to be / of bein sued
10 You should go to court / the judge you have a right I
rightful claim.
Complete this text about risk management with

the words in the box. Check any unknown words in a
dictionary.
contingency plan
damage /Imitation
exposure to risk
remedial action
escalation procedure
risk assessments
Some companies have risk-taking culture, while others

want less 1
. But in any
case, the senior managers of large companies are likely
to prepare regular 2
A
typical tool here is a risk map. This has probability on the
horizontal axis and impact on the vertical axis. Key IIsks are
brainstormed and then plotted on the map The plOttiflg
process helps to clarify the risks, and then leads on to a
discussion about risk management.
Some risks can be redu ed or eliminated, others will have to
be accepted. For those in the latter ategory, the company
needs to have a 3
(= back
up plan) tor when things go wrong. This could involve some
initial measures as the Situation deteriorat s, and then an
~
(where more senior
managers take responsibility) if it turns into a crisi
And crises do happen - managers have to respond to fast
moving events and take 5
(intended to improve the situation) on the spot. In a worst
case scenariO, the whole thing Just becomes a
6
exercise.
Management
ring a
gineering
Manufacturing
Milnufacturing is th transformation of raw materials into
finish 'd products. It happens in fact ries, pbnts (= large
factori ) and mill:; (used f r specific industries, g steel and
kXliles).
The ord 'manuf cturing' is oft 'n associat d with indLlSlTies
like autos, ell >micals, iron an -I steel. TIlesc indu tri ,based
on mas pr dt! tion, were once maj r employers in reas lik)
Ameri a's 'Rust B It' (I1linoih, Indi a, Michigan, Ohio) and
england's 'West Midlands' - r gions associated with readily
available coal, labour and inland waterway (= canals). In the
period aft r the Second orld War these indu 'tries provid d
jobs for large numbers of lue- ollar workers, working in
secure, well-paid jobs and pI' tect d by LUlions. During
th~ I 970s and 80s these industries became unprofitable in
America and Europe. Production methods were increasingly
outdated, and !hi.' type of h cl y industry 'witch d to oth r
countries, particularly J<1pdn.
In Jape n a new appr0e h to manufilcturing emcrg d. It h d
many labels, but oyo Prod lction Sy tem was th mo-t
common. Key elements of this appr ach were elimine tion of
waste, reducing inventory levels, md in .reasing efficiency
thr Ll rh the simplification and standardiz< hon of processes
and ro edu . Many ()f the cor .oncepts still in use
commercial and l'esldentlal bUildings,

dges, roads (AmE highways), dams
today are Japan >s words such as 'kaizen' (continuous

impro ement) and 'kanb n' (checking inventory levels with
simrle visual signals).
lllis n w approach led to a r nai -sance in manufacturing all
0\ er the w rId, and evol ed int modern-day phU sophies
such a Lean Me nufacturing amI Just-In- Ime (]IT). he e
are' 5 are pi red in unit] 6.
owada s tl e term 'manufacturing' has a much wider
scope. 11 includes a rospace, automotive, biotech, chemic I ,
clothing and footwear, cI ctronic, ood and b verages,
paper and printing, phannaceuticals, plastic and polymers,
shipbuilding, steel and textiles.
Engineering
If a company makes nr s --produced products, it's generally
ref rred to a' a 'manufa turing company'. If it's re~ponsible
for complex projects Ivith a high degre of customi" tion, it's
generally referred to as an 'engineering company'.
Engineering as a profe sional activity invol

de-ignjng,
building and testing things. ngin ers ar fa Tinated by h w
dnd why things work.
A simplified breakdown of th man brand e. ( f e gineering
J
is 'hown below.
aircraft heating and cooling

industnal equipment and machinery.
automobiles,
systems,
plasC5, paints, pharmaceuticals,

agl Icullural hemlcals food processing
medical deVICes
ELECTRICAL ENGINEERING
power pr'Oduc1Jon and cbslrtbulion,

electronics, control systems,
telecommunications
'.
making Industrial processes more eflioent. making

products easier 0 manufacture and more conSistent In
qUillity InCffi>Slng productiVity
.2
land managemen . vater and sewage

systems, pollution. waste disposal.
recycling
SOFTWARE ENGINEERING
and operating systems, computer graphics,

products, monrtoring
and controlltng Industrial proceSS5
databases
embedded compulers in everyday
12 MANUFACTURING AND ENGINEERING
Exercises
1 (tINa words) natural subotances, before being made into
something
2 red substance that forms on metal whe it gets old or wet
3 working class
4 organizations that represent the workers in a particular
industry
5 not mode n enough to be useful
6 all the Items In one particular place; stock
7 all the things that
particular subject deals with, range
Match three verbs (one from each column) with

a similar meaning. They are all typical activities of an
engineer.
analyze _
c nstruct
determine
implement
monitor
eliminate
evaluate
manage
repair
simulate
stabllsh
put Into operation
examine _
supervise
assemble
keep an eye on
ind out
carry out
- - g o over
put together
get rid of
be in charge of
model
weigh up
put back into
working order
replicate
fiX
remove
assess
run
8 information that has been separated into different groups

Now do the same for the words in 'Types of engineering'
opposite.
In general, are the verbs in the third column more formal

or more informal?
12
Complete the text with the words in the box.
9 walls bUIll across a river to create a lake
10 machines or tools that do a special job (NOT 'equipment')
11 the process of ge ting rid of something
12 fixed firmly and d eply
In
something else

column.
1
2
3
4
5
6
7
8
mass
well-paid
heavy
core
continuous
wide
residential
consiotent
Job (protected by unions)

industry (eg steel)
concepts (of a philosophy)
- - - - production (methods in industry)
quality (of industrial products)
Impro ement (= 'kaizen')
scope (of a subject or activity)
buildings (in civil engineering)
1 Machines, especially large ones, are called eqUipment /

machinery; all the tools, machines and clothes, etc that you
need for a partICular Job are called equipment / machinery.
2 A series of actions that have a particular result is a process /
procedure; a wa of doing something, e<;pecially the cmrect
or usual way, IS a process / procedure
3 Useless materials and parts that are left after a process is
finished are called pollution / waste; damage caused to the
enVIronment by harmful chemicals is called pollution / waste.
economies of scale
mould
reliability
risk
slim
upgrade
up and running
workforce
A forge is a place wher;e metal is heated and then poured

into a I
- It'S the first step in the supply
chain for many car parts. And the biggest forge in the world
is Bharat Forge, in Pune, India.
The company was founded In 1961, and in the early
decades gained a reputation for quality and
2
Then, in 1988, It spent a huge
3
of money on building a high-tech
German-engineered plant Along with this investment In
technology came an 4
of manpower
Traditionally, Sharat Forge had employed a poorly educated
';
, but now it started replacing them
with white-collar college graduates
When the outsourcing wave hit the auto parts Industry in
the 1990s, Shara 's new plant was 6
and I'eady to compete
rvlme recently, It has begun a strategy of cquisitions in
Europe and China. Most of its production is still in India,
with its /
and low labour costs, but
the addition of small plants nearer to the customer reduces
supply chain 8
Production and operations
2Y
a act ry
Study th ctiagram (, f aD illitomobil > plant and the notes that explain what i happening in the different
areas. it j:; based Jooely on the Volvo Trucks plant in Gothenburg, 51- eden, and some of thl' vocabulary
b low is specific to the i1utomobile indu . try, (Check in a diclionary in' essary.) The assembly line tart~
I the left and moves to the right, and various assembly stations along th line are shown by small squares.
1, Goods reception: from here incoming goods are
distributed throughout the factory. Transport to
the stations takes place either by fork-lift truck, or
on computer-controlled automated carriers that
follow magnetic rails hidden in the floor.
8. This is where th cabs (= the front part of the

truck where the driver sits) are delivered.
They arrive on a daily schedule just like all the
other components. Heavy items such as the cab
are lowered down using overhead cranes, and
the fitters make sure that they dock
(= jOin together) correctly. They're secured in
place with bolts and nuts. Smaller components
are ttached with screws. The fitters have
r nge of spanners (AmE wrenches) to help
them do their job.
2. Storage area: parts and

components that don't go directly
to the assembly line are stored
here. There is no need for a large
warehouse as Just-lnTime
methods mean that there is very
Ii tie inventory in the plant.
9. The final stage,

before leaving the
factory, is a test and
inspection area.
Any faults or
discrepancies
are dealt with
immediately.
10. This drea, called 'The Oasis',

is a relaxation area for workers.
It has green plants and even trees.
'I
5. Front and rear axles,

delivered from other
factorie5, are supplemented
with various components.
[J
assembly line
assembly line
o
.
,
"
3. Thi, is the start of the

line. The two long metal
frames that form the
ba kbone of the truck
(= the chassis) re produced
here.
6. At these stations the

engine, transmission and
axles are all joined to the
chassis.
4. The engines are joined to

the transmission systems at
this station. Both are
delivered - fully tested
from other factories.
is particular factory is a very modem facility and the

trucks afe tailored to specific cuslomer order-. If
there are no probl ms the plant can achieve very high levels
of throllghpllt- perh p. 200 tru ks rolling off the lin~ ev r,
di1y.
firtish~d
Huwever, sometimes the line has to stop ,md the machirtery

is iJle. Of course tile ma hiner i designed for heavy use,
'10
7. Other components (eg pipes, valves,

wiring, tanks, t 'res) are attached at
differ nt station5 down the line by teams
of skill d fitters. At the end of very
station there is an information board
telling the fitters how they're doing
time-wise, and how many units still
remain to be built during the current
shift.
but there will :lh-\'ays be sam wear Jnd tear. simple

mechanical fault may be easy to fix, but i a key piccl' of
equipment is out of Jrder, then ii's a very serious probl m.
Del
aft' very expe.nsive, particularly when there is a full
ord r b ok and the plant is working at maximum capacity.
Tl e sy.tt'nl relies on regular maint nance. 0 that downtime
is reduced.
13 INSIDE A FACTORY
xerClses
1 large factory where an Industrial process happens
2 people
ho put together or repair machines or equipmenl

10
3 (informal)
uffix (= letters at the end of a word) used
with many nouns and adjectives to mean 'speaking of' or
'referring to'
4 period of work time in a place where some people
work during the day and some work at night
S differences between things that should be the same

6 a building used for
particular purpose
7 made speoally for someone's particular n ed

8 the amount of work that is done in a particular p riod of
time
9 (phrasal verb) mo ing steadily off
10 not being used (machines or factories)
11 (three words) damage which happens when something is
used a lot
12 the period of time when a machine isn't working
_0#>---,,---
15
A How big is the teel bar?

BIt's 100 centimetres II
A
B
A
B
A
B
Problems
The gears have seized up.
A bolt has worked loose.
A blade has snapped off
The screws have come loose.
The seal has burst.
The lever has jammed
A valve 1$ faulty
The parts have run out
Measurements
Its length I width I height I depth I thickness is 30 em
It's 30 em long I wide I high I deep I thick
It's 2 m long by 15 m wide by 12 m high.
The pipe IS 75 em in diameter
The area of the cross-section is 4 squ re metres.
The volume (capacity) is 8 cubic metres.
It weighs 20 kg - rounded up to the nearest kilogram.
Its weight is 20 kg.
It's flat, curved, square, circular (round), rectangular,
cylindrical, L-shaped, shaped like the letter L.
Cover the language box above with a piece of paper.

Now look at the diagram at the top of the next column
and fill in the missing letters in the dialogue below.
by! 5 centimetres 2W
by
10 centimetres 3h
I'm sorry, the noise In the factory is very loud! Did you say
that the 41
is 100 centimetres)
Yes, and the Sw
is 15 and the h
is 10
OK, that means that the are of the 7cr
-sec
IS
e centimetres.
! 50 8s
That's (ght
And how heavy is iP
It 9W
s 82 kg, lOr
d up to the nearest kilogram.
Study the language box below. It shows language

for describing problems and adjustments in a factory.
Study the language box below. It shows language

for describing objects in a factory. Check any unknown
words in a dictionary.
Shapes
---------------
Adjustments
We need to dismanlle the unit.
Can we length n I shorten / widen I tighten / loosen it?
Can we speed it uP? Can we slow it down?
It's war ing OK, but now I e need to reset the machines
Now match these verbs with the definitions below: burst,

be jammed, run out, seize up, snap off, work loose.
1
2
3
4
5
not have any more left

break off with a short loud noise
break op n suddenly
become not firmly fixed
0 longer work because something
from moving
6 suddenly stop working
IS
stopping the parts
e t and
rchas 9
Procurement or purchasing?
Global sourcing
TIl' wor 'pro urement' m ans 'fi ding and purchasing

supplies or equipment, pecially things that are difficult to
get'. The word 'purch, sing' inside that definition is a formal
word for 'buvin .'. The job tiLle 'purchasing mcmag '1" is
still used, although these days thb person. mjght b . callto:d a
'supply dlain manager' and have br ader I' pan 'ihilities for
sourcing, logistics, etc.
The related teml 'soLlrcing' mean 'Iinding ,md e"aluating

suppli.ers'. 'Outsowci.ng' is subcontracting 'Nork to external
companies. ff these external companies are in anoth I'
c untry, then it's 'global sourcing' (or 'off. horing').
Procurement
Pr curement is a crucial fLlnction in business - it's probably
the arc "vhere cost i>avings can be m d' most ensily.
It im'ol es:
finding supplier: you may make direct contact with
potential suppliers, or you may use public adverlisi, gin
th' form of a Request for Information (R I), a Request for
Quotation (RFQ), or a Request for Proposal (RFP).
Backgr und r earch: on e a numb r of p ssible suppliers
ha t' been found, you need to di' over more information
all ut their product quality and also their track rccord
for install tion, maint nance and warranti .. You may
examine product sam les and perhaps carry out some
trials.
. e, otiation: you negotiate pri e, availability,
customLzatL n pas ibilities, delivery schedules, tc.
A conlrt is drawn up.
Fulfilm nt the suppli r prepare, ships and delivers the
product. Any install<ltion an training i- canied out.
We often think of pI' urement in manufactming context,
inv Iving aU the items that go to make up the finjshed
pwduct (ie raw materials, components and part ). But il
happens in every busin ss, and includes the purcha-e of
a wide variety of goods and services - from low value
items like office supplies to complex and costly item like
consulting ervices.
Procurement is the area of business m }st op 'n to corruption:
eilh r a backhander from a supplier to a mana~er as a thank
you for being cho n, or ollw;ion between the two to fal"ify
pric '\.luality lev Is, etc. llle EU ha. a vcry -trict system 0
comp titi e tenJering (= bidding) to void th se problems,
and me n~ comp ni s also operate a three- a check of
paperwork. lllb involve' all inVOice and delivelies ~eing
verified by iI purchasing manager, the account. payable
deparhne.nt and the. plant manilger.
Global :;;oufcin u is controversial becaus~ of itE impacl on jobs

- a large numbl'f of production and ba J..-offi e jobs nrc lost
onsh reo However, if the compan) becomes more sLlc.:essfll..l
as a re utt of its lower costs, lh n new jr>bs (eg in ales,
marketing, on ulting, project management) can e creat J
on5hof'. And cerlain jobs ar nearlv always bdtt!r done by
mshore staff -thos~ rei.lliring creativity and flexible thinking.
Off hare counterparts tend to rigoroLisly follow instructions.
\'Va recent lrend.s in global sourcing have been:
TIle mnvement offshore of IT-driven service sectors like
banking, tde (lnununicatioTb and media (i not lust
m,mu factl.l ring).
Ncarshoring rilther than offshoring, for rea OIlS of poULical
pr 0.;. ure., high fuel costs, logisti s am management
conlTol.
Global sourcing
n fi
Big reduction in labour

costs
Superior service levels
(eg 24-hour support)
Ability to undertake
smaller (previously
unprofitable) pieces of
work
Improved access to skills

Synergy from working
with a partner
(eg a transformation of
busi ness processe.s arisi ng

from new ideas and new
ways of working)
r:iu.lh~lrl;os
Complexity of
communications between
people of different
cultures dispersed around

the world
Extra transportation costs

(oil prices affect shipping
costs)
Extra costs (eg travel
and l' "ng expenses) for
offshore workers visiting
the onshore offices
Issues of security of data

and privacy when other
companies get involved
14 PROCUREMENT AND PURCHASING
Exercises
Complete the words by adding a preposition at the

beginning (as a prefix).
1 a written statement of exactly how much money
something will cost
2 (two words) an orgamzatlon's successes and fallur saver
time
3 extended periods of lesllng
4 supplying the lhlngs that ha e been ordered
In a business context, we can use the word 1

shore to
mean 'in / from another country', the word i
shore to mean
'If) / from your own coun ry', and the word 3
shore to
refer to a country that is geographically dose to your own, or
(0 a region of your own country,
5 money that you pay illegally and secretly
0 get something
done; bribe
6 secret activities of people who work together to do
something dishonest
7 (formal) process of Inviting suppliers to bid for a contract
8 documents for goods or work done
9 the internal operations of an organiz tlon that
are no accessible or visible to the general public
Study the words in lists A-E. Check any unknown

words in a dictionary. Then answer the questions below.
Now do the same for the words in 'Global sourcing'

opposite.
10 start to do a piece f work
11 extra effects when people or businesses combine and
together
12 disadvantages
A to
ark
Complete the sentences with the most appropriate

word from the box.
estimate
proposal
quotation/quote
tender
If you lell someone ho much a job will cost, and you

limit yourself to that amount, then you gl e them a / an
2 If you tell someone how much a job will cost, but you
reserve the right to change the amount (eg if circumstances
change or the work takes longer than xpected), then you
give them a / an
3 If you produce a formal plan for a more complex projea,
telling the customer how you Will car'ry it out and how much
it will cost, then you make a / an
4 If you do the sam as in #3, I')ut in response to a
public InVitation to bid for he Job, and in competition
With other similar companies, then you put in a I an
Complete the simplified explanation below with

these words: sourcing, procurement, purchasing.
+
B to
to
gi e (somebody), ask for, get, prepare,

provide (somebody with), submit, accept
draw up. make, accept, consider,
put forward, outline, rejed, submit
a proposal
Invite, bid for. put something out to,

announce, submit, put in, award, win
D a / an
a quotation
key, external, large, foreign, leading,

major, outside, overseas, principal,
offshore
E a I an lengthy, unsuccessful, protracted,
(a) tender
supplier
negotiation
fruitles , prolonged, unproductive
Divide the words In list A, based on whe her the supplier or
customer doe it.
1S t group
2"d group:
2 Divide the words in

customer does it
1~ group
2nd group
3 Divide the words in
customer does it.
1'1 group:
2nd group:
4 DIVide the words in
1st group
2 nd group:
5 DIVide the words in
1~ group
2" group
list B, based on whether the supplier or
list C, based on whether the supplier or
list D, based on the meaning.
list E, based on the meaning

Produ
IOn and operations
cain
an~.... ament
What is the supply chain?

he supply hain ib lhe fll W 11 par~ and raw materi Is from
their point of rigin to the factory gates, then hrough the
factory as work-in-proce 'S, and fjn II lui of the fact ry s
finished g oth to be J livered I the final customer,
'
Am d m manufa turing op 'ralio mi!';ht ha\ hundreds
)f :uppliers prm'iding different parts elnd Cl mponents, and
e1 h of Ulese supplier will in lur hJH> their own suppliers
providing simpl~r paris, [,lW materials, etc. This is the
upstream end of the supp.ly chai.n, Similarly, the dllwn treelm
end of th chain might con.<;i.:;tll[ distributa ',mulhple
customers, etc, ilnd will in 01 e batche of goods b 'ing
-hipped .1t Lilli rent Lime, Ie liiff 'rent plac~,
Supply chain management

During th whole race s, from beginning to end, inventory
(ie part and goods) needs to be stored in warehouse"
and distributIOn centres and then trJnsportcd ~s needed,
All of this involves iI huge ,1m unt of omputerizcd
IJ1formation ,1bout the lllcation f il 1 entory, i , expected
arrival time at th next puint, etc. 1l1is inf rmation ha to b
h'lred across many different companle and I netl arks:
uppliers, customers, third party lugistlcs pro iders and the
manllfactu~r it If. fh' management of this information is
"riti <11 to the "ucces of the busmess,
and logistics
So, 'uppl) chain mana ment (. M) ma\,.es sure lhat th '

right it ms arc in the right pIa c at the right time and in th
ight luantilics. There are of 'our"e Wider strategic L" ue ';
Hll\\ many sup liers should there be? And vhere,
Where h uld the production facilitl,s, distributIun
centre" and warehouses be located?
What distribution channels should bused?
Whi -h logistics companies should be used, baUl up. team
n I dowll.-;tream,
HilII' "an IT be usc to integr te all hl' processe~, make
lhem mor dficient, flag lip poten ial bottlenecks, gl\e
clear sign.11s I f Jemand dov. n"tre. m, etc?
Hl VI is cash fl w, nd p ment to all the p<lrtles in olved
in the supply chain goin 7 to be managed?
rhc aim of SC I i~ to collabl1rate with all the supplY chain
partners t imrrow the Visibility and velocity of im'enlorv.
logistics
The 1 'or 'I gistic 'retef. tl1 the practical issuE'S surrou Jin~
I an, p lrtation, wareh( using anJ inventory management.
here ther is an e.temal 0 u it's more or less a
synll1ym for SCM, but it can I 0 h, \e an internal focu',
getting m Iteriab from 'ite A to site B inside a company at
different sta~e of therJ:msiness proce"s, The term 'logistiCS'
is also used in smaller companies where 'supplY chain
management' seems tOt grand,
JI ifll'ol\"(', malt'riah 11<lIHlliug imidt, lit ' Iii tOJ 1_ goods <lll
pl,u:ed on pall l~. lid Lllt>l' 'd arollnd (III fork-lift UIILI"s,
It
bOlh IIlbollnrl and

qoolk
II1I11l1e.
0111 bOll lid
Il
ill~ Illdl'~
1\lwlI
go
rt'
t'fS!:
l\Jgi. Iil'~ (i "
illl
'I"
hI' ",\IlW ,II'
I IlIrl1~.llr()ll'ISlll I"
il1\"olves IInloading itelm Irotll Olll' tnC'; liS of tramporl

.Ind I,mding l nil) allolher. 1111S CUI h at a eli uilmlioll
ellln: or a war !lOll ',Titer all' till t' I ) Ihilities:
It
Hub and spoke
Consolidation
Decoosolidation
Malerials are
broughl m to on
central location
and rhen sorted for
delivery to a variety
of deslillations.
A variety of smaller
shlpmenrs ar
ombmed mto ne
larger sh,pmenr
for economy of
tramp ft.
Large shipments re
broken down mto
Sl aller t
for ease
of delIVel'!
@J.
.J
.J~
.J_
.J'"
1:1 a
oc.O
CU
.J
I r
II illl'oh e" a IwilT of nl " liS ul II anspllrt: air (llsillg pl'rial

arg-o aillill ); s a (Ililh olllaiLH'1 q.u1.. c1up 'III WI or
(',ldlllllwr) I lad (Iall ,()I Ir I \..~ willi 1I.1ilels\ rail (lISIII~
il1\('llion ill lhe It'wikrs. or olltdaled

flll'J t h.tndi c th.lt can no Inngt'l sl:II).
.J
\C!) st.l~c lI~itlg
illtlmk, t!l" ahili!; to I"uk itelTl in tran it.
II ill\'oI 'S ('(H)I"t1ll1iltinn "Jlh I 'Iatcd business fUllcLions

'uch .\." plll~hasill~ ami planl lIIana ement.
)~Isale 1'[ mll'dlO lilt'
lll'lJlllr.~1 I Irel,
,WLOIlI'
11 lIl\o!I"~ jill' 'llIO!) 1IIi1I1,Ij.{I'lIll'lIl al

Tlti~
lI,lg liS
III eighl
l.II,),
II iTl\ohl'~' d 'fish II 1\Ill'tlwr or HOI In liSt a lhird

pall) IO~I~u('s plOIider (:~Pl.). Tltl:se ('ompanils pfOlide
il1leg-I~II('d pick-and-patl". \\.UdIOW'1Il rind di lIilmlitlll.
TIley an "h.o aCI a~ lill";lftliJlg' .tgcnl II) hamll hipping
arr.ln~(,n1CI Is
15 SUPPLY CHAIN MANAGEMENT AND LOGISTICS
Exercises
5 1 Find a word in the text opposite that matches each
1 at an earlier stage in
S. Complete the text about logistics using the words

in the box.
a process
balancing
ensuring
linking
negotiating
2 at a later stage 10 a process

3 groups of things that are made (or dealt with) together
4 large bUildings for storing oods
5 (two words) buildings used for the storage of goods which
will later be shipped to retail outlets
6 (four words) external firms that provide specialist
services such as transportation and warehousing
forecasting
handling
selecting
warehousing
'Logistics' is i:l term that is used in many different ways.

USing a broad definition it can include all of the follOWing;
Customer service
1
the right product is at the right place
at the right time.
7 (phrasal verb) draw artent.Jol to something
Demand
8 delays in one stage of a process that make the whole
Determining the q antity of goods that need to be ordered
in the future
process take longer
and planning
Inventory management and materials
Now do the same for the words in 'The complexity of

logistics' opposite.
9 coming towards or arriving at (eg a factory or airport)
10 (formal) goods for sale

11 taking goods off a vehicle
12 (three words) the design of the inner part of a
wheel, with a entral part and lines coming 0 t of it
Keeping the suppl cham flowing, With no bottlenecks, by
J
the quantity of items at different
locations and different stages m the process
Communication technology
5
the organization to its suppliers
with IT, for example to provide information about demand
patterns to facilitate Just-I -Time delivery.
Transportation
13 flat wooden structures used for moving or storing heavy

goods
14 (two words) vehicles with speCial equipment at the front
for lifting and moving heavy objects
15 follow the progress of
16 (phrasal verb) arranged into a neat pile
17 back sedions of trucks that can be separated, and are
used for carrying heavy objects
18 process of starting with a large quantity of goods,
sorting them according to different destinations, and
then re-packaging them with new ship Ing labels
Read the definitions and complete the examples

with one of these words: cargo. freight.
the best means of transportation
(Ie air, rail, ship, truck)
Purchasing
with suppliers about price, availability,
quality, etc.
LOG3ting and designing facilities that allow effiCient storage

and distribution.
All the atJove activi ies must be coordinated properly.
IneVitably there WIll be trade-offs - les of one thing and
more of something else - in order to achieve the best
outcome overall.
1 goods carried by ship or aircraft [+ of]

Example a ship c rrying a
of oil
2 goods carried by ship, train or aircraft; the system of moving
hese go ds
Example:
services
5.3 Make phrases by matching an item from each

column.
I
2
3
4
5
6
supply ~
""-
finished
final
logistics
distribution
forwarding
pro Ider
customer
hain
agent
goods
channel
'} hoI"
I"U
'''1'' 'ht .e.. i' "J""
Ill .
P oduc ion and op rations
~5
La
u tio
The Toyota Production System (TPS)
Just-In Time (JIT)
5 is the ba-is of mod I m,lnufacturing. lL was d veloped

at To ota at the end of the 70' and dming the 8 ,but is now
used right across industry. TPS focuse" on tw,l things: addin:r
value and eliminating waste. Value i defined < S allY item
r featme for which a customer is willing to pay. Anything
ebe ib waste anJ has to b removed. IT identifies seven
categ rie of wa te:
verproduction: prodll ing loa much, or too soon, or tno
qui kly.Ov rproduction is minimiLed by using a 'pull'
system; lhjs means that v\'ork isr 't performe unl 0'5 the
part is required downstream - so in the end prod ll"ts ar'
maJe only JS a djrect result of customer adiv ity.
aterials handling: inside and outside the plant.
Movem nt: performing tasks manu,llJy that could be
automated.
Waitin~: idle time between 'ork stations along the
production line,
Over proce::;sing: doing m re than the custom 'I" required
or is willing to pJ; for.
Invent ry: exceeding one-piece flow, One-piece flow (a1:;(
known as 'conlinuous flow') is when items ilre proc~sse
one at a time an then moved directl to the n xt pro c s.
o feets: r work, repair, or Wit te in its simplest form.
Defect ar~ rigomusly , nalyzed to m"ke sure thal they
don't happen again (ie 'error-proofing' the s <;tem).
JrT is it closely related concept. Her, parts and (c mpone.nl

re delivered only as they're needed: at the right time, in
the right amounts and in the right 'eq nee. Oelivel) to th~
factory gate should be JIT, as should deliv ry to indi\ idual
work. tatiofL':J on the assembly line. The aims of] IT are:
mi imlzing inv ntary, produclng item at a rate set by
the customer, 'Iiminating any unnecessary lead lime, and
generally optimi:in. lhe low of material from suppliers
11lrough production and up to the pint of sale of the
finished product.
1I of these ideas are recycled in th mode.rn con ept of 'lean
production' (lean = with litt! fat). A lean mamlfacturcr is
comtantly lrying to reduce manpower, materials, money,
machines, time, pa c, mistQke and effort.
Kaizen
Behind all the technique describ d abuve Ii s the ide of
'kaizen'. This is]c panese for 'continuous improvement'
- makjng changes in mall, incremental teps. This is "een
as being done through team\\lork, personal discipline and
involVing workers directly in the process f improving
qua Ii . A practical i.mpl mentation of kaizen is 'the fh,e
5' approach to workplace organi7i1tion. See below. This i'
derived from fi e }apane e word beginning with '5', and
English transl tions have tric t find [iv'S' word
52 S
Or er
Arrange everything
in a neat, tidy and
easy-ta-use manner.
51: SOT
Review everything
in th work area,
separating what is
needed from what is
not. Remove anything

unnecessary
Once the work area has

been sorted and set in
order, clean it up so that
everything shines! (Ie n
the area itself, as well as
equipment nd tools
S
r
e
Create clear; simple and
visual standards for 51-53.
Example 1: sha ows on work
surfaces and inside storage boxes
show which tools should be where.
Example 2: a re-order card (called a
'kanban') is attached to an Item and
placed somewhere aher the Item
is used. This gives a visual
signal when a new item
is needed.
Principle: a place for

everything, and ever'ything in
its place
Key ideas: discipline, simplicity,
pride, standardization and
repeatability
S5 5u tal
Continue to operate
and Improve S1-54.
16 lEAN PRODUCTION
Exercises
1 (two words) time when a machine Isn't working or being
used
2 the continuous movement of something
3 faults In the way something is ade
4 making something again
5 trying to avoid (or protect against) future mistakes
6 taken to a place (eg house, office, factory) and given to

someone
7 (two words) time that must be allowed for completion of
an operation or process
8 all the workers th t are needed to do a particular kind of
job
9 increaSing gradually
Now do the same for the words in 'The five Ss' opposite.
10 have a bnght. attraaive appearance; produce (or reflect)
light
11 things that you hold in your hand and use to do a
particular Job
12 (two words) containers where things are kept until hey're
needed
Fill in the gaps with a different form of the word

in brackets, The new form may be a noun (singular or
plural), verb or adjective.
1 TPS has had a big impact on

rocesses in many sedors of the
(economic). G nerally, it has made manufacturing much
more
(produce).
2 It Is important to make a detailed

(analyze) of which items and features add value, and which
don't There is no pOint making
(improve) If the llstomer isn't Willing to pay for them.
3 In a badly run adory, many processes are
(waste) and levels of Inventory are
(exceed)
(deliver) to the factory gate or
4 With JIT,
(assemble) line is made only when
the
it's needed
Complete the text about the 'Theory of constraints'

with the words in the box.
bottleneck
1 add ~
be willing
deliver
.
eliminate
make sure
perform
waste (from a process)

a task (manually)
value (to a product)
parts (to the factory gat )
to pay for somethmg
something doesn't happen again
7 att en
8 dean up
inventory (using JIT)

the flow of matellals (using JIT)
mat rials (inside a plant)
the equipment so lllat it shine
a system (by ngorous analysis)
a kanban card to an item
9 rror-proof
10 handle
11 minimize
12 optimize
straight
..,..
..,..
..,..

column.
2
3
4
5
6
branch
customized shape
sub-assemblies
synchronization
The 'Theory ot constraints' (TOC) is another approach to
maintaining flow in production. A 'constraint' is a
1
in a system - something lha limits
further progre s Toe has identified four pOSSible plant
layouts, where the production lines inside the plant are
arranged in the 2
of different letters of
the alphabet (I, A, V and T)
An I~plant is the simplest Here, the work is done in a
line The constraint is SImply the
slowest operation.
Next is an A-plant Many 4
converge for a final assembly. Here, the problem is
s
, With converging lines arriving
at the final point
With a V-plant, one raw material is made into many final
products. Here the problems occur immediately after the
divergence point - any operation along one
(;
of the V can rob (= steal) material
meant for the other branch.
Fin Ily, we have a T-planL A number of basic units are
produced on a line and then 7

at the
end There is a Wide variety of final produds Tills type of
plant combines the problems of most of the othersl
H)LACn'f OLS
l'I~'rl~n 'JS1~
37
u Ii
What is quality?
The word 'quali 'has an e\ eryday meanif1g t at has to do
with features, reliability, perform a ce, dura ility,' esthetics,
value for mane and conformance La requirements. It has
more spe ific meanings, particularly those in the next few
eclions.
Quality control and quality assurance

Quali .' control is ab ut detectif1g dects after the happen,
It involve -andom sampling, sp t checks, inspection and
testing,
Quality assurance is ab ut pre enlion r<llher than dete'lion,
If a failure happens, then it' isolate ,the causes are
anal zed, and there is a redeSIgn of the praces' or of th
parts lo make sure it doesn't happen again, The Clim is zero
defects, to get things right first time,
Quality management
Tot I quality mane gemenl (TQ ) is a philo ophy that
was very popular in the '19130s and 90s, [t aims to put an
awareness of quality at the heart of all organizational
proce e (eg customer service) and not just produclion,
It put - an emphasis on a continual increase in customer
ati factil)! combin-d with lowering costs by eliminating
wa-te, It is similar in many way to the ideas discuss d
in units 15-16: SCM, Toyota Production System, Lean
\ilanufacturing, kaizen, etc.
European Foundation for Quality

Management
Th' organiLation has ken the idea of qu lity man gement
nd is trying to apply them to all organizations, including
those in the sen'ice ector and pu lie sector. It has a
framework for asse sing and improving organizations that
is based on eight concepts of exccllence: results (lrientation,
ustomer fo us, leadership and constancy of purpose
(ie being faithf~l to aims and obj clives), manag'ment by
process s and fact, people development and involvement,
con inUOll impro em nt and innovati n, partn r hip
devclopment, and corporate social r sponsibility.
Quality isn't free - it comes with a cost, But If there are no

quality procedures, ther the cOSt is much higher; continuing
problems with the product, a loss of confidence in the brand.
and fewer sales as a result. Here are just some of the ways
that companies have to spend money and time to ensure
quality:
Engineers have to spend Lime with marketers

dUring the development of new products
facilitate deSign-far-manufacture. Ther-e ave
to be upplier capability urveys to make sure
that suppliers can chleve the quality levels that
they c1almTher ave to be regular meetings,
education and iralning about quality Improvement
The company has 0 Inspect and test incoming

material. matenal that IS being processed, and the
finished product There is also the cost of bUYing
and ser ICing any equlpmenl used for measuring
and testing,
There may be scrap, rework, re-inspection,

re-testing, etc If these continue at a high level,
then perhaps there will be a fundamental review
of suppliers and malenals
A variety of approaches
As n be seen, guallty is a topic that occurs under the
umbrella f any diff r nt philosophi" _This is good
n ws for the army of Clnsultant all d in to explain and
implement the I test management f-ad, But certain thing are
ommon to all the approaches: measuring and systematizing
pr cesses; reducing variati(ln, defects and cycle times; and
emplo ec in 'oIvement and teamwork.
The diffcren 'es b tween the approaches (and oth rs not
mentioned iJbove, like i Sigma) re relatt:d to which tools,
checklists, measurements and rrainjng they use,
Time is needed to process customer complaints,

to process customer retums, to deal wrth
warranty claims and to handle produ recalls.
17 QUAUTV
Exercises
1
hlngs ha a customer IS particularly interested in; selling
pain s
2 lasting a long time
3 (three words) being similar to what customers expect
4 ta Ing oc aSlonal small quantities for testing

5 (two ords) examining a process suddenly, witho
warning
6 materials Lhat ar left after a process and have no use
7 set of ideas or rules on which decIsions are based

8 (two words) an emphasis on achievements, especially sales
and profits
9 something tha is popUlar or fashionab e for a short time
only
o (two words) how long various ac ivities take to complete
(eg one production run)
Now do the same for the words in 'Quality costs'
opposite.
11 looking at how easy i i to make a new product, not Just
the features
12 (three words) asking questions to Ind out If
your suppliers are able to meet quality standards
13 matenals or small parts that ar no longer useful

14 (two words) the return of products, for example because
they'r faulty r dangerous

17
Fill in the missing letters. Most of the answers are
not in the text.
1 If quality is really good, then it's outst

log quality,
2 If quality IS usually good, but not always, then it's
vari
equality
3 If quality isn't as good as other similar products, then it'
inf
r quality.
4 If quality is bad, then instea of saYing 'ba 'we often say
p r quality.
5 If you make certain that something has quality, then yo
ens e the quality.
6 If you Improve the quality of a product, then you
enh ce th quality
7 If you state the quality that you want in an exact and
detailed way, then you spe
y the quality.
8 If you regularly watch or heck the quality of so ething to
find out what i happening, th n you man or the quality.

column.
1 random
2 spot
3 zero
4 fight
5 re ults
6 con inuous
7 employee
8 cycle
9
arranty
10 product
hecks
firs Ime
onentatlon
-sampling
defects
time
Improvement
recalls
Involvement
claims
1.4 Complete each definition below with a pair of

words (and phrases) in the box. Each term in bold is
commonly used when discussing quality.
compliance / certdled
parameter / vary from th norm
methodology / elimmarm defects
pcf'ferffldFice / 8cst PFI class
mark / spoils the appedranc
warranty claims / improve quality
measures / throughout bUSiness
predict / fewer mistakes
Benchmarking IS measunng your

against other ompanle that are'
and then uSing the info mation to Improve.
2 Tolerance is the amount by which a
(eg size) can
before the piece becomes
a defect
3 ISO 9000 i a set of international standards f quail y.
Companies can be audited for
wi h
one of the standards, and then publicly state that hey're
'ISO 9000
4 Nonconformance is when a requirement has not been

met. It does not need to be a serious defect, It could
be a simple
on the surface th t
5 Six sigma is the name of well-known quality
. It takes a highly disciplined approach
to
In manufaetunn The term 'SIX
sigma' originally comes ro statistiCS.
6 Key performance indicators (KPls) are statistical
of how well an organization is
doing in particular areas. The term is particularly common
In production and operations, bUllS used
7 Leading indicators are those that
a future outcome. For e ample, levels of staff satisfaetio
are often a leading indicator of quality. A more motivated
WOI kforce Will make
8 Lagging indicators are those that show a result For
example,
are a lagging Indicator
of quality_ Fewer claims mean that earlier actions to
are now working (A 'lag' i a delay
etween two even s).
Production nd opera Ions
l'
What sales thinks about marketing!

Sales 'OI)SlI tants will qltid.ly tell you how th 'i Job is
diffenml to marketing. They'r th 0 e "ho have direct
ontact with th cu~tomers, they're U ones wi 0 really

hat i goinl'; on in the market. and l1f cou . tl1'y're
the one who Ii\e ith the insecurity of sale targets und
commbions. The m~rketinl-\ guys just sit in their offi es on
fixed salaries, dreaming lip fancy promotions, or thinking of
new produ t that latcr research will tell them nO-Ol e " ant.
U only thl.: marketing guys spoke to the sal s guys mOl'
ten, the business would do so much belter,
know
What
ualities does a salesperson need?
A salesp rson needs to be:

Knowledgeable (of the ustorner and their needs, of the
products being sold, an of the indllslT ' and technical area),
VL ibl Ywell prepared, organized and w lI'presenteJ to
inspire onfidence in the other person,
Reliable (eg they phone back when the) ~ay they will),
Fl xible (eg they're able to respond to changing u tomer
n eds and ffer tailor-made solutions).
It is an olJ-fahion d Hche Lo think. of a modern sale"

onsultant cl behcwing like someone who' Us second-hand
car, Tl s days an ag ,rressive hard sel I ery rarely works.
lIstomer:; want to be helped to make their 0 Il decisions,
not to be pushed before lhey're ready, TI1C box below gives
some ideas for modern sal s te hniques,
There are a variety of m thods to close the dcal: (J direct
request, a comm nd, a reterenc to an il11nwJiatc gain, fear,
presenting allemativ 'i, <;lIl11l11il ,and finnlly "imply :tn
aSSLll11pt'on tl t the 'llstomer i going to buy (i beha\'ing as
if it's ttu e\ e though th u'tul11er hilsn't actually said yes),
Sales techniques
Differentiate from the competitIon, without openly knochng
hem,
o
li'y a identify the dlffel-ent mles il1Side a company.
lOIs
hose advice will they listen to]
ho
ill actual I be using he product?
the decison maker?
Take time to socialize and build rupport In he first lew

moments In paruculal; show Interest in he customer:
niiC',.'n\'''I~Inla
,,,(:f'nrn,"'r
n"'I>"'I~
Have 'bIg ears and a small mouth'. Ask lots of questions,

en acti ely: focus your attention on the other person
and take notes, Knowledge of customer needs is a major
competitive advantage - just as important as the product
feature or the price,
Check needs by restating them.

Refer to the inform lion y u hav collected throughoul the
Iest of the meeting
Budd a case slowly. based on the indiVidual customer's

needs, rather han working from a script
Be clear and precise, Judge the level of detaIl required. and
avoid Jargon
Emphasize benefrts (Ie what a product does how It will
make life better fOI" the customer) nd not JUst features
(ie whatt is),
e the cumulative effe
of a number of benefits,
Sell the pnce by demonstrating vi:llu

cheap I rarely a VII ue.)
~(l
for money. (Being
Show how your' case i tailored,
Be credible: show con Idence, dlspl y yow' knowledge, and
give attention to detail.
Make your case believable by l-efer ing to some form of
pmof a demons'll'alion of the product a mention of other
satisfied cu omers, lYIng the r-esulb of tests and research,
uSing the power of numbers (eg 100,000 sold: 20 years in
the market),
Refer to
ill1
ongoing r latlonship with the cus om r.
VIew objectIons as an opportunlly - they're a sign of

interest and ill-e inevitable FIr'st, acknowledge the POInt,
Then, either" r-emov the objection, or mInimize Its
SignIficance, or turn it Into i:I positIve.
Look ou for bUYing signals that show the customer is

nearly ready to make a deoslon:
The customer makes a reference to the product In use,
pel"haps WI h an assumptIon in hew way of talking that
they're the users,
The ClIsto er asks about what res Its they can hope to
achieve after they have been uSing the product for some
time,
Th customel asks after-sale questions, Ie questions about
Installation.
18 SALES
Exercises
Techniques 1-7 are all ways of closing a deal. Match

the techniques with the sales consultant's comments a-g.
1 expensive and complicated

2 customized; personalized
1
2
3
4
5
6
7
Now do the same for the words in 'Sales techniques'

opposite.
3 a relationship In which people like, understand and respect
each other
4 (two words) something that helps your company do better
than another
5 written words, hke the ones that actors use
6 words used by people in the same profession that are

difflcul for other people to understand
7 criticizing
8 accept that something eXists
Match the techniques 1-8 to the sales consultant's

comments a-h.
1 Responding to the customer's need
2 Selling the price by showing how it an be divided Into
smaller parts
3 Showing how a feature has more than one benefit
4 Selling the price by showing how money can be sa ed
5 Selhng the price by offenng something extra
6 Saying something when you're unable to give a tailor-made
solu Ion
7 Acknowledging an objection
8 Checking understanding
a 'Because you said that timing was important. let me take
that point next' / 'You said earlier thiS had to be C051
e ective, so .
b 'Is that clear)' / 'Would it be useful to give you more detail?'
c 'This has multiple advantages' / ThiS will also Improve your
eXisting
d 'You know it would cost a lot f money to do it that way,
and you would lose the exceptional alue for money that
YOU're getting here'
e 'You get thiS plus this.'
f 'You can spread the cos S over .. ' / 'The use can be shared
by different departments.'
9 'It will help you a reduce costs' / ThiS will eliminate the
need for.
h 'Yes, that's certainly something we need to review.' / 'Yes,
that's a fair point. Let me give you some background to
explain why we do it that way'
Direct reques
Command
Immediate gain
Fear
Alternatives
Summary
Assumption
a 'If you give me the go-ahead now, then I can have It up

and running within a week.' / 'We have a special offer this
month'
b 'We have them in stock for immediate deli ery, but you
kno they're selling very fast' / 'If you can't give me the
go-ahead today, the delivery lime you need is going to be
difficult'
c 'Right. let's get this organized.' / 'Let me have written
confirmation as soon as you can and I'll 51art the ball
oiling.'
d 'Shall we go ahead)' / 'How much would you like)' / 'When
shall we start l '
e 'Are you more interested in the regular model or the
execlitive modell' / 'Do you ant to schedule this for this
month or nex montl,,?'
'Yes, I can see hat this is going to work really well for
you' / 'OK, if you have n more questions, I'll just get the
paperwork from rny bag.'
9 'So, this solution gives you something that works well With
your xistin equipment, is easy to install, and gives you
signirican ost savings Can we go ahead)'
Underline the correct (or most likely) words in

italics.
So, it looks like thiS solution works well for you Shall we
go in front / go ahead)
2 We can have It up and running / up and going within a
week
3 I don't want to knock / critic the competition, ut hi IS a
much better prod ct
4 ThiS is the actual/latest model.
5 You're lucky - it's for sale / on ale this month We're
running a special promotion.
6 Y s, the 0 e in the shop window is for sale / on sale - you
can buy it.
7 In the week before Christmas we usually see very high sales
volumes / quantities.
8 North America counts for / accounts for 40% or our
orldwide sales.
Sales and marke '"9
-! 1
Cu to
er ervice
he phrase 'customer servIce' can refer to pre-sales

(cg f'nguiries, quotations), sales (unit 18) and post
sal 'S (eg order processing, I' turns, complaints,
\ arr<lnly -Iaims). Th' phrJse 'c stomer. upporl' is
USUc II Y Ii m iled Just to post- les.
:!O:u.stpQlier~
..
servic.e- I'ips
-
eu -ton er service is a key busin ss funclion thal is

.lften (verlooked. In JI1 age when many comp ting
g-o ds and services ar very similar, lhe qualit of
eust )mt'r service can make c' big differenc\:' Good
cu:;tomcr service can lead t r~peat busines, whereas
unsatisfied customers t~ll all thdr friends. In the box
opposite you will find some lips fOf ~ood ustomcr
service.
If customers have to wait, ofter a drink, magazines and a
comfortable chair,
Customer relationship management

(CRM)
Provide a life-time money-back guarantee. Almost
no-one actually returns products.
Luston1er service often makes use of CRM softwilre.

This allows the company to provide a unified face
t the eu t mer, regardle - of their hatll1cl of
communicalion - telephone, email, or face-lo-fa .
III cust n I' may have ,1t1 initial enquif ; an order,
m C'lmendme.nt to an order, a 'onfirmation of an ord 'f,
a can' II tion of 1m order, an nquiry, bOllt delivery
detail, an after-sales enquiry about using th product,
or a complaint. With a good Rt'vl sy tern it makes no
difference - in every ca e the details will get lc g-ged
o that any member of staff can immediatel see a
re orJ of the casco Ha'ing this information instanLly
a aiJablt' on- 'cr n is a huge advanlage. While talking
to a customer you kno~
hich product th y have
bought bcfol' ; t what alue, how th' paiJ, etc. You
can 11150 see _ re ord of which qu 'stioru, they have
asked, hether they have ever mad cI complaint, and
if s how it was resolved.
Remember to prOVide an FAQ section on your website
and sales literature.
Active listening
Offer them a bulk purchase discoun in the future.
A k y skill for ustoml'r s'rvic staff is acti\'

list ing-. This mean :
Use the other person's nilme.
et the customer e. plain the is ue and pay full
,1ttention while they're speakm~. Don't int rfupt,
xcept for a) clarification questions and
11) asional brief summaries. These summaries
~ho you're list ning and are on common ground.
Make written notes of key points.
If there is a probl m, r -ist the urge to argu
defend or excuse. Apologize sincerely <mel
acknowledge any inc nvenience caused.
If the conversation is face-to- ace, milintnin go d
eye contact and an open ody postur-' (ie leanmg
slightl 'lOW rcis the other person).
Get them to upgrade their produ t
0,
Be friendly use names, remember preferences, send a
birthday card.
Provide something free coffee. biscuits, pens, samples
After an expensive purchase, follow up with a quick call
just to check they're happy
Don't give customers the run-around: if you can't
personally deal with something, Ihen stay With the
customer while you hand them over gracefUlly to a
colleague
Remember that the thin that makes customers most
annoyed is wh n they're passed from person to person
on the phone. Take responsibility, and if you can't deal
with it, then say you'll all them back (You may need to
refer it upwards to your supervi or for a decision first)
Make specific commitments not, 'We'll get back to you
in a couple of days,' but 'We'll get back to you by 5pm
tomorrow. '
Every time you sllip a product. include a flyer, catalogue.
special offer, etc inside
Have periodic promotions for 'preferred customers'
Invite customers to an event: it could be a product
demonstration or seminar, or it could be a social e ent in
an art gallery / historic building / interesting location
Have fr quent-buyer programs, and mail frequent
l)uyers With a periodic newsletter.
Ask your customers how you can improve. Use
custo er satisfaction surveys (and provide an incentive
tor them to be returned)
19 CUSTOMER SERVICE
Exercises
1
column.
I body~
2 channel
.
3 co mon
4 on-screen
5 preferred
I entered as an official record
Now do the same for the words in 'Customer service tips'
opposite.
2 (phrasal verb) ask your oss to deal wi h an issue
6 pre-sales
7 bulk pur hase
8 money-back
9
tlsfaction
10 warranty
3 promises to do something
4 (two words) when you buy something in large amounts
advertisement or announcement printed on paper; small
leaflet
customers
ground
information
- posture
of communication
claim
guarantee
nquiry
discount
survey
.2 Make phrases by matching an item from each

column.
19 5 Fill in the gaps.
I
2
3
4
meanings. However
usually has
a time period that an be extended and he word is
used in both Am rican and British English, whereas a
often cannot b extend d, is mar
common in Brrtlsh English, nd an e used With a more
abstract meaning (like' a promise')
2 F 0 stands for Fr
As
5
6
7
8
follow up
provide
be passed
make
include
log
resis
ae nowledge
1 The words 'guarant e' and 'warranty' have very similar
a life-time guarantee
- - - - - a purchase with a quick call
any Inconvenience aused
tile urge to argue
speCIfic commitments
from person to p rson
a flyer inside every package
de ails on a CRM system
Complete the sequence with the words in the box.
a complaint an initial enquiry mforma ion
an invoice ~<vith the goods)

an order
the order
a quotation
the quotation
the payment
the problem
customer
Qu
5
3 If a ustomer asks yory. to do something and you a' oid
giving them a definite answer, then you 'give them the
r -a
d' (informal).
19
Complete the definitions with the words in the box.

expectations
exp rience
feedback
requirements
atisfaction
customer services
loyalty
survey
profile
makes
1
sends
2
requests
3
gives
4
makes
onfirms
6
and
processes It
sends
7
receives the goods an
pays
processes
8
nd
send a receipt
8
mak s
9
customer
= the feeling that a customer
gets when they're happy
customer
= when a customer always
buys from th same company
customer
= information, advice or
criticism, deliberately collected from customers or given
informally by til m
cus omer
= a set of questions you ask
to find out customers' opinions
customer
= what a customer feels and
rem mbers about the service they have received
customer
= how people think they
should b reated
customer
= an analySIS of your
customers according to age, lifestyle. etc
customer
= customer ne ds
See page 148 for some diSCUSSion tOpiCS.

solves
10
Sales and marketing
41
ar ets and marketin

What is a market"
What is marketing'?
TI1e phras 'the French market' is ju t another IV ay of" ying

'the populJLion of France', but marketing profes~i nills think
l f ,1 market in a mor{" spedfic wa,' The whole populati n of
c1 COUJ1try (an be brok n down into m rket segments.
Marketing begins with 'tht' four Ps': product, place,

promotion nd pri e. These combine to form the marketing
mix for anyone product or servi . Elemenu: of 'the four Ps'
are sh\)wn in the tabll::
a B2C (busine~~ to consumer) company, cuslome

dh ided according ll. :
can b
emographics: age group, gender, ethnicity,

il1Come,occup lion, social class, marital status.
Psychographics: personality, attitude. , lifestyle.

Geographi s: national or regional Jivisi m"
city-centre or suburban customers.

ene 1ts looked for by the cust mer: price, ov >rall value,
specific feah.lres, image with peer', ease-of-use, ser ice, etc.

Current purchasing situation of the ustomer: brancU; used
now,l1m and here purchased, how and when used.
or a B2B (bu iness to business) company there may be other

fact rs. For e. ample, a B2B compan needs to know th type
of customer (cg mat1Llfaclurcr, r tailer), the industry group of
the ustomer (eg toy manu acturer or clothing manufacturer),
their size ( g sales volume, number of I' tail ullet), the
ownership (ie private or public), etc. B28 eu tomers:lr less
interested in imag and more interet d in things like bility
to meet changing patterns of demand, con i tent ql,ality, Jllst
In- ime deli ery, etc. They're al () reached in very different
way su I as trade shows and by Ira elling 5alc~ rep.
Who should we target'?
Product
Features an as"ociakd
benefits
Branding (ie product
identity)
1'.1 k ging (cg there m<lY
bt' a bag inside a ox)
ab 1 (eg printed
on the package)
PwmoLion
cI vertising
Sales promotions (E'g
special offers, discounts)
Public r lations
Place (Distribution)
Retailer
Whole-aler
B2B distributor
Agent
Price
External 1actors (eg

elasticity of demand,
custom r expectations,
com etitor's pI' due )
Intern J factors
(eg profit required,
market share required)
As weI[ as 'th four 1'5', the term 'marketing' also in ludes

mclrketing &h-atep;y At it" simplest, this includes:
Analyzing the busines' el vironmenlusing mark
research.
Developtng new prod1.lcts and n
markets.
e ponding to external force: tho.:' econom ,acti ity of
ompetitor', ilU1ovation, cultural hange, etc.
On -e a comp ny has decided how

to -egment the market, it can then
do any om. of the foll\) ing:
Target the mass market the
e four Ps' are covered in more detail in the next f ur
company target one large

units.
market with a single mark ting

strategy This was popular in
the early days of marketing
( g onsumer products in the

~
50s ant! 60s), but f w companies - ~
d" view this option as

f a ible.
Target multiple segments: here, e ch segment will have
its own marketing strategy. Most large ConSWl1er pr ucts
firm do this - they ffer multiple products at different
price points with different 111 ages, all vJithin the same
product "ategor .
Target one segment: il nich market. The ~ mpimy targets
a small market, often with ju t one or two very :-,peciali ed
product.
Target individu I ustomers with tailor-made products:
there may be a p rsonal dialog-ue to ,tablish specidlized
ir m nts, or the company may lise data about
previou p Ifcha 5 (eg Amazon's book recommendations
based on what you hav pre 'iously ordered from their
site). The Intern t I as been the catalyst for thiS approa h.
20 MARKETS AND MARKETING
Exercises
o. Complete each sentence with a word partnership

from the previous exercise.
1 separate parts
2 the fact of being male or female
3 people of the same age or who belong to the same sOCIal
group
4 (formal) buying
5 three words) the ays that a product is
needed In drfferent amounts at different times
1 If the government doesn't Interfere, then prices are set by
2 'The four Ps' give the
for a particular
product
3 The percent ge of the market that you have I your
4 Spon50red link on Google (when a customer searches for

your product type) is a very effective
6 (Informal) p ople who sell products for a company

7 try to influence; aim to hit
8 possible and II ely to succeed
9 (two words) particular price that have been specially
chosen (eg 9 90 or 199)

10 (two words) small group of potential customers who have
similar needs or Interests
11 some hing that results in important changes
Now do the same for the words in 'What is marketing?'

opposite.
12 important parts of a product
13 piece of paper (or other material) with Information
on rt that IS attached to an object (or printed on it)
14 (three words) how much sales volume changes when you
change he price
o Write each of these words next to its best

definition: advertising, marketing, promotion. publicity.
1 all the ways used to encourage demand for a product
(the most general word)
2 an activity that attracts people's attention to a product
(one aspect of # 7)
3 telltng people about a product (eg on the television,
In magazines) in order to persuade them to buy it
(one aspect of #2)
4 any information that makes people notice a product (this
may be unplanned, out of the control of the company and
not part of Its marketing strategy)
20.3 Match each word on the left with five words on the
right. Check any unknown words in a dictionary.
mark t
marketrng
agency
campaign
forces
leader
mix
price
sedor
share
strategy
tool
Read what a marketer says about the history of a

product.
We chose to focus our strategy on people in their lale
teens, and so we launched the product at a series ot bIg
rock concerts over the summer We soon gained market
share, and after two years we were the market leader.
But after a whrle consumers wanted something different.
Our competitors noticed thiS before we did, and our sales
dropped dramatically. Retailers stopped stocking our
brand and we had to stop making the products. We had a
big meeling and thougt't again about our whole strategy
We agreed that we W?Uld try one more time.
The phrases below can all be used with 'the market'. Put
them into order (1-8) so that they match the order in the
story.
a
b
c
d
e
f
g
h
be forced out of
put a product onto
break Into
reassess
decide to target
re-enter
fall to see changes in
take over
Divide the phrases in the box into three groups,

based on their meanings.
withdraw from
be driven out of
open up
corner
dominate
enter
capture
penetrate
break into
take over
be forced out of
Sales and mark ting
15
r d ct
'Product' is the first of 'the four Ps' ot marketing, In

marketing terms, a pro :Iud is a soluti n for a t rget m rket.
The word covers goods and 'en-ice and can also in lude the
"rcarlt, customer support and any complimentary pwducts
(eg add-on items such os < as for carrying the pr'Kluct).
Four key factors

Feature
Featllr S ill' rharactetishcs oj a product that f r benefits to
the Cli tomer. Take the exampl of a television:
Feature
Benefit
screen size
screen resol u tion
surround lllnd
allows for more distant viewing

dear, more realistic picture
enhanced sensory >xperience
The benefits above arc called 'functional benefits'. In

ilddition, there arc psychological benefits. These address
needs such as status within a group, risk reduction, sen -e of
independence an happin 5 .
Brandjng
randing involves establishing an identity for a product with
the goal of distinguishing it from competitors' oUerin 's.
This is ~ssential in markets where produ ts, re similar and
competition is fierc . It's particularly imp rtant in helping to
position the product: high-end (= upscale !up-m<II'ket),

mid-market, or 1m -end (= economy! down-market).
The brand itself may be the name of a product, or a fami!)
of produ ts, ( r of the compan the t makes them. Ilusually
include i1 design element such as a logo or a symbol
(eg ike's 'swoosh').
eanding is traditionally il.. ociated wiLh B2C, but recently
B2B comp, nies (eg Intel) have also started to invest in
rc nding.
Packaging
Packaging is vel' important. It protects th product during
~hipping and handling, it gives visibility to the product
(atlracting atl ntion n the shelves) and it can Jdd valli (by
making the product easier to use).
Labelling
The bbel is attached to or print d on the package or the
produ l. It n atlract att ntion with !:,rraphics r catchy
w rds and provide- information to aid a pllrcha e decisi n
(eg "i"e, f, brie, \ ashing instructions for clothes). It u ually
in ludes a code [or use at the checkou t.
For man) products (eg fad, pharmJ.ccuticals) th re are
legal requirements for th lalel relating to the Ii ting of
ingredients, nutrition aT information ,1I1d instructions for u"e.
AIMS
ADVANTAGES
STRATEGIES
Stage 1 (brand=benefit):
when the customer sees the
brand, they associate it with
the benefits they receive.
Stage 2 (benefit=brand):
when the customer needs a
solution to a probl m, they
automatically think of the
brand.
Brand loyalty: customers

are less likely to switch to
alternative brands in the
future; protects company from
price wars,
Brand stretching: new
products can be added under
the same 'family' brand name.
Brand equity: once the brand
has a financial value, it can be
sold or licensed,
Individual (stand-alone) branding: new

products are given new names, with no obvi us
connection to other brands or even to the
company (eg Proctor and Gamble's range).
Family branding: new products are placed
under the umbrella of an exis 'ng brand (most
consumer products, eg Gillette),
Co-branding: partnership with another firm
that has an established brand (eg Visa cards
carrying the name of another organization).
Private or Store branding: suppliers produce
for another company (eg retail stores selling
own-brand items made by an outside company).
Brand licensing: others are allowed to produce
items carrying the brand name (eg a children's
movie character licensed to a toy or food
manufacturer) .
21 PRODUCT
Exercises
1 given free
2 Improved
3 easy to remember
21
change from one thing to another
Complete the definitions with the words in the box.

association
awareness
equity
ifflage
leader
loyalTy
manager
stretching
2
3
4
5
6
7
8
Have you seen thiS amazing cameral It uses an

ive lens mechanism to ge 6x optical zoom That's
amazing I It's 2fu
yauto
c, and has a ~bu
t-in flash,
It's also one of th most "p
table cameras I've ever seen - It's
so 5CO
c that it easily fits In a shirt pocket It uses ownbrand, 5 rech
-Ill
e,
able batterie . It's a really 7we
Sst
-of-the-a
piece of kit.
I inn
Now do the same for the words in 'Brands: aims,

advantages and strategies' opposite.
11
1 5, Fill in the missing letters. All the words describe
features.
= the Idea and beliefs that

brand
people have about a brand
brand
= a person who is 111 charge of
developing and selling a brand
brand
= the brand that has the largest
number of sales in its product category
brand
= the support that people gi e
to a brand by continUing to buy it rather than changing to
o her brands
brand
= the value of the brand on the
balance sheet of the company
brand
= using a successful brand name
to sell new types of products
brand
= what p ople think of when
they see or hear the name of a brand
brand
= the degree to which people
know about a brand
Find a 'brand .. .' phrase from the previous exercise

with a similar meaning to:
d fridge-freezer that I'm thinking

I've seen an 9 1n tegr
about buying The shelves are IOadj
able and It\ very
lIe
to cl
n It comes with an 17 opt
al ice maker.
It's 13en
y-eft
nt, so It will be I ec
ical to run,
ed later, so lha
and they say the matenals can be lSrec
makes it very 15env
Iy. I 's made by
ally f
able in a
Ie manufacturPr, and it's sa
a 17 re l
of colours
I want a pair of '9high-per
ce sneakers, They
have to be 20waterp
f Also, I d a lot of Jogging and I
don't want to Injure my knees. So, the soles should be really
k-abs
71hi
-t ch -you know, 22 sh
bent
as well as bing 23h

d-w ring. And I don't want Just a
24 sta
d pair - my fnen~Js would lust laugh at me No,
- In fact it would be
they have to b really 2Sstyl
good if they were a 261im
ed edition.
I'd like to get a cordless phone for my study I want a
r-fr
rpally l7 u
Iy one, with a 78 1 9-la
ing battery.
I Will probably add more handsets later, so it has to be
2g exp
able, and it would be good to have a
30 one- t
ch speakerphone in the base for hen I'm
working at my desk.
1 brand recognition
2 brand extenSion
Match products 1-4 with their packaging a-d. The

underlined vocabulary refers to packaging. Check any
unknown words in a dictionary.
Write each word in the box next to the word in

italics with the closest meaning.
2 recordabl DVDs
best-selling
leading
upscale
economy
exclusive
favourite
luxury traditional
upmarket
vahle-far-money
well-known
a I an high-end,
brand
2 a / an low-end,
brand
3 a / an classic,
4 a / an top,
brand
brand
5 a I an famous,
brand
lome ceramics bought from an open-air market
3 meat bought from a supermar"ket

small quantity of paracetamol tablets
a They come In a blister pack, which IS Itself packaged

in a box (= arton) made of paperboard (thinner than
cardboard).
b ThiS sits in a cardboard tray, overed b transparent
cellophane It has a label that shows the 'display until' date
and the 'use by' date (or 'best before' date)
c Each one comes in a plas!c case, but usually you buy several
in a shrink-wrapoed pack
d Thes were wrapped in bubble wrap to protect them, and
thi was held in place with gaffer tape (a type of dUd tape).
Sales and mar etlng
-17
ist
uti
( lace)
'Plllce' is the second of 'the four I s' - customers must

be able to obtain the product ea 'ily and <: nv niently.
This depend on the distribution .:.hal1l 'I.
Retailing
There are a variely of ret iI formats:
Distr"bution channels
There :-Ire three broad categories of compani s
involved in distTibution:
Res lIers (called di lribulors or dealers in some
markets) who purchase pro LIds and sell them
to others. n,ere arc various types of reseller: a
retailer (who sells direcLly to the final consumer),
a wholesaler (who bLl s from a manufacturer iHld
sells to <l retuiler) and an industrial distributor
(in the B2B market).
Intermediaries (eg agents and brokers) wI 0 don't
actually pur ha" th produ l. The bring L1ppliers
and buyer. tog ther in exchange for a fee.
{Jg-i~ti s companies. See llnit 15.
-""":;;--t.=......--....
Comer shop
(AmE Mom-andPop store)
Cash and
store)
f-taller
Catalogue
retdller
Coverage: mass, selective or

exclusive'
a some extent the Internet has given all companies

the potential to reach a mass market. Howe er, this
i n't as casy as il appe rs, because they still have to
fight a) [0 dislinguish lhemsclvcs from olher web
ba ed firms and b) for visibility - by h<l\ing good
search engine optimization so that their name
appears high LIp thl' se:-lrch results.
Convenience store
carry (AmE Wilrehouse
Another option is dire t dishjbutiol1, \\Ih~re Ih '1" ,He

nu reseUe.rs and the manufactur l' ~ 11 dir' tly to the
end user. Examples herO:' i.nclud :
Direct marketir g: the customer pla.:es an order by
isiting the company's website, or orderi.ng from a
catalogue (ArnE catalog), or by dialling ~l toll-free
telephone nLU11ber.
Direct retail: where a company operates its own
retail outlels (cg I &M, Zara, Apple)
Personal selling: lhose cases, common in B2B,
where the salesperson actually takes the or ler and
arranges dell very.
Large companies want mass CO\l rage, but only a

very few can reach all p tentic,l clIstomer::. with their
dbtributl,m channeb It b simply unrealisti in t rm
of co t. A ~ood e'ample of a company that really im
make its produ ts available everywhere is Coca-Cola.
You can find it in supermarkets, convenicn"e store,
'ending machines, r st<lurant ,hotels, tc. Most
companje he ve to settle fw sel, li.ve cover.. g ,with
fewer locations nd a more fo "used target mMket.
A few companies - those with high- nd products
- cho( e exclw i e coverage. Here the produ t is only
available at selected location', perhap internationa I
airports and a few stores in fashionable shopping
districts
Ve ndlf1g
machine
Retailing is highly competitive. The follOWing factors can illl

contriblltc [0 success or failure:
Ability to identify what products customers W<lnt.
LayoLlt and atmosphere (cg light, sound, decor).
Product presentation inside U,c slorL' (merchandising).
Ov rail Cll tom r silhsfaction with the shopping xperienc
Location.
Building 'traffic' through advertising.
Keeping pace with Ie hnol gy: logistics, diltabases of customer
buyin b b >haviOllr, in-stol' technology.1t the ch ck-out, t.
hanne
ower
Who has the power in the distribution channel? This IS a key issue
P oduct 0 er. This is when a brand has a high level of demand
and the retaIler has lo stock it, regardless of the cost to them
W olesale po er This is when a wholesaler buys a large quantity
at low cost, and can then make a farge mark-up when they resell to
small, powerless retailers.
e all power This 15 when the retailer C<ln choose from man
suppliers and so drives down the price it pays to them
22 DISmlBUTION (PLACE)
Exercises
2

1 money that you pay for a service

2 (two words) places where products are sold
3 (two words) when
c large percent ge of people are reached

by a distribution channel
4 (phrasal v rb) accept something that isn't exactly what you
want
5 the way in which so ething IS a range
6 the style of decoration and furnltur
In
a budding
7 (t ree words) changing as fast as something else
24 Read the text about technology in retailing then

answer the questions below.
Technology is changing the face of retailing. Here are jus
some of the new development
Electronic signage A small LCD screen can be incorporated

into a tag hanging from the merchandise, or into a sand-up
sign positioned near it. The display shows price, product
information, promotions etc.
Soft security tags An electronic surveillance lag is

Incorporated Into
garment at the point of manufacture.
These tags are flexible and paper thin A device at the
point-ol-sale (POS) automatically deacllvates the tag.
Self-scanning Shoppers use a hand-held scanner that
Now do the same for the words in 'Channel power'

opposite.
reads the ar codes on Items they buy They can pay

automatically with the same device and have a speCial
express lane at the checkout.
8 (phrasal verb) use aggresslv tactics to make prices fall
Virtual showrooms Customers view computerized images
01 room Interiors and furnishings The technology Ilas the

Match each description below to one of the retail
formats in the list opposite.
I Small store, good location, open till late, fast checkout, but
limited range and expenSive
2 A small, privately-owned, family-run store - often in a local

neighbourhood
3 Online-only retailer such as Amazon
4 Large store carrying Just one product category (eg sports
shoes, office supplies, electronics)
5 Emphasis IS on value-for-money; originaily mainly food
retailing but increasingly moving into other areas like
clothing
6 Similar to a supermarket, but With a greater variety of
products, better quality, higher prices and better service
levels
7 Requires buyers to make large purchases; limited product
selection; may restrict entry to he general public
8 A company gives p rmission for someone to use their brand
name, products, etc in exchange for part of the profits
potential to offer thou ands of items that cannot be displayed

on the retail floor Also, it can replicate the dimensions of the
customer's own kitchen, bathroom, etc and show how they
would look with the planned additions. Customers can mix
and match colour , styles and patterns.
1 (formal) the use of signs

2 a small lab I
3 (formal) things for sale in a store
4 (formal) a piece of clothing
5 a machine or tool that does a special job
6 place where you pay in a store

7 things i
room such as furniture, carpets and curtains
8 (three words) put things together in different ways
.3 A store buys something for 10 and sells it for
lS. Fill in the gaps with one of these words: margin,

mark-up.
1 The
is 50% The cost price (1 0) is
increased by a half (5) to decide the selling pnce (15).
2 The
is 33% The profit (5) is a third of
the selling pnce (15)
Sales and marketing
-tY
omot"on
The aims of promotion
'I romotion', th lhir of 'the four Po:;' of marketing, can have
a variety of differ nt aims. Its cl, "sic Jims Jre:
To bilL! aw rene S of d n \v product,

o rt!infor e a brand.
II limul te dema d, either by getting new custo ers
to try a pr 1du t (eg tree sample, free tri I), or by getting
existing ustomers to buy mor , or sooner.
But promotIOn can work in more subtle, ften unintended,
ways. For example it can create an initialmtercst in a product
category and then com'illce cllstomers that they have J need
for it - belore they think about pecifi brands.
Promotional act'vities
There L rc four main type' of promotional activity:
Advertising
Tl1is includes the wI ole ariet, of media outlets: telc\ ision,
radio, print (",~ newsp, pers, n agazincs), Internet (ie web and
email), direct mail, outdoor (t'g bLJlboards, btl s), indOI1f
(eg Jirports, in-store), product placement, mobile devi e and
sponsor hip.
large companies rarely handle their own advertising; they
u ually use the services 01 an advertising agency - perhaps
u ing di ferenl agencies for different product Un' .
.ng agency.
Account manager:
Other targets of promotion

FinJlly, it's important to remember that customers aren't
the only targel of promotion. Other targeb of a marketing
ill ssage might be new. media, special interest groups
(eg wironmentalorgana lions), opinion formers
(eg doctors for the ph ffi1aceutica[ industry), trade
a ociations, partners in thp dislribution channd
(eg ret, ilers), inve tor:, employees, ctc. An oft n overlooked
area is the importanc~ of in-h usc pmm.otion: e\.pJaining a
new pr duct to the sales force and motivating them to s 11 it.
in
rti
works With the cl' ent to develop the strategy
Changing media chOices:
Creative team:
ceIlphone screens. social networking sites,
podcasting (aUdio and video)
generate Ideas and take the initial concept through

to the final adverbS ment
Digital co vergence:
Market researchers:
assess the client's market situation and test creative
ideas.
everything will connect to the network (not just
computers, televisions and cellphones. but also
wallets. fridges and cars)
Medi planners'
Audience monitoring'
actually place he ads .in the various media and

negoua e deals with them
tracking and measuring how consumers respond
to dvertisements is becoming easier and more
important
Sales promotion
This includes coup ms, special offers, cllntests, loyalty
pro<!Tam~, etc.
Per onal selling
This can b either face-t -face or via the tel 'phone. See
unit 18.
50
Public relations (PR)

TI1is has various functions:
Monitoring the media tor anv coverage of the 'ompany,
and maintaining contact with people in the media
(cg issuing news releases as part of a pres kit).
Keeping in contJd ith customers and I or employee
through company newslelters, in-hollse logs, etc.
ri is m nagement when something happen- thJt
threatens th
mp ny image.
Organizing special eVt!nts to build both brand awareness
and brand loyalty. Events might include partie-, product
demonstrations, stunt, seminar-, etc - often in unusual
I -Jtion -.
Buildin g odwilllhroligh community programs and
phibnthropy.
GPS m personal mobile devices:

this allows businesses to push targeted. location
specific ads (eg restaurants. bars. specialist shops).
23 PROMOTION
Exercses
find a word in the text opposite that matches each
1 large boards for advertisements in
(BrE hoardings)
n outside public place
2 providing money for a special e ent or i1 sports team in

order to advertise a brand name
3 news about something - on the elevision, On the radio, 01
In newspapers and magazines
4 (two words) information given to reporters that contains
news plus supporting material (eg background Information,
photos)
5 sillyor- unusual things that are done to get public attention
6 (formal) kind feelings towards a person or organization

7 the practice of giVing money and 11elp to people who are
poor or in trouble
8 a Situation in which things gradually become very similar

9 following the development or progress of someone
01
something
10 a system that uses radio signals from satellites to show an
exact position on the Earth

column.
1 build----....
2 stimulate
3 take
4 place
5 issue
6 keep
7 mOnitor
8 push
Underline the verbs that make sense in the

sentence.
The agency carried / placed / publtshed / put / ran / took out
an ad in a magazine
(5 correct answers)
2 The magazine carried / placed / published / put / ran I
took out the ad.
(3 cOlrect answers)
The items in the box are all methods of sales

promotion. Match each one to its definition below.
discount
loyalty program
contest
free sample
trade-in
free product
personal appearance
coupon
free trial
a competition where the winner gets a prize
2 small piece of paper which you can use to buy goods at a

lower price
3 short-term price reduction
4 experiencing a small quantity of a product without
purchasing it
5 experiencing a service for a short ime without purchaSing
It
6 'buy Olle, get one fre

7 where customers are offered a reward (eg discount, free
product) for frequent purchaSing
an ad in the media
in contact With customers
8 where a celebrity appears somewhere in order to generate
demand by offering a free tnal

awareness of a new product
how consumers respond to
advertisements
an Initial concept through to the final
advertisement
targeted ads to a mobile deVice
a news release
customer traffic
9 using an older product as part-exchange for a new product
Study the table below carefully. Then label each

column 1-4 with one of these types of promotional
activity: advertising, personal selfing. sales promotions,
PR (media coverage such as stories about the company or
reports on special events).
Of course there may be exceptions!
'1
Intended audience
mass & targeted
mass & targeted
mass
4
argeled
Message low
one-way
one-way
one-way
two-way
Payment model
paid
paid
non-paid
paid
Interaetlon type
non-personal
non-personal
non-personal
personal
Demand creation
lagging'
qUick
lagging
qUick
Message control
good
good
poor
Message credlbilit ..
low
medium
111gh
medium
(ost ef ectlveness
difficult to know
medium to high
high (because non-paid)
high
"/aggmg
ery good
=developing more slowly' 'credIbility = the quality of berng believed and trw;ted
al s an
mar etmg
:;1
The i
portance of price
'Price' is the last of 'the f r Pc;' of mJrkehng, . nd is

probably the one that mar t r talk I.a t about. It doesn't
sel'm like an e iting part of the Job - in fact a product'- price
might simply be gt.'nerated by a pI' adsheet. But decisions
about pri e (I( important for m ny r a ons:
Price is the most flexible Clnd adju tubJe pMt of the
marketing mix - it can be changed very rapidly (unlike,
sa ,product or d' 'tribuhon decisions).
Pricing deci -ions are crihc< I for revenue: set price too
1\)
and you miss out on profits; set it too high and you
10 e sal . and m rket shar .
Pri e is imp rmnt for first impressions: il customer m y not
onsider the hole product l f ering if they ha 'C di missed
it initially becau eo li,e price; equall . a high price may say
'quality' and ncourage lile customer to take an interest.
Price is an important part 0 sale promotions. See unit 23.
0, what are the factors that have to be laken into
consideration when setting a price? Some important ones
arc de cribed below.
Internal factors that affect price

Profitability: a ompany u '1Ii,1l~ require a minimum
return on its investment (ie the total costs of making
and marketing the product). But this return may not be

important - for example with a new product that isn't yet
established - as long as revenue ilt least covers the costs.
II rk t share: a pri e may be set artificiall l low in order to
gain a hold in new market, or where th rIO' is a pric war.
Consi tency ith marketillg strategy: if th' LOmp ny's
overall sb'ategy is to position itself at the high end f the
m rket (imd emphasize non-price benefits like qualit~;
service, etc), then price will be kept high.
External factors that affect price

Elasticity of demand: in an lastic market, a small change
in price results in a big h,1I1ge in demand. In an .inelastic
market, a small h ng in price ha' little impact on
demand. 'n1C trick is to find the particular price level at
hich profits (or other objectives) are maximized.
Customer expectations: remember that 'customers' here
also incluJes distribution partners -th y're often the on
who set th final pric that the end user pays.
Competitors' produdS: very company has to watch whilt
competitors are charging. The market leader often seu.
price~ in a me rket and they're usually ilble t( charge a
premium,
5
re there going 1 be early payment
incennve - r distribution partners 1
What met ad i~ going to ill' use f()1
international p Ylflenl t See I nit 'I
1
J
What Is our market positior t Do WF:
want profit or milrk't share?
!999.99'
4
I
Is there going to be a prOmotlOn'
I so, the follOWing are all Options:
Markdown: offer a lower pricE'
than normal.
Free producT lWf) for he rmce
of one f' C
ales pro otlon: LOupons,
loyalty proqrams, etc
Bundle pricing' offer several
different prOOu ts al the sam!"
2 Dctcrmln
Some or all
hE' following may
be important
Cost + markup.
Backward prrcinC) (= whaT the
market is willing 0 pay)
Psychological pllcing (eg just
below a round nllmber).
ProdUCT line ricing (Ie dlstlnc
price poin s for til erenr models
i
ra gel.
r:mr
loss leader' sell below cost to
attraCT ellS omer 1raffil_ In a store
Competitive prlclno (ta In9

3
Some or all of the follOWing need
10
be fixed'
Quantit discount.
Trade discount
Special segment discollnt (eg students).
Geographical pricing (eg _ecause of
difference in localllvrng tandardsl.
into accoun
offerings)
he compt>titors
24 PRICE
Exercises
1 able to be changed slightly
2 Income; turnover
3 phrasal verb) lose an opportUnity to do or have something
4 is enough to pay for

5 (three words) obtain control or power
6 doing things in the same way
7 clever and effective way of doing something
8 (three words) ask for an additional amount
of money. above the standard amount
Now do the same for the words in 'Setting a price'

opposite.
9 an increa e in the price of something (i the percentage by
which the cost price is increased)
10 (two words) number ending in 0
11 a group of products that are packaged together and sold
as a set
12 things that ncourage you to work harder, start a new
activity, etc
2
column.
1 lose ~
2 take
3 require
4 cover
5 gain
6 position
7 set
8 sell
a minimum return on your investment

------- sales and market share
the costs with sales revenue
several factors into consideration
yourself at the high end of th market
below cost to attract customer traffic
a hold In a new market
the final price that the end user pays
24. Read this short explanation of discounts and

underline the correct words in italics.
A prompt / proper payment discount is given to help With
cash flow.
2 A quantity discount encourages a larger purchase - any
economies of volume / scale can be passed over / passed on
to the final customer.
3 Trade discounts are for partners in the distribution
channel/canal.
L1 Seasonal discounts are given during slack / loose periods of
the year, or during the January promotions / sales
Match ~ verb from each column so that all three

have a similar meaning. All the verbs can be used with
'a price'.
increase~.
lowe
set
negotiate
calculate
establish
arrive at
~
raise ----figure out
cut
work out
put up
settle on
bring down
determine
Write each word in the box next to the word in

italics with the closest meaning.
excessive
attr ctiv
bargain
budget
exorbitant
fair
inflated
list
reasonable
recommended
reduced
selling
a/an high,
price
2 a/an low,
price
3 a/an good,
price
4 the r tail,
price
Complete what a marketing manager says about

prices with the verbs in the box.
agreed to
drop
freeze
held down
matched
r elved complaints about
re-thought
set
undercut
were forced to raise
Initially we 1
prices at what we
thought was reasonabl level Then our costs started to
Increas . We 2
our prices for as long as
we could, but eventually we 3
them.
he new prices from our
Immediately we 4
customers They told us that our prices weren't competItive any
more Up to that point we had always 5
our competitors' prices, or even slightly 6
them BUl no more. We were In danger of losing customers,
so we 7
our whole pllCing strategy.
We couldn't afford to 8
our prices back
down to the previous level, and anyway this would havE'
looked velY bad :n the market Instead, we announced that
th new prices for twelve
we would 'l
months, to give sam stability Nearly all our customers
10
this, although they weren't happy.
See page 148 for some discussion tOpICS.
Sales and marketing
:;"
man ge
Understanding a business
Marketers must first have a detail d understanding of theIr
busines: in ord 'I' to develop their marketing strategi s. This
is often done llsing a '5 s' n ly_ is:
ustomer an [y-i : thjs involv s breaking down the
market int egments. e unit 20.
Company ane lysi : marketers nee to understand
their company' co t structure, look at how profits i1re
gen rat d from diff rent produ t lin i1nd different
ustome.r a ounts, and identify core competencies in the
organization.
Collaborator anal, is: this means prod u ing profile fall
the -hannel partn rs (eg uppliers, distributors).
Competitor analY'is: market rs build profiles of e ch
competitor, f cusin on their relative strengths and
weaknesses.
Context analysis: as well as the economic and so ial context,
this includes things like p t ntial threats in the indu. try
c ubstitutc products, new entrants) an also th
changing bargaining power of supplier" and 'ustomers.
Market research
In order to collect all thi d la, it's n ce ary to do market
re arch. A ,-ariety of techniql e are u - d: .
Quantitative resear h: the rna 't common rese rch tool here
is a 'UlYey that captures information with a qu stionnaire.
[nflJrmation can also come fr m doir g small-s ale
experiment. lIeh as looking at the effect on sales of
changin pri e points, r moving displays within a t reo

Web ites also ~)ffer many lpportunities [or oUe ting de ta
- u t mer' b haviour n sit can be asily tracked
Qualitative research: the con pany may carry out individual
int rviews, or f( cus ~rollPS, modem techruque i, to use
servati nal rese(l[ h \ here custom rs are 'at e in a
natural -ctting as they shop or use products at home
coml ry r search: data can be collecteu from ther
source . uch scan. ulting firms, trade a~socialion~,
magazine articles, gO\ ernment statistics, et'.
Test marketing-: thi~ involve!> trying out new product in
ertain IOCLlti ns.
Developing a marketing strategy

Once a compLlny has done the kind of resear h outlined in
tilE' two ections abo c, it's in a better p l:>ition to un lerst nd
i CL tomer base and its competitive pOSItion in the industr .
I rk ting manag rs are th n abl to d velop a -trate~y. Thi's
will relat' t :
Identifying n w mMket and 'aps in the market.
Developing new products amI identifying their desired
pc sitioning.
ev I )ping the compan 's co petitive advantages.
Maximi/ing r v ""L1es and profits.
G ining market share.
The second of thes , new product de elopment, will go

thr ugh a pro es that includes some or all of th tage in
the diagre m below.
eas can come from
Tht? distribution channels

are IllIed with the product
Jnd it is I u ched
AdveJ tisempnts are

prO<. uceet and placed.
R D derartmen ,
2
customers, competltor\
Mal keters have 10 ask somp basic

focus groups, sales
Questions scrppn the initJill ideas,

ppopl ,rrade
eg How will eu tomers benefil.' I it
shows.
technicall feasible on ake i Doe,
his arly idea look like it will b"
IJ ro f itable?
Th com pan has to

alloc Ie r sources and plan
engineering operati ns,
logi ics and work
schedules.
At hi ,tagp markpters ne.:d 0 thi kin

mur:h grea er detail 3bou h concep. eQ
'Wh exac Iy is rhe largf'l market] How will
I I,
ith other _xis Il1g produet~. '
5
At his point the company rroduces a
pro otype anolests he I ro uc If' us
Marketers 1'1111 hold fa,
IS
qro
p~
Adjustments Will be made all the
basis of these tests, and a more
final version of the pro,lucl
might be sold In n
est ma,ket.
4
Here marketers work cI sely
with call iJ ues Irom salps
dl d finan p t ry to es Ima e
the likel) selling price, ' ales
vol me, tofltabihty and
breakevf'f) point.
Marke er WOlk With (ther !.ollea;]IJPs tf\

see II there ,lre a y production issu
Some informal testS can be done by
simpl asking prospective customers
what hey think about
th~concert.
25 MARKETING MANAGEMENT
Exercises
25
1 (two words) things that a company c n do well
2 things that could cause damage or harm

3 set of questions that you ask a large number of people in
order to find out their opinions
4 a written liS1 of questions
5 relating to things that cannot easily be measured with
numbers such as opinions or aUlt de
6 (two words) small groups of people ho are asked to
discuss and give their opinions about a particular subJed
7 (two words) things that help a company be more

successful than 0 hers
Now do the same for the words in 'New product

development' opposite.
8 checking something to see If it's uitable to take forward

to the ne t stage
9 (two words) time when a p oduct earns just enough
money to pay for its costs
10 (two words) testing something by giving it to a few
customers to try so that any problems will be found
11 first deSign of something new

12
ecide to use a panicular amount of time, money, etc for a

particular purpose

column.
1
2
3
4
5
6
cost~competenCies
product
research
core
group
bargaining
structure
quantitative
power
focus
line
7 customer
8 competitive
9 oncept
10 breakeven
'1 beta
12 technical
development
base
test
im lementation
advantage
pOint
2
Use phrases from exercise 25.2 to complete the
sentences below. The phrases are not in order.
1 Their location ave them a huge
over
other firms.
2 A supplier of specialized components has strong
with a manufacturer
3 They decided to sell orne mall business units and Just ocus
on their
4 After the initial Ideas have been screened, we move to
the
stage wher we think about the
produG in much greater detaiL
5 The dvertising agency have produc d some new Ideas
for outdoor posters. I want to show them to the next
and see what people say.
6 By the time the new product gets to the
tage the marketers have done their
Job and he opera ions people take ver
25 1 One word or phrase from each group in italics does

no make sense. Cross it out.
We ar up against, come up against, look towards, face a
lot of camp titian
2 TI1I5 legislation will encourage, gain, promote, stimulat
competition
3 We're doing our be to cope with, handle, respond to,
treat with the competition
4 We try to avoid, carry out, stay away from, steer clear of
market segments where there IS too much competition.
5 We face cut-throat fierce, intense, particular, severe, strong,
tough comp tition
6 We welcome fair, free, healthy, large, open competitIOn.
5 5 Put these verbs into the most likely chronological

order: design, launch, discontinue. manufacture. sell,
upgrade.
1
2
3
.lUn
a product
2 6 Put these phrases into the most likely chronological

order: carry out, cut back on, put money into, abandon,
suggest the need for, see the limitations of.
1
2
3
4
carr.}'
II
ark t resear h
See page 149 for some diSCUSSion topics.
Sale$ and marketing
Inc me tatement
ll1e income statement (profit
ilnd loss account/'the P&L')

is one of a company's three major financial statements.
(See units 27 and 28.) It measures a company's financial
perFormance over a fisc I qUi'lrtcr or a fis al year. In
summary, it shows: Revenue minus Expenses = Profit. A
fuller version' given in the box and then explained below.
Revenue
-
Cost of sales
Gross profit
EBITDA
EBITDA stands or '~amings heforc intere~t, tax, slepre 'ialion
and flmortization'. On the P&L we subtract the 1, T, D and A
in turn:
[nterest (paid to the bank for any I <1n~)
Tax (paid to the government)
Qepreciati n (= the gradual loss in value of tangible assets.
eg vehi les, machinery)
Am rtizalion (= the loss in v lue of intangi Ie a s ts,
e,:r patents, copyrights)
- SG&A
Operating profit
+ Non-operating profit
fB/TDA
-
Interest
Tax
Depreciation
Net profit after tax I retained profit

The figure that remains i the net pr fit after tax (= net
income/'the bottom line'). To complete the P&L we then
subtract dividends (paid to shareholders), leaving finally
the retilincd pn)fit (= reserves/retained earnings) that is
r>in ested in the business.
Amortization
Budget report
Net profit after tax
Fi ure. for the re I-life r venut!, costs and pr fit:, will be

different from the budg ted (= plilnned/foreca t) fi~ures.
his analysis is presented t mane gers in a budget report.
In its Simplest form this report has tht. first five lines of the
P& in thl~ box opp'"' ite, with thrt!e columns showing I) the
a tual r 'suits, 2) th budgeted results and 3) th v riance
(= difference between the two).
Dividends
Retained profit
What is revenue?
Re\ enue (= tum,! er) i tl e money that wmes into the
company fr m the ~ale of products or services. This figure
b referred to as 'the top line' because of where it appears on
the P&L. Top line growth' refers to sales growth.
Vari nc s "an bl:' fa ourable or unfavourable, and indi 'idual

manager rna.' -ee thi inf rmalion for only their own
product line~ or geographical area.
What are expenses?

Expense (= costs) refers to money the t the company hilS to
spend to run the busin s. This can b brok n down in many
ways, but a basi di tinction is etwe nC t of sales (co t of g ods sol/COGS): this rf'fers to the
cost of actually rn, ing the product, for ex mpl mat rials
costs an labour costs in the filctory.
Selling, general and administrative expel15es (G& /
operating Xpl n$ s/ ovcrlwad ): this r fers to marketing
cost such 1IS adverb'ing, otfi salaries, rent, t 1 phone,
lectricity.
What is profit7
Profit (= earnings) has two componenb;:
Operating profit (from regular business activitlcs).
Non-operating profit (eg from the sale of some land or
shar s in another company).
What ause
Ca
arlance?
a cage n revenue
A change in sales volume.
A change in the profit margin on eacll item <due to
higher / lower selling prices).
ofa c
ge n
ts
A result of a change in sales volume (ie It simply costs

more to produce morel
A change because more is being spent to achieve each
1 of sales (ie a genuine increase In costs - a decrease
In productivity)
C se
a ch
ge
profit
A complex Interplay of the changes in revenue and

costs (including the different types of costs),
fhe budg t report allows managers to sec where the
unexpe ted hang s are, nd hich cllangcs arc the most
significant. Th . ree n for Jny varian e can be identified
and any corr h' iI ti m taken.
26 INCO
E STATEMENT
Exercises
26 1 Underline the correct words in italics.
1 The term 'turnover' means the same as revenue / profit
2 The term 'earnIngs' means the same as revenue / profit
3 The term' verheads' refers to the dIrect costs of ma ing
products / the indIrect costs of selling a producl and running
the offi
4 The ages of factory orkers and the salaries of office
workers are shown in the same pi ce / in different pia es
on a P&L
5 A company buys the patent on a piece of a technology for
530m The patent lasts for 15 years. So $2m i recorded
each year as a/an amortization / depreei tion expense.
6 The word which means 'before other thing~ are taken away'
IS gross / net. It can refer to roflt, salary or weight
.2 Complete the P&l with the words in the box.

EBfT
Dividends
Cost of goods sold
Income laxes
Find a word in the text or box opposite that matches

each definition below. The words appear in order.
1 related to government taxes and spending
2 (two words) property tha you own which can be physically
touched
3 the way in whch two or more things affect each other
Cross out the item which has a different meaning

the others.
to bring in, earn, generate, invest, make a profit.
to boost plough back, reinvest profits.
to guarantee, jeopardize, put at risk profits
to incur; make, offset, run up, suffer a loss.
big, considerable, fat, handsome, healthy, huge,
s tisfaetory, sub tantial profit
6 a / an interim, modest slight, small profit
to
1
2
3
4
5
Profit and loss account

(figures in millions)
Operating revenues
Ne sales
S10,219
Operating expenses
1
$3,972
SG&A
$4,155
DepreCIation and amortization
Total operating expenses
Operating profit
Non-operating profit
2
($8,607)
$1,612
Interest
3

<1
Retained profit
$65
$1,677
Earnings before income taxes
$480
($72)
$1,605
($514)
$1,091
($710)
$381
Compare he P&L above with the one opposite. You will notice
tha there are one or two different words, and a slightly different
order (particularl for 'depreciation and amortization') This IS
deliberate, and is designed to show the variation that IS possible
in the layou of il P&L.
Notice also how figures to be subtracted are shown with a
bracket.
5
6
If a profit is bigger than any previous profit, it's a rec

d
profit If a profit IS fair and rea anable, it's a legl
ate
profit.
Some items which result in a profit (or loss) are not
normally r peated - like the sale of a ubsidiary company,
or the effects of a natural disaster. The are called
'extrao
nary' or 'exc
ional' Items.
If a company is making a loss, we can say that it's 'in
the
d' Eventually, it will go bank
t (= go Into
liqll
ion).
If a company accepts that it ca not get back money it has
lost, then it wr
sa
the loss
To express the opposite of a 'favourable variance',
accountants often sayan 'adve e variance'
If some goods are sold (or a service i delivered) In the
middle of December, but the customer only pays In the
middle of January, then this is recorded in the Income
statement for the earlier of the two years. This fundamental
principle is referred to as 'the acc al basis of accounting'
See page 149 for some diSCUSSIon tOpICS.
dJDU
"Nru;from a((olirIting,
fil:
Tr;o lind hoo isfour again
Company finance
':){
heet
The balan 10' sheet (BS) is an th':!r financiill t t m nt thJt
companies ha\' to produce as p, rt of tJ1eir i1ccounts. ( ee
also unit 26 and 28.) The B applies to cl single point in
time, and gives <1 pictur' of e\'erything that a COmpi1l1 owns
(= its assets) Jnd ever thin~ the t it owes (= its liabilities).
he basic equation uf the BS is: Assets = Liabilities plus
harehL)lders' Equity. full r version is given in the box and
then explained blow.
Current assets
Current liabilities
Cash
Bank debt
Accounts receivable
Accounts payable
Inventories
Liabilities for t x
long-term assets
Short-term provisions
Fixed assets
long-term liabilities
Intanglbl assets
Bank loans
Financial assets
Bonds payable
Shareholders' equity
Assets
Curr nt a set" are thosl' th t an be turned into c:Ish quickl
. h Y include cash al the h nk, accounts r('ceiva 11" (ie man y
owed by cu tamers) and inventories (ie unsold stllck).
Long-term assets arc those that cannot be turned into cash

qui kly. 111ey include fix d < .ets (eg plilnt and machinery,
bnd and buildings, motor \ hides), intangible S5 ts
(eg copyrights, patent " goodwill acquired fr mother
companies) and financial < - 'els (eg in e tm nts in othcr
eumpe nil'S).
Liabilities
Currentliabilitl
r those that have to be p<1id within the
ne. t year They include bank debt, accounts payablt~
(ie money owed to supplicr~ and utilit biU ), iabilili . or
curren t< x and provisions (i ) money set a ide fa a particlliar
purpose, eg bad d bts or a cOllrt ruling).
f
Long-term liabilities include bank loans (including any

martg g ) and money a ing t bondholders_ (1l1e principal
has to b paId back at the maturity of the bond,)
Shareholders' equity "ti'lrt d a - the capital origin Ily invested
to b gin the business, und n w it has grown through
a) reinvested profitS and b) an . addili ml -h res thaI ha\'
been issued, Think of it like this: imagine that the busin
had to sLop, ami e II the assets were sold an this money
LI d to pay of[ ,iii th liabiliLi s, What would happen to the
r mainin, part. The An wer is that it ould be returned
to the "hareholdcrs - it belongs to th m. It is their equity
(capiLal)
h t can a balance shee
Liquidity
Liquidity is the degree to which an asset can be
onverted to cash quickly. This is often measured
y using the 'current ratl '. which is current assets
divided by current liabilities A high current ratio
means that over the longer term there are plenty of'
assets 0 convert into cash 10 pay the de Is
A more short-term measure of liquidity IS 'working
capital' ie curr nt assets minus current liabilities.
everage (level a de t)
In everyday language, leverages the use of
borrowed oney (ie debt) to Iry to Increase profils
In accountants' language, leverage is a measure of
how 'ar a company i unded by loans (e banks
and bonds) rather than its own capital On a BS
leverage is defined as long-term liabilities divided by
shareholders' equity
A highly leveraged company has taken on lol of
debt But this isn't always bad borrowing funds
Wisely to expand a grOWing business is good news for
shareholders.
Boo value
'Book value' Is a company's net worlh (ie its financial
value - what is left on Hle books - If il went out of
business) I is an everyday term with the same
meaning as 'shareholders' equity' So book value
equals IOtal assets minus totalliabilitie~
Anyone buying sh res in a company is buying a share
in the book value, plus a share in any future growth
Profitability
There are several common mea ures of profitability
but one of the commonest is Return on Equity (ROE),
Return on Equity quais net profit after lax divided by
shareholders' eqUity
ROE shows how much profit a company generates In
re ation to i s book value
27 BALANCE SHEET
Exercises
The verbs in the box can all be used with 'assets'.
Divide them into three groups, based on their meanings.

1 Assets are things that you ow
2 liabilities ar hings that you ow
acrumulat
1 an amount of money that a person or company owes
hold
have
own
dispose of
acquire
possess
buy
build up
realize
sell
2 documents given to people who invest mon y in a company,

promising to pay ba k the money (= the principal) with
interest (= the coupon)
3 a company's reputation, relationships with customers
and colledlve know-how (when one company buys
another, thiS is what it pays for above the book value)
1
The verbs in the box can all be used with 'debts'.
Divide them into two groups. The meanings within a
group are similar but not identical.
clear
honour
incur
settle
build up
run up
service
payoff
repay
4 (phrasal verb) keep from a larger amount in order to bused
later
5 the money that you borrow frum a bank to buy a property
collect
pay back
6 (phrasal verb) give someone all the money you owe them
(Note 'paid back' isn't the answer)
Common mistakes Many languages use words like 'actives'
and 'passives' for assets and liabilities. These words do
not exist in English Also, m ny languages use a ord like
'obligations' for bonds. This is a false friend - the word isn't
used in this way in English
Complete each phrase with a preposition from the
box.
back
by
for
out of
over
in
to
into
on
through
1 a current asset can be turned quickly

cash
2 'accounts recel able' is money owed
customers
3 'accounts payable' IS money wed
suppliers
4 'ftnancial assets' are inv stments
another
company
5 'proVisions' includes money set aside
bad d bts
6 bondholders have to be paid
at maturity
7 sharehold rs' equity grows
reinvested profits
8 a highly lever ged company has taken
a lot of
debt
9 'book value' is the alue of a company if it went
bUSiness
10
the long term a company needs cash to pay the
debts
('in' is possible in # 10, but isn't the answer here.)
- Fill in the missing letters.
A business may have used aI/Its funds to buy equipment,

vehicles and inventory. If so, you can say that it has
't
d
p' all its money in assets
2 If a debt isn't paid back, then the company defa ts on
the debt
7.8 Complete the text with these words: copyright,
patent, trademark.
1 If you deSign a new product, or a new process, you can
apply for a
. This gives you the legal
right to be the only p rson to make, use or sell it. I las 5 for
a limit d period of tim .
2 If you produc an original piece of work (eg a book, design,
comp ter program), yOll own the
on It.
Othe people cannot reprodu e it without your permission.
The right is cr ated automatically - you don't need to apply.
3 If yOll have a unique name or symbol that you use
for your products, you can apply to register it as a
. Once this has been done, other
people cannot use it.
7
Does the term 'creditors' mean accounts receivable
or accounts payable?
Company fmilnce
51}
fl w t teme t
The cash flow statem 'nt (CFS) is an official finan ial
statem nt - the third co red in thi. oak. (See units 2 J and
27.) !nf rmation 'or the CFS comes trom the P&L ,md balance
sheet, but is present d in a differ-'nt way. It is oncerned with
rea] money (ie cash) - not amounts that I aven't yet been
receiv d or paid. Gener.: 1Iy peaking, investors like to see the
b cause it's less open to the u,e of accounting lricks.
Cash
Lash can orne from (or e lIsed [or) three areas:
Operations: thi' is money receiv d (or lost) from acluc I
busine' ac ivity.
Investing: thi . includes money sp nt on physical property
( g pIc nt and equipment), money r eeiv d (or lost) by
investing iI\ t cks nd bonds, and money mad (or lost)
[Tom buying or elJing subsidiaries.
Financing: thi' includes money made by issujn~ new
shar " mane 'pent by lying back shares from the
markd, dh . :lend p ymcnts made to shareholders, money
recei\'ed b borr wing from the bal k nd money used to
rcpa pr vious loans.
A Simplified CF produced at the end of a financial year
might look like the one in th box.
ratIons
3,600,000

D preciation
80,000
Decrease in accounts receivable
30,000
Increase in accounts payable
30,000
Increase in taxes payable
10,000
- 60,000
Increase in Inventory
Net cash from op rations
3,690 00
sting
- 800,000
Plant and equipment
t'n
llClng
300,000
ISSUing new stock
Stock dl idends paid
- 630,000
Bank repayments
400,000
Free cash flow
2,160,000
See units 26 and 27 for
'abulary in this box.
Cash flow statement breakdown

Looking at each figue in tum:
et profit after tax This figure comes from the P&L.
ee unit 26.
Depreciation This was subtra t d on the P&L to arrive at the

net prufit, but in fact it was a 'paper' expllnse and the profit
\, asn't really ~duced by this, mount. () it is added back
here to make the sum right.
Decrease in account receivable A deer a e mans that more
ell toml r have paid off their credit accounts, nd so more
crtsh h;]s enter d the company.
Increa e in accou.llts payable An incrca'c mans that th
ompan ow: more money to supplier.. This is available
tempor rily ~ cash inside the company.
Increase in taxe payable The same logic applieb. If there
is an in rase i.ll tax's owed, it is added on the CFS as there
i morc ash still insid th campan until it's paid. If ta 'Cl>
have been aid ff, then thl' amount is deducted - th re is
less cash in the ompany.
Increase in inventory I'll camp ny has sp nt money t
pu.rehase mat rials. If thi is don with cash, the amount is
shown as a deduction. N lice that if the purchase was made
on crdit and the amount is still outstanding at the end of the
year, thl:'n th' re. would be an increase in ccmillts Payable
and th c mOl.lntwould how as an addition on the FS.
Plant and equipment If the company in
ts mon yin
assets such as bUilding or equipment, then this show' as
'cn -h out' (ie a d ducti n). If the asset had been ~ Id, it
would be 'cLlsh in'.
I suing new stock Thi - compa.ny has raised capital by
issuing lPW shares.
Stock dividends paid Cash has been used to pay a dividend

to existing shareholders.
Bank repayments Cash has bee.n used Lo repay part of a
bank loan.
11e amollnt that remail sisthe.frecahflow.. This is what
a company has left after it has paid all its expenses. It is often
considered to be the real 'bottom line'.
28 CASH FLOW STATEMENT
Exercises
B 1 Find a word in the text opposite that matches each
1 large machinery use in industrial processes

2 officially making something available to buy
3 (informal) calculations
4 taken away from total amount; subtracted
5 not yet paid

6 money, especially when it's used to start a business or
produce more wealth
28.2 Below you will see a simplified cash flow forecast

for a new business. Note that a cash flow fore ast looks
forward, unlike the cash flow statement opposite.
Study the first two columns, then add these figures in
the correct place in the third column.
940
C sh flo
9,560
10,500
26,960
27,900
rom ope
Open
Jan
30,000
Opening balance
F b
I
!o..~
Sales
Capital
9,000
In
Total income
10,500
30,000
30,000
9,000
Finances
200
200
40
40
Inventory
6,500
4,000
Labour
1,800
1,800
2,400
2,400
400
400
Loan repayments
Interest paid
Direct costs
E1;p~
Salaries
OHlce rent
Web services
400
Office supplies
200
80
Utilities
240
Insurance
500
Total outgoings
12,040
8
Refer to the cash flow forecast from the previous
exercise and mark these statements True (T) or False (F).
1 Most of the capital to start this business probably

came from the bank, not the personal funds of the
business owner, T I F
(Clue: look at th SIZ of the loan repayments in
relation to the 'capital in')
2 The wages of st H Who actuall make the product
(or serve customers) are shown separately from the
salary of the manager, T I F
3 Rent is pwbably paid monthly, in dvance T I F
4 The gas and electriCity companies are pro ably paid
monthly, In advance, T I F
5 It is a conventio in accounting to show negative
figures in brackets T I F
6 The fact that cash flow was negative in Jan ary IS
a b d sign for this new business T I F
Continue in the same way, answering questions about

cash flow in general.
7 On a spr adsheet. there would probably be two

columns for each month one for for cast figures
and one for actual figures. T I F
8 If you make a sale in January, but the customer
takes advantage of o~ month's credit, the sales
figur would be entered in Janua

T IF
(Clue remember that cash flow statem nts use cash

accounting, unlike income statements which use accrual
accounting - see 26 5 #6)
9 The ash flow 5t tement contains a lot 0 new
information that isn't av ilable from the P&L or
balance sheet. T I F
lOA 12-month cash flow forecast is a key element

in any business plan. See unit 9. T I F
28

column.
1 record--..........
the arne logic
' - - - - something as an
pense
capit;;1 by is uing new shares
a credit account in full
2 payoff
3 apply
4 raise
5
6
7
8
present
subtract
buy back
borrow
money from the bank

shares from the market
one figure from another
information in a certain way
Net cash flow
30,000
(3,040)
Ending balance
30,000
26,960
1 spend money
plant and equipment
2 invest money
plant and equipment
3 have money available
cash
['in' is possible in #3, but isn't the answer here.}
4 mak a purchase
credit
5 raise capital
Issuing new shares
5 Fill in the gaps using these words: as, by, in, on, on.
See page 149 for some discussion tOPiCS.

Company finance
61
cash flo
Cash inflows and ou flows

A healthy ca~h flow is obviou Iy important f r. bu iness: it
~nilble the bills to be paid, the business t b 1.', pan ed, and
lender nd inv stars to be reassured. For a well-e tc bli 'hed
company, a h \ ill 150 b n eded t pay a dividend to
:,hilr holders.
St ul" 5 of cilsh inflows arc:

P<lyn ents h'om ustomer'i.
hareholder inn>stment'i.
Bank loan.
A bank 0 ~r raft.
Interest on b nk saving:--.
ourc~s
of I:a h outflo 'S are:

Purchase 0 stock and raw mClteri, b.
urchi:lsC of tixed assets: II ~quipmeJlt, mac! inery, office
milure, etc.
D ily op I' ling xp n es such as office suppli 5.
Payments of salari ., rent, utilities.
Loan imd verdrait aym nt..
Dividends to shar holder '.
Payment () taxe .
Controlling cash flow

m of he i['ms above al' under dIre t control and can be
managed l n iI day-to- ily ba is, others I ss so. For example,
the fir t item under cash inflows (ie accounts r eiva Ie)
i\Jld the first three item under cash outflows (ie ace unts
a , ble) are areas wher there i ' real control, s to when
cash enters or Ie v s the ompany. Other it ms arc less
manageable n a day-t - ay basis: a bank loat1 is a trat 'gi
d> ision with a one- ff impact, payments f salarie and
\Itilitie happen at fixed times in fj,'ed;]m unts.
ke item that directly impact::. ash fl )w is inventory
mJnagement. ( ee units 15 and 16.)' ad' inventory sitting
on a hclr, in a storeroom or in a warehouse equals d ad ca '1
Aow. Cash ha, been taken out of irculation, Reducing 'dead'
im entul) i' a maj )r way that managers can c ntrol cash
flo v.
Cash flow problems

More businesses fail due t ca 'h 1m pn blems than du > to
lack f pr fitability, particularly in the early y aI'", This is
because of overtrading, in ther words accepting new work
w'thout haVing suf icient re ource to complete it and keep
the husi"es~ running. key concept here is 'working capital'.
From c1 strict accountin \'iewp int, this is defined a ' urrent
assd~ minu current liabilities'. ( e unit 27_) But rom an
e\-eryday management ie\ point, it's imply having enouO'h
cash t pay th bills.
Top 10 tips for improving cash flow
Offer discounts to customers who pay rapidly,
Ask customers to make an initial deposit a the
time the order is taken.
Run credit ch cks on all new customers.
Have heaVily discounted special offers on sal s
of aiel inventory to generate cash now.
Issue invoices promptly and follow up
immediately if payments are slow in coming,
Look for options with persistent slow-paying
customers such as a percentage prepayment,
or cash on delivery (c.o.d,),
Negotiate extended credit terms,
If you need to delay a payment, communicate
witll uppliers and warn them.
Look carefully at our suppliers' early payment
di counts. Will they really help you to reduce
overall co ts? How much discount will they give
you in exchange for taking more of your cash
earlier? The devil is in the detail.
Lease assets, rather than bUy them.
The pr blcm i~ this: n w wor invllvcs bllymg sto'k, using

equipment, paying staff, an:! p ying the fixed costs of rent
and utilities, illl befort~ ,n, payments come in, You need
cash (ie working capital) to 0 II that, ,n ash ha, to come
from somewhere, I you ha\c given a n~w CLlstomer a I II
credit eriod in order to win th ir busines ,0 if a
i;,ting
cu lamer is late in pa ing at a cfiti al time, then yl u might
ha very seriau: probl ms.
~o what can, business do if it ha foil ,ved all the tips in the
box abo\' nd sttll finds that it has a shortfall ith cash? The
first step is to take d 'antag of any emergency line f credit
arranged at the bank, The se and step is to make partial
payment on less important bill, \n a final option is to use
a third part) t buy our invoi es in eturn for them taking J
percentage of the total ( lie 'factori g').
29 MANAGING CASH FLOW
Exercises
1 made to feel less worried about something
2 arrangement with a bank that allows you to have a

temporary negative balance
3 continuing to do something, especially something bad or
annoying
4 (two words) costs that don't change when production goes
up or down
5 the dlHerence between the mount you have and the
amount you need
5 Complete the story about overtrading with these

words: clear, delivery, fulfil, limit, outstanding, overdraft,
squeeze, turnover.
Background
Manuel
bUSiness is thr e years old Her annual
1
IS
180,000, of which l 0,OOO IS
profit She operates With a bank overdraft of up to 2 5,OOO
'J
Manuela succeeds in winning an important contract to

supply Novatech The order IS for 4 0,OOO a month for two
years. She will be paid 60 days after 2
(Note. sixty working days = lhree months)
9.2 In the 'Tips' box you will see the common and
useful phrase 'the devil is in the detail'. From the context,
does this mean ... 7
She calls her suppliers She orders everything she needs to
fulfil the contract in the first few months
1 If you look at the details, you will see lots of bad tt1ings
2 you need to look at the detail to see the real ituation
The first month

Things go well Manuel receives her supplies and begins to
mak the items for Novatech.
9
column.
1 have a healthy
ex enses
2 be a well-established
~cash flow
3 have daily operating
on a da -to-day basis
4 be managed
accounting viewpOint
5 take ad antage
company
6 see something from a strict
of a line of credit
7
ake an initial
8 run credit
9 have heavily
i a have persistent
11 negotiate extended
12 give an early
checks
payment discoun
credit terms
depOSit
slow-paying customers
discounted offers
9 4 Make pairs of words with a similar meaning from

the list below. All the words and phrases are used with
'cash'.
Be shorr of, in advance, inflows, infusion, injection, generate,
holdings, loose, needs, payment (in full), raise, receipts,
requirements, reserves, fun O<Jt af settlement, shortage,
shortfall, spare, up front
Pairs:
1
= (ur
It
The second month

Manuela makes her first delivery to Novatech and she's
happy. Her supplier continue to supply materials, but to pay
hem all she has to increase her 3
The third month
Manuela makes more deliveries to Novatech, but her
overdraft is now at the <\
The fourth month
Manuela IS worned. She can't pay all her suppliers.
However, she thinks she'll be me because she's still
delivering to Novatech, and they're pleased with her quality.
The fifth month
The first payment from Novatech arrives on time. ThiS helps
bills, but
Manuela to pay the most 5

her overdraft is stili 4 ,OOO over the limit. Some suppliers
are becoming uneasy, and one is threatening legal action
The bank refuses to

any more
cheques.
The sixth month
Novatec!l are having cash flow problems of their own, and
their smallest and newest
decide to 7
suppliers. They write to Manuela to say that unfortunately
their payment this month will be delayed A few days later
her bank demands that the overdraft is repaid within seven
days. Manuela de ides that she can't 8
any more orders She closes the business and blames (he
bank.
Company fin nce
1)1
bili
"Wh r will happen to profit if our sal
vo/urn drop ]
All the questions above can be ansvvercd by knowing one

simple thing: the r Jationship between fixed and variable
Fixed costs and variable costs
Every business student knows the classic graph of how costs

and revenue rise al a different rate as sales increase, and how
there is a breakeven point wh re th era s. The br akevcn
poinl is the sales volume you n e to ex.actly cover all yom
costs.
Fixed co ts remain m lre or Ie s th 'ame regardless of the

level of sales. ypical e.aDlplcs are salarie'
enna..nent
employees, advertising, R&D, rent, interest on bank loans,
iru urance, heating and lig-hting, etc.
Bre kevcn analysis can b u eJ for oeciJin'" whether a new

product idea is worth dev loping, an [or n puling the
new sales figures that would b n ces'ary jf you decide to
increase fixed co ts (eg by r nting more office space,
05t5,
Variable costs increase directly in proportion to the level of

sales. Typical examples are parts and material, wages of
temporary employes, sales commissions, delivery charge,
etc.
There ar item that arc difficult to cat gorize, nd all cost
vary to some degree. ut adv rtising f lr xampl is u 'ually
considered to be a fi, ed 'ost bee I e a) it hos a fixed budget
for each accounting) riod and b) adv rn -ing "0. ts for a
whole brand will n t bt> increased or decree ed immediately
in pr portion to the sales of individual product lines.
Breakeven analysis
Once y u now p cWc ,'alue or lh various co ls, the first
thi g you're able to do is breake en analysis.
revenue
Operating leverage is the extent to wh.ich a business uses

fixed cost (as compared to variable costs) in its operations.
If a bu mess ha high fixed costs, then a small ris or fall in
ale' will produce large ri e or fall in pre fits. Profit is more
sensitive to a change in sales volunw.
Knowing the perating I verage giv " managers a more
accurate analysis than looking ,'imply at the breakevcn
point. It also remind' them to keep fixed costs low in order
to lincit downside risk, ilnd helps them to see the effects of
substituting machinery (with higher fixed oh;) for labour
(with higher variable costs).
Contribution margin analysis
n
total costs
variable costs
fixed costs
breakeven point
Operating leverage
Sales Volume
e ontribution m rgin is the percentage of aeh Uf nf

sales that remain after the variable costs are subtracted. Thi'
is th . amount that is available to contribute towards fixed
costs and profit. Contribution marg-in is used t :
Compare the profitability of different product lin s.
Decide whether to add or subtract a product line.
De "ide how to price a pr duct.
Decidt' ho~ to structure any commissions (so that al s
taff are encouraged to pu-h marc profitable Jines).
30 PROFITABILITY
Exercises
look at the graph then underline the correct words
in italics in the statements below.
RedUCing fixed costs (Graph A) means that more / fewer

sales are needed to break even. RedUCing variable costs
(Graph B) does not have such a big effect on the breakeven
point
2 Look at the increasing gap between revenue and costs as
sales increase In both gl<3phs - thiS is the operatrng leverage
Reducing variable costs (Graph B) gives more / less operating
leverage than redUCing fixed costs (Graph A)
revenue
/i}b
costs
I~l
! I
I
I
I
I
I
I
I
I
Study the top half of an income statement below,

It is in 'contribution format', so a) the variable costs
and fixed costs are listed separately and b) figures for
different product lines (A, Band C) have been separated
out.
II
Refer to the graphs in 30.2. Underline the correct

words in italics below.
I
I
I
I
I
nt
Sales
(figures
If point A represents sales of 100 units, then point B
represents sales of 120/200 units
2 If bracket 'a' represents a profit of 100,000, then bracket

'b' represents a profit f fl20,OOO / l00,OOO
3 ThiS means that an increase in sales of 0% / 700%
produces an increase in profit of 20% / 700%.
4 This is the phenomenon of operating leverage / contribution
margin.
The graph above shows that this company has high operating
leverage A small rise in sales (from A to B) produces a large rise
in profits (from 'a' to 'b'),
Similarly, a small fall In sales from B to A produces a large fall in
profits from 'b' to 'a'
In
OOO)
line A
line B
line C
500
765
830
275
325
370
Sales commiSSion
80
140
Shipping costs
35
(565)
Sales revenue
Less variable costs

Cost of goods sold
1i ta I variable costs
(390)
105
,30
(460)
C ntributlon margin
22%
40%
32%
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
e5S
fixed costs
alarles
Advertising
Etc
Operating profit
The two graphs below are for the same company,

six months later. Notice that the revenue is unchanged.
revenuej
revenue
Graph A
Check the definition of 'contribution margin' opposite to

see how the % figures in the table are calculated.
Example (line
500 - 390
500
):
= 110
2.l.Q x 100 =
22%
Underline the correct letters in italics.
total
costs
Sales Volume
.55
In order to maximize profits, the company should emphasize

line A / B / C in Its product mix,
2 Sales commiSSions on line A / B / C may be a little too
generous.
3 The s lIing price of line A / B / C IS probably too low.
Sales Volume
In which graph, A or B, have managers reduced the

advertising budget (a fixed cost)l
2 In which graph, A or B, have managers found another
supplier with cheaper materials (a variable cost)!
Compan
lOance
h'i
~;"onICI
mar
Stock and bond markets

Stock markets Clre the b st- 'nown financial market <1n
lheir function is firstly to rai. apital wh a company goes
public (i0 issue shar for the fir-t ti ,e), and :e on ly to
provide a place wher buyers and ellers of those shares can
lhen cxch,mg , them.
When a bu~ine' rea hl's aced, size, the original own rs
might decide that they want t J g) public <lncl li~t thc:jr
shares (Am sto"ks) on a stock market. With the help of an
investment bank, they sell th se shares to the market at an
Ira (initial public ofieri.ng). A huge sum of money enter the
u -in s a a on -timl:' event and an be used to expan I thl:'
business. Owner hip of the busin-s5 passes from the )rigin, I
founder to th hdrell llders.
Th> bond market is also used to raise capit t, bul in this
ca e the c pita] is r, ised. as , loan. Bond 'an b is ued
by ompanies, gO\'ernments and sam municipal ( r state
authorities. The in e tor - Ule ondhol ler - provides n oney,
and this is paid ack with interest over th t rm of the 1 an.
Stocks and bonds, which are collectively knowl as
'securities', arc actively traded on the mdrkets after they have
been issued.
does, you gain more as a percentage than the movement of

the underlying stock. If it doe'n't, you ]o"e everythin~.
So, in exch,mge for some risk, _ou Gill increa"e y ur
potential return. But notice thaI <1n option contract al ~)
allows au to be more careful with your investment: if you
own a stock i"lnd it falls in value then you 1 se money - bul
with an options contract on th s me sto k you can mJke
money as t"11 tock falls. In this way you have 'hedged'
(it' pmtected ourself againsl) the ri k.
WHO ARE THE PLAYERS? WHAT DO THEY DO?

Retail Investors
These are individua s who purchase

small amounts of securities for
themselves.
Institutional investors
Investment banks buy and sell

securities on behalf of heir clients
(large companies), and on heir own
Investment banks
- pension funds
insurance companies
- mutual funds
Mutual funds (BrE uniltrusts) pool

the money of many small investors
to Invest In selecled companies in a

pa tlcular held
Hedge funds
Often qUlle secretive, lnese are

companies that pool lhe money
of wealthy investors and aclln an
aggressive way speculatll1g on a
short-lerm basis, using leverage
(ie borrowmg money to increase
potenti I profits). using derivatives, etc
Private equity firms
These firms typically invest In pri ate

companies, not pUblicly listed
companies. There are lwo very
different types Of activity:
FX market
By far the largest finilllcial market in th world is the foreign
e change (forex/b.. ) market. Companies n ed L1rre.ncies tll
flay :heir foreign bills. Cenh'al be k buy and sell curr 'l ies
to manipulate the exchange rate. Governments use urrencics
to buy the bonds of other colmtries. Pension funds need
currencies to make in" tm nts ov r eas. peculators bu
and ell currencies as th'y h Sf'. hort-term tr nds, adding a
101 1f volatility to the syst '111. And ev 'rybody wants to hold
their spare cash in a currency with a good rate of inte cst.
Commodity markets
Commodity markets exist to trade phvsiml products such as
oil, gas, m tals, grains and III at.
Derivative markets
Finally, there are derivatives markl:'ts. A derivative is a
finJncial instrument who'f' ' llle is derived from (= depends
on) ilnolher asset For examrle, an optio - cont c ct on a stock
allows you to mJke money if the valu~ ef thi;' underlying
stock rises (or falls) to a certain level by a certain date. If it
Pension funds in est money thal

people are saving for their retirement
Insurance companies invest the
money they receive from policyholders
Money market
The mon y market is I s well-k own, but it pr vide:;
important short-term liquidity for lhe financial stem.
Companies can fund their short-term needs wiLh a range of
debt in trumenls,ofte referred to as '({l lmercial pc per'.
Ban.k~ use this pap r t(> borrow <lJ1d Jen amongst th mselles.
Governments, states and tocal governments also h ve ac es" to
money market insh'ume.nts to fwld their short-term debt.
behalf
+ venture capital to support
Sl rt-ups
+ buy-outs (where a company is aken

over, restruc ured, and then old).
Sovereign wealth funds
These are investment vehicles owned

by nalional governments with a large
budgetary surplus (eg because of all
revenues). They invest In a range of
assets (eg stocks. bonds).
31 FINANCIAL MARKETS
Exercises
Find a word in the teX1 opposite that matches each
Complete the sentences about currencies with these

words: appreciates. depreciates. floats, pegs, props up.
1 people who start a business
1 If a government
Z documents given to someone who Invests money in a

government or company, which promises to pay b ck the
5
5
money with Interest

(two words) the relation in value betw en one currency
and another (eg / $)
people who buy and sell assets (eg shi3fes, bonds,
currencies, raw materials) in the hope of making a quick
profit
sudden, often danger-ous, changes
primary, existmg under the surface
Now do the same for the words in 'Who are the players?'
opposite.
7 (three words) acting as the representative 0 ; instead of
8 people who own Insurance
9 combine people's money so that I can be used more
effectively
10 (two words) money invested in a new company to help it
develop
11 sltuatlOns in which a person or group gains control
of a company by buying all or most of its sllar 5
12 (two words) when a government receives more

than It spend
ver a particular period of time
Put the words in each box into two groups, based

on their meaning.
bear, booming, bull, depressed, falling,

healthy, rising, strong, weak
market
good, high-risk, orofitable, risky, secure,

sound, speculati e, worthwhile
in estment

column.
1 go
capital by Issuing bonds
2 list
short-term debt with 'commercai pape '
3 raise
\
shares on a stock market
4 pay back ' - - - public with an IPO
5 fund
6
7
8
9
10
manipulate
chase
buy shares
support
take over
its currency to another,

then it keeps it at the same level
If a governm nt
a urrency, then it
supports It and prevents it from falling
If a currency
freely, then its value is
allowed to change against other currencies
If the rises against the $, it
If the falls against the $, it
Fill in the missing letters in these commodities.

1 Energy a
e oil, na
I gas
2 Food and fibre c oa, co on
3 Grains and oilseeds: wh t, soyb
4 Meat: a Ie, h 9s (BrE pigs)
5 Metals: co er, ir
ore
Complete the text with the words in the box.
commodity contracts
hedgrng
leverage
downside risk
underlying asset
Two concepts that are fundamental to modern fillance are
leverage and hedging .
is using bOITowed money to buy an

investment You invest 1 00 of your own money and 1 00
- or E:l ,000 - of the bank's This gives you enormous profits
if your investment IS a good one, but also magnifies the
2
A lot of leverage in a market
increases volatility If the market moves against you, it's
not Just your own money you're losing, but the borrowed
money as well. So you have to sell shares quickly to
minimize losses, and this drives down the market very
qUickly
means trying to protect yourself
a ainst fisk. If you hold a lot of shares, oreign currency or
4
, you'll dearly make money if the
price f the asset goes up But if the price goes down, you'll
lose You can hedge this risk by bUying a derivative that is
stru ured to make money as the price of the
5
falls So it the market moves against
you, at least you have some protection.
loan with interest

a start-up with venture capital
the exchange rate
short-term trends in the market
company, then restrudur It
on behalf of adient
Financial markets
t7
In\ll!='~ting
in t c
Stoc s and shares

5, both '~tock::;' and '5h res'
'equities' inside the industry. The p ople ho
own them arc known as stockholders/shareholders. (Players
in the market are shown in unit 31.)
The word 'stocks' is used in the
m the K, and
A company's :ohares fir t appear lJn stock exdlunge ilt the

frO (initial public offering). (See units <{ and 31.) From tb.is
point, they begin t be actively traded on the exchange.
renple 'uy sto 'k~ for two reil ons:
Stocks pay il di idend You can see from the income
statement ill unit 26 lhat some of the profit lhat a company
makes is retumed to the shareholders evcr. ear a a
dividend paymentThe pice II the tock on the mar et can go up. If you buy
low end sell 1 igh, Oll make a profit (ic a capilill gain)
bviClusl) you can also make a ]0"5.
'bid/oHe.r spread') is the profit that goes to the xchange and

other p ople who handle the transaction.
Funds
Instead of buying stocks in an individu I compan,, you can
buy stocks in a fund. Funds hold a range of share' and it
diversified portfolio helps to spread risk. The fund manager
picks stocks with the h Ip of analysts who have expertise in
partiCLllar areas, for xample Chine~e banks, or small biotech
companies, or dividend-paying companie
Inv 'stars choose funds n the ba, is of their holdings, their

FilSl p rformanc , their manager, their risk profile and their
marketing.
Evaluating a stock
Professional investors]o k at a whole range of factors when
d ci ing which stocks to buy:
'\Iotice Lh, t dividends and capital gains are quite

independent. There might bl: a wdl
established (ompany in the health are
or food re ailing are, that pay' a high,
consistent dividend everY year, but
SWOT of the company
whose stock price ang s "cry little.
Equally, there might b a _malleI'
com pan in Iw technol g "ector
whose .to k rice i going up r pid] ,
but they pa ' no dividend tall,
b IUS all tb 'ir profits are reinvested
Financial situation of
to hl'lp pand the busin ss
EVALUATING A STOCK
the company
Exchanges and indices

'early
ry 'ountry ha a stock
~xdlange, and n the exchange certain
"hares can be grouped ogether to
make an index. 1Jl the US there is
the Dow Jones, the &P and the
NASDAQ; in Emope the FTSE, th
DAX and the CAC; in Asia the Nikkei,
the Hang 5cnO' and the Sensex. An
index can be' 1I cd as a benchmar
for individual stocks: i th sto k
l lltpe.rfom1ing or underperforming
the index?
- [xlsting compe itors and barriers to ntry
- Strategy of senior mana ement

. Quality of seni r management
- Revenue and net profit
-Cash
now
- Level of debt
Dividends paid in recent years
C\'
ith two price.:

Ever stock is quot>
a bid price (= the b\.lying pric ) and an
offer price (= the sellin.g pri e). he
d ifferenc between these two (= the
- Existin produ ts and pipeline

- Growth prospeCt
financial
ratl s wid fi9ures taken directly from he

income ~tatement and balance ,hee .
Examples. EPS
~afl1ings ratio),
Market conditions
(earnine s per share), IE
r~tio pricel
ROE (return on equity), e c
- Prospects for tl1at particular industry

- General economic situation; growth in he economy,
consumer spendl 9 etc

Technical analysis
- Studyln chart pa eflls: support dnd resistance, trading
channels, breakouts e c
lUdying investol sen iment (eg pnc
5 I ost hearish)
are
0'1 est
hen
sen iment is at i
- Lycle analysis: seasonali y (e stocks do be tel from

OCt-May) and 'the Presidential cycle' (Ie stock do better
in the second half of a US PreSident's term in office)
Answer key
The economy
Exercise 1.1
1 drive
2 deregulation
3 subsidies
4 quotas
5 tariffs
6 c.onstralned
7 liqUidity
8 bubbles
9 underlying
10 differentials
11 prosperity
12 literacy
Exercise 1.2
1 conSllmer spending
2 free movement of capital
3 qrowth and contraction
4 life expeaancy
5 open borders
6 standard of liVing
7 environmental damage
8 g ds and services
9 Interest rates
10 cheap credll
11 sooal mobility
12 underlYing ,trength
Exercise 1.3
1 consumer spending
2 cheap credit
3 standard of liVing
4 gro th and on traction
5 interest rates
6 underlying strength
Exercise 1.4
1 n the verge of stalling
5 roughly
2 slump
3 boosting
4 the Fe
The business cycle

Exercise 2.1
a 1 an upturn
2 expansion
3 a downturn
4 contraction
b 1 recovers
2 peaks
3 turns down
4 bottoms
Exercise 2.2
lb
2d
3c
.:I a
5e
6 h
8 g
10 i
Exercise 2.3
, low I pICks up
2 end I turning down
3 bond I fixed
4 more e 'pensive I cools
5 contract I recession
6 anticipate
7 before
8 buill bullish
Exercise 2.4
, policy makers
2 new borroWing
3 side-effects
5 government debt
6 labour market
4 tax cuts
International trade
Exercise 3.1
1 economies of scale
2 on your bphalf
3 warranty
8 royalty
4 warehouse
5 expertise
6 trademark
7 ee
9 Invoice
10 bill of lading
Exercise 3.2
1 ta e advantage of any under-used capacity
2 rely on just your domestic market
3 spread the rrsk
4 act on somebody's ehal!
5 establish a presence in a foreign market
6 keep your Own legal identity
7 handle the exchange of documents
8 pay according 10 the terms of the contract
Exercise 3.3
1 Cash-inadvance
2 Letter of credit
3 DocumenlClry collection
4 Open accounl
5 Consignment purchase
Exercise 3.4
1 ustoms
2 handling
3 premises
4 truck
5 loading
6 freight
7 documentation
8 transit
9 terminal
10 c1ea ranee

Exercise 4.1
1 edge
2 backers
3 collateral
4 legal entity
5 invoices
6 piling up
7 turnover
8 a gOing concern
9 acquIsition
10 thoroughly
11 sticking with
17 false economy
13 neighbourhood
14 seed money
15 loyalty
16 complacency
Exerdse 4.2
1 achieve a Crttical mass
2 walt for invoice, to be paid
3 grow or shrink year by year
4 employ more staff
5 spot a gap in the market
6 lake on the risk of the business falling
7 bring Ir1 a huge amount of money
8 enter a growth phase
9 extend line of cred.t
lOgo public
11 grow organically or by acqUisitions
12 ,ell the business as a going concern
Exerdse 4.3
1 overexpand
5 0 erspend
2 undercut
3 underperform
4 overtake
6 undercharge
7 override
8 underestimate
Exercise 4.4
1 outlet
2 fee
3 fulfill
4 standards
5 running

Exercise 5.1
1 debt/liabllities
2 owner I proprietor
4 shareholder I sto holder I stakeholder
3 share I divide
5 a diVidend I profits
Exercise 5.2
entity
Exercise 5.3
1 fUlly
2 legally
6 trade
3 personally
Exerdse 5.4
1 oversee
2 auditors
6 transparency
4 potentially
3 diVidend
Exercise 5.5
1 limited liability
2 detailed legislation
" non-profit organization
Exercise 5.6
1 Chief Executive Officer
3 Public limited Company
4 stake
5 hold
5 integrity
3 legal entity
2 Annual General Meeting

r 4 Umlted Uabili[y Compa y
Global issues for the 21st century

Exerc.ise 6.1
1 geopolitical influence
2 climate change
global arming
4 sustainable growth
5 peak 011
6 green actiVISts
7 maJor battlefield
8 liVing standard
9 pricin power
11 knowledge worker
10 declining birthrate
12 enVironmental,mpa
Exercise 6.2
1 be short of resources
2 be hungry for resources
4 have a common Asian currency
3 be in short supply
5 price oil in dollars
6 accuse someone of hypocriSY
7 in the coming decades
8 for the foreseeable future
9 hold a Virtual meeting
10 have access to world markets
Exercise 6.3
1 value-far-money
2 loyalty
3 creatlves
6 sustainable
7 baCklash
8 sourcil g
4 retain
5 gender
Exercise 6.4
1 warming I des' uctio I threatening
2 activists / influential I environmental
3 engmeering I cont overstall growth I productio
4 economic / industrialization I streng hs I weaknesses
Exercise 6.5
1 standards
premium
2 principles
3 po erty
4 access
7 subsidy
8 overproduaion
5 gender
32 INVESTING IN STOCKS
Exercises
1 (two words) accounting a profit that is made from the sale
of an investment
2 a number that shows the value or level of something, so
that you can measure changes
3 an amount or standard that you can use for judging how
good or bad other things are
4 doing better than
5 (two words) a range of different types of stocks
6 chooses
Now do the same for the words in 'Evaluating a stock'

opposite.
7 a method used to study an organization by analyzing its
strengths and weaknesses, the opportunities it has and the
threats it faces
8 products being planned or developed that will be available
in the future
9 possibilities (especially good things that might happen)
10 (three words) things that make it difficult for a
new company to enter a market, for example the
need for a lot of capital or specialized know-how
a price level on a stock chart that has stopped previous

declines
12 (two words) two parallel lines drawn on a stock chart
that contain the price movements over a period of time
11
13 how players in the market feel about an individual stock or

the economy
14 a series of events that happen again and again in the same
order or at the same times

column.
1 make a dividend ~ portfolio
2 quote a bid
profile (of a fund)
3 have a diversified
payment
4 past
sentiment
patterns
5 risk
loffer spread
6 growth
7 chart
performance (of a fund)
8 investor
prospects
32 J Complete the text about financial ratios with

the words in the box. Check any unknown words in a
dictionary.
assets
bluff your way
capital gain
earnings
share price
metrics
overpriced
profitability
Investors need a way to analyze a company objectively,

and senior managers inside the company also need
1
(= performance indicators) to monitor
its financial health. This is where financial ratios have a role:
they use figures taken directly from the company accounts
to give information about 2
(= profits),
growth and value in the market. These ratios also appear in
news reports, and if you want to 3 ,
, in
finance, you should at least recognize the words passively!
Here are some important ones:
EPS Earnings per share This is the net profit after tax
divided by the number of shares that have been issued.
It is a basic measure of 4
(= the
ability to make money).
2 PIE Price-to-earnings ratio. This is the company's share
price divided by the EPS. For an investor, it's probably
the single most important indicator. It shows what the
market is willing to pay for the company's earnings. It is
used to compare companies in the same market: a high
PIE means that the market has high hopes for the
company's future, but it may also indicate that the stock
is s
3 PIS Price-to-sales ratio. This is similar to the previous
is divided by
ratio, but here the 6
the annual sales per share. It is useful when evaluating
young companies with lots of sales but little or no
profits.
4 ROE Return on equity. This is the net profit after tax
divided by the shareholders' equity. It is a measure of
how efficiently a company uses its 7
to produce earnings.
5 Dividend Yield This is the annual dividend per share

divided by the share price. It shows you the return in
dividends that you get when you buy a stock. You need
to know this if you're looking for regular dividends from
an established company rather than the chance of a
8
from a high-risk growth stock.
Financial markets
69
Recruitment
Recruitment (hiring) is a key area within human reSOLUces.
The process involves many decisions:
Should you hire a full-time employee on a

permanent contract?
A full-time employee is likely to have a better skillset, more
experience, more loyalty, and you will have more control
over their time. On the other hand, you're taking some risk
with YOLU commitment to this individual, and you will have
extra costs (eg paid vacation) to consider. Other options
might include:
Fixed-term contracts.
Part-time employees (eg students, retirees, individuals
with children).
Temporary help ('temps', recruited through an agency).
Independent contractors and freelancers (who might work
off your premises).
Reorganizing the department to allocate work in a
different way.
What job will the new employee do?

There will be certain job skills that the organization needs. If
you're replacing an existing employee, then an exit interview
could help to clarify some of the issues. After some analysis
you may produce:
A job description that gives the job title, a smnrnary of the
job and a list of the main tasks or duties.
A person specification that lists the knowledge,
experience, qualifications and skills that you would like a
candidate to have. These are often divided into 'essential'
and 'desirable specifications'.
How will you attract applicants?

Once you have a job opening, your first thoughts are likely
to be internal applicants. If you don't offer opportunities to
existing employees, they're likely to become demotivated
and start looking elsewhere. But if you do need to recruit
externally, then you can use a variety of electronic and print
media such as an online posting on a jobs website, or a
classified ad (or a display ad) in a newspaper. You can also
use the services of a specialist employment agency, including
headhunting firms for senior managers.
Another SOLUce of new recruits is referrals, ie suggestions made
by colleagues, existing employees, etc. But beware: a workplace
with too many friends results in a group that resists supervision,
covers up for its members, socializes too much, ignores those
not in the group, and causes problems if conflicts arise.
At the interview there are a number of stages that you will

probably go through:
Begin by establishing rapport with the candidate. They
will be nervous, and you want to put them at their ease
so that they can answer questions properly. You can also
check their ability to socialize and be friendly.
Outline the company background and where the job fits.
Encourage the candidate to talk about how their skills and
experience are relevant. Ask open-ended questions and
keep the interview moving and on track.
Close the interview, and indicate to the candidate the next
step and the tirneframe.
Rate the candidate while they're fresh in your mind. Keep
a record.
After the interview, and depending on the job, there may
be further tests. These can include practical tests (of manual
skills or computing skills) and psychometric tests
(eg problem-solving, decision-making, interpersonal skills).
Some large companies have special assessment centres to do
these tests.
Finally, before selecting the best candidate and making a job
offer, you may want to do some backgrotmd checks. At a
minimum this involves calling former employers who were
listed by the candidate.as references.
Tips for a CV (resume)

Put a 'Summary' in a box at the top - one short
paragraph with your current position and objectives.
Put 'Work experience' before 'Education', with the most
recent job first. Include references at the end, or at
least a line saying they're available on demand.
Be specific in your descriptions of responsibilities in
previous jobs.
Include lots of action verbs.
Focus on achievements (ie important things you have
done) rather than skills.
DON'T leave gaps in your employment record, and
DON'T put down many jobs in a short time.
Tips for a cover letter

Include a cover letter with your CV. This could be the body
of an email if you're sending the CV as an attachment.
In the cover letter:
Refer to the particular vacancy (eg where you saw it
advertised).
Show how your skills and experience would be relevant.
What kind of interview and selection

process will there be?
You will begin by asking for and looking through CVs (BrE)
or resumes (ArnE), unless you have a special template or
application form designed by the company. You will then
draw up a shortlist of candidates and call these people for
interview.
70
Highlight a couple of points from your Cv.
Say when you're available for interview.
Generally 'sell' yourself.
For more help, use an Internet search engine. First choose

a word like 'CV' or 'resume' or 'cover letter', then add a
word like 'tips' or 'example' or 'advice' or 'writing guide'.
33 RECRUITMENT
Exercises
1 (human resources) range of skills

2 buildings that a business uses
3 decide to use a particular amount of money, time, etc for a
particular purpose
4 examinations that you have passed
5 finding somebody who has the right skills for a senior
job and persuading them to leave their present job
6 (two words) people who have recently joined an
organization
7 (phrasal verb) protects someone by hiding unpleasant facts
about them
8 (phrasal verb) reading something to find the information
you want
9 a pre-designed document formatted for a particular
purpose
10 relationship of understanding, friendliness and respect
11 decide that someone has a particular standard or level
Now do the same for the words in 'Tips for a cover letter'
opposite.
12 a job that is available

column.
1 be on
work in a different way
2 recruit~ a permanent contract
3 work
4 allocate
5 start
looking elsewhere for a job

off the premises as a freelancer
temps through an agency
6 ask
an interview on track
a shortlist of candidates
on achievements rather than skills
open-ended questions
some background checks
7 focus
8 keep
9 do
10 drawup
33.3 Divide the words in the box into three groups,

based on their meanings.
appoint
recruit
employ
fire
hire
layoff
resign
stand down
dismiss
quit
make redundant (BrE)
take on
terminate (AmE)
hand in your
notice
33.4 Find two words in the second column in exercise

33.3 that are used when the employee does something
wrong, not when the company needs to save money.
/

1 A candidate / An applicant has simply asked for a job (eg by
sending a CV); a candidate / an applicant is being actively
considered for the job by the company.
2 A classified ad / display ad is a short piece of text; a
classified ad / display ad has a box around it and can have
artwork.
3 If you outline / highlight a point, you make people notice
it and think about it; if you outline / highlight a point, you
describe the main ideas.
33.6 Cross out the item which has a different meaning

to the others.
1 to complete, fill in, fill out, submit an application form
2 to attend, be called for, carry out, get, go for an interview

3 to allocate, assign, delegate, give somebody, set somebody,
succeed in a task
4 to be faced with, carry out, do, fulfil, perform a task

5 to have a challenging, daunting, difficult, hard, thankless,
uphill task
r
6 to talk about a candidate's employment contract, history,
record
7 to have an established recruitment method, policy,
procedure, process
8 to have the required expertise, know-how, mindset, skillset
33.7 Match pairs with a similar meaning, one from each

box. All the words can be used with 'experience'.
considerable
direct
practical
previous
limited
relevant
appropriate
extensive
hands-on
little
first-hand
prior
33 8 Match pairs with a similar meaning, one from each

box. All the words can be used with 'job'.
boring
ideal
blue-collar
dream
challenging
decent
manual regular
dead-end
demanding
steady
worthwhile
Human resources
71
Pay and benefits

Pay is often referred to as 'salary' in white-collar jobs and
'wages' in blue-collar jobs. A company offers a compensation
package (= pay + benefits) to employees, and this is the main
way to attract and retain them.
Levels of pay
How do you decide what level of pay is appropriate? You
can start by finding out what other employers are paying.
The best way to get this information is probably networking:
ask existing staff, counterparts from other companies, people
already doing that job, etc. You could also look at the job
advertisements in local newspapers and agencies, or perhaps
consult with your chamber of commerce.
Sometimes the salary for a job is fixed; at other times it may
be open to discussion, for example at interview or when a job
offer is made. A student looking for their first job probably
won't have much bargaining power over pay, but other
people might. In particular, you have a position of strength if
you have specialized skills, an existing job, and you can see
that the company needs you.
Besides deciding how much to pay new hires, the other
major concern of employers is how much of a rise (ArnE
raise) to give existing employees. The three basic approaches,
which are often mixed, are:
Give everyone the same percentage rise.
Offer annual increments based on length of service.
Have an incentive scheme where part of the rise is a bonus
based on performance, results or profits.
Performance-related pay
The pros and cons of option 3 above (ie performance-related
pay), are well-known:
Pros It provides a strong motivation to work well; colleagues
know who isn't pulling their weight and resent it if these
people are paid the same.
Cons It creates tension between colleagues; performance may
be difficult to measure; employees stop focusing on quality of
work and instead just focus on those factors that affect pay.
It is of course possible to give a bonus to everyone at the end
of the year if certain targets are met, and this overcomes the
objection about competition w1dermining teamwork.
Laws that affect pay

From the human resources point of view, another important
issue is compliance with the laws that affect pay. There may
be laws about:
The minimum wage (an hourly rate for low-paid
workers).
Overtime ('time-and-a-half' may be mandatory for some
workers).
Equal pay for equal work (to combat discrimination based
on gender, age, race, etc).
T2
Benefits
Benefits, the second area of compensation, are covered in
the table below. Many of these have a minimum level that
is required by law, but an option is for the company to
offer more.
Time-off
benefits
Annual leave days (paid vacation)

Sick leave
Time off for pregnancy (maternity
leave), birth, moving house, etc
Insurance
Life insurance - attractive to people

with families
Private health insurance
Disability insurance (for serious,
permanent injuries that cause long
term loss of income)
Pension plan
(for
retirement)
Workers'
compensation
The employer usually sets up the

plan and makes payments into it,
but the employee can also make
contributions
Protection against loss of income
(~nd for medical payments) due to
a work-related injury, accident or

illness
Fringe benefits
Car
Laptop, mobile device, etc
Membership of a health club
Employee discount on the company's
own products
Relocation expenses
Extra benefits offer great fleXibility in how you reward

employees. Research in the UK has shown that the most
common benefits offered by large companies are employer
pension plans, life insurance, and an increased number
of annual leave days. Other popular benefits include
professional development opportunities such as seminars,
conferences and courses.
34 PAY AND BENEFITS
Exercises
34.4 Match each word in the box to its closest definition.
bonus
commission
remuneration
royalty
1 (two words) office jobs rather than factory jobs
income
salary
overtime
perk
wage
weighting
2 (human resources) continue to employ; keep
5 (three words; idiom) doing their share of the work
a regular amount of money that you earn - used for hourly

/ daily / weekly payments and blue-collar jobs (usually used
in the plural)
2 a regular amount of money that you earn
- used for monthly payments and white-collar jobs
6 feel angry because you aren't treated fairly
3 money earned by a person, an organization or a country
7 gradually making something less effective
4 (formal) payment that you get for your work
3 a series of regular, small increases
4 (three words) advantages and disadvantages
8 the practice of obeying a law

9 ordered by law
10 unfair treatment
Now do the same for the words in the box opposite.

11
a condition in which someone isn't able to use a part of

their body properly
12 (two words) things that you get in addition to your basic
compensation package
3 .2 Make phrases by matching an item from each

column.
1
2
3
4
5
6
7
8
compensation ------........
"--bargaining
incentive
life
minimum
maternity
pension
end-of-year
scheme
package
wage
power
bonus
plan
leave
insurance
4.3 Write each item next to the correct definition
5 the money that someone is paid for the extra hours that
they work
6 an amount of money that is paid to somebody every time
they sell a product
7 a payment that someone such as a writer or musician
gets each time their work is sold or performed
8 extra money that you're paid in addition to your usual
salary, especially as a reward for good performance
9 extra amount of pay given because you work in an area
where it's expensive to live
10 something extra that you get from a job, very much like
a fringe benefit, but it can have no monetary value - for
example the chance to travel
34.5 Cross out the one word in italics that does not
make a word partnership with the key word. Check any
1 a / an
below: life insurance. pension. retirement.
attractive, average, basic, competitive,

generous, gross, incentive, monthly, net,
starting, substantial
salary
1 the time after you permanently stop working

2 money paid to your family when you die
3 money that you receive regularly when you no longer work
because of your age
2 a salary award, band, benefit, cut, increase, level,

package, range, review, scale
back, low, maternity, overtime, performance-related,

reward, severance, sick, take-home
pay
34.6 Fill in the missing letters of the prepositions below.
Here are the letters you need: deeffinnnooooorrrtuv.

1
2
3
4
I have a good job. I'm

a salary
4 0,OOO.
I'm not paid enough. It's not fair. I'm
paid.
He's paid too much. He doesn't deserve it. He's
paid.
They pay my salary
my account at the end of the
month.
my laptop.
5 The company paid
Human resources
73
ISSU4es I
he
or place
Th previous two units cover'd recruitment, salary and b nefits. Th ' are the or areas of human
r our es (1IRl. But there are a whole < riet)' f other workplace isstl S, both big and small, that HR
man gers ha\' t deal with. Small Finns often sort these things out infurmally, but in a large organization
a union repr sentative might become involved. Most 0 these ar a he ve legal requirement that llR has
to monitor, an the pap rw rk required for this may be a large part of the \ ark of the HR department.
U
A 0
E
E
These are usually clear in pnnclple - but what about a situ lion
where there is too much unpaid, unofficial overtime? And is Jt
always clear whether training and travel count as part of the

job, an
hether working lunches count as 'working hours'?
HR could become very unpopular with other mana ers if it
tries to e force the rules in these areas too stric Iy.
and a
nc
Di ciplillan awl dismi, 'S 1pr' I Pel I
of hehaviour - calkd 'gn> , lIliSCO~1(h~lt'

.
th-'t
(\ U1cv'rc likd ' \II I 'ad to (!Ismlss",l
withont nC)ricl', Thc,e might includc fighLin!2;. fTa It\.
lheft, et . Hut what happen' if an cmp\ovec \1:lI1Ls II .
app ',11 ,\ga.insl the d cision ('II wasn'l my l~l1IL- II oll.t
~ . f".
me
Irlit ... . \Vhal is t.h ;IPI')C(I!S pr -cell)le, For .OUltr_
I . criouli typc' of behaviour, Lllt're mdV be." Sl.'n(~ 01
\l'amin~-' gi\'cn to the employt'''' I d~' e t!lSIllISS.ll IS all
issue. How arc thosc warnings gi t'n~
Some
t)VCS
- arc: so
~t:nous
')
Again tile pnnclple are clear - bu whit

happens when d sick child needs I king after or s vera! days? ha
happen If someone Is missing WOI k because 0 senous personal
problems? Whd happens ir e e"yone wants to take thew holldays at
the same time In the summ-r an there is n one left In the ffoce 1
What happens If rt has become the norm for people to leave od(
early on Fnday aftem on - but n w the new CEO doesn' like it
~nd wants HR to do something abou it?
Usually lhere is orotec.Lon under h I.., rom discr'mlna '0'1

on the grounds t ,ex. rae ethnic origin, nationali y, dISilbll",
s x al orientation, re 19 n, age and mamal statu. But shOll
he company 0 one spur her and be aCTively promo Ing
IverSlly7 HR WIll have to Impler ent ~lIC a policy If II ha' beer
decided, and it cOlild y. 1\ be diVISive In 'he "'olkforce. roup;
that are currentl' fa 0 re "'ill ft. ~I rhrea e ed, a~J here m, ht
be commen s behll1d people's backs that, 'they onl got he jOb
because th,:,y r _ .
W r -life balance
Are there appartuniti s for working flexible hours or job
Dealing with harassment

and bullying
This can begin in very subtle
way - and lead to alar e
harina? This might be important for someone wanting

to wo;k from home, or a arent returning to work after
a new baby. If HR creates the pre edent that one person
can work from home one day a wee ,ho
do you stop
everyone wanting to do It!
comp nsati n award a ainsl

you if not dealt with properly.
RF
CE PROCEOUPES An employee may
have concerns or complaints about their
work, employment terms, working conditions
or relationshi ps with colleagues, If so, they
may want to discuss them or bring them
formally to the attention of HR, They will
expect HR to address and resolve these
grievances. Is the procedure for doing this
clear?
What happens if all employee sees evid nee 01 fraud or bribery? Is there a
procedure lor them to report this confidentially? What happ ns if they d
report it, and then leel they're beinl'( victimized aft rward- ror b lrayin' their
call agu ? What happens ilthey reel it's being' vered up by th 'ompany,
that ther is no use reporting it internally, and so they want to make it publi ./
In reasingly, go ernments ar putting in place legislati n to rote t whistle
blowers, and HR will have to enrorc this.
35 ISSUES IN THE WORKPLACE
Exercises

definition below. The words appear in order: first down
the left column. then down the right.
1 an organization that repres nts the worke s in a particular
Industry
2 make people obey a rule or law
3 a period of time when you're allowed to be away from
work
4 (always used with 'the') what is usual, averag or expected
5 fixed by law
6 the practice of keeping things around you clean
7 (two words, idiom) do something quickly and
arelessly, because you want to save time or money
8 behavi ur which is deliberately unpleasant, and whl h

causes somebody to feel up t
9 frightening someone or threatenlilg to hurt them,
especially if they're smaller or weaker
10 (two words) money that a court decides should be
given to someone because they ha e suffereJ harm
11 (formal) a complainl that an mployee akes to an
employer about unfair treatment
12 (formal) pay attention to a problem and try to deal with it
13 formally ask someone in authonty to change their decision
14 the fact that very differ nt peopl exist Within a group

15 an action in the past that is used as an example
when someone wants to do the same thing again
16 reporting illegal activities Within your own organization to
someone In authority
become
a precedent
in principle
sort
' - - the norm
involve
create
something out IIlforrnally
be clear
a union representative
3
,
2
3
4
5
6
7
8
9
10
appeal
give
promote
address
enforce
and resolve a grievance

the rules strictly
w rnings to an employee
diversity
against a decision
2
3
4
The words " gal' and 'statutory' are very similar, but legal/
tatutory is more formal
The words 'laws' and 'legislation' are very similar, but laws /
legislation is more formal
The words 'rules' and 'regulations' are very similar, but rules
/ re ulations is more formal
If you say you aren't satisfied, you make a claim / complaint
If you make a demand for something that you have a right
to receive, you make d claim / complaint
An incident / accid nt is just something tha happens,
whereas an incident / accident I c1 sudden even in which
some ne is hurt.
Read the text about dealing with misconduct, then

answer the questions below.
What should you do if an employee's conduct is becoming
a cause for concern? First, carry out a full investigation.
Consider:
The circumstances and consequences of the alleged
breach of discipline.
The employee's job, lenglh of s rvice and disciplinary
record
The vidence of Wit esses
Any previous incidents
Any mitigating circumstances, e health or domestic
pro lems, or provocation.
Now review this eVidence 10 determine whether the case
is serious enough for disciplinary measures. or whether
there is an alternative, eg an informal cllat or redeployment.
For certain serious offences you may need 0 suspend an
employee While a fUll in estigation akes place.
Disciplinary measures begin with a meeting, and follOWing
that a written warning ..After gl ing a warning, you must
allow the employee ime to improve their behaviour Only
move on to the next stage of the procedure - issuing a
further warning or holding a for al disciplinary hearing - if
the previous warning has no effect

1 (three words) reason to worry
2 (four words, formal) a situation III which it's claimed (but
not proved) that someone has behaved against the rules
3 (two words; formal) facts that help to explain a mistake and
make it seem less bad
4 movin someone to a different place or a different Job

1
2
3
4
5
6
gne ance~
work-life
\.
health and
legal
equal
gross
misconduct
requirements
balan e
procedures
safety
opportunities
5 officially stop omeone from working b cause they have

broken the rules
6 meeting of a committee or official organization to find out
the facts about something
See page 150 for some discussion topics,
Human rer.ources
it;
r b c ground and car er

I enjoyed high 'chool - my
cde_'
of a bank. B call of my internship (work pia 'ement) I

knew more or Ie 5 wh t to expect in terms of the orking
n ironment I spent five years there, learning the busine s
and WEl prom ted to nior Anc lysL in my lat tw ntie .
v ere goo i and I got imolvt:d in
a lot of e tracurriclilar act1\'ities.

At the age of eighteen [ went
to university (Am college/
lIni\'Cr ily). I got a pta at U1e
That tim in my life was really

hectic - J wa' living the life of a
typical young, sin~[e per-on in the
financial services e-tor. I w rked
hard and partied hard. I often
stayed al th office until eight in
th e 'ening, and was exhauste
t the \V kends. By lh age
of thirty I , as burnt Olil. I need d some personal pace to
decide where my life was going, nd] d cided to take a year
off. r g ve in IT y notice and quil my job.
lIniv I' ity in m I home town, alU10ugh some of my friends

mov'J a~ c y to other lIntver ities and Ji ed on campus. At
first I hc1ted it, and I nearly d opp d out after a few months.
But after a while I made friends and got used to writing all
the es ay (ArnE papers). Money was a problem - I held no
grant or other financial aid - and I worked my way t1u'ough
allege by doing a little part-time work whenever I could.
My degree was in economics, and

my main subject ( m' major) was
int mationa! trade. The lecturers
(ArnE prafes ors) were good
and I enjoyed the course ( mE
program) very much.] pent the
middl ear of th' our'l;' w rking as an intem in a bank
that was really useful. It We the only part where I got 'ome
real vocational training. At the end of the ourse I thought
about staying on to do a Masters, but I dead d that the life
of a post reduate didn't really interest n.e. It was time to
enter the world of work.
I had saved up quite a lot of

mone. fr n the job in th' bank,
,nd so r as able t go travelling.
I backpacked my way around
India Jnd South-East Asia and
had som crazy times. But T knew
thal I had to S" We down n day, and I wanted to start a
family. ~o I came hom and started to ]opk for work again.
r r gist
red with some online

>mploym nt Jgenciesf1md
they foun I a vacancy almost
imm diat Iy. It was in a
similar field as before, but
I ss hig-h-pressllre.
After graduating, it took me

several months to find a job. I
was "hort-li~ted for, few jobs,
but th 'y never Cc II d me back for
a second int rvi w. Eventually
r wa . offer d ,1 junior p sition
in the intern tional department
Verb forms for talking about your career

I
ua ions
h P
Single actions I got a place at university
A sequence of single actions: I joined the company in February, finished my training after four weeks,
and started the job properly in March
Situations that lasted for some time I lived On ampus
P st (ie
c groun even )
I was living the life of a typi al young person in the finance sector.
I was working as a waitres in a cocktail bar
or
v n in he pa
I had saved up money from the job in the bank, and so

I had already quit my job wh n they ..
is ti
My salary was increasing year by year and so I bought n apartment
While I was working as a sales assistant, another company invited me to join them
I had saved up money and so I was able to go travelling.
I had already quit my job when they announced th job cuts.
7f>
ned be are
nother
36 YOUR BACKGROUND AND CAREER
Exercises
j.
Complete the sentences with the words in the box,

All the words are used with 'career'.
1 letters or numbers that sho the quality of a student's

work
2 (two words) things that student does at school or college
that are not part of the course
3 (phrasal verb) left univerSity before the course had finished
4 money given by someon ,especially the government, for
a particular purpose (similar to 'scholarship', which only
refers to money for study)
5 a course of study at a university, or the qualification that
you get
6 a student who works In a Job In order to g t experience
chosen
concentrate on
be over break
make
move
opportunities
promising
7 relating to the skills you need for a partJcular Job

8 (phrasal erb) continuing to do a Job or a course after the
expected time of laving
9 completing your studies at univerSity and getting a degree
10 busy; full of activity

11 (rwo words) very tired and with no energy bee Jse of
working too hard for too long
12 (four words) told m mployer that I would be leaving my
Job soon; resigned
13 ravelled for pleasure, Without much money, carrying
everything reeded for life in one b g
14 (phrasal verb) start liVing a quiet life in one place, specially
when you get married
'5 an available Job
3
column.
1 get a place
2
3
4
5
6
7
8
drop out
work your way
spend
be short-listed
be promoted
register
find
through college
- - - - - at univerSity
a year as an intern
after a few months
to enior Analyst
a v cancy almost Immediately
for a Job
with an online agency
3 .3 The third paragraph opposite uses the word

'eventually'. This is a false friend in many languages.
Tick C.f) the one correct meaning of 'eventually' from the
choices below.
1 by accident
2 alternatively
ladder
lake ott
You an
a g ad career for yourself as a
lawyer But you'll have to work a lot For the next few years
you'll have to
your career, not your
SOCIal lif
If you have children, you'll e d 0 take a career
But don't worry - your skills are
always in demand, and I'm sure that your career Will
whe you' e In your forties.
eha ging from finanCial consultant to yoga teacher is a
very drastic career
. it means that your
care r in finance will
He's a bright young man with a very
career in front of him I'm sure he'll move up the career
very quickly.
She achieved 101 in her
career She
took advantage of the many career
available in IT project manageme t and went light to the
top of her profession.
S Complete these memories by putting the verbs into

the correct form: past simple, past continuous or past
perfect.
I remember that occasion very well - it was while I
(work) at Omnitel It wa In the
(ju t I finish) lunchat emoon - I 2
and I 3
(write) a repo at my desk
I4
(get) an SMS on my mobile phone - it
was from a headhunting agency. inviting me to call them
(be) ery surprised because I
I5
6
(not I contact) any gen ies Ii e that
Anyway, I 7
(wait) until no-one
8
(listen) and then I 9
(call) them I'm sure they 10
(wait) for
my call because they were immediately very friendly They
said they 11
(already I find out) a lot about
m by doing Google search on my name, and hat they
12
(want) to hav a meeting with m
3 possibly
4 aftel- a long time
You and your job
77
pa y
Wh nyu describe your company, you milY 'hoose to give
a brief, intormal introdu bon or a full, formal presentation,
dependmg n the context. The five heading-s below cover the
impnrtant areas to include in a full presentation.
History, size and structure

tart with the arne and main business activity of your
company, and the sector in which you op rate (e?; th
consumer good'i seclor, the businl'ss-to-business scctm}
Say where the head offi -e is II ated. Briefl mention the
company's origins, then cover key mile ton s (including any
major re tructuring) and its size and structure tod
J
J'
, lze' mi~ht include the number of employe's, or things like

the number of slores. A technical indication of company siLe
i your m.1rket capi lization (market cap). 'Structure' might
include reference to a business group that wns several
comp. nie., or to tlb idiaries, or to separate dhrisions
g organized by product categ ries).
At tI is point you may want to briefly describe th
l1rganiz ti m ..:hart (organigrc m) of your company. B careful:
this an be very boring!
Main products I services

Gi\"(~
an overview of your product range, including <lny

'amp titive ad ntag s. ate that n ::.wadays there is little
difference between the words 'product' end's rvice' (eg you
can hel e 'finan ial products').
comp
products: quality, value, reliabllity
promlsl ng product pipeli ne
modern equipment and efficient manufacturing process
efficient distribution network
strong ash flow
cost advantages due to location
morale, commitment, leadershlp
Market
~
Ik about the countries in which )'ou lperate. Also t.:llk

bout your typical customers (for a stand I'd product) or
clients (wb n the product is speciilily tailored). 1i<; may
include a ref renee to the m, rkel se~ ent in which yOll
operate. See unit 20.
c
Key numbers
Kc. numbers include your :mnual turnover (= revenue), yOllI
net profit after t, x (= net incom ), and yo Ir market share. For
iln int mali n I company, break d 1wn th revenue according
to regi ns or ountries. It's als inter .ting to know which
ur revenue
lines contribute most t
Trends and plans

This i,; likely t b tho part of the pre. entation that will
generate the most inlerest. [s the overall market growing or
shrinking? Why? What new t,chnnlogies r social trends are
sh pin~ Yllllr mar et? What art' yt) r company's plans f( I'
the future?
Finally; you may want to talk about your )"vn job. 5 e unil38.
SWOT analysis
A different way to profne El company is by me ns of cl WOT
iIl1<llysis. An e mnpJe is given below, but it will t e different
[or c'ver), company.
WE:A .... IN~:::.SES
f th
small market share

weak brand Image
gaps in product range
poor management mformabon systems
insufficient sales people
low spending on innovation and R&D
h mar
major new contracts
growth in the eXlsting market
new markets
developments in technology
competitors' mistakes
partnerships, agencies, distribution
7H
market saturatIOn
cheaper substitute products
changing consumer tastes
slowdown in the economy
success of existing competitors
entry of new competitors
pollticaL I legislative effects
a shortage of key raw materials
I parts I components
37 YOUR COMPANY
Exercises
1 events that mark an Important stage
In
a process
2 org nizing a company in a diffe enl way to make It more

efficient
3 (two words, finance) the total value of a company's shares
(= number of shares x theIr market price)
4 companies owned or controlled by other, larger compani s

5 a short descnptlon that gives the main Id as without
E'xplaining all he details
5 (two words) things that help a company b more successful
than Its competitors
7 made for a particular purpose or person
8 c nsidering something as a whole; including very thing
9 becoming smaller
Now do the same for words in the SWOT table.
10 (two words) products hat are planned and will be

launched soon
11 the level of confidence and posItive feelin s that
people have. espeCially people who work together
12 the hard work and loyallY that someone gives to an

organizatIOn
13 (two words) a situation wh n few new buyers can be
found
14 not having enough of something; lack
37 2 Make phrases by matching an item from each

column.
1 mar et ~
2 product
3 standard
4 SOCial
5 R&
6 SWOT
7 distribution
8 cost
9 substItute
10 annual
product
\
~ends
"'---share
range
network
analysis
products
turnover
advantages
7. Complete the company presentation about Zara

with the words and phrases in the box. Check any
affordable
bUSiness mOdel
consumer tastes
conlinued expansion
founder
income
mdustry standard
prime locati ns state-of-che-art

turnover
Zara, part of the Inditex Group, IS one of he world's fastest
growing retailers, with an innovative'
that allows it to compete with quality brands but at much
more 2
price .
The 3
of Zara, Amancio Ortega, opened
the first lara store in A Coruna, Spain, In 1975 It was
a great success, and Ortega started opening more lara
stores in Spain Working with computer exp rt Jose Maria
Castellano they created 'instant fashions' - the company
reduced the time from design to distribution to Just 10 to
15 d ys (The 4
at that time was several
months) They used 5

production
ar d v arehousing procedures, and installed computerized
inventory systems to link the stores to the factorie All of
this meant that they were able to respond very quickly to
changes in 5
During the 1990s lnditex entere a steady stream of new
markets, nd by 2000 had covered most of Europe Today,
Zara is present In over 70 countries, with a network 0
, ,200 stores in '

in major cities.
For the whole Inditex Group (which includes MaSSimo

Dutti, Pull nd Bear, Bershk and other chains) annual
8
is around 10,000 million euros, with a
of aboLit 1,000 million The total
net 9
retail rea of the Group is approad,ing 2,000,000 square
metres. As a measure of the company's success, market
capil Ilzation has Increased by 200% since it was first
quoted. Plans for the future includ 10
in the Asia-Pacific Region, and the opening of more 'Zara
Home' stores, selling bedroom, bathroom nd living room
products
You and your Job
71.)
I VI rk for <l medium-sized, family-own 'd business. We uffer

specialized ::it'fvices to the onstruction indu.;try. I personally
specialize in lighting install ti~ ns ulsidc buildings - mv
backgro nd is in electrical engineering. I'm re ponsible
f' r the initial ontacl with the client _. L 'i::iit them ill their
offices and discuss their n ds. My role is to talk to the
architect and the deve! pers, to tT t persuade them of the
importance of modern lighting design inside a building
[show them how it can create a go working atm sphere
and add t~l company" image. I e plilin )ur track record
in this field and sho th m a porH Ii) f other lighting
installations that we've done.
Once the initial c ntact has been mad and the client is
ready for a detailed roposa!, I lake a b<lck seal for a while.
Somebody else looks at the detailed specifications r the
installation an then another colleague research::; the cost
of the labour and m terials. Those two peopl work under
me, and I supervise their work quite closely. Finall our
l>j;aJ department draw" up th proposal. 1 v I' ee the w ole
pI' ce and sig! off the propo. I before it's sent to the client.
There ar a number 0 olher pe()pl that lli,dse with on a
day-t -day basis. We have an Office Manager who handles
incoming calls, organize my -chedule ,nJ keeps on top of
the filing a d admjnistr, tio . And then oUbide th company
I have close contact with the architects and with the proj et
management team responsible for the whole construction.
I rcport to the Head of Business
velopmenl, <lnd :,he
reports direel! to the CEO, 50 there at1o' not any layer. in
the c mpany and it's not at all bureaucratic.
M, lVork is c1,all 'nging, of course, bee, use it in ulve& bt.,lth
a sales functi n and a technicaL function - and every proj ct
is different. ut the atmosphere in the office i.s great. It's very
informal and ['Ill em first-n me terms with everyone, even
the CEO
o that's me. ow about my wife. Well, she works for a

large, multinational bank ith its head ffice in SWitzerland.
It's a back-office function - he w rk - in the loans
department. Her job involves checking he c dit history of
campa 'es who want t borrow money, at then asses ing
the risk of the loan. She deals with both small and medium
enterpri es. Sh '5 doing we1l- she \Vas promoted la~t ye r.
j ow -he'.:; in harge (If a smailleam of four people,
so th nre' a me nagement dimension to her job as
well; it' , not simply DUl11ber-CrLlIl hing.
Describing your job

fascinating, rewarding, satisfying, stimulating
boring, dull, repetitive, routine, uninteresting
challenging, dem nding, hard, hectic, tiring, tough
boss, CEO, colleague, coworker, counterpart, customer,

line manager, opposite number, project leader, supplier
approach I get down to I tackle a task
carry out I do I get on with I perform a task
complete I fulfill succeed in (doing) a task
assIgn somebody I give somebody / set somebody
be tasked with doing son ething
a task
I work for, " (a company)
I'm working on ,(a project)
I work with I alongside. (colleagues)
I work on my own.
I work from home
to be in work lout of work
to be off work (becaus you're ill)
I leave for work at 7. 0 m, I go to work by train,
I get to work at about BASam, I'm at work unri/6pm
38 YOUR JOB
Exercises
1 (two words) he things that a person or organization has
done
In
the past whIch show how well they have done
2 (phrasal verb) prepares a wntten do ument (eg a list, plan,

contract)
3 be in charge of a group a workers and check that their
work is done satisfactorrly (= supervise)
4 (phrasal verb) offiCially agree to something
5 exchange information so that everyone knows whaL is

happening
(two words) the process of working with a lot of numbers
and calculating results
1 A job hat IS challenging / demandmg IS difficult. but also

interesting because you have to use a lot of skill, a Job lhat
is challenging / demandmg needs a 10 of your time and
a ention, but Isn't necessanly either difficult or interesting
2 The phrase 'my line manager' / 'my boss' could be a little
Informal, particularly if that person is present (eg being
Introduced by you), so instead we can say 'my line manager'
/ 'my boss'
The word olleague / coworker IS more common In Europe;
the word colleague / coworker IS more common In the US
and Asia.
4 The word counterpart / opposIte number refers to someone
With the same Job as you In another organization; the word
counterpart / opposite number may hav the same meaning,
but is also commonly used for meone In your own
organization who has the same job but In a different place
(eg a different country).
.. Complete 1-3 with endings a-c.

) If you get down to a task, you ..
2 If you get on with a task, you
5 Cover the opposite page with a piece of paper.

1 I work for / on / to a fdmlly-owned bUSiness
2 I specialize In I on / to lighting installations.
3 My background I for I in / with engineering
4 I'm respo Sible about / for / of the initial contact with the
client.
5 My role is for / in / to talk to the architectS
6 Somebody else looks at / on / to he detailed speCifications.
7 There ar a number of other eopl that I liaise from / to /
with on day-to-day baSIS.
8 I report for / to I under the Head of Business Developmen
9 My wife works in / on / to the loan department.
10 She deals of I on / With both mall and medium
enterprises.
11
he's in charge from / of / to a small team
12 I'm working for I on / to an interesting, rOject.
1 I'm a journalls - I spend a I t of time working at / for Ion
my own, from home / from the home
14 My brother is off work / out of work - he's been
unemployed for two months. My sister is off work / out of
work today - she's got a bad cold
15 Every morning I leave for work / the work a 730am.
I amve to / get to worlct at about 8.45am I'm at / In work
untl16pm.
16 Her job involve checking / to check the c.redit history of
companies.
Write a tick (.I) if the sentence is grammatically

correct. Write a cross (oK) if it is not.
1 I'm responsible for this.
2 I'm the responsible for thi .
3 I'm the person responsible for this.
4 ThiS is my responsible
5 This is my responsibility.
3 I you fulfil a task, you .
a complete it su cessfuliy.
b start doing It senously or With ffort
c con Inue after stopping for a short time

column.
1 make
2 ta e
3 oversee
<1
handle
5 keep
6 be on
the whole proces

on top of the filing
a back seat for a while
initial contact with a client
first-name term
Incoming ails
You and your I b
1i I P oning - m king and aking calls

In the dialogue below elme Perez (CP) calls
a idy MC) on his dire t line
rauri
Me Maurice Cassidy.
CP: Hello Maurice, tills is Celine Perez speaking.
MC: Cellne - how nice to hear from yo ,I How are things
over In Paris I
CP: Fine, fine. Maurice - is thiS a good time to tal) Are
you In Lhe middle of som thing)
MC: No, now IS good Just let me close down this
document I've been working on OK - wllat can I do
for you)
orice at line Lhow the ree prionjsl gi\'e c1 very hill

nl1swcr.
Nice at lin 9 how Gianfranco answer hi internul
phone.
The phrases you need
(receptionist) Good moming, ICT Teresa speaking. How
c n I help yo ?
(internal phone) Hello / Sales Department / NICk
Hamilton.
CP: The reason I'm calling is because ot the first quarter

sales figures. Have you seen hem?
MC Yes, I have Sale in France were below target, r1ght7
CP Exactly. The sales report doesn't give any explanation
for that. I thought you might have some ideas
MC: I do have some ideas, but I'd like to speak to Anna in
Marketing about it. Can I get back to you tomorrow
about this)
CP
Sure
MC OK, leave it with me. I'll call you tomorrow afternoon
CP Great - I'd appreciate that Thanks for your time. Bye
I
Please hold while I try to connect you.
I'll try her numb r for you
ThiS IS ... sp aking / My name IS .
ThiS is. (here)
Can I speak to .. , please?
I'd like to speak to someone about ..
The reason I'm calling IS .
I'm calling to ask a few questions about ..
I'm calling in connection with
alice how Maurice start the conversation in a tri 'ndly

way at line 3.
olic how C line checks that the other person hns time
to tal.k.
Notice at line]4 hO\'\' C>Jin u es indirect languJge
(ie pa t fom' : IllOuglrlllJliglzt) t encourag' MC to give
inform:ltion - she doesn't \ ant him to led under :my
pr ssure.
Tn rh ecand di.llogue below onika phones n eompLiny to
ask ab llt heir market r search services. he spe, ks fir l to
t he reception is L
Receptionist Good morning, ICT Communications Teresa
speakmg. How C(in I ~,elp you?
Monika: Oh, good morning. I'd Ilk to speak to someone
In your market research department
Receptionist: Can I have your name, please?
Ivlonlka: Yes, iL's MOnlka Weber.
Receptionist. OK, Ivlonlka, please hold while I try to
conned YOll.
Gianfranco Market Research. Gianfranco speaking.
Monlka: Oh, hello My name is Monika Weber from
Springer Media and I'm calling to ask a few questions

about your marke research service .
Glanfranco Of course, Monika. How can I help you)
Monlka: I'd like to know.
82
Hello! How are you l
How nice to hear from you l How are things in Paris?
Ohl I didn't recognize your voice'
Thanks for calling - did you get my email?
Is this a good time to talP
Are y u in the middle of something.
Do you hav a second?
Is rhere anything else I can help you with today?
Thanks for calling / It's be n nice talkmg to you Bye.
Thanks for your time.
OK, leave it with me 1'/1 c 1/ you tomorrow aftemoon.
39 TELEPHONING - MAKING AND TAKING CALLS
Exercises
Cover the opposite page with a piece of paper.
Now try to remember the words below. (The last letters
have been given.)
1 Hello Maurice,
2 Celine - how
3 Is this a
d
4
5
6
7
8
9
s is Celine Perez
e to
r from you I
e to talk? Are you In the
e of
something I
Just let me
se
wn this document I've been working
on.
The
on I'm calling IS
se of the fi rst qua rter
sales figures
The sales report doesn't give any explanatio for that
I
gilt you
9ht have some ideas
Can I
t
ck a you (= contact you again) tomorrow
about thiS?
OK,
ve It
th me.
Great -I'd
ate that
Remove the paper and check your answers.

At line 5 Celine checks that it's a good time to talk.
Put the words below into order to make similar phrases.
1 have you a second Do?
2 me Do want later you to back call?
3 now right you Are busy?
3 We often use a past tense to make our language
polite or indirect (to make the other person feel they are
under no pressure).
I ~ to speak to someone about my order
(= I'd like to)
I was just ~ about the sales figures.
(= I'm calling)
thought you
11!.9l:ll have some ideas.
(= Do you have any ideas?)
Rewrite each sentence using one of the structures above.

1 I'm calling to see if everythin 's OK for Friday,
2 I'd like to ask you a question about Simon
3 I kr>ow yo
I'll be interested In thiS,

Underline the alternative in italics below that is more
natural.
Good morning, ICT Teresa spea ing Can I help you? I How
can I help you?
2 I want to speak I I'd like to speak to someone In your

market research depal1ment.
3 Please can I hav your name? I Can I please have your
name? I Can I have your name, please?
4 I'm / It's Momka Weber
5 OK, please hold I wait in line while I try to connect you
6 Glanfran 0 speakin I I'm Gianfranco.
7 I'm ailing to know I ask a few questions of I about your
mark t research servICes.
8 Of course, Monika. How can I would I help you l
9. Look at phrases a-e then mark the statements

below True (T) or False (F).
a I'd like to speak to .
b Can I speak to .. ?
c Could I speak to ... I
d I must speak to .
e I need to speak to
I r cti e. phrases a--e e more or less the same

- the II tener probably won't even notice T / F
2 Phrase d IS direct and urgent, but IS OK in business T / F
3 Phrase e is direct and urgent, but IS OK in business. T / F
look at phrases a-d then answer the questions

below.
a The reason I'm ailing is .
b P rhaps you could help me I'd like to speak to someone
about.
c I'm calling in connection with
d I don't know if I'm through to the right department, but I'm
calling to ask a few questions about
Which two phrases Immediately give he reason for
your call?
2 Which two phrases ask for help or general
information 7
Read the dialogues on page 82 aloud Do It by yourself or With
a colleague (changing roles at the end) Practise several umes
until you're fluent
Speaking practice: listen and repeat. Repeat

each phrase you hear and then listen to check.
109
'':\
eDnon. 9 - m 5 age
In tilC dialogue below the caller (C) ants to speak to
someone who i n't aVflilable. TIle reccptionist (R) tflkes the
call.
R:
ICT. Teresa speaking. How can I help you 7
C
R
C
I'd like to speak to Stefan Upska, pi ase

I'll try his number for you ~'J .~ Hello)
Hello.
R: I'm not getting any reply. Just bear with me for a
Noti e at line 10 how the caller say the name before

spelling them. Heming lhc whole w rd first helps the
listen r.
oticc at line 14 how the sea-etary checks by repenting the
name and number.
Notice ho the receptionist a
th s retary finish the
dialogu by promising action (I'll . .).
moment while I try another number
C
R
OK.
C
R
No, I need to talk to him personally.
I'm sorry, I'm not haVing any luck - he must b In a

meeting. Would you like his voicemail?
I can ask him to call you back

C: Yes, please do that It's Frank Hayden here. He knows
me
R:
OK, I'll Just llake a note of your name Frank Hayden

Is that with an 'I' or an 'e' at the end 7
C:
R:
It's an 'e', 'e' as in Egypt. H-A-Y-D-E-N

OK, Mr Hayden, I'll tell hUll as soon as he comes out
Thank you. Goodbye.
of the meeting.
Notice h \ the all r clarifies thc spelling b Llsing a place

namc.
Jn the n xt di logue thc caller (C) gets through to n
secretary (5).
C:
s.
Hello, can I speak to Stefan Llpska, pie se 7

I'm sorry, Stefan Lipska is out of the office thiS
aftt'rnoon ThiS IS his secretary speaking Wo Id you
like to leave a message?
C:
S
es please. Can you ask him to call me back 7
Just bear with me for a moment.
Can I put you on hold?
Right, sorry to keep you ~ iting
II
He must be in a meetrng.
Sorry, she's out of th office / on another call
What's it in connection with 7
Can you give me your name?
Can I take your number 7
Do you now how long he'll be?
Can I leave a message 7
ThIS is .. / It's .. / My name is Fr nk Hayden.
Can you ask him to call me back;>
Would you like to leave a message.7
Let me just get a pen.
OK Go ah ad
Can you spell th t (for me)?
Is that with an 'i' or an 'e'?
/5 that 'i' as in Italy, or 'e' as in Egypt.7
Let m read that back to you.
OK Let me just get a pen. Right. Can you give me

your name and number 7
C
5
Yes, It's Ella Vogelaar

Can you spell that)
C:
It's Ella, E-double L-A, Vogelaar, V-O-G-E-L-double A-R.
And the number!
Cit's 0031, that's the code for the Netherlands, 20 512
6149.
S
5
OK, so hat's Ell

That's right.
Anything else 7
C:
No, that's all. Just ask him to call me as soon as
C:
Vogelaar on 0031 205126149.
possible. It's an urgent matter

S
I understand. I'll make sur he gets the message
Thank you. Goodbye.
Goodbye. Thank you for calling.
J'II tell him as soon as he comes out of the meeting.
1'1/ make sure he gets the mes age.
40 TELEPHONING - MESSAGES
Exercises
o Cover the opposite page with a piece of paper.
Now complete each sentence below with a verb,
a preposition, or both. The longer lines are for verbs
and the shorter ones are for prepositions. ('out of' is
one item.)
ask
make
back
on
must
call
leave
need put
bac
on
for
for
on
our of
bear
lee
make
~
read
in
ffl
in
of
wieh
(first dialogue opposite)

Stefan Lipska,
1 C I'd like to
plea e.
2 R I'll try his number
you
me for a moment
3 R: Just
4 R: I'm not having any luck - he
be
meeting
to talk to him p rson lIy.
5 C I
you
6 R. I can ask him a

a
note
your
7 R I'll just
name
8 C: It's 'e' as
Egypt.
(second dialogue opposite)

9 S: Stefan Lipska IS
'0 S Would you like to
the office this afternoon.

a messa e)
me Just get a p n.
he Netherla ds.
0031 205126149
S OK, so that's Ella Vogelaar
C Just
him to all me as soon as
possible.
sure he ets the message.
15 S. I'll
11
'2
13
14
S:
C: That's the code
(The hrases you need)

16 Can I
17 Sorry, she's
18 Let me
you
another c II.
tha
a
b
c
d
e
Can me to ask you ba k him all)

Do you be he'll know how long)
Hold check. jus on a moment I'll
I'll sure the message make she gets.
I'm sorry she's maternity leave but on
f Right. you waiting to keep sorry.
g She's at des h r at the moment no .
h What's connection with it in 7
Ask the caller to wait

1
After waiting
2
Explain someone is unavailable
3
4
Ask for information

5 (caller)
6 (secretary)
Leave a message
7
Promise action
8
Put the dialogue between secretary and caller into
the correct order.
(Secretary's phras 5)
a
b
c
d
Sorry, she's out 0 the office right now.
Of course Can you give me your name?
Good morning, L gi tica.
Right. I' e got that. It's James Matthews about the
containers in Hamburg
e Is there anything else?
f And what's it in connection with)
hold)
1 I'll tell him as / so soon as I see him.

2 Can you spell it / that!
3 Is there anything / something else?
4 Thank you for your calling / calling.
Put the words in the right order, Write the answers

under the correct heading below.
to you.
(Caller's phrases)
g No, th t's all. Thank you for your help G odbye,
h Hello. I'd like to spea to Lena, please.
I
It's about the containers In Hamburg.
J Could you ask her to call me back!
k Yes, that's right.
I Yes, It'S James Matthews. L na knows me.
1 (5)
7 (5)
2 (C)
8 (C)
3 (5)
9 (S)
4 (C)
1O(C)
5 (5)
1 (5)
6 (C)
12 (C)
Read the dialogues on page 84 aloud. Do it by yourself or With
a collea ue ( h nging roles at the end) Practise several n es
until you're flu nl.
5
Speaking practice; listen and repeat. Repeat
Telephoning
::'I
Te
p oning - checki g, c arifyi g, active listening
rlk (E) i.e, on a business trip. In th dialo LIe below he alls

h colleague Maria (M) from th local office.
E Maria) I'm on a train rom the airport. My flight arrived

late
M: Erik? It's a really bad Ime You keep breaking up.
E We're gOing through tunnels. I was saying 11at my
flight arrived late. I'll have to change plans

fvl Right.
E Instead of going to the hotel to change, I'll go straight
to the conference venue
M: Sorry, I didn't catch that. Do you want to change the
hotel!
E No, n I was saYing I don't have time to change
my clothes at the hotel I need to go straight to the
conference venue. But I
Hello)
M: Hello?
E: We got cut off. I don't know what happened Yes, I
need 10 go straight to the venue. I'll see you at the
registration desk at two.
M. I understand I'll meet you at two o'clock at the
registration desk.
E: Exactly.
M: Thanks for lettin me know.
E: OK, I have to go now. I have another call to make. See
you at two Bye.
N )ti(e at I inc () how M rin uses active list ning.
N ticc at line 9 how Maria asks for repetition and then
says what she thinks she heard.
ohce ell line 18 how Maria repeats the important

information
In the next dialogue rik has some go d news for Maria.
E. Hello) Maria) It's Erik here

M. Hi Erik Nice to hear from you It sounds like you're
having a partyl Can you speak up a bit!
E I'm calling from a restaurant It's very noisy In here -I'll
Just 0 outside. (.) Can you hear me now!
M: Yes, that's fine now.
E Good I was just calling to tell you the news about the
contract We got itl We got the contract I

M Fantastic! That's wond rful!
E: They're going to pay two hundred and fifteen
thousand.
M: Did you say two hundred and fifty - five, zero)
E: In your dreams! No, two hundred and fifteen - one,
fjve. It still gives u a very good margin.
M And did they agr'ee to the time schedule we pmposed)
E Well, I had to move a little on that in the discussions.
M What exactly do you mean by 'move a little')
l.b
E I said that we could start work In arly March and

finish th installation by the middle of April
M: Now, wait a minute Let me just check that I
understand Are you saying that we have JUst six
weeks to do the whole Job)
E That's right.
M I see That's going to be difficult, you know
E Well, there IS a way we can do it. Look, my battery
is very low I think we're going to get cut off. I'll
give you a call tomorrow.
rvl. OK Great news anyway Thanks for calling. Bye.
otjc~ at lin 12 how M ria checks the figure by scJying
the individual numbers (it is very easy to get confused bv
thirfct'll/tllirty, ourtcl'I1/forty, etc).
.
otic' at line l7 how Maria clarifies a very _pecifie point.
Notice at line 20 how M ria ch cks b. rephra<;ing tlw idee
in a differ nl W<1y.

I'm sorry, I don't understand
Can you speak more'slowly, please 7
tl ,
Can you repeat that?
Sorry, f didn't catch that.
Would you mind saying that again?
Did you say fifty, five-zero?
What exactly do you me n by. ?
Let me Just check that I understand Are you saying
that .?
Can I just go over that again?
Right. I f see. II understand. 10K.
Really? I That's interesting.
( onflrming) Exactly I Yes, that's right. I Correct.
(pleasure) Great' I Fantastic' I That's wonderful!
Can you speak up a bie
It's a ~ ally bad line. You keep breaking up.
My battery is very low I think we're going to get cut off.
It's very nOIsy in here - I'll just go outside. Can you hear
m now?
We got cut off. I don't know what happened
Sorry about that Where wer we?
41 TELEPHONING - CHECKING, CLARIFYING, ACTIVE liSTENING
.1 Cover the opposite page with a piece of paper.

Now make phrases by matching an item from each
column.
breaking up
cut off.
go now.
letting me know.
---- bad line.

catch that.
(second dialogue opposite)

7 Can you speak
8 I'll Just go
9 Can you
10 What exactly
1 I Let me Just
Are you saying
My battery
We're going to
I'll give you
Thanks
hear me now!
up a It 7
check that I understand.
outside
7
do you mean by
get cut off.
tomorrow
that . )
a call
for calling.
is very low.
1 2 Fill in the letters to make phrasal verbs. The

definitions are given to help you.
1 We got
Auxiliary + pronoun
8
Key words (as an echo)
9
10
Asking for details
11
12
Confirming
(first dialogue opposite)

1 Jt's a really
2 YoU keep
3 I didn't
4 W got
5 Thanks for
6 I have to
12
13
14
15
16
Little words and noises

1
3
4
Showing pleasure
5
6
Use a word or phrase from e)(ercise 41.3 to

complete these telephone responses. Find a solution
that uses one example from each category e)(cept 'Little
words and noises'.
Gu S5 what! We got the
contract I
2 Well, I've heard that they're

moving all their producti n to
Vietnam
3 Before we finIsh, did yOll know

that Laura has been promoted
to Marketing Director) ,
I don't know what happened.
2 Can you
4 So what YOII'r saying is that

sales are probably oing to be
below target this quarter
5 Anyway, I looked everywhere
(= Interrupted in the middle of the call because the
5
6
telephone line stopped working)

a bit7
(= talk more lOUdly)
It's a realiy bad line You keep
(= your vOice is diViding into short separate noises)
Can I just
that gain)
(= repeat a series of things in order to understand them)
Please
while I get a pen
(= wait a moment)
I've been trying to call Erik but I c n't
(= succeed in talking to him by phone)
Clues: If you didn't know any of the phrasal verbs above, here
are the missing letters to help you. 7 cffotu 2 aekpps(J
3 abegJknpru 4 egoorv 5 dhlnoo 6 egghhorttu
.3 'Active listening' is very important in a telephone

call. Put the phrases in the bo)( under the most
appropriate heading in the table at the top of the ne)(t
column.
And why was that7
Did you)
Exactly
Great.'
Half a million euros
~/as she?
'
So what did you do?
Thai's right.
Right / I see / Sure.
Vietnam I
Yuh / Mmm / Uh-huh.
That's wonderfull
but I couldn't find the

USB stick wiHl my pre entation
on it
4.
Erik ends the first dialogue opposite by saying 'OK. I
have to go now. I have another call to make'. Put the words
below into order to make other phrases to end a call.
1 I'll stop to hav th re I have to see me waiting omeone.
2 It's talking to you nice been And I'll send the email you
wanted by details Bye.
3 Anyway, you I won't any keep longer I'm busy you're sure.
4 Is there help you with I can anything else today)
Read tJ e dialogues on page 86 alou . Do it by yourself or With
a colleague (changing roles at the end). Practise several times
until you're fluen
1
Telephonm
H7
ele!DnOn-n
- a ranging
me tin
In the dialo u below Monika (M) c, lis w\'iu (L) to arrange

a meeting.
M' Hello I'd like to speak to Liviu Balanescu, please

L: Speaking.
M Oh, good morning My name's Monika Dannemann
and I sent you an email last week about the
cons ruction proJe in Bucharest.
L: Oh, yes, of course Nice to hear from you, Monika.

Your email sounded very interesting. And I'd like very
much to meet ou to discuss it further.
M: That's great. What day would suit you? I'll be In
Bucharest from the eIghteenth to the t entyfirst.
L let me just check What about Tuesday the nineteenth?

That sounds fine What time w uld be good for you?
L: Shall we say wo pm)
M I'd prefer bit later If you on't mi d. Could we make
It hree?
L: Perfea. We can meet here in my office on Tuesday the
nllleteenth at three 0' lock
M: And where exactly is your office?
L It's in the centre - It'S ery easy to get to I'll s nd
an email to confirm the meeting and With link to
our website. You'll find a map and a lot of other
information on there
M Very good. I look forward to meetrng you on the
nineteenth.
L Bye, and thanks for calling
1 ol1ce at line 4 how Monika egins by r ferrin to the last
contact.
M How aboLlt three 'clock agalll?

5: That sounds fine Three 'lock on the twentIeth
Just give your name at reception and I'll come down
to meet you. And I'm sorry again about the change.
M No problem at all. Goodbye
otice at line 17 how the .,ecrctary .1pologizes again at the
end of the call.

I sent you an email last week.
We met at the conference and you gave me your card
Can we meet up?
What time would be good f, r you?
What tIme are you chinking of?
What about next Tuesday?
How about 9 Febr aryl
Shall we say . . ?
Could we make it .r .. (Instead)?
Would eleven-thirty suit (= be convenient for) you?
Ye, that's fine. / That sounds fine.
I'd prefer a bit I ter If you don't mmd
No, sorry. (BrE I'm afraid) I can't make it chen.
My schedule is qUite full that day
NotKe al line 1 h w Liviu confirms th d tilits.
In the n '>.t di logu LivlU's secretary (5) calls Monikcl (M) to

ch ng the ilrrangements.
S Good morning. Is that Monika Dannemann?
M Yes.
S: Oh. hello Monika. This I Mr Balanescu's seer tary. He

asked me to call you Unfo unately Mr Balanescu can't
make the meeting with you on Tuesday the nineteenth.
M Oh, I see
S: Yes. He apologize - he has to be out of the offic
all day. He suggests tha you meet the following day
Instead.
M: The day after? OK, that's nO problem. What time are
you thinking of?
S Any time in the afternoon - whenever is convenient for

you.
Perfect We can meet here on . (day) at ... (time)
I'll send an email to confirm the details.
Unfortunately I can't make next Tuesday I'm out f the
office II day How about ... ?
We have n appointment for two, but I can't make it at
that tIm.
Something urgent has come up. Can we reschedule.?
I'm sorry again about the change. I hope It's not a
problem for you.
42 TELEPHONING - ARRANGING A MEETING
Exercises
2 1 In the telephone call below, Andy (A) calls Bulent (B)
to arrange a meeting. Complete the dialogue with the
words in the box.

a little more depth
if you don't mind
sounds fine
be
my guest
by the way
meet up
shall we say
suit you
thmking of
this is
two blocks away
instead
.2 In the next call, Bulent calls Andy to change the

arrangements. Complete the dialogue with the words in
the box.
an't make it
come up
fits my plans
for ch time of year
'II
look
ov r there
reschedule
sorry again
stili open
these things happen
would be good
B Hello Andy. This

A Good morning, i that Bulent Gul?
BYes
A Oh hello, 1
Andy Cutting h reo We met
at the conference In Istanbul last eek. We were introduced
by Mr Anf
B Of course, I remember very well, we xchanged uusiness
cards. How are you Andy;
A Fine Fine Look, I'm goil 9 to be in Istanbul again at
the end of next month Can we 2
sometime? W can tal about your plans for the future
In 3
, and I can show you how our
company can add value to your ideas
B: Yes, It would be a ood opportunit to talk ome mar
What day are you 4
,
A I'll be over there from the twenty-eighth to the thirtieth of
Odober
B: Which of those days would 5
best?
A 6
Tuesday the twenty-ninth;
B, That 7
. What about the tIme' Is nine
o'clock OK!
A: I'd prefer a bIt later, 8
. Could we make
It eleven 9
B: Perfect. I'll see you here at my offic; at eleven o'clock on
Tuesday the twenty-ninth. And afterwards I hope that you
will Ie
for lunch.
A: That's very kind of you. I would really like th t. Thank you
very much
B: OK Oh, 1
, do you know how to find
our offices?
A If I give your card to the taxi driver, will they know the
address;
B: Yes, they Will. It's in the business district - Just
12
from the Marriott.
A OK, I'll find it. Goodbye
IS
Bulent Gul here - from Istanbul
A: Oh, Ii 110 Bulent. How nice to hear from youl How are
hlngs I
In Turkey;
B It's very hot - much hotter than usual
What about the UK?
A We'r
aving a lovely autumn, I can see the trees from my
window.
, Andy, I'm calling about
B Very nice. 3
our meeting at the end of the month Unfortunately I
4
on the twenty-ninth Something
urgent has 5
A Don't wo ry about that
B Call we 7
, Are you free the previous
day - the Monday'
A Let me Just check. Yes, that's fine. I have an appointment
. What time
but the timing is 8
9
Tor you?
B' The same time' Eleven'
A ~ s, that's fin .
B Good. I'm 10
about the change. I hope
not a problem for you,

A: No, no problem, I can make Il on the Monday Actually It
11
quite well.
B OK I 12
see you on tile twenty-eighth
and I'll s nd an email to confirm
A See you then Bye
It'S
1.
Can you fill in the missing word?
An
is an arrangement to se ~ meone
at a particular time, especially for a usiness In eting or a
prafes lanai service.
Read the dialogue on page 88 aloud Do it by yourself or Ith
a colleague (changing roles at the end) Practise several times
until you're fluent

Telephoning
lj
1i I pho in
- compla"n
Read the ialogue below. A customer (C) calls a upplier (S)

to make a complaint.
C I'm calling in connection with my order, reference

number LN0064.
S: Thank you. Please wait one moment while I bring your
details up on th screen .... OK For security purposes,
can you confirm your name and the company name
please?
C Yes, it's Mr. Chen from Z d Technika
S That's fine How can I help you tad yl
C I have a complaint. We I' ceived the order this morning
but you only shipped 80 pieces. The order was for 100
pieces.
S: I'm so ry to hear that. Can you leave it with mel I'll
look into it and get back to you tillS af emoon
C No, I'm sorry, that Isn't ood enough. We need those
items urgently. I want you to authOrize the shipping of
the missing 20 pieces and then send them today.
S I understand how you feel. But I do need to check
at this end and s e what's going on I'll call you back
Within an hour, and of course we can send the pieces
again if nece sary.
C What do you mean 'if necessary'? Can I have your
name please?
S: Yes, of course, it's Sandra LeWIS.
C OK, Sandra, I expect your call by welve o'clock at the
lates ' Goodbye.
Notice how lhe customer waits until the supplier has

allth or r Jetails on th' reen beforc beginning the
complaint.
oti e at line 9 how th cllstom r states lhe complaint
\' ry simply (U1d clearly
t line I the customer inists on action. h' supplier
shows understanding at lin 17 but resist' the pressure.
I\t lin 18 the uppli r promis s action with 'I'll'.
t lin 21 the cu tomer. hows signs of Jnger. TIlis is not
good. Howcver, etti g the name of each emplo ec you
d al v ith i a r powerful tool.
In the 11 xt dialogue Sandra returns the 'u tomer's call.
S Oh hello, IS that Mr Chen l
C Speaking.
S: This is Sandra Lewis here, from Shiro Semiconductors,
calling you back about the miSSing pieces,
C. Oh yes.
S: I do apologize once more, Mr. Chen, but I have good
news or you, I've had a word with the warehouse
and it se ms they sent a partial order - they only had
80 pieces in stock However they do now have more
pieces. I'll make sure that the missing items dre sent to
you this afternoon by sp cial delivery.
C: OK
S I'm sorry again for any inconvenience this has caused

C: OK, it's sorted out now. Thank you for your help,
S Is there anything else l
C No, th 1's all. Goodbye
At line JO. andra promise action with 'I'll'.
At line 13 S, ndr apologiz.es again in a full and formal
way.
Alline 14 the us tom 'f rememb 1'5 to thank Sandra, even
though he is probably not ver hap y. lie needs to ke p a
go d reI tionship with S, ndra for future IlCcasion .
The phrases you need ~

I'm calling in conne tion with my order, referen e
number,
We received the order this morning but you only shipped
,.. pieces.
We still haven't received the.
There's a fault with the,.,
There seems to be a problem With the invoice
I'm sorry. that isn't ood enough
I'm sorry to hear that
I do apologize.
I under tand how you ~ I.
I'm sure we can sort it out,
What exactly 15 the problem?
Do you hav a r ference number?
I need to ask you a few quick question',.
It's not our policy to .
I understand exactly how you feel, but it's not

responsibility to .,
Of
,r
Can you leave it with me? 1'1/ look into it and get back to
you this afternoon.
I need to check at this end and see what's going on,
I'll call you back within an hour Is that OK?
I'll send a replacement immediately by special d livery
It should be with you tomorrow
I'll make sure that.
I'm sorry again for any inconvenience this has caused.
If you have any more problems, please let me know
43 TELEPHONING - COMPLAINTS
Exercises
3. Make phrases by matching the beginning of each
sentence 1-12 with its correct ending a-I. Not all the
phrases appear opposite.
akjng a complaint
1 I'm calling in .
2 We received the order but you only
3 The machine arrived but there's.
4 We still.
5 The printer isn't working
6 One of the items was damaged
7 There's an intermittent faul
8 The quality isn't as good as .
9 You sen me a new part .
10 There seems .
11 I keep emalhng you but.
12 I'm sorry, that isn't good ..
a on
the control panel.
b connection with my order number LN0064

c 0 be a problem with the inVOice.
d your original sample
e I Just get automatic replies
I shipped 80 pieces
9 in transit.
h ha en't received the goods we order d
I enough
j but it doesn't fit
k properly. It's been fine up to now
I no Instruction manual.
43
column.
Dealing with a complaint
1 Can yOll leave
to you this afternoon
2 I'll look
'"",
apologize 0 ce more
'---. it with me 7
3 I'll get back
4 I under and
to heck at thl end.
5 I need
how you feel.
6 Ido
Into it.
7 I'm sure we can
word With the warehouse

sure the items are sent to you
sort it out.
is the problem?
replacement immediately.
for any inconvenience thiS has
caused.
8 What exactly
9 Sorry again
10 I'll send a
11 I'll make
12 I've h d a
3
In the second dialogue Sandra tries to minimize
the problem by using 'seems': It seems they sent a
partial order. Rewrite the sentences below so that they
minimize a problem. Use the words in brackets.
1 There's a problem with our supplier. I think / may be /
issue)
2 It's going to be difficult to send a technician today.

(not / easy)
3 There Will be a del y while we process the flew order.

(might / short)
3. Match each complaint above to a response below.

Write the answer as 'number + letter'. (See #1.)
Thank you. Please wait one moment whde I

bring your details up on the screen.
2
I see Is it still under warranty)
3
I'm sorry about that. I'll put you through to
he ac aunts department a d I'm sure th y can sort it out
4
Really) That's very strange I'll send you a pdl
by email right now and put a paper copy in the post as well.
5
I understand how you leeI But I do need to
check at this end and se what's gOing on. I'll call you back
within an hour.
6
OK I need to ask you a few quick questions
to try to diagnose the problem Do you see any flashing
lights on the display while the fault occurs?
4 There is a problem with the invoice (there / seems / be /

small)
5 I need to speak to my level two supervisor about this.
Qust / have a quick wor With)
6 It would be easier lor you if we simply issued a new inVOice.
(wouldn't!)
3 5 This sentence refers to promising action: I'll

investigate it, find an answer, and call you again
tomorrow. Fill in the missing letters to write a sentence
with the same meaning using phrasal verbs.
I'll I
I
tomorrow.
it, s
it
and 9
yOll
Read the dialogues on page 90 alOUd. Do It by yourself or with

colleag (ch nglng roles at the end). Practise several times
until you're fluent
3.
Telephonmg
lj )
Tellep,hon- 9 - re I W
Fill in the gaps with the words in the box.
b ck
on
2
3
4
5
6
7
8
9
10
back
far
from
on
out of
over
I'm calling
connectio
advertisement.
How nice to hear

you!
calling
Thanks
hold)
Can I put you

Sorry she's
the office.
Sorry, she's
another all
Can you ask him to call me
Italy)
Is that 'i' as
Let me read that
to you,
that again)
Can I just go
in
in
with
your Job
by for for into of

back
off on
up
with
up
with
_ Complete the conversation below using phrases a-h

from the previous exercise. The conversation is between
a receptionist (R), secretary (5) and caller (C).
Write the phrases in full (rather than just the letters) - it
will help you to remember them.
R: Good afternoon, Pharma International. How can I help you)
C Can I speak to Roberta Jarvlk, please)
R: I'll try her number for you. . Sorry, there's no answer.
1
for a moment
while I try another extension.
2
C. Ye please.
S Good afternoon, R&D department
C Oh, hello, is that Ms. Jarvik's se retary?
s: 3
C I was hoping to spe k to Ms. Jarvlk today. Do you know
when she WIll be available)
S: I'm afraid she's out of the office all day
4
11
12
13
14
15
16
17
18
19
20
Just bear
me
a moment.
Can yo speak
a biP
It's a bad line, You k ep breaking
We got cut
, Where were we)
What time would be good
you)
What time are you thinking
)
Can you leave it

me)
I'll look
it and ge
to you,
I need to check and see what's going
I'll send a replacement

special delivery,
Match each phrase 1-8 with a phrase a-h with a

similar meaning.
1 Yes, this is (your name) here,
Please wait a moment.
I'll ask her to get back to you
Would you like to speak to ' ,)
Can I take a message)
6 Can I just repeat everything to check)
7 Can you repeat that)
8 Yes, that's right.
2
3
4
5
a
b
c
d
e
f
g
Let me jllst read that back to you,

Shall I put you through to " )
Just bear with me,
Sorry, I didn't catch that.
Would you like to leave a message?
Speaking
I'll ask her to call you back,
Exadly.
No, still no answer.

her secretary?
C Yes, please. Can yOLl tell her that Yi Sang called, from Seoul
Hospital. It's about your new heart drug.
S: ~
Can you give
me your name again please)
(: Yes, it's Yi Sang That's Y-I, ne I word, S-A-N-G
S OK, got that And the message)
(: I'd like to talk to her about your new heart drug. The one
that has just passed phase three clinical trials. We might be
interested in getting involved in phase four trials I need t
speak to her personally about this
S Right 6,
Yi Sang
called from Seoul Hospital aboLlt the new heart drug. It's
aboLlt the phase four clinical trials.
(:7
S Does she have your number)
(: Yes, she does.
S: Fine. 8
(: Thank you very much for your help Goodbye.
tomorrow,
When you finish. read the conversation aloud. Do it by

yourself, or with a colleague (changing roles at the end).
Practise several times until you're fluent.
44 TELEPHONING - REVIEW
Complete the conversation using the words in

brackets. Nikos (N) calls Mr Siavicek (5). The receptionist
(R) answers.
R. Good morning, NutriFrults. Ivana speaking.
) (how / help)
N: 1
(1/ like / speak) to Mr Siavicek, please.
R: Please hold 2
(while / try / connect).
,..
.
S Milan Siavicek.
~ ~
N. Hello Mr Siavicek This is Nikos Karouzos from Seven Seas

Shipping.
S: Nlkosl 3
(how / nice / hear from)1
4
(how / things / Athens)?
N: Fine, fine. And in Zagreb)
5: Good. We're very busy at the moment - lots of new
business. It seems that veryone want fruit from (roatia
these days.
N: That's good to hear. Look, S
(this /
good time / talk)1 Do you have a second)
5: 6
Qust / give / moment) while I finish
something. OK 7
(ahead).
(reason / calling) because of your next
N 8
shipment that we're handling. It's for four containers, at the
end of November.
S: Yes, that's right.
N Well,9
(thought / might) interested in a
way to save a bit of money.
S. 10
(course), Nikos. I'm always interested
in saving money
N We have a small ship leaving Dubrovnik one week earlier.
We have some space on that ship for your containers
S: 11
(let / just check / understand). Are
you saying lhat if we can send the containers one week
eariter, there will be a different price)
N Exactly. For every container that you send on the earlier ship,
we'll give you a 2% discount on the price we quoted
S 12
(Just / go over / again)) You mean
that If we send all four containers in mid November, we will
get a total discount of 8%)
N: That's right
S OK, that's ery interesting, but I can't give you an answer
fight now. 13
(1/ g t back / you) in a
day or two.
N: That's fine.
S: 14
(is / else) we need to discuss while
YOll're on the line I
N: No, I don't thmk so. That's all.
S: OK, Nlkos, 15
(thanks / calling) Nice
talkmg to you.
N 16
(It's / nice / talking / too). Bye.
Read the dialogue about arranging a meeting. Choose

the best word/s to fill each gap from A. B, C or 0 below.
Ann: Hi Jim - ,
Ann
Jim
Hi.
Ann .11m - we need to meet up sometime to discuss the
Frankfurt Tr de Fair.
Jim
OK What time 2
be good for you l
Ann What about 3
Mondayl
Jim
Let me see. No, sorry, I can't 4
then. Cou d e
meet on Tuesday 5
I
Ann My schedule is qUite 6
on Tues a , but I'm
free later in the afternoon.
Jim
OK What time would I
you best?
Ann 8
we say 6pm I Or is that too late I
Jim: Well, it is really. I'd prefer a bit earlier if you don't
9
Ann: IS five OK?

Jim: Yes, that 10
Ann Per ed. 11
OK 12
Jim
1 AI'm
2 A should
3 A the next
4 A make
5 A alternalive
6 A full
7 A convenient
8 A will
9 A mind
10 A could be
11 AI
12 A Thanks for
fine That's mu h better

send an email to confirm
calling.
B This IS
B could
B at next
B make it
B in place
B occupjed
B suit
B shall
B care
B seems me
B I'd
B Thanks for your
(
(
(
(
(
(
(
(
(
(
(
(
Here IS
would
on next
be
instead
complete
prefer
how
worry
feels
I'll
I thank your
o Speaking
o can
D next
o arrange
D instead of
o engaged
D advantage
D what
D trouble
D sounds
Dim
D Nice
When you finish, read the conversation aloud. Do it by

yourself, or with a colleague (changing roles at the end).
Practise several times until you're fluent.
Telephoning
93
il
asic
Marija ovak is looking for a j b through an onbne

recruitment agen y. She sends an email with her CV and a
few omments:
Sleven
'HII I hope you're well
:"Tills is just a qUick note to ask for ome help I've b n
applying for lobs In London usmg online agencies, t)ut I've had
no luck at all. They lust send back Ihese slandard emaIis - it's
really depressing
Dear Sir or Madam

'1m wriling with regard to lob vacancy ref no. LON009627
your webSite As requested I attach my CV
011
3Anyway I was wondertng if 0 could he p me? I thought you

mlgh know of some L odon recruitment agencies that have Jobs
In the finance a ea Can yo send me some names? I'd reall
opreciate it.
"I tee confident that my skills nd achievements are a very good
fi for thiS lOb profile.
"'Please feel free to contact me if you nave any uestions
~I look forward to I-,earing rrom you
'Thanks for your ilelp,
MariJa Novak
~Best wisl1es 10 Tessa
Mariia
A recruitm nt consultant replies:

'Hi Marija, reat to hear from you again. I'm fine - Jusl gOl ack
from vacation In orocco. Amazing l
Dear Martja
'Thank you very much for sending your CV We will look through
It care ully and contacl yOLI again II necessary.
? Anyway
hanks for your email I m happy to help - I'll ask a tew
people and Iry 10 Ihink f orne agencies you c uld try
2Please be aware that Ihe JOb market is extremely competitive
and tlla we receive many applicatIOns lor OUI vacant positions.
3111 can offer a y further advice or assistance, please dont
hesitate to contacl me
'Shall I also send you a copy of Ihe London 'Yellow Pages in the
mall? Sometimes it
etter than online it's very c mprenenSlve
and lists loads of agencies and other Information all 1!1 one
place.
Kind r gards
IGoo luck With the job hunting I
Lotte
Steve
ueller
1e emails abo 'e II e polite, formallangung '. omp<ll' them

with the emails between Marija and a friend on the right.
Th sc Jnst two emails are friendly and informal, but note

how MMija starts paragraph :I of her em il to 5t ven - she
use' polite, fm-mal languag with her friend becau e she'~
a king fm c favour.

o
First line
Dear Sir or Madam / Dear (name)
Hi ... / (just the name) / (nothing at all
Friendly open
It was a great pleasur to meet you in
How's it going? / I hope you're well
Great to hear from you gain!
Previous contact
Thank you very much for sending.

Further to our earlier conversation,
Thanks for your email
Following your call,
Reason for writing
I'm writing with regard to

I'm writing to find out more information about.
This is just a quick note to say / ask for.
Re your email below,
Request
I was wondering if you could.

I would be grateful if you could
PI ase.
Can you ... ?
Offer help
Would you like me to . ')

If you wish, I would be happy to
Do you want me to
Shall I
')
. ?
Final comments
If I can offer any further assistance, pie se don't

hesitare to contact me.
Please feel free to contact me if you have any
questions
If you need any more information, just lei me

know
Just give me a call if you have any questions
Friendly close
I look forward to hearing from you.

Gi e my regards to
See you soon. / Thanks for your help.

Good luck with
/ Best Wishes to .
Last line
Yours sincerely / Kind regards / Best wishes
Best wishes / All the best / (Just the name)
45 EMAILS - BASICS
Exercises
Now make phrases by matching an item from each
column.
5 Complete the three emails below with words from

the box.
n attachment a requested
don't heSitate
further assIstance
get bac
grateful for
do you w nt
great pleasur
hearmg from
please
re
relation to
useful discussion
very impressed
Ith regard
wondenng If
(first two ematls)

1 I'm writing
to hearing from you.
2 Please eel free

3 I look forward
further assistanc , please ..

'\.
to contact me if
4 Than you ery much ' - - - wit regard to ...

5 If I can offer any
for sending your
cv.
Abu AbdullAIl
(second two emails)
6 I hope you're
7 ThiS is just a
8 I was wondering if
yOLi auld help
Investment lund for India
me
hear from you again.
Dear Mr Abdullah
well.
It was a 1
to meet you and your learn In
Dubai last month. Your hospitality was very generous anc I was
9 I'd really
10 Great to
quick note to .
11 Shall I
appreciate it.
end you a copy of ., 7
look at the numbered paragraphs in the four

emails opposite. Write one of the paragraph types in the
box on each line below. The paragraph types can be used
more than once.
Body of email
Final comments
Friendly lose
Fnendly 0 n
OHer help
Previous contact
Reason for writing

Request
by yo r ne
I m wriling
offices
t Y ur olans 10 set If) an
inves men[ fund for India. AI er our very .\
on this issue I n w need a Illtle more bacKgr und information.
I was '
ou could se d
a opy of
the consoltdateo accounls for y ur group of companies? A. SQ. I
would be .;
an Information Ihal yOll hay
aboul regulation of he Dubar Stock EXChange.
I 10 k forward 0
you soon.
Sanjay Gulatl
First email
1st para
SanJay Gulali
lnd para
Oubal info
3rd para
Dear Sanjay
4th para
Many Ih nks for your marl and for y ur kind words I was a
pleasure for us 0 welcome you /lere in Dubai
Second email
. I'm sending y u a copy of ur
1st para
2nd para
3rd para
accounts as
10
IofW
Third
email
1st para
2nd para
3rd para
4th para
Please
I[X
In
the Exchange, their webSite IS
ae and this has all the Information yOI) n ed

to contact m If I an be of any
11
I~
Best wishes
Abu Nasser Abdull h
5 h para
fourth email
MUKesh
1st para
Accounts to Check (Ou a)
2nd para
3r para
Mukesh - '
your email, I c nlacted Mr
Abdullah and he senI me their accounls They re altacheO nere.
4 h para
1.
lS
Notice how the ody of the email (Including requestln and
oifering he p etc) is framed on either Side by the opening and
clOSing par raphs. It is rare to have only the body of the email
~ I h no framing.
leavmg Ihls 10 y u
e a good look and
10 me if nere ar any Issues I'm
I have no clue how 10 read accounts
In
me 10 call a mee In wilh Bhaskar; a
week r s to diSCUSS all thiS?
Good luck wllh the accounts I

Sanjay
See page 151 for some writing tasks.
Em II
E a
- intern I commu .c tion
mails u ed in id a co panyare ften sh rt an direct

Look at the foil win~ example:
BrettWllltam
TIle level of formality f intemall!mails depend n Lhe

audience and reason for wriLing, sually th -tyl i... jlL'iL
neutral, but h r i' an e 'ample of a formal and an informal
mail:
Quarterly sales ligures

Ali reClplen
Hi Brett
Jus q"lIck ate I r mind you that
again.
P ease send me
before
It'S
r ,e sales figures brok
Financial results
the end of the quarter
Dear colleag es
n down by region a
Can I ask you to also show sales according to product line? II
would really help when I compile my report
Thanks tor your co-operation.
Susan
1m plea eo to tell you that our financial results hiS year have
been ery positive I would like to hank yo all for your' aluable
onlnbutlon
I would also like a take the opportunity 10 tell you about an
Important slaH change: Patn 18 Nascimento has D en appointed
as Marketing Director for Bralil to replace Rita Costa She Will
ork to strengthen our presence In Latin America.
Thl is an excIting lime for OlJr company and I' sure that I can
count on your ontlnuing ommitmenl over future monlhs.
Here is the r ply to the above email:
With best Wishes

T
Susan Harper
Henri Devereux
Re Quarterly sales figures
CEO of Transworld
Susan - here's he Irsl set of ligures you wanted attached as a
spreadsheet The second se! - sale by product line will take a
Iitt e anger to collect. I'll send them Oy the end 01 the weeK.
Now for s me bad news Unfortunalely. the ales staN are telling
us Ihal nex quar er s likely 10 be Ignlf,cantly weaker. Do you
vanl me 10 gel togelher r ised forecast for J Iy Sep?
Let me know If there's anything Ise I can d

report.
help Wllh the
Brett
Goran Samoran
Video conI
reschedule?
Goran - I ks ilk the IT e work IS gOln to be down nex

Fr day. Routine ma nt nan e the say. What a hassle
Weve gal a VIOeo onference arranged for Ffl prr Shall I call
veryone and Iry 10 reschedule for Monday? Get back to me if
you thll1 It a good Idea.
Inge

Just a quick note to remind you that
I'd lik to remind everyone that.
Please . . / I need you to ... / I'd be grateful if you could

I wonder If you could give me some information?
Can I ask you to ... 7 / I would appreciate your help with this
Here's the ... you wanted / I've attached .
I'll ... / I'll get onro it right away
Shall I ... ? / Do you want me to .. 7
I would like to thank you very much for.
Well done! You've done a great job
I'm pleased to tell you that ... / I'm sure you will be pleased
to hear that ..
The bad news IS that . . / Unfortunately;
Would all staff please note that.
I would like to take the opportunity to [ell you about.
The reasons for the changes are as follows' .
Please get back to me if you need any more information.
Let me know if there's anything else I can do
Thanks again for all your help. I really appreciate it.
Thanks for your co-operation,
46 EMAILS - INTERNAL COMMUNICATION
Exercises
6. Complete the very short emails below using these
words: advance, co-operation, know, let, 'II, quick note,
4 Complete each sentence 1-8 with the best ending

a-h.
please, remind, say.
1 I'm sure you will be
1 Just to
that I got your email and
I
speak to Fernanda about it when I see her.
2 Just a
to
you that
the team meeting is tomorrow at 9am
bring copies of my report with you,
3 Just to
you
that
there will be a fire drill at some point next week Thank you
In
for your
2 Following,
3 I'd like to remind,
The emallsabove.likethefirstoneopposite.beginwith.Just.to
show a short message

Now try to remember the words below. (Some letters
have been given.)
1 Susan . the first set of figures you wanted,
a
ed as a spreadsheet.
2 Now for some bad news U
Iy, the
sales staff are tellin us that next quarter is likely to be
slgni
Iy weak r',
3 Do you
t me
get together revised forecast for
July-Sep?
e I can do to help
4
t me
w if there's anything
With the report
5
III call e eryone and try to reschedul for Monday)
6
k to me If you think it's a good idea
46.3 Put the words below into the correct order. Write
all the answers under the correct heading below.
\' m to ell you that pleased .
I would also like the a portunity to take to tell about you.
I auld like to thank for you all your valuable contribution
Thanks for all your again help. I appreciate it really.
I'm pleased you will be sure to hear that.
I be interested you'd thought to know that
Would all staff note please that,
I'm everything you have done very grateful for
4
an I ask you .
5 I would appreCiate,
6 The reasons
7 Please
8 Please note.
a to let Paula in HR know your holiday plans for the summer
asap)
b everyone that redecoration of staff offices will begin on
Monday,
c pleas d to hear that I have negotiated a discount for ail
employees at the local fitness centre
d a meeting of the senior management team last month, it
has been deCided to reorganiz the department.
e that anyone wishing to benefit from this discount should
register at the centre before the end of August.
f move all tables and desks away from the walls to allow
access to areas that need to be painted.
g for the changes and the proposed new structure are III the
attached document I wOIJld be grateful for an comments
or f edback
h your help with this as we need to make sure that everyone
doesn't go away on vacation at the same time.
46 5 Make four short, complete emails using the
answers to the previous exercise.
Email 1.
Em iI 2
Email 3
Email 4
Announcing good news

1
,1'.-. r
'( vut 11
2
Announcing general news
3
4
5
Thanking
6
7
8
Can you find three phrases from the table in Henri
Devereaux's email opposite?
Emalls
Ji
Em i
o mercial
In the e,'change of mails b Iowa llstomer mak san

enquiry,md the ~upplier replies:
Ema'11
Ti
info@powerpackcam
SpeCification for
ower packs
I visited your stand at the Energy Trad Fajr In Hanover and was
Impres ed by y ur range a powe packs based 11 fuel cell
lechnology.
I pIcked up a brochure al lhe fair and would now like some more
detailed tectmlcal specifications for your range 01 fuel ells for
small handheld deVices.
In particular, I would like 10 know abollt

a portable DVD pia er
ow racks suitaole for
Please end detail of sile, energy output, etc
I look forward to hearing from yOll.
Email 2
T
In email 3 the u 'lomer Ct nfim15 d tails that have been

cov red in prt!vi us di 'CtJs~ioru;,
Sec unit for the I, nguage of internation, I tr de (OF /
Ielte of crcd it etc).
Dan Bailey
Info re powp,r packs
Thank you for your mail I'm attaching a document II at give

ull det8lls 01 our range 01 power pack"
Can I draw your attention to models FC68 and FC72? These
would be Ideal for a small hancJheld de ice
I would welcome Ihe opportunity to discuss your n eds In more

oetall May I suggest that I call au in a day or!w ?
In the meantime, please dont heSitate to contact me personally
If you have any questions My direct line is given below.
The phrases you need ~

I
I visited your stand at ... and w s impr '5sed by .

I would like some detailed specifications for.
In particular, I would like to know.
Please send details of your product range nd prices /
discounts / delivery times / terms of payment, etc.
Thank you for your email of 12 February enquinng
about
I'm attaching a document that gives full detads of.
Can I draw your attention to. ")
Our standard terms are payment within 28 days, but we
offer discounts for prompt payment. We also offer
quantity discounts for large purchases
We can ship within one week of a firm order
I would welcome the opportunity to discuss your needs
in more detail.
We hope that you find our quotation satisfactolY and
look forw rd to receiving your order
Please don't hesitate to contact me personal! if you
have any questions
Besl wishes
he per on writing m, il2 will bl: a sales consullant,

and they 1I the enquiry as a chance to enter into a sal
dialogue. In the follow-up conversations this person will
use sales language from units 18-24,
fter Furth r telept one COl versation and emails the
cu tomer now places an lrder:
Email 3
Following our recent conversations, please find attached

our order no
for.
If you don't have the items requested in stock, please
advise us immediately
The goods must be delivered by ... at the latest / Please
confirm your delivery date
If any of these conditions are not met, please refer to the
detailed terms in our contract for actions that we are
entitled to take
Please acknowledge receipt of this order.
Sales department
Order tor model
Fen
FollOWing our recent conversations please find altached our

arde no JX034 far 25,000 luel cells model Fen
We agreed that the good wllll)e sent by sea (elF Busan),
securely packed In 25 cases of 1.000 items each
The goods mus! be delivered to B,Jsan port by 24 April al the

latest
If any of lhese condilions are not mel. please refer to the
detailed terms in our contract for actions that we are entitled to
tak
We III pay by irrevocable leiter of credit Please end copies of

the shipping documents and invoice dlreclly to me as pdf files.
Please acknowledge receipt of Ihis order

Thank you and we look forward to dOing more bUSiness With you
in the uture
The goods will be sent by sea / air / road / rail and will be
securely packed in boxes / cases / crates
We look forward to doing more busin ss with you in the
future
47 EMAILS - COMMERCIAL
Exercises
have been given.)
1 I visited your st
at the Energy Trade Fair

e at the fair, and would now like
s for
some more detailed technical spe

of fuel cells.
your ra
In p
r, I would like to know about power
packs sui
Ie for a portable DVD player
Can I d w your a
ion to models FC68 and Fen)
In the mea
me, please don't hes
e to contact me
personally if you have any questions My d
t
I e is given below.
Fa
rng our recent conversations, please find
ed our order no JX034.
a
The goods must be d
ed to Susan port by 24
April at the I
t
If any of these can

ns are not met, please refer to
in our contract for actions that we are
the detail d t
entitled to take
Please send copies of the sh
ng documents and
inv
directly to me.
Please ack
edge receipt of this order
2 I picked up a bra
3
4
5
7
8
9
10
Write one of the sets of initials in the box next to

each phrase below.
PR (product range)
DT (delivery times)
PO (prices & discounts)

P (payment)
1 [IF Susan
2 the goods T1Ust arriv by ... at the latest
3 available ,n six colours
4 by bank transfer to our account number.
5 there will be an ddltional supplement for
6 the executive model features
7 we ill make a promotional allowance If you maintain an
in-store display
8 we offer everything from . to
9 late payments will incur a penalty of .
10 we Will ship Within 10 worklflg days of .

11 our in-house design team has developed
, 2 letter of credit (lie)
13 you can trade in your exi ting model a d receiv up to
1 ,000 cash back
14 payment is 60 days after invoice
15 a deposit of 25% is reqUired for ..

column.
1 If you have any _____
can personalize
2 I'm confident
- - further questions
3 I also notice that you
discounts
4 I would be happy
of discounts
5 we do offer quantity
up a trade account
that we can supply
6 I have b en looking
7 I can find no mention
to make a sample
8 you need to set
at your website
Use the phrases from 47.3 to complete the
exchange of emails below.
Write the phrases in full - it will help you to remember
them.
To.
n
Sales
Office supplies order
and am interested in ordering some
offic supplies
In particular I need aper and cartridges lor 'anon
photocopiers, and various mailing and packagin supplies
2
desk and wall calendars With a
company logo, but I would need some assur8f1ce about the
quality 01 these items.
Your prices a e shown 0 Ihe SIIe. but 3
and extended payment terms lor large purchases. Please sen
full details of these
I look forward to an early reply.
Michelle Young
Re Office supplies order
1hank you for your email enquirin~ ab ut office supplies.
all your product needs and look
forward to welcoming you as a regular customer.
for large orders Tt1ese are on a sliding
and going up to 8%
scale. beginning al 2% for orders over 5

for orders over 10.oo0
Trade customers such as yo rsel es are given 30 days to pay
first We also offer
our inVOices, bu 6
attracli e earl payment discounts on these ae ,aunts For fur her
Information on trade accounts please click on Ihe link below
In relation to 0 I. personalized calendars,
roduct for you to look at. PI

er d
me some artwork Nith you logo as a gil file, and speedy whether
you wanl a desk or wall calendar.
Thank you once again lor your enqUIry.

please feel free to contact me.
Emalls
l)
Emai 5In the email below J supplier is

news to potential lstomer:
somer issues
~orced
TIle tone of Chri tine" complaint is direct, ,trong and
factual- but not angrv.
Pierro's reply is short and simple, avoiding onflict.
Notice th first paragraph f Pietro's reply. After
apologizing he immecUately pr mise' action.
oti c how Pi tro end by apologizing ~gain.
to give some bad
Hlra Tanaka
Visit to Osaka
Dear Mr Tanaka
I'm sorry to lell you 1I1at I have to po toon my VISit !o your
oHlces next week The reason IS that my line manager will be
81' ay and I will be taking responsibility I r the de arlment in his
absence.

I
I'm writing with r ference to .
I'm writing to complain about the poor service we've
received from ..
There seems to be an error I mistake I misunderstanding.
There's a serious fault with the.
This has caused us considerable inconvenience
This has hurt our sales and our reputation.
/ made it clear th t
Howe sr I"m still ery keen on coming to Osaka to meet you, ane]
I m confident thai we can establish a goo relationship between
our two companies
I hope that we can eschedule the meeting In Ihe near future - I
could mak I any lime in early June Please let me kilO,,".' whi~h
day is best or you.
Sorry again for Ihe incorlVenience
Best Wishes
Claudia Kreiner
olice h w Claudia <lplllogiz.e' and explc ins at the

beginning, and then apologi.les again at the end.
ali e how Claudia reassures Mr. Tanaka with positive
language: 1'/11 stili ven; keen on ... /1'711 confident that ..
In the next mail a custom 'r makes a complaint. In reply, the
lIpplier apolog1Zcs and promises a tion.
To.
/ must insist that you give this matter your urgent

attention.
Please take urg nt action to .
Let me remind you that this product is still under
warranty So, the bi=st solution would be to .
II r
I'm sorry to tell you that ... I Unfortunately.
The reason is that. I This is due to
Pietro Caslnl
Complamt
1m wrlling to complain anout the p or service hal we've

receive from your company.
You installed a new air condltionmg system at our offl es last
month After a week It started leaking water through the ceiling
of our reception area. Your tecllnlclan arrived and emove all
the ceiling panels In order to carry out a service, but during thiS
'Iork the panels anel supports were badly damaged.
ThiS has caused I.IS considerable Inconvenience, and lhe
damaged p nels create a poor image in our reception area
I made It clear to the technician lhal we hold you responsible tor

replacing the damagerJ panels However, this has stili not sen
d ne
Please take urgent acll n to resolve this malter.
Yours Christine Lagarde
o ..
Christine Lagarde
Rs Complaint
Dear Ms Lagarde
I'm very sorry 10 hear Ihat you've had problems with 0 r air
conditioning system. We'll be at your oHlce tomorrow to fil new
panels.
I understan completely that your reception area needs to e of
the highest standard, and I can assure you that we will leave the
ceiling looking as new
Once again, please ac ept my sincere apologies for any
in on lenience caused.
Pietro Caslni
lOll
I'm very sorry to hear that ..
/ would like to apologize for
I was very concerned to learn about.
es action
I'm confident that.
/ can assure you that.
I will make sure that.
Sorry again for the inconvenience

Once again, please accept my sincere apologies for any
inconvenience caused
Thank you very much for bringing this matter to my
attention.
48 EMAILS - CUSTOMER ISSUES
Exercises
48 1 Rewrite the sentences below with the correct word
order, beginning as shown.
1 I'm to te I you sorry that I have to postpone next week our
meeting
I'm
4. Study the strong complaint below. Try to guess

the single missing word in each gap. Write your answers
lightly at the side. Several answers may be possible.
To
Andrew WilKinson
Delay I order
2 On e again, please apologies for accept my sincere any

inconvenience caused,
Once again,
Dear Mr Wilkinson
10 our ordel 110 05782
wailing for
I'm w iting with I

made n 3 July, We're 2
of these parts
3 I'm ordered to tell you that the item ar now in stock you
pleased We'll your order be shipping oday
I'm
4 1can oing verything possible assure you that we are to

resolve this issue as possible as quickly,
I can
5 You'll be extending our online sale hat we are pleased to

hear for another week
You'll be
I phon d you last week about thl and you
me thaI Ihe order would be
ilhin 48 hours
This delay is causing us conSiderable b
as we're unable 10 continue our operations ithnut the parts
This has hurt our 7

and our re utallon
I must 8
urgent 0
thai you give Ihls mailer our
I'll be tIOning you again later this alterno n and I hope thai
by then you have some ood news for me If I don't receive a
,,response from you, I'll be
t reconsider our
'I
'...
business relatJonshlp.
Yours
Glol"I Salinas
6 I've talked to the involve staff and I'm confident that our
procedures are robust and prope Iy working
I've talked
Now fill in the gaps above with the suggested words in

the box below.
attention
assured
delivery
inconvenience
insist
long-term
sales
atisfaetory shipped
7 We inform you that we r gret to cannot process your order

due to on your account a large outstanding balance,
We
8 Thank very much you to my attention for bringing this

matter
Thank
forced
reference
still
4
The reply below has ten extra words. They're either
grammatically wrong or don't make sense, Cross them
out.
To
Gloria Salinas
Re: D lay 0 or er
48. Write sentence numbers 1 to 8 from the previous

exercise in the boxes below.
a
b
c
d
Good news
Bad news
Reassurance
End
Dear Ms Salinas
I as very concerned to learn about the so late delIVery of the
parts hal you ordered from us
I've been spoken to our staff in the packing department and
I'm to conli ent Ihat the goods left here last week, I can only
assume it that there is an issue with the courier
I'll contact with them personally and make sure 1I1at they resolve
me Ihls matter today,
Once again, please ac epl thai my sincere apologies lor any
Inconvenience caused you
Siloul you have any some questions, please don't Ilesitate to
contact me
Yours Sincerely
Andre
Wilkinson

Emails
101
-ar
g"
a vsit
luch of the language u eel for makit g arrangements by

mail i similar t that u 'ed or making arrangements by
telephone in unit -l2.
Below is a typi c 1exchange of emaJls for arranging a
business trip. Only short extracts are shown.
Host confirms everything

Justto onhrm our isit to s on .. at
A dr er ill e
walti 19 for you at !he alrpo~ , holding a si n With your name on It
The driver will lake yo 10 y ur het I, nd hen bring you here
hould you have any problems, my mobile phone number is .
Host makes an invitation

It wa a great pleasure to eet you In. . The next time you re
.n China we'd be ver pleased if you could visit our company.
It w uld be a great opportunity for you to look around our new
factory
Guest accepts
Thank you for the Kin' invitation to Visit your company. I'd De
very interested In seein your factory and seeing Ihe productio
line in operation
In fact I'll be r Chin rom ... 10 .... Please Ie me know II any 01
these dates are convenient for you.

We'd b very pleased if you could Visit our company
I've put together a provision I itinerary.
A driver will pick you up from / drop you off at the
airport.
Do you know when you're planning to arrive'
Go straight to the reception desk and ask for me.
Should you have any problem, my mobile phone
number 15.
I'm attaching a map.
Host suggests an itinerary

I 'las very pleased to he r that you I be here In China In
January Of urse '1e'd be ellghted to we come you on one of
Ihose days
I ve put ooether a pr vISional itinerary - plea e ee I e details
below.
How does this sound? Please let me k a
what you think
Also, we'd be happy 10 arrange a local hotel for you If yo WIsh
Guest replies
Thank you 0 much for Ihe careful thought you put into planning
an Illnerary for me. It looks fine - there's Just ne small change
thai I would suggest.
I refahon to Ihe hotel, III make my own arrangements.
I look forward very much 10 seeing yo 111
Guest contacts a hotel

I'm mailing you off your website. Do you have a room available
for one person on the night of ednesday 22 Janua 7 Pie se
lei me know the pric of thi ,i cludlng breakfast
I'd also like to know if you ...
Guest tells host the details

Yes. every hln is finalize now
I'm travelling on light LH788, from Frank urt I Guangzhou. Its
due In at 1 30am. I'll e arrivll1g a Terminal 2.
I'm staYing at the Marnott. When I get It ere I'll nee Just hal an
hour or so to freshen
,Ihen I can come straight to your offices
Thank you for your kind invitation. I'd be very happy to

visit your offices.
I'm travelling on flight number LH788, due in at
7730am
I'll need just hal an hour at the hotel to freshen up.
I'm mailing you off your website. Do you have a room
available for the night of Wednesday 22 January'
I'd also like to know if you have a swimming pool and
gymnasium /24 hour reception / a courtesy shuttle bus
from the airport
I need a view of the ... / wireless Internet access / an iron
in my room when I arrive
a window seat / an aisle s at

a single / return trip (BrE); a one way / round trip (ArnE)
a booking / to book (BrE); a reservation / to reserv
(ArnE)
Leave the motorway (ArnE freeway) at exit 72.
Keep going for three blocks, then turn left.
49 EMAILS - ARRANGING A VISIT
Exercises
Complete each sentence 1-8 with the best ending
a-h.
1
1
3
4
5
6
7
8
I was a great pleasure to .
We'd be v ry pleased if ..
I'd e very interested.
I've put together.
A driver will pick you .
dnver will drop you .
Go str ight ..
I'll need to freshen up .
a
b
c
d
e
a provisional itinerary.
at the hotel first.
in seeing your fadory,
meet yo in Germany.
off a the airport.
to he reception desk and ask for me

g up from the airport.
h you could viSit our com any
Fill in the gaps with the prepositions in the box.

at
5
6
7
8
at
at
in
in
off
Marcus is telling a story about his business trip. Fill

in the missing letters.
The taxi driver dro ed me 0
at the wrong terminal,
and it took m om lime to find th right ch
area
for my airline. T en I had to pay an exc
baggage
cha
because my suitcase wa 0 heavy. Anyway, I went
thr
passport control and then waited for ages at secunty
- there was a long qu
(mE line). While I was waiting
for my g e to be called, I decided to do some shopping.
I didn't notice the time go by and I had to
sh to b
d the
flight. During the flight we had a lot of really bad
turb
ce - when we tou
dd
I was shaking like
a leaf. I pi ed up my baggag and went to the cab r k
outside the terminal On the way to the hotel we got s
In
traffic, and then at the end the driver tried to ri me 0
I asked for a re
t and he wasn't very pleased I checked
into the hotel and I was looking forward to an e Iy ni
but the disco in the hotel basement made that impossible
The email below gives directions. Fill in the gaps

for
for
from
in
on
on
to
with
I was very pleased to hear that you will be here
January.
China
I'm mailing you
(or from) your website. Do you
have a room available
one person on the night a
Wednesday 22 January;
I'm tra elling
flight LH788,
Frankfurt
Guan hou.
The flight leav s
1115am
Tuesday
21 Jan 'ary
at 930 on Wednesday 22 January.
It's due
Terminal 2.
It arrives
I'm staying
the Marriott
A driver will be waiting
you
the
airport, holding a sign
your name on it
Cross out the one word in each group that is no

correct. Check any unknown words in a dictionary.
1 You can get / catch / take / miss / lose / be booked on /
board / book / reserve a flight
1 A flight can be overbooked / be delayed / be held up / be
divert / be bound for somewhere / leave / depart / take
off / arrive / land / be full / be half-empty / be on time / be
ancelleel / be annulled
exit follow main mi s

blo s
I nposted
turn
down
for
for
freeway past
on
on
on
Leave the I
at 2
12. Follow the main road, 3
for the
City centre. tay 4

thl r ad
5
abo 1four mile until you come
to alar e Shell gas sla Ion on your right You can't
right just ~
th gas station and keep going straight. Our office are a
short distance 9
this road - about
three 10
. Yo 'II see them
11
your right.
When yOll rr Ive at the 12

will give you a viSitor's pas . 13
round to Ih main recepti n where there IS
Whe you get to reception, iu t as 14
me - they'll be expecting 0
gate, Security
the road
isilor'. parking 101
II you ave any problems, give me
call
my cell phone.
Lookin lorw rd to
eetin
you ext week.
Regards
Emails
lIn
ails - re iew
Fill in the gaps with verbs from the box.
apprecIate
COMa t
do
offer
postpone
remind
2
3
5
6
feel
hall
hesItate
know
cake
wonder
Write the numbers of sentences 1-10 from exercise

50.1 in the boxes below.
note
would
PI ase
free to
me If you have any questions.
we reschedule the meeting for
Monday?
I
If you could give me some
information?
If I can
any urther advice or
assistance, please don't

to contact
me
Just a quick note to

you that it's the
end of the quarter and the sales figur s are due.
Let me
If there's anything Ise I can
like to
the
opportunity to tell you about an important taff change.
8 I would
your help with this.
9 Please
that I will be away from the
office for the whole of next week.

10 I'm sorry to tell you that I have to
my
Visit to your offices ext week.
7
a Three phrases used to give information (a fact or some

news)
b Two phrases used as part of a request
c Two phrases used for making arrangements
d Three final, friendly comments
Now do the same for sentences 11-20.

e One phrase used in a customer's initIal enquiry
f Three phrases used in the supplier's reply to this initial
en uiry
g Two phrases used by the customer after they hav decided
to buy
h Two phrases used by a customer a part of a complaint
i Two phrases use by a supplier as part of a reply to a
complaint
O. Complete this internal email and the reply with the

words in the box.
att ched
event
Continue as before.
accepc
acknowledge
assure
click
discuss
insist
notICe
offer
resolve
send
take
weI orne
11
12
13
14
15
16
17
18
19
20
Can I call you In a day or two? I would

the opportunity to
your needs in more detail.
Please
copies of the shipping
documents and invoice dir ctly to me.
Please
urgent action to
this matter.
I
on your website that you can
personalize desk and wall alendars
I can
you we are doing everything we
can.
We do
quantity discounts for lar e
orders.
I must
that you give this matter your
urgent attention.
For further information please
on the
link below.
Please
receipt of this order.
Please
my sincere apologies for any
inconvenience caused
ttend
circulate
co-operation
done
finalized
get back
make sure
noce
put , r
remind
tell
T
Just a qUick I
0 all line managers
to 2
yo that the arrangements for
the Online Marketing seminar h ve no" een
3
. It willta e place on 28 April
full details are 4
a a pdf
This
i part of our ong Ing slaff
development progr m - please encourage people to
v
I eed t know approximaw numbers asap

to me on this by the end of next ','leek
If possible.
7
Thank you for your 8

Miguel Hernandez
Miguel than s lor tt1e info)

You've '0
Ihls Well d ne l
III
Ih pdf to everyone on\;erne and

thaI everyone knows about It.
Can yo I I
me If there is any limit
on number ? I'm sure there will b a lot of interest in our
departme t.
Thanks again. You've
1l
the emlnar
lot of worK Int organlzn
14
a greallobl
50 EMAILS - REVIEW
Match each formal phrase 1-14 with an informal

phrase a-n.
1 I'm writing with regard to your last email
Further to our earlier conversation, '"
I would like to apologize for ,
I would be grateful if you could send me "
Is next Friday convenient for you)
Please don't hesitate to contact me if
Thank you for th kind inVitation,
8 I was wondering If you could",)
9 I would be very pi ased to corne
10 I would like to remind everyone that,
11 I will contad you again in the near future,
12 We wish you every succ ss in the future
13 Please find attached,
14 I would like to thank you very much for " I really
appreciate it
2
3
4
5
6
7
50.6 Complete the sentences by putting a verb in the

box into either the -ing or the -ed form.
a
b
(
d
e
Thanks for asking me.
Good luck with everything!
Can you , )
Please contact me if '
Re your last email, '

I'll get back to you very soon,
g Sorry about,
h FollOWing up your earlier call, .
I Let me know if you can make it next Friday
j I'd love to come
k Thanks again for all your help Much appreciated
I Just a quICk note to remind you that"
m I've attached,
n Please send me
2
3
4
5
attach
get
Fill in the gaps with words from the box.

about
at
at
from
in
on
over
back
111
te
by
in
to
in
to
for
in
for
of
wt#t
for
on
with
your continUing
6 I'm sure that I can count

(= during) future months
commitment
7 We will contact you again
the near future.
8 I have been looking

your website and am
int rested
ordering some office supplies
9
particular, I need paper and cartridges suitable
Canon photocopiers.
10 I'm writing to complain
the poor service we've
received
your comp ny
11
the meantime, please don't hesitate to contact
me if yOLl have any que~ions
12 We are stili waiting
delivery
these
parts
13 The goods must be delivered to Susan port
24
April
the latest
my direct line, 123 456 7890
14 Please call me
15 Good luck
everything.
for
I'mwnting
regard
Job vacancy
ref no TH729
I'm writing
relation
Job va ancy
ref. no TH729,
Many thanks
all your help.
any information you have
I would be grateful
on thiS
Have a good look at the report and get
me if you have any questions,
buy
fie
cause
concern
do
hear
make
request
follow
forward
use
wonder
You can find further details by

to our
website.
2 I wa
if you could h Ip me?
, I'm sending you a copy of our
3 As
accounts,
us considerable
4 This has
inconvenience,
our recent conversation, please find
5
attached our order
6 We look forward to
more business
wi h you in the future
7 I
it clear when I spoke to you last
week that we hold you responsible

from you.
8 I look forward to
DHL, UPS or FedEx as
9 We recommend
your carrier,
10 I was very
to learn about the late
delivery of the parts you ordered from us.
11 Thank you for
back to me so quickly,
12 We are interested in
from Fairtrade
organizations such as yourselves
13 I have
a copy of our brochure
14 Your email was
to us.
Emails
J(
openin
1ere ar a gr at vari 'ty of pres ntation contexts:

Company pre'entatiul (history, structure, main products,
markets, plan for th future).
Produ t pre 'entation (ft:< tures and bE'nefits of a new product).
Internal presentation reporting financial or sales figure.
Internal presentation analyzing a problem and suggesting
solutio
Welcoming vi~itors.
ny occasion where you peak t length in a mt;eting on a
prepared topic.
In addition, there are a variet of resentation tyle's:
F0rJl e 1, structured, rehearsed, taking questions at tho end.
Informal, partly improvised, interacting with the audience.
S mewhere bctlvcen the t 0: using a basic stnl tur , but
elllowing oeca i n, I opportunities for qu ti ns and inter ction.
Which tyle y u use depends not only on your audience and its
expectation', but also n you and your personality.
Read the op ning to a 'w !cuming visitors' pre-entation in the
next colunUl. (The me in body and close of a presentation are
covered in unjts 52-53.)
Notice how the presenter begin - by giving answers to all the

practical questions that might be in the audience's mi.nd
(eg What is the aim of thi talk? How long will it last? Will
there be a break? Who is the p . on speaking? Who is thGl t man
in th corner?)
TIle pr enter then gives en outline of tb' structure of the
pr~5entation.
Finally, befor beginning, the pres 'nter makes it clear whether

audience members can interrupt with questions, or keep them
until til end.
Wi 1I, good morning, e cryone.

behalf of BCe
lnt mati nal I'd like to w~corne you her to our office.
Can everyon . see at the back? OK.
The aim of this short talk is to give yOLi an overview
of our ompany and it products. I'll speak for about
thirty 111 inutes, and then we'll
I" a break for coffee -and
bis uits. After that, at around ten thirty, we'll take yOll on
a tour of th fa tory.
B fort' we b gin, just a few war s about myself. My
name is Anne Edelmann nd I'm in charge of public
relations here at BC . I've een with the compi'my f r
twelve years, and I worked in th sales ar a before
moving into PRo
J should also introelu e my colleague Mr Andersen
over there in th am r. Mr And rs'n is our plant
man ger and he ill blading th fa t ry tour.
I've divided this presentation into four section .
First I'd like to show you a timeline of our compe n.
so you c. n 'ee h w we'v grown and dev I ped over
the years.
en l'L1 t Ik a little about our market and
how it's h'lllging. After that I'll move on to discuss
customization, and how we focu n tailoring our
produ ts t our custom rs' ne ds.
Fin lly, I'll gi e yo a little technic I background to
help you und rstand the n \ techn logy that. ou'll b",
SE'ein" on the factory tour.
H yOll have any qu sti ns, please feel free to interrupt.
OK, let's b gin with this fil'st sbde, which shows.

OK, let's get started Good morning everyone and welcome to ..
Can everybody see 7
Before I begin, I'd like to thank (name) for inviting me here today
On behalf of BCC International I'd like to welcome you here to
our offices.
It's good to see 50 many people here today
I'm very happy to be here.
Let me start by introducing myself. My name is
Just a few words about myself,
Perhaps I should Just introduce one or two people in the room.
The ticle of my presentation is .
This morning I'm going to talk about
The aim of this short talk is to .
IUb
Let me as you a question (+ rhetorical question)
Take a look at this picture What does It tell you about ... 7
Somebody once said . . (+ quotation)
Did you know that .7 (+ surprising statistic)
I hope this presentation will enable you to .
By the end of my talk you will.
1'/1 speak for about thirty minutes
I've divided my talk into four main parts /se ions
First, I'd like to
Then I'll talk a little about.
After that /'// move on to .
Finally 1'/1
If you have any questions, please feel free to int rrup!
OK, let's begin with the first point / slide, which is .
51 PRESENTATIONS - OPENING
Exercises
Cover the page opposite with a piece of paper.
Make phrases from the presentation by matching an item
from each column.
1 onbehalf~
see at the back 7

of pub ic relations
of Bee I'd like to .
to show you
words about myself
ith this first slide
on tailoring our products .
on to di cus custornization
about our market and how
a little technical b ckground
2 Can everyone
Just a few
I'm in charge
I'd like
I'll talk
I'll move
8 We focus
9 I'll give you
10 Let's begin
3
4
5
6
7
There are many ways to create an impact in the

first few minutes of a presentation. Match techniques
1-8 with phrases a-h.

1
2
3
4
b
c
d
f
9
h
rhetorical question
thank the organizers
surprising statistic
audience involvement
5
6
7
8
personal story
audience benefit
use of visuals
quo tion
Take a look at this picture. What does it tell you about

teenage fashion 7
Everybody who thinks the Internet will kill traditioniJl
advertising - put your hands up.
Wouldn't you lik to double your sales in just twelve
months?
Charles Darwin once wrote, 'It is not the strongest of
the species that survi e, but the ones most responsive to
change.'
I' Irke to thank Olga for II the hard work she has done to
make this event possible
I want to share something With you
I hope this presentation will enable you to choose the most
cos -effective IT Solulion
70% of all Americans say that they're arrying 50 much debt
thal il's makin their home lives unhappy
Make presentation phrases by using a verb 1-12

with the words a-I.
1 be
2 take a break .
3 dlvid
4 feel.
5 give
6 intr duce .
7 say
8 speak
9 start
10 take
1 I thank
12 welcome
a
b
c
d
e
f
g
h
a few words about myself

any questions at the end
you an overview
for about thirty minutes
for coffee and biscuits
(name) for inviting me here today
free to interrupt
happy to be here
I
my talk into four parts
J one or two people in the room
k by introducing myself
I you here today
5
Create different ways to open a presentation, using
the verbs in the box.
bring
deal
make
outline
,report
fill
give
look
show
take
talk
Good morning everyone and thanks for coming, This morning

I'm going to ...
1
the issue of risk, and what you can do
to minimize it
2
you an overview of the company and
its products
3
you how to sell more effectively to
your existmg customer base
4
about investment funds how to
choose them, when to buy them and hen to sell them
5
back to you on our progress with the
Milestone project
6
at a variety of green technologies tha
are helping to combat the threat of global warming
7
you in on the background to our
Involvement in the BraZilian market
8
a look at how we got into the problem
With our local agents In the UK and how we can
get out of it
9
you up to date on the latest results
from our consumer surv y.
10
some d tailed recommendations
about how to reorganIze the department
11
our new m rketing strategy,
12
with the Item outstanding from our
last meeting funding our R&D actiVities
5
Presentations
I 17
P esent t" ons - main body

'The phra.e yOll need' below shows some phrases
that can m, ke your presentation easier to follow. You
will hav . to supply the content yourself of coursel
Signposlb: these are phrases that say where you're
gain!; in terms uf I'h m, in topics of y ur talk.
Develop a topic: th'se phrases arc mini-signposts
within a topic By explicitly sa ing whJt you're
going to talk about n xt, the audi nee CJn follow
ea il .
Focus: th e phr, ses are nbo mini-signposts.
Yl)U're saying to th audience: 'please pay extra
attention for the n xt few morn 'nts'
Question-an wer: asking a que 'Ii n, nd then
an weri.ng i.t yourself is standard technique in
public speaking. The question cr ates interest in
the mind of the Ii teners, the a swer provides the
satisfaction of closure.
Refer to ' isuals: b l', reful not to reI too much on
your slides as they can 'enu p opl into a trance of
boredom. irect attention back to your 'elf often.
Ask for contributions: stop at ~ever, [p inl:>
during the main presentation to take questions - it
creates interest and makes the presentation more
interactive.
, . OK, l t's move on to th next point, which is wind energY

technology. The mJrket for vvinci turbines" is shi ting from onshore
to offshore. It might be useful to give a little backgroLUld here. As
you can see n lhis next slide, onshore wind farm have veral
drawbacks: first you need a reliably windy location, s cond the
farms can callS' visual pollution, and third there are some sen us
en~ineering questions.
What are these engineering questions' Basically there are two
issues. Fir. tty, the stability of the structure as yOll make it bigger, and
secondly the problem of having the b1J.des always facing the wind.
So the trend is towards offshore wind farms, and there are some
engineering challeng here. Have a look at this slide - it shows lhe
d ign for In offshore turbine th t sits on the surface of th s a,
It's thr'!? times more
efficient than ill1 onshore
turbine of eqLJi alent si.:e.
\Arhat is the rea on for this?
The r a on is that it 1,les a
completely differ nt design
thal isn't dependent on tiLe
wind direction. TIH.'.re is a
huge V-shaped structure with
rigid 'sails' mounted along
its length. As th wind passes
o er these they act 1.ike ,irfoils** and this generc tes lift and turns lhc
tru tUl'e at. il whole.
I would like to stress tbat this design is not yet in commercial
production, but J prototype is currently being tested off th coast of
, otbnd.
OK. Arr thllre any questions so far? Does anyone h< ve any
com nwn ts?
Read the presentation cxtrClct in the next column,

which shows some of these tedUliques and phrases
in context. The contenl in this case is t chnical
- about wind energy t chnology
Looking JUSl at the first half of this extract, notice
how the pres nt r guide the Judience: signposhng
the main topic, tating that some background is
coming next, directing ilttention to a slide, r<lising a
que. tion to lreate interest focusing on two issues.
AU of this make the presentation eilsi'r to follow
wind turbine: t,ll1 structure with perts th,1t Jre tllrned by the wind, used for
nlakinp" electricitv"
airfoil: curved port on an airCTaffs wing thilt helps it to rise in the air
,~

s
OK. Let's move on to
/ turn our
attention to .. / take a look at

This leads me to my next point, which
is.
Earlier I mentioned .
I'll say more about this later / I'll come
back to this in a moment
Just to digress for a moment,
V
It might be useful to give a little

background here
Let's examine this in more detail.
Let me explain with a concrete
example
My own view on this is .
Basically,
/ To put it simply,
So, for me, the main issue here IS
I think there are three questions to
focus on
I would like to stress / emphasize that
5 10
What is the reason for this? The reason

is.
How much is this going to cost? Well,
the figures show
So what can we do about all this? I'll
tell you. We plan to
As you can see on this next slide,
I'd like to highlight two things on this
table / chart / diagram.

What IS interesting on this slide is .
I'd like to draw your attention to .
I
S
Are there any questions so far?
Does anyone have any comments?
How does this relate to your own
particular context?
52 PRESENTATIONS - MAIN BODY
Exercises
5 .1 Cover the opposite page with a piece of paper.
Now try to remember the words below. Some letters
have been given.
1 This I
s me to my next POint, hich is .
2 Earlier I men
ned
3 I'll c
b
to this point in a moment.
4 Just to dl
ss (= sidetrack) for a moment,
S Let's examine this i m

de
I
6 Let me explain with a can

te ex
Ie
7 I think there are three questions to f

n.
8 I would like to st
(= emphasize) that.
9
you c
S
on this next slide,
10 I'd like to hIgh

t two things on this hart.
11 W
i interesting in this slide IS
12 How does this re te to your own particular cont
t7
5 .J Complete the presentation extract with the words

in the box. It is an alternative version of the presentation
opposite.
at this pomt emphasize have a look
let's go on my own view notice
highlight two things

you can see how
The extract you just looked at shows several points about

referring to visuals:
The speaker introduces th slide clearly. A long pause at
the end of the first paragraph auld be good - giving the
audience a chance La s udy the slide silently
The speaker uses 'firstly' and 'secondly to list points
Again, auses atter eactl separate point wou d allow the
listeners time to absorb the information.
The speaker makes a personal comment This creates
interest and is one way to avoid the danger of just
reading the text on the slide.
The speaker gives a chance for questions about this
slide
52 J Read aloud these two versions of the same

sentence. In the second, put a strong pause where
you see the II symbol and a strong emphasis on the
underlined syllables.
Version A Th market for wind turbines is shIfting from
onshore to offshore.
Version B The market for wind turbines IS shifting II from
QJ2shore II to Qf[shore.
OK. let's
at this next
slide. it shows the design for an offshore turbine that sits on
he surface 0 the sea.
I'd like to ?
on this dla ram
Firstly,
the V-shap d
structure With 'sails' mounted along its length. Secondly,
.1
this whole structure can
turn on its base, powered by the action of the wind on the
sails. This is how electricity is generated.
5
on this is that the esign
IS a big improvement on earlier versions - it's more efficient in
erms of energy production, and it' also more stable with its
solid base.
By the way, I must just 6
that
this deSign is not In commercial production
OK, are there any questions 7
No! Then 8
to the next slide,
which IS a graph sho ing the prOjected demand for offshore
Wind energy over the next twenty years.
1
Can you h ar a difference 7 The second version has more clarity

and more impact
Mark with a II symbol three places in this sentence

where you can pause for clarity.
1 As the wind passes over these they act like airfOils and this
generates lift and turns the structure as a whole.
Underline two syllables in this sentence that you can

emphasize to create impact.
2 It's more fficient in terms of energy production, and it's also
more stable with its solid base.
52 4 'I'd now like to discuss ... ' The words below can all
replace 'discuss'. Fill in the missing vowels.
n t
b t
3 d I w til
4 t rn my tt nt
5 t k a' k
t
1 rtl V
2 t Ik
n t
6
xpl
n
7 c v r
8 C!lS d r
9 m nt n
10 f c s n
2.5
Presentations
109
Pre en at- ns - closing and question

le following sequence provid
presentation effectively
guide for ho\\- to end a
ignal the end: this mans u ing a 'signpo t' phrase to tell
the audience explicitly that you're going to finish_ (, ee
unit 52 for lh meaning of 'signpost phrase'.)
'ummarize: summarize th main points, and add a few
observations or details for interest. Perhap' have bullet
pints O! a final slide, and then give a Ii ely comment
ubout what pally m,ltters for each one (a 'take-home
message').
Conclude: y u can conclude with a friendly comment,
a final slide (wiLh a slron im, ge or m 'sage), by
menti rung the b 'nefiLs y ur talk hils ?;i 'en the audi nee,
or by Joking forward La the future - with a c,,11 to acti n
or an inspirational message. Finally, '. strong 'Thank you
all for oming' will hop fully produce some appl" e!
Invite questions: 'Do au have any questions?' is u 'ually
fine.
Deal with ucstions: the ba ic rang of Lechniques arc:
1 Respond positively, then answer.
2 Clarily / Ask for repetition.
3 edirect 10 the question r.
4 Redire-t to the group.
S Delay n <Jnswer.
6 C nh-llllhe timing.
Re d th rrescntation extract in th n xt column, whi h
show. some of these technic ues and phra 'es in context. It is
the losing part of a 'welcomin;> visitors' presentation.
Right, that brings me to th end army pre entation.

Just to sWTlrnarize the 01, in point again: 1 began b
tiling y u a little about the hist ry of our company,
i1nd you saw ur growth fr III sm" famjly firm to the
internation, l 0 eration Lhal we arc to ay.
Then I talked about our market, and how new
teclUlologie' are opening up ~xciting possibilitie for the
future.
After that 1 explained how customization is at the heart
l f our business model - our lients all get tailor-made
)lutions based on their indi idual need-.
Finally 1 gav you some inform tion about our
manufacturing proce s, and you aw h w ve achieve our
excepti nall vllI of quality and performance.
OK, I'd like to finlsh by saying that it's a gr at pleasure
for us to welcom ytm here today, and 1 hope that, au
enj y the factory tour which we've planned for you. We'U
start all the tour after short break [or re(re, hments.
Thank you all for oming. (applause)
I've g Lsome handouts her - I'll pass them round.
They show all the lJdes I used in my talk and my contact
det"ils re at the b ck.
Do you hel 'e any quick qu lions before we break.
Yes, the gentleman at the back wiLh the red tic.
e
Compare the opening- in unit 51 with the dllsing extract to

the S<1me pr ~ nlation abo e. n,e p senter told the Cludicnce
what she was going to say at the opening, and now here at
the de sllt'r peats the main points again. Thls reinf n:
the key ideas and me kc tJ,em easier to remember.

RighI, that brings me nearly to the end of my presentation.
just to summarize the main points again,
So, to summarize, we looked at four main points. I began by
telling you a little about. Then I talked about
After
that I explained how. Fm Ily I
I'd Itke [Q finish by saying
So, in conclusion, I hope that this talk has given you.
Now we have to .. / I'm asking all of you to. / Our job is
to.
Thank you all for coming. I hope it's been useful.
I III
I've got some h ndouts here
Here's my email in case you wanl to get in touch.
00 you have any questions? Yes, the gentleman / lady 0 er
there with the red ti / the black jacket

Now, if you have any questions, I'll do my best to answer
them
That's a very good point. / I'm glad you asked me rhat.
Sorry, can you explain that again?
So, if I unders~ nd you correctly you're asking
That's n interesting question. What's your own opinion?
Has anyone else experi need rhe same thing?
I think that's outside the scope of this presentation, but I'm

happy to discuss it with you afterwards
OK, I think there's time for one last questIon
53 PRESENTATIONS - CLOSING AND QUESTIONS
Exercises
Complete this extract from the close of a
presentation with the words in the box. It is an internal
presentation about departmental reorganization.
Study the phrases for dealing with questions

below. Try to guess the ~ missing word in each gap.
Write your answers lightly at the side. Several answers
may be possible.
generated a lot of discussion

give the floor
look at some options

may b forced
our job I to consider
that co ers everything

there i the option to
the ne t steps some difficult decisions

would lead to
1 That's a very good

{Think of something else besides 'question'}
2 Sorry, can you
that again!
3 Has anyone else

the same thing!
4 OK, I think there's time

one last
question.
5 Th t's an interesting question. hat's your own
Right, I hink 1
I have to
say Before I finish I'll Just briefly summarize th key oints, and
then we can ry to come to a decision and focus on
6 Sorry, I didn't
tl1at.
(Think of something Ise besides 'understand')

7 I think that's outside the
of this
presentation, but I'm happy to discus It With you
So, right at the beginning I said that the aim of my

presentation was t
for
reorganizing our sales and marketing operations And I
explained the reasons why
We explored three alternatives. Firstly, we looked a keeping
both sales department and a mark ting department in every
country as now, but reducing all budgets and looking for cost
savings wherever possible. Spending on advertiSing Will be
cut back considerably, and when pea I leave the company
they will not automatl ally be replaced. We can expect that
everyone's war load will Increase.
Secondl , <I
brea up the
na ional mark ting teams, while eeping the sales teams. All
marketing campaign would e run centrally from head office,
leaVing Just a skeleton staff In other countries. This option
S
, and I sense that many of
you feel It'S too drastic. Ho ever It'S the option that offers the
greatest cost sa ings, and we 6
to conSider it.
The final optIOn IS the possibility of merging sales and
marketing into one large departmen in every m rk t This
7
greater coordination, some
cost savings, but also a loss of focus I would like to hear more
discussion about whether this option is viable.
So, in conclUSion, now is the time to take
. I'm asking all
of you to leave departmental loyalties to one side
9
the future survi al and
pro I ability of he company as a whole.
Thank you all for your attention Now I'll
10
to you for your
questions and comments
8 I'm
you asked me tha .
9 I promis d to finish
time, and I see
that it's ne r1y ten o'clock.
10 You
have thought quite a lot about
this. What conclusion hav you
to?
11 Could you be a little more
?
12 Anyone like to
on that?
13 I don't have that information to
Can I get
to yOU! Is that all right!
14 So, if lund rstand you
, you're
asking.
Now fill in the gaps above with the suggested words in

the box below.
afterwards back
correctly
experien ed
on
opinion
must
t h
come
comment
explain
for
glad
hand
point scope
specific
Match phrases 1-14 from the previous exercise to

the techniques below.
a
b
c
d
Respond positlv Iy
Clarify / Ask for rep titian
Redired to the questioner
Redirect to the group
Delay an answer
Control the timing

Pr sentatlons
J1J
nta io s - trends I
The languilge f trends is important not just for presentations, but also f r business reports. You may
want to escribe movements in tinancial indi "a tar (eg profits, co~ts), sales and mark ling indi ators
(t'g sales, market share), or economic indicators ( g interest rates, unemployment). Often !hi' language
will be used to explain a graph or hart.
Man. verbs describe the direction of movement:
Movement up and down
go up I increase / rise
go down I decrease / fali
Smaller movement
up and down
edge up
edge down I dip
Stability and Instability

stay the same / be flat
fluctua te / vary /
move within a range
Larger movement up and

down
double / take off / boom /
Increase tenfold
halve / plunge / crash
If
AllernJlive]y, you may wanl to refer to turning poin.t' or individual points:

IndiVidual points on a
graph
High POints and low

points
peak / reach a peak
hit a low
stand at
be above I he helow
Some verb. de cribe a change in size, and others say whether things are good or bad:
Change in size
grow / expand
shrink / contract
Good / bad
Improve / get berter / recover
deteriorate / get worse
Sales
Inflation
improved
To make your dt:scription more accurate you can tll n talk abollt the speed ilnd amount of chan~e:
Speed
qUickly / rapidly
graduallv / steadily
slowly
.,
Amount
conSiderably I significantly
moderately / to some extent
slightly I marginally
..
~
Try also to get the preposition right:
Sale stood (It I .2111

Sales i/lcrensed by O.2111
/lS%
Sales /'Ose from E:1,2 to lAm

Tilere wa' nil illcrease ill sales of fO.2m
And finally think about the verb form:

Time period complele (pa I simple)
alcs rose by 2% fast quarter.
clion I itu,ltion in progres in the pa t (past conlinuou. )

Things wae ea~ier in IiiI' compallY a few years IIga, willie profits were ri ing.
Time period nol complele (present perfec!)

Pn~fils !lave risen sig/lifinTl/lllf tllis year.
howing thai one pa I event happened before another (past perfect)

Before the CEO resixn,'d /JI"(ifil~ lIad alrl'ady fallen /Iy 20% i/1 a yel71~
Present resulL of a pasl action (present perfect)

P"ict!s f"Hle rise II lJewlbt! of higher 1IIa/erial~ COSI5.
'will' future tor general beliefs, predictions and facts

Our <,olll/It'lilors will face Ihe SlIliIe proble!l1s /15 lb.
Action I situation in progress now (presenl

conlinuQu 'j
TIlj/atiOlI is risillg at t!le ttlOl1lellt.
'going 10' future when there is strong pr sent evidence for a

prediction
Evayborl.ylikcs Ollr II"W /JI'()dllc/ lil/e - fill sure d'~ going to be a Sllccess.
All the lang-uage bove ref rs to d scribing trenJs. In unit 5 you'll see some language for analyzing trends.
112
to
54 PRESENTATIONS - TRENDS I
Exercises
1 Match a verb on the left with a verb on the right
that they have the same meaning. Not all the words
appear opposite.
50
grow
2 fall
3 Improve
4 stay the same
5 move high r
6 level off
7 shrink
8 dge down
recover
rise
contract
drop
be stable
expand
dip
stabdlz
\.
II there are any erbs above
dISappointing
encouraging
enormous
excellent
gradual
moderate
rapid
slight sluggish
FAST
1
OJ
Match a verb on the left with a verb on the right so

that they have the opposite meaning.
1 boom
shrink
double
edge up
grow
Improve
peak
stay the same
rise
- - - - crash
vary
dip
detenorate
hal e
fall
hit a low
Complete the table with the correct form of the

words. You may need to use a dictionary.
Verb
go up
2 grow
3 rise
4 fall
5
6
7
8
9
10
11
12
Verb
grow
expand
contract
improve
recover
vary
halve
deteriorate
Past simple
Past participle
BIG
6
SLOW
GOOD NEWS
7
8
4
5
2
3
opposite thal you ren't sure

about, check their meaning carefully In a dICtionary For example,
t e w rd 'decline' - not mentioned in his unit - eans both
'decrease' and 'get worse' Also check to see If the verb can be
used with an object - for example you annot say We rose our
pr fits last year.
2
3
4
5
6
7
8
Write the adjectives in the box in the correct space

below. Not all the words appear opposite. Check any
9
SMALL
BAD NE
Rewrite the verb + adverb sentences as noun +

adjective sentences.
1 Sales grew slowly
There was
2 Costs rose significantly
There was a
3 Profits deteriorated rapidly.
We saw a
4 Market share improved sHghLly
We had a
5 Our sale foreeas varied considerably.
There was a
forecast .
in sales.
in costs
In
profit .
in market share
in our sales
Fill in the missing prepositions in the presentation

extract below.
After the mark ting campaign at the start of March
sales rose 1
an initial figure"
4.5m
3
5 2m by June. That means they went up
sales of any
15%, the biggest Increase 5
recent campaign. They currently stand
4 9m
Note. the preposition in #4 is often missed out in sp ech.
Noun
Underline the correct forms in italics. Each verb

form is used once,
So far his year we 'saw / have seen a lot a volatility
in the finanCial markets. The current situation in the world
economy 2is ausing / had caused a great deal of uncertainty
in the minds of investors. No-one knows what he future
3w iIJ bring / IS bringing. Last year things were very different:
everyone 4has been / was optimistIc and he markets "were
rising / have risen Of course we know now that our curren
problems 6have already begun / had already begun well before
last year.
Pres nt tlons
111
e tati n - t ends II
Unit 5-1- gave 50111(: languag' for describing tr nds. But in a

preslo'ntaLion or report, Oll will pI' )bably al 0 h e to gi e
some analy is. You mJy want t gi r a 0 . f>r the trend!>,
to shO\'\' their results, or to give Jd ilional information,
Read thi en'., t frum an intern,)l pre el taticn, analyzing
recent sales figures.
lSales for lhe first half of the year were disappointing,
mainly caLI 'e of the la -k of nevv pr duct lines.
2H \>vev 1', we launched tv '0 ne' line" in IUlle an
prom lted th m vith a strong marketing campc ign over
the summer. 3As a I' sult of this campaign, sale began t
impr ve. lBy th end of August they were lO';'" high ron
a year-an-year a 'is, althoug-h they fell back ag, in over
eptember and October.
Sentence 1 has the structLU"e 'result' (disilppointing sales)
, eason' (la k f ne\ pro uet lines). S 'nt n e 3 has the
tructure 'reasOI ' (U,js campaig)
'r 'ldt' (5 les beg"-\I
to impr l\'e). The words because (~f, a~ 11 resltlt of <1nd dul' to
can all be used in sentence I and s ntence 3 in, similar
way.
Sentence 2 begins with IluWt'7'cr, and thi . word dd' n
idea that is surprising or unexpected after the pre ious
sentence. fhe words however, nevertheless and even so can
all be use in a imilar way. The 're all followed by a
comma.
Sentence 4 has nlt/wugil in lh miJdl of the sentence. ThL-;
word 'nlroduces un iuea hat is surprising after a pr viulL'
idea in lhe same sentence Compare with Howe 'er which
ref n; back to a di ferent 'entenee.
Although can also be u ed at the beginning
J _enknce,
but the two contrasting ideas are still in the same sentence:
Allbough sales were higher 01 tile L'lfd August, they feJl bllCk
again ill SeptclI/1JCI". Th' wNds altlwl/gll and evell tlJOl/gh an
l' used in <. simil<lr way,
or
Now r ad this n xt ''(tract lrom the S<111C presentation.

'rn,is dro in dIes 0 fer September and 0 tClb rId
to a serie of meetings where we examined our whnl
trategy in depth. h hristmas wa~ approaching, and the
Chri tmas 'ea (n prlldu es a large part four <1rulU, I.
s<lles. 7Moreover, we were losing m"rket share to our milin
compelitm. R a result, we increased our advertising
budget for ovember and eeemb r, anu h nged our
use 0 di ferent media, qOutdoor adve-rtisin on illb ard ,
bu es and t us tops increased, whil' our ad ertising in
rna azines and newspapers dccreas -d .
. entenee :; has the structme 'reason' (dmp in sales)
'result' (serie . of meeti gs). The senlen<.:e tI 'es the v>rb
'lead to' to express this. 1 he verbs lcad to and rf"1I1t in can
b used in a similar way.
ll-l
Sentenc' 7 use MorcOllI'1" to give additkll1al informahon

tha l support' tbe previous sentence. TI,e words MOrelll'Cr,
FlIrtllPl'IIl0re and III additioll c n all be 1I ed in a similar
Wi:ly. They'rt' illl f lIo ed by a comma
entence 8 tlse' A~ 11 result tll give the re 'lilt of th
previous sentence. The words S II result, BeCllIl1'1! ~f tl1J~'
and ThclY'jol'c can, Il be used in a similar way. They're aU
followed by a comma.
Sentence 9 ha wllile in the middle of the s nten<.:e. Thi
mflkes, simpl 'ontre st betw en two facts. (COmpe re
with IlllhouRh where there is c1 sens of urpri e.) The
wor s while and whereas can be I 'd in cl 5i ilc r ~ ay.
Tlw table below presents all this ],mguag" logether, _late
that some ords like BW7lItie of and III spite of, re followed
immediatel by il noun phrase, while other ords like
BeCllllse and III spile of flrelacl that are f Ilowed by a subject +
verb:
BeCiluse of the marketi/lg campaigl/ in {line, salt'S increa ed.
Becallse we "ad a 11111rkctillg clIIllJlllign ill flille, sales illcreased.
In spiil' (~r tile poor weather ill 'illy, sales
III spill' (!(t!-ll' flli>/. t/llIt there was poor lOca/1l I' in filly, 5(1 es

so
suit (Ie cause
co seq en e)
Because of / Due to / As result of + noun phrase,
Because / Due to the fact that + subject + ver
referring 0 the previous sentence:
Because of this, / As result, / Therefore, ..
using a verb
lead to / result in
e..ul
reason (ie conseq ence
... because of / as
using a verb:
result from ..
Ma In9
cause)
a result of / due to .
51
Ie contrast
", while / whereas
Adding
su prising
une pected idea
However; / Nevertheless, / Even so,
In "pite of / Despite + noun phrase, .
In spite of the fact that / Despite the fact that + subject
+ verb, .
, although / even though ..
Although / Even though.
Gi i
a di I nal i for
a Ion
Moreover; / Furthermor , / In addition,
See unit 6lJ for other words like As II re;,/.lit, HOlVC'Vt7 and
Moreover thJt begin C\ sentence by making J link to the
previ us senten e.
55 PRESENTATIONS - TRENDS II
Exercises
Find and correct the one mistake in each sentence
below. It could be a missing word, an extra word, or a
wrong word.
2
3
4
5
6
7
8
9
10
Because our considerable cost-cu tlng measures last

quarter, profits rose slightly.
Because of we cut costs considerably last quarter, profits
rose sli ght1y
Earnings fell by 8% last year due our increased matenals
costs.
Earnings fell by 8% last year as a result from our increased
materials costs.
Difficult market conditions resulted a significant decline in
market share.
The significant decline in market share resulted of difficult
market c.ondltions.
This chart shows that brand awaren ss increased in South
East Asia, where it fell in Latin Amenca.
Our competitors are gaining market sh reo More, they have
a who e new product line comln out next month
In spite the fact that we delayed th launch of our new
product range, we still had reasonable results last ye r.
Despite we delaying the launch of our n w product range,
we still had reasonable results last year.
Complete the presentation extract with these

words: as a result, due to, even though, however, in spite
of and moreover. Use a capital letter where necessary.
Be careful! Read the whole text before you begin, and
write your answers lightly at the side until you're sure.
e are opera ing In a very difficult business environment.
and this is largely 1
the high price of
oil. Energy costs are one of the biggest costs in our bUSIness,
2
we' Ie introduced a lot of energyefficient machines in our factories over recent y ars.
3
this investment in technology,
energy s i1t accounts for 38% of our dir t costs - and
4
it's very diffi ult to Incr as profit
, It'S not all bad news Market
margins. 5
share IS growing slowly and we've sIgned sam important new
, our r cent acquisition of a
contracts. 6
ompany In Brazil gives us access to the Latin Ame ican
marke for the first time.
In unit 54 you saw two simple forms for the future:

will and going to. However the future is not certain, and
to make forecasts for trends you need other language
that shows different degrees of probability.
Match a sentence 1-5 with a sentence a-e with a similar
meaning.
1
2
3
4
5
It's highly likely that we'll meet our targets
We're Ilk Iy to meet our targets.
It might b that we meet our targets.
We're unlikely to me t our targets.
It's highly unlikely that we'll meet our targets
a
b
c
d
e
There' a good chance we'll meet our targets.
There' almost no way we'll meet OUI' targets.
There's not much chance we'll meet our target~.
We're almost certain to meet our targets.
Th re's a 50/50 chanc we'll meet our targets
Complete the presentation extract with the words

in the box, This exercise includes some new language as
well as language from units 54 and 55.
axis
a slight increase although have been flat
highlight highly Ii Iy
implications
in Ime with
lead to
notice
roughly
NhiJe
more rapidly
reached a peak
OK, have a look at this next graph There are

two line. The green line, with values on the Ie
ertical
1
, shows sa es. The re
line,
With values on he right vertical axis, shows profits.
I'd It
t0 2
two
hlngs here The first i th sales graph. As you can
see, ales rose s eadJly for many years, but they
3
around two years ago.
Since then, sales 4
- with
just 5
in thiS last quarter.
Now look at profits 6
ho profits increased 7
sales for several years, but then they star ed to deteriorate,
slowly at fi st and then 8
In the last year this drop in profits has been sigrllflcant
g
5%.
So, profits are dow
otlce how a phrase like 'as a result' does not always have to
come at he beginning of a sentenc followed by a comma In #4
t comes In he middle, her 'and'. Making a new sentence In #4
...auld mean that the presentation doe not flow so well.
10
sales are flat
The 11
of this are
de r e are not doing nough to control costs
12
the sales figures taken
alone don't look too bad, profits tell the real s ory
It IS a difficult market environment and we must aa now,
or it's 13
that we ill
lose our competitive ess. In the long term thiS wtll
14
a situation where the
future of the company, and our jo s, are at risk

Pr en atlons
II:;
QClontatio S - re Ie
Match the beginning of each
phrase 1-10 with its correct ending a-j.
10K, let's.
2 If you have any questions, .
3 I'll come back ...
4 I've divided my talk.
5 Just to digress for ...
6 Let's examine this.
7 Let's move .
8 My own view .
9 OK, that's all I want
10 Right. let's begin .

a
b
c
d
e
f
g
h
Complete the diagram below so that it includes all the twenty phrases
from 56.1. You will see that eight phrases have already been used. Find and
write the other twelve phrases by matching them with a picture due.
OK, let's get started. Can everybody see?
1
, _ / ..r<.. . .
a momen
get started Can everybody see I
in more detaiL
into three main parts.
on this is
on to the second point.
please feel free to Interrupt.
to this in a moment
/I h the first slide
o say about the first point
.+
Continue as before.
11 As you can see .
12
13
14
15
16
17
18
19
I began by telling you ..
I'd like us to .
Just to summarize ...
Let me e plain .
ow, do you have

Right, that bnngs me to ...
Thank you all .
This leads me .
20 What IS the reason
k a little about
Then I explained how.
After that I alked about
I any questions?
m focus our attention on two things 0
this chart .
n for coming and I hope It' been useful.
o for this? Th reason is .
p on thl ne t slide, ...
q the en of my presentation.
r the main points again before I finish.
s to my third point, which is .
With a onaete example.
In
+71'''
come back to this in
moment.
I'd like us to focus our attention on
8t wo things on this hart.
~~
...
This leads me to my third point, which

is.
Just to summarize the main points

again before I finish.
11
Right, that brings me to the end

of my presentation.
+12
Now, do you have any questions?
When you finish. look back at the whole sequence and read the phrases
aloud. Can you see how these 'signpost phrases' help the audience to
follow the presentation?
11
56 PRE5ENTATJONS - REVIEW
5.
about
of on
2
3
4
5
6
7
8
9
10
11
12
._ Underline the correct words in italics in this extract

from an internal presentation.
Fill in the gaps with the words in the box.

at
on
back
on
in
on
in
to
In
to
into
to
for
with
This next chart shows sal f.f ur tw ) main pn1duct

lines, the Micro range and lhe Neka rang. IMllrk / uti ('
the -cale un the vertical 1 axi!; /lIxlp - it h ws the number
uf limits / l/Iliti 'S sold. in th usands per month.
I'd like to ldrnw / //lake your attention fi tly to th~ black
lin', which hows sale- f the Micro range. You can see
how last ear sale 'ra t' / have nsell E.gteady / -tl'adily all
through the year. Since th begmning of this year they
7coll /il1l1ed /hl1ve COllfil1l1cd to rise, 8al1lw//gll /ill ~pitf' afat a
slower pace.
On balance, these result~.:Ir good - 'Jsteady / steadily
lIIgruw / growth j whClt we Jik to see. Thi generally
positive picture is 11dllf' /0/ dill' fWIII the performance
and reliability of the Micr rang~, and the fact that our
camp titars I ,Ive been slow to respond. 12Vt'/1 so / even
thuugh, we cannot be complacent:. We have to build on
this success going forward, and I wanL ur sales teams to
really focus "about / on the Mi ro range ]10 'I'r //1'0111 the
next few month.:;.
I'm going t stan ambitioll target - to take sale
of icro produ -ts fro, 1 their current lev,l of 30,000 per
month \510 /1/111 il a 16fiKllrc /l1lmlber of 35,000 by the end of
the year.
now let's 17100k at / rook to the purple line on the
chart, which shows sales of th
ka rang. s you know,
we laundled thi range in De ember of last year, and sal
\Rlookt~ff /werc taking oJfirnmediately- For the first few
mOl1ths things 1'1 l) T/' really lookiliK good /Ilild 1"1>11111/ looked
good. We were xpectin~ thi because we lOWt.'n dvillg / I/lld
dOil(' a lot of market reseal' h before th~ launch. 21However
/ WhercCls, for n obvi us rea n, there 22<0115 / has beclI a
2\lIddt.'1I / slIddelily 2.1drop / red lice in sales in recent weeks.
TIle question is thi,': can we find ut the 25/1lotive' / rellSOilS
and what can we do 2/ol1bollt /
it?
In a moment I'm g ing t (pen up th di ussion
J.nd ask for your l70l/IIIIICllt:;, / ((mllllelllm-ies. But the
impli hons Me d <11": it's ~higlz / highly ~'i hailer: / likely that
we won't m et our tar~et of 25,0( 0 3llby / for the end of the
Yt'ar.
Take a look
this picture What does it tell you
our company?
I've divided my tal
four main pa
Right, let's begin
the first slide.
Let's move
the second pOint.
This lead me
my third main point.
I'll come
this in a moment
ton' is possible in #6, but isn't the answer here.)
y own view
thIS is simple.
tof' is possible in #7, but isn't the answer here)
I think there are three questions to focus
As you can see
this next slide, .
tin'is possible In #9, but isn'( (he answer here.)
So,
conclUSion, I hope that my talk has given
you a good over lew
our company.
Thank you all
coming.
Here's my email address
case you want to get
touch
Complete the sentences with the pairs of words in

the box.
OK,
anyone I comments
brings I end
digress I momenr
examine I detail
explain I again
explain I concrete
question I opimon
scope I afterwards
highlight I diagram
time I question
useful/background
stan / introducing
Let me
myself.
2 Just to
3 It might be
by
for a
La give a little
here.
4 Let's
5 Let me
example.
6 I'd like to
7 Does
8 Right that
9 Sorry, can you
or
this in more
with a
two things on this
have any
me nearly to the
of my presentation.
hat
10 That's an interesting
What's your
own
?
11 I think that's outside the
of this
presentation, but I'm happy to discuss It INlth you
:2
+'
30
E
2. 20
"0
(5
U'l
12 OK, I think there's
for one last
.~
c 10
:::J
01
02
03
04
P esent tions
11
IVloI:.o"ings 0 inion
Read the extract from a meetil1g il1 a halls hold prodLlCts

company. Antoil1e ( ), Brigitte (B) anJ hris (e) are
cUscLlssing their com pan 's marketing 'trategy.
.A: W need to do something radical to develop our
brands. he re ilers are becoming more and more
powerful - they buy from us for wh tever price they
want, and sell to the public for whatever price they
want
B: Absolutely. Our profit m rgins are getting thinner and
thinner
C I totally agree with you about the power of the retailers.
And It's not Just th ir pricing power - irs also their
own-label products. Why should people pay more for
brar ded items like ours?
,Do, Sa !cally, we have to look at branding in a
hole new
way In my opinion, we have to go beyond market
research, b yond talking about quality, and beyond
clever advertising slogans. What I'm trying to say is we
need to make an emotional connection with consumers.
We need consumer to love us, not Just to need us.
B: I'm nat so sure about that. We sell detergents and
things for the home. How emotional ar cleaning
products' We're not company like Apple or Nike who
make e citing, lifestyle products. What do you think,
Chris?
C It seems to me that we have to do something - we
can't JUst carry on as we are. It may be true that our
products aren't very eXCiting, but we also have to
consider that household products are an important
part of famil life, and families are near the centre of
our emotions Actually, I do think our advertising could
appeal mol' to people's emotions
B: OK, OK You're probably right. But what did you h ve
In mind, ntaine!
A: We need a new 'face' for our brands A celebrity.
Someone who the public loves. To put it simply, we
need the most famous football player In the world to
appear on screen, using our products
B: Really' Do you think sa' You think that It a famous
ootballer cleans their teeth and washes the tloor, using
ou products, the public will love US! I think they will
laugh at us, and at the footballer.
C Obviously it would have to be done ar fully, and a
footballer may not be the best choice. Perhaps a film
star from romantic comedy movies would be better. Sut
in general I like Antoine's idea
B: Ok, I can see what you mean, but don't you think this
is all going to be very expenSive!
A That's true. It will be. But from my point of view it's
worth it An emotional connection is the only way to
Justify a pr mium price.
11

What do you think, Chris?
Chris, what's your opinion 7
What did you have in mind7
What I'm trying to ay is ... / The point is
In my opinion . / The way I see it .
Basically ... / Essentially ..
Actually .. / As a matter of fact
Obviously. . / Clearly.
In general . . / Overall.
To put it simply ... / In short.
lo",,_r~
care ully)
It seems to me that.,
I tend to feel that,
From my point of view,
That's true
I totally agr e with you. / Absolutely
It's not just. ,it's also
You',: prob bly right.
i I
I agree up to a point, but.
OK, I can see what you mean, but don't you think. 7
It may be true that, .. , but we also have to consider.
Really"? Do you think S07
I'm not so sure about that.
I'm sorry, that's not how I see it.
I really can't agree with you there
otice the different ways to gi e an opinion in the box

above, Mcmy of these phrases appear in the extract.
tice the different ways to agree and dis gree abo e.
any of tit sc phrases appear in the e,'tract.
57 MEETINGS - OPINIONS
Exercises
1 Chris, what / how is your opinion)
2 What did you have in mind / in your mind)
3 It seems me / seems to me that we have to do something
- we can't Just carryon as we are.
II From my vIew / my point of view, it's worth it.
5 I am agree / I agree With you.
6 You're fight / You have reason.
I agree to a point / up to a point, but.

8 I can see hat you mean / you're meaning, but don't you
think this IS gOing to b very expensive)
9 It may / can be true that our products aren't very exciting,
but we also have to consider.
10 I'm not so sure with / about that
7"l Look at the extracts from meetings below. Write a

phrase from the box next to a phrase in italics with the
same meaning. Be careful!
Actually
Bas/cally
By the way
In my opinion
Lucktiy
Obviously
On the other hand /
However
In general
The point is
In short
, there are some
serious Issues that we still haven't discussed,
As a matter of fact /
, the project is
three weeks behind schedule, not two.
3 Fortunately /
, we have enough time,
4 Clearly /
, they're not as cheap as
other suppliers, but their quality and r liability is much
better
, it's a very positiv proposal,

5 Overall/
but there are some important details that still need
clarifying.
5 What I'm trying to say is /
, June is a
much better tim to launc this product than April.
Essentially /
, it's a good idea as long
as it's not too expensive.
8 While we're on the subject /
, did you
get a chance to read that report I sent you)
'3 The way I see it /
, the whole thing is
a complete waste of time
10 To put it simply /
, profits are falling
and costs are rising and we have to do something fast
57. Write one of these next to each sentence below:

Polite disagreement. Strong disagreement, Not
gramatically possible.
1 I really can't agree with you
2 I can't really agree with yOLi
3 I can't agre really with you
5
Put the phrases below into order: 1 is the most
polite disagreement. and 4 is the strongest disagreement.
I'm sorry, that's not how I see it
Really) Do you think so"
I'm not so sure about that.
I re lIy can't agree with you there
" think we need to make an emotional connection

with consumers.' Study the different replies a-g and then
do the exercise below.
a Yes, just like Apple or Nlke
b Yes, you're right
c Yes, they should love our products, not just need them
d Maybe, but how can a household products company do
tha)
e Isn't that idea too dbstrad? Wouldn't it be better to
focus on something more practical?
f Do you think so)
g I'm sorry, I don't agree With you.
Now match each reply with a technique for agreeing and

disagreeing below.
Agreeing
1 Using a standard phras
2 Saying the same thing gain uSing different words
3 Giving a example
Disagreeing
4 Using a stancJard phrase
5 Yes, but.
6 Asking an open question to show doubt
7 A king a negative question (where your own answer is
clearly 'y ')
5 .6
M elJl\gs
11"
Me!eti 9 - ma . 9 t I 95 cI ar
Read the extract trom a meeting bel ween three ::-enior
from difterenl uepartm 'nts in Llll inv stm nl
bank. Agw.tin (1\) has s m ball nc vs to announ e to his
'oil ague., Brian (B) and C cili, (C). Brian anL! C 'ilia c nnot
believe what they're hearing.
mana~ers
oti' the dif erent way" to mak~ things clear. At line 7

Brian asks for repetition. At lin 12 Cecilia use her own
urd' to dlcck (paraphra~in~), t line 15 eolia clarifies
<In individual pint.
1

A: Well, good morning, everyone.
B Good morning.
C' Good morning
A: You re probably wondering why I called this urgent

meetIng a such short notice. I have some bad news for
you. We have a rogue trader
B Sorry, I missed that. Could you say it again?
A I said we have a rogue lrader. Like Nick Leeson at
Sarings and Jerome Kerviel at Societe Generale We
have someone who has been trading beyond his
authority
C: Can I get this dear You're saying that there ha been

'
fraud?
A Yes, it appears so. On a massive scale. Two bilhon euros.
C Sorry, how much did you say?
A I said two billion euros
B How did you arrive at the figure a two billion)
A I 's just a guess
B: What exactly do you mean by 'guess'l Don't you
know?
A The person Involved was trading complex flilanCial

instruments Derivative . It's very difficult to estimate the
losses.
C: Correct me if I'm rang, but you seem to be saying
that you have no clue what thi person was trading and
no clue how much mane he has lost
A Please allow me to explain. I annat know every detail
of every ransaction of every trader I have spoken to
the Individual's line manager this morning. and the
figure of two billion look like a reasonable guess.
B: You mentioned that the person was trading complex
derivatives. Could you be a little mor sp 'fic 7
A At thiS stage, no
B: So, in other words, ou don't understand the trades. And

probably the line manager doe n't understand eithe
A Perhaps I haven't explaliled myself dearly What I meant
was that we're IIlvestigatlllg the matter. There are
certalll aspects of he trades that seem to have caped
our Internal controls.
c: Could I just say something I I don't believ what I'm
hearing I Does anyone In this place know what they're
doing?
A Can I just finish my point? Wha I was trying to say was
hat this is a very serious matter and I cannot blame
individuals or go Into details ntil we have proof
B I Just hope hat the media haven't found out about this
yet
A There are three JournaliSts waiting In my office
Sorry. I missed that. Could you say it again?
Sorry, I don't understand, can you explain that agam?
Can you run through / go over that again, please?
So, in other words,
If I understand you correctly, ., .. Is that nght;>
Can I get this clear? You're sa ing that
Correct me if I'm wrong, but you seem to be saying
that
Sorry. how much did you say?
Sorry. the project Will start when?
What exactly do you mean by. .?
How did you arrive at the figure of . . ;>
You mentioned. . Could you be a little more specifiC?
I'm sorry, that's not what I mean/.
No, sorry. there's been a slight misunderstanding.
Perhap I haven't xplained myself learly
Please allow me to explain
Let me put it a other way, .
What I meant was.
What I was trying to say was.
Sorry. but
Can I come in here?
Could I just say something?
Can I just finish my point?
58 MEETINGS - MAKING THINGS CLEAR
Exercises
8.1 Read the dialogue opposite aloud several times,
then cover it with a piece of paper.
Now try to remember some of the missing words below.
Write your answers lightly at the side.
1 Sorry, I
2 Can I get this
3 Sorry,
4 How did you
5 What
that Could you

it again?
? You're
that there has been fraud?
did you
atthe
of two billion?
do you
.3 A team leader is speaking in a conference call. but a

colleague (Bob) doesn't understand very well. Complete
Bob's questions with the words in the box.
what when where which who
ho long how much how often
by
'guess'?
me If I'm
, but
you seem to be saying that you have no clue what this
person was trading,
7 Please
me to
I cannot know every detail of every transaction
8 You mentioned that the person was trading complex
more
deriv tives, Could you be a
?
9 Perhaps I haven't
myself
, What I meant was,
10 Can I just
my
What I was trying to say was
After you have remembered whatever you can, use
the pairs of words in the box below to complete the

sentences,
allow I explain
arrive I figure
dear I saying
correa I wrong
exactly I mean
explained I clearly
finish I point
how much I say

little I specific
missed I say
82 Fill in the missing letters.

I Sorry. I don't und
d, Can you e
n tha
again?
2 (an you run
gh that again 7 (= explain quickly)
3 (an you go
r tha gain? (= repeat it in order that I
can understand It)
No, sorry, there's been a sl
t misund
Ing
it another
y
5 Let me
6 (an I c
here? (= enter the discussion I Interrupt)
Team leader: Thi meeting today IS just a quick briefing so that

everyone understands their zxhkqf before the project starts
7
Bob Sorry, understands their 1
Team leader Their roles Yes, as I was saYing, it's Just a qUick
briefing - it'll only last around kfxhzq minutes
Bob Sorry, 2
did you say?
Team Ie der: Around thirty minute. OK, so the project will
start at the beginning of qxkfzh,
Boh Sorry, the project will start 3
li am Ie der: At the b ginning of March, And once it's running,
we'll have to meet regularly, xhkzqf month
Bob Sorry, 4
did you say?
Team leader: Once a month, OK, fzxhqk will be in overall
charge of the budget
Bob Sorry,S
will be in charge of the
budget?
Team leader: Martha If you have any travel expenses, please fill
in form qzfxkh and give it to her
Bob Sorry, 6
form?
Tea n leader: Form TE30 If you think you will spend more than
fzxhqk, you should get my autllorization first.
did you say?
Bob Sorry, 7
Team leader 400 euros. Copies of the form can be found on
hxfkzq
Bob Sorry, we can find them 8
Team leader: On the company Intranet
Notice how Bob asks for clarification In two ways. Sometimes he
simply says 'Sorry, (question word) did you say7' Other times he .
Includes in his question some words that he did understand,
5
Meeting
121
e In s - p oblem-solv 9
Read the xlract from a meeting in a mining company.
Annette (A), Ben (B) an Claud (e) are di 'cussing an issue
of social responsibility.
A: Our geological studies have shown that there's a lot
of gold In thiS al'ea, but the local population is against
us - they say our mining operations will destroy the
environment There are several ways we could deal with
thiS I'd like to open up the discussion and hear your
views.
B I think we should offer some money to the local mayor,
under the table. It's worked before.
A I'm sorry, I don't think that's a good idea. What would
be the consequences! This mayor seems honest and
he could go straight to the newspapers. It wOI~ld be a
disaster
B Yes, I suppose you're ri ht
A Claude! Any suggestions)
C Well, it's just an idea, but what about offe ing to use
some 0 our proFits to support environmental charities!
We could give money to organizations that prot ct th
rainforest, that sort of thing.
A That sounds like a good idea, but I don't think it would
work in practice L t's look at the pros nd cons. On
the one hand, it would improve our public image, that's
true. But on the oth r hand, people would see it as a
very cynical g 5ture. And it does Ilothing for the local
population in that area.
B Can I make a suggestion) In5tead of being defensive,
why don't we go on the attack with a big PR campaign
in the media)
A: What do you mean!
B Well - look at the benefits that our oper tlons will
bring We'll bring jobs to the local community, and our
employees will p y taxes to the government. We're on
the side of progress
A' Let's think carefully about the implications of that. We
would have to spend a huge amount of money on
press and TV advertisements, and we're only a small
ompany. What do you think Claude!
C. '11 general it sounds like a good idea, although I agree
that the cost may be too high. I think the best way
forward is to get a more detailed estimate of how much
gold the mine can produce, and then we'll be in a
better OSition to decide about the PR campaign.
A OK, let's do that.. /.\fter all, we have a number of
options. For example, we could run a local PR campaign
instead of a national one, just emphaSizing the Jobs
B OK The next thing to do is carry out a more detailed
geological survey. I agree
NoH e the proce- f exploring options, making

ugge tions, rea ting, and accepting or rejecting the
sug~e tioru;.
]::2
We have a number of options.
There ar several ways we could deal with this.
I
Let's look at the pros and cons.
On the one hand,. . But on the other hand, .
In general. ,although.
On the whole. ,but.
I think we should / could ..
Can I make a suggestion? Instead of

,wh don't we.
It's just an idea, but what about . (+ -ing)7
What would be the consequences?
Let's think carefully about the implications of that.
OK, let' do that
Yes, I thin that would work really well.
I can see one or two problems with that.
That sounds like a good idea, but I don't think it would
work in practice
I'm sorry, I don't think that's a good idea
I think the best way forward is ...
What we've got to do now is .
The next thing to do is .
59 MEETINGS - PROBLEM-SOLVING
Exercises
5
have been given.)
1 There are sev
I ways we could d
w
this
2 I'd like to 0
u
the discussion and hear your v
s
3 Yes, I su
se you're r
t.
4 That s
s like a good idea, but I don't think it would
w
i pr
5 Let's look at the p
and co
(:= advantages nd
disadvantages).
6
the
e
d, It would improve our public image,
hat' true, But
the
r
d, people would
see I as a very cynical gesture,
7 Canl
eas
lon 7 1
dofbeing
defenSive, w
't we go on the attack with a big PR
campaign in the m dia.
8 Let's think carefully about the impl
(:= possible future results) of that
9 In 9
it sounds like a good idea, a
gh
I agree that the cost may be too high
10 I hink the b
t w Y f
d is to get a more
detailed estimate
59.4 Complete the table by writing these nouns next to

the verbs they go with: a suggestion, a decision.
a problem. a solution. Check any unknown words in a
dictionary.
analyze, approach, avoid, be faced
with, cause, con ider, explore, find
a way round, get lOund, identify,
look into, overcome, pre ellt
(somebody with), resolve, run Into,
solv , tackl
agree (on), arrive at, come up with,

fi ure out, find, look fo , offer,
produc ., propose, put orward,
reach, work towards
a ept, act on, agree with, come
up with, consider, make, follow up,
go along with, lend weight to, put

fa fward , reject, respond to, rule
out, take up, welcome
alter, arrive at, be faced With, come
to, confinn, go back on, hesitate
over, ignore, Implement, justify, lie

ehind, make, postpone, reach,
reconsid r, reverse, take
5
column.
OK, et's~
2 Wha
3 That's a complete
4 Why
5 Yes, that would
6 Shall
waste of time.
work r ally well.
about .. 7
59. Fill each gap with a verb from the previous exercise
in the correct form.
"
we
don't we.
7
do that
7 TI,at sounds
8 Can I
9 I can see
10 I'm not really
11 That mIght be
12 I don't think it
make a suggestion 7
worth trying.
like a good idea.
would work in practice.
sure about that.
one or two problems wit
._ Write the phrase numbers from the previous

exercise in the correct category below.
a Make a suggestIon
b ccept a su gestlon
c Reject a suggestion
4
that
5
6
7
8
If you
a problem, you're in
a situation where you have to deal with it.
If you
a problem, you
make an effort to deal with it (metaphor from ootball)
If yOll
a solution, you think
about a probl m until you find the answer or understand
what has happened. (:= 'work out')
If you
a solution, you do
t1lings that help you to make progress.
If you
a suggestion, you
think of it
If something
suggestion,
it provides eVidence to make the su gestlon seem like a
good one.
If you
a dedsion, you take
action to put it into practice.
If something
a decision, It
is the true reason for the decision.
5
Meetings
12..-:
9S - lea in
a meeting
Th per on" ho leads the m ting is oft n GlUed 'the chair', but other ammon tem1S are 'm dCl'ator',
'facilitator' and 'pres' ding officer'. B It: IV you will find some typical extracts spo en by thi person.
Opening the meeting
Closin
Right, is verybody here l Good, I think we can start.

Well. good morning everyone, and thanks for coming
Unfortunately Anneke is ill and sends her apologies.
Just a couple of housekeeping things before we begin
- we'll have C1 short break around ten thirty, and I aim
to finish the meeting on time, at twelve o'clock The
bathroom is down the hall on the left.
OK Do you all have a copy of the agenda! Good. Can
someone take the minutes! Thank you, Vikram.
Just before e begin, I'd like to introduce Agnieszka
rom our Warsaw office WOUld yOLl like to say a few
words about yourself Agnieszka!
OK, thanks
Right. Our objective today is to plan the launch of the
new range of large-screen televisions across all OUl' European
markets I've prepared some b ckground information that i
hope Will be useful, and I'll distribute it round the table now.
You can see from the agenda that we have a lot to get
through, so I would ask that you keep all contributions
brief and to the POint.
OK, let's ma 'e straight to the first item. Henk, would
you like to kick off!
OK, everyone, I think we n stop th re - it's nearly twelve

o'clock.
I'd like to sum lip Thel'e are three main conclusions
from the meeting Flr'st,
Secondly,.
And finally
In terms of action point';, we've decided to
- Jennifer
you're going to deal with that - and we've also agreed
that Miguel should prepare a report on .
Are there any other' points that anyone wants to make?
Have I missed anything)
Well, thanks for your input, everyone We've had lots
of good ideas nd I think it was a very useful meeting I'll
circulate the minutes as soon as I get them from Vikram
What about another meeting! Can v/e fiX a date now
'
Right. we'll close the meeting here. EnJOy your lunch
Caitriona, c n I just have a quick word with you b fore
you disappear!
t e meeting
Managing the meeting

etween the open n:l the cJos there i the whole middle
se bon of the meeting wher th chair manag s nd controls
the discussi n. Th table below contains phrases for th.is.
nit 5R (Making thing lear) is also very r I vant h e.

i
What's your vIew on this, Nadine?
How do you feel about this, Klaus?
Anronio, this is your field, In a few words, can you tell us what you think?
Mike, after we've heard from Rosa can we have your views? I know you
have some experience of this problem
10
Could you just hang on a moment please?

One at a time, please. First Mirella, then Claude.
Pavol, could you just let Nikola finish? I'll come back to you in a mom nt.
I
Perhaps we could get back to the main point?

I'm not sure that's relevant
Let's leave that aside for the moment
Can we come back to this Iter?
I think we should move on now.
12,1
I think we need to look at this in more detail.
We need to analyze this in a little more depth
Is there anything else we should consider?

What other ways are there to approach thIS'
ag
Can we go round the table to see if everyone

agrees?
Do we all agree on that? Good, that's settled
ar
So, basically, what you're saying is
OK, let's go over what we've discussed so far.
60 MEETINGS - LEADING A MEETING
Exercises
60. Cover the opposite page with a piece of paper.
Complete the sentences from the opening of a meeting
with the pairs of words in the box.
agenda / get through
b ckground / useful
bathroom / hall
housekeeping / begin
brief / point copy / agenda

righr / start
say / words
ill / apologies
kick / off
straight / item take / minutes
, is everybody here? Good, I think we

can
and sends
2 Unfonunately Annek is
her
3 Just a couple of
things before we
4 The
is down the
on the left.
5 Do you all have a
of the
6 Can someone
7 Would you like to
the
a few
about yourself Agnieszka i
Information that I
8 I've prepared some

hope Will be
9 You can see from the
that we have a
lot to
10 I would sk that you keep all c ntnbutions
and to the
11 OK, let's move
to the first
12 Henk,
ould you like t

?
60 Find a word or phrase from the previous exercise
that matches the definitions below.
a list of the subjects to be dlsc.ussed at a meeting
60. Make phrases to close a meeting by matching an

item from each column.
1 I think we ___
main conclUSions.
2 I'd like to sum
""'Ule minutes
3 There are three
"----- can stop there
fix a date now?
4 In terms
missed anything?
5 Ar the e
6 Have I
a quick ord with YOU!
7 I t ink it was a
of action points, .
8 I'll circulate
any olher points?
9 Can e
up
10 C<ln I Just have
very useful meeting.
O. Cover the opposite page with a piece of paper. Put

the words into order. Write the answers under the correct
heading below.
I think III more detail look at this we need to.
Let's for the moment leave aside hat
Could you a moment hang on Just please?
Is anything there we should conSider else?
One at time, a please.
Ca we if everyone agrees go round to see the table?
What ways are there to approach other thiS?
Let's so far what we've discussed go over.
Can we later to this come back?
We need to depth this in little more analyze.
Deal with interruptions

1
2
Keep moving
3
4
Focus the discussion
5
6
Widen the discussion

2 a written record of the deciSions that people make t a
formal meeting
3 (phrasal verb) do; finish dealing with
4 one of se eral things on a list
5 (phrasal verb) begin
8
Check agreement
9
Summarize
Write 8rE (British English) or ArnE (American
English) on the right line.
60,
10
1 bathroom / restroom / washroom
2 100 (informal) / toilets / gents / ladies / WC
60.6
Meetings
125
otiating I
What do y u think (1f when you h ar the word 'n gotiating'7
You probably think of this process: two ides each have a
starting position, then they make a eries of concessi ns
(= thing th )' ~i e in order to reach an agreement) until they
find a compromise (= an agreement where both sides ac pt
that they cannot have everything).
But this process is more ac mately call d 'bargaining', and
it's just one of the phases of a negotiation. The phases are:
Relationship building: getting to know the other person,
exchanging infoffilation abo It the two companies,
discussing th market, and gen rally building trust.
Staling needs, exploring initi< I positi ns and asking
questions. In a commenjal negotiation, the supplier
xplains th Fr duct in d pth and shows how it brings
val I to the custom r's bu-in 55.
Bargainin> - not just ( n price, but ( n a range of linked
issues such as qUe ntity, minimum ~ rder, disco nts,
deli ery hme, ser i e plan and warrantie' (guilr, ntees),
terms of pavment, exclusivity in a particubr market,
the length of the contract, transport costs, anilngements
f r sharing advertising costs, penLillies if clauses in the
on tract are not respected.
Closing th deal.
Rea
the dlalo ue below, which is an extract from phase 2
a ty i al sales negotiali n. For phases 3 nd 4, see unit 62.

Supplier OK, let's get down to bUSiness, What exactly do
you need?
Customer: For us, the priorities are quality and reliability
Supplier: When you say 'reliability', what do you mean?
Customer: I mean delivery On time, very time. Can you
do that?
Supplier: Yes, we can. Our customers are well-known firms
who trust us and come back to us.
Customer: 0/
Supplier: What sort of quantity are you thinking of!
Customer Around 1,000 pieces inlLially. But that may
change. How flexible can yo be on quantity?
Supplier: You can change the quantity up to five working
days before the agreed delivery date, and we need a
mll1lmUm order of 500 pieces. But quantity is not a
problem Our main concern is that you don't change
the basic specifications of your order
Customer: Right, I understand And in terms of delivery,
what kind of Limescale are we looking at?
Supplier: Two weeks fl'om your firm order
Customer OK Another question We've been quoted a
price of 9 S0 per piece for a very simil r product Can
you match that!
Supplier We offer quality at a reasonable price, not at the
cheapest price. We don't try to compete on price. It's
about a relationship between quality and price.
Customer: Of course. I see that But what kind at
guarantee can you give us III relation to your quality?
l2b
otice in this early part of the negotiation how U1erc are

lot of questiOllS, and how th speakers rna e freely from
one topic to another.

For us, the priorities re.
Our main concern is .
We think the best option would be
We'd prefer to see / have.
We need
Can you do that?
What exactly do you need?
What do you have in mind?
How would you feel about. ?
How flexible can you be on. ?
When you say

,what do you mean?
Can you be more specific?
Let me just check I understand you correctly
What sort of quantity are you thinking of?
What kind of timesc Ie are we looking at?
Wh t sort of figure ar we talking about?
What kind of guarantee can you give us?
We've been quoted a price of.

Can you match that?
Alternatively, .
Can I suggest another way of moving forward?
There are a couple of alternatives we'd lIke to put
forward
Perhaps you would like to try the product on trial
basis?
61 MEETINGS - NEGOTIATING I
1 Read the dialogue opposite aloud several times,

then (over it with a piece of paper. Now try to remember
some of the missing words below. Write your answers
6
Complete the four mini-dialogues with the words
and phrases in the box.
a little low have in mind pre-payment
production schedvle
quite high
regUlar customers
so long
somethmg around standard for this market
such large discounts

terms of payment
were you expecting
lightly at the side.

10K, let's get do n to
2 What
3 For us, the
do you need!
are qualily and reliability
When you say 'reliability', what do you
Price
5 Our customers are well-known firms who

us and come back to us
6 How
can you be on quantity!
7 You can change the quantity up to five working days
before the agreed
date.
8 We need a
order of 500 pieces
9 Our main
(= feeling of worry) is that
you don't change the basic specifications of your order.
In term of delivery, what kind of

Me
we lookmg at!
We' e been
(= told) price of 950
per piece for a very Similar product.
Can you
that (= provide something
hat 15 equal)?
We offer quality at a
price, not at lhe
cheapest price
BUI what kind of

can you give U5 in
relation to your quality!
After you have remembered whatever you can, use the

words in the box below to complete the sentences.
Supplier The price per Item IS E140

ustomer: That seems 1
Supplier What sorl of pflce 2
Customer: 3
Supplier I think you'll find our prices are
120
Discount
Supplier We give a discount of 3% on orders over S
,OOO and
5% on orders over 10,000.
Customer: Isn't that 5
Supplier What kind of di count were you looking for)
Customer 5% on our order of 6,000.
Supplier: Well, we don't normally give
6
Delivery
Supplier Our delivery time is six weeks
Customer: I didn't expect it to be
7
Supplier Wh t exactly did you

8
Customer We need delivery in four weeks. Can you do that)

Supplier: That doesnt gi e us very much lime - our
Y
is ery busy at the
moment
business
concern
deltvery exactly
flexible
guarantee match
mean
mlmmum
priorities
quoted
reasonable
timescale
trust
Terms of payment
1 2 Fill in the missing letters In the phrases below.
What
of
of
quantity
disc
times
are you thinking

are we talking
are we looking
)
)
Suppli r: Our 10
are 50% In
advance, and 50% 30 days after delivery
Customer Couldn't you be a little more flexible!
Supplier What do you mean)
Customer: We'd prefer, say, one third
11
, one third after 30 days,
and the final third after 60 days.
Supplier I'm sorry, but we only offer conditions like that to
12

Meetings
127
e ng
gotiati 9 II
The dial gue on page 126 in unit 61 sh wed some phrase

lor the early part of a negotiation: stating need~, e ploring
positions and <lsking questions. The dialogue below omes
trom later part f tli same negol-iation. t shows phrases
ior bargaining and closing lh' deal.
Bar'gaining is J. process of making offers Cpr posals' are
m re forn al and m re final than offers), with the other
side ac epting them, refu ing lh m, or coming back with
counter-offer. lnexperien d neg liaton; lend to work
lhrough issues (eg price, tcrrns, delivery) one by one, while
m re experie (ed negotiat [' link i,sues, \ ith all the pieces
of the puzzle only fitting- together right at the end. This
a\low~ much greater flexibility.
Experienced n g ti t rs als tend to make frequent us
of summariz.ing. Summarizing can be used to check
lUlderstanding, give yourself time to lhink, keep a positive
ahno'iphere by reviewing progr S5, break a deadlock, rmd
dose the n gotiati n.
ow r ad the cii ogue.
Supplier: . Yes, our minimum order IS 500 pieces.
Customer: Thilt'S a bi fiSk for us - we'd prefer an Initial
order of, say, 300 pieces We Ciln look a further orders
later
Supplier Thal's not really a viable option r01" IJ.S It's not
cost-effective for us to do a production run of JUst 300
pieces.
Customer: I see. And earlier you said that you need 50%
pre-payment for first time customers
SupplIer: That's right
Customer' 50% is a lot of money to pay upfront I'm sorry,
we can'L cccept that.
Supplier We'd be prepared to offer better terms of
payment, but only if you increased your order
Customer: When you say 'better terms', what do yOll have
In mind)
Supplier: Well, if you order 500 pieces, we'll accept 25%
payment in advance, With the balance 60 days after
delivery. That should help with your cash flow
Customer OK, we could accept that, but only on one
COl dition.
Supplier Yes'
Customer That you can make the small customlzaLion that
we talked about earlier at no extra cost.
Supplier: I'm not sure about that I don't have the authority
to make that deCISion by myself
Customer Welt. If you can agree to that, we can close the
deal toda'
Supplier: OK Can you gIve m a moment to make a call)
Customer Sure
Supplier . Yes, we can make that customlzatlon. No
problem Now, let's JUst take a moment to review what
we've discussed. So, .
12
A lin 5 the upplier rch.1 5 an ft r about thc initial

order, and ive a reason. At line 8 th Customer re pond
with a sirnplt: 'J t:!e' and moves to anotl1er issuc. leither
side feels j t is nece, 5< ry to fin I i7.e the initial order i ue
at this point.
At line It the Customer refuse an offer about the '}o
pr -payment. Alline 13 th upplier responds by linking
J can e sion on this issue to il concession by the Customer
on another issue.
The be rgaining and linking of j ue conlinues at
lines 17-24.
The pice 5 of the puzzle only finally fil tog ther at line 31.
Th> uppLier closes the negotiati n by ummarizing.

If you (do that), we'll / we can (do this).
OK, we'd be prepared to (do that), but only if you
(did this)
We could accept that, but only on one condition.
Would you be willing to accept a compromise?
OK, we can agree to that
That sounds reasonable
I thin' that should be possible.
I'm not sure about that
That's not really a viable option for us
That would be venj difficult for us because .
I'm sorry. we an't accept that
Let's just take a moment to review what we've
discussed
Can we just go through / go over what we've agreed
so far"?
So, .
I'd like some time to think about it
I think that's as far as we can go at this stage
I don't have the authority to make that decision by
myself
If you can ... , we can close the deal today

I'm ready to sign today if you can
If we agree to .. , are you happy with the other points?
That's it, then. I think we have a deal
So, if you'd just like to sign here.
62 MEETINGS - NEGOTIATI G II
Exercises
2. Cover the opposite page with a piece of paper. Fill
in the missing letters.
lOur ml
um a
r IS 500 pieces.
2 That's not really a via
option for LIS. It's not
of just
c t-eff
e for us to do a pro uction r
300 pieces.
3 Earlier you said that you need 50% p -p
t for
fj
t ti
customers.
4 50% IS a lot of money to pay up
t
5 If you order 500 pieces, we'
accept 25% payment In
ad
, With the bal
60 days after d
ry
That should help with your c
fl
6 I don't have the au
ty to make that deCiSion
b my
Find a word from the previous exercise that means:
1 able to be done
2 (Informal) In advance
3 remaining amount of money
62 Complete the sentences with the pairs of words in

the box.
accept I condition
lose I deal
go I stage
have I mind
just I sign
moment I review
prefer / order
should / possible
sounds / reasonable
prepared / terms
through / far
Willing / compromise
We'd
of, say, 300 pieces
2 We'd be
an initial
to offer better
of payment, but only if you increased
your order
3 When you say 'better terms', wha do you

in
4 We could
to
")
6 Yes, that
7 That
8 Let's Just take a
9 Can we just go
be
to
what we've discussed.
what we've agreed so
10 I think that's as far as we can
11
If you can agree to that, we can

today
like to
12 If you'd
here.
1 accept, agree on, close, do, make, offer somebo y, reach,

reject, sign
2 authorize, cancel, chase, delay, fax through, meet, place,
process, put in, receive, ship
3 accept, darify, come up with, consider, (Irop, explore,
outline, make, put forward, reject, revise, study, withdraw
4 allow somebody, ask for, be available at, be e titled to, get.
negotiate, offer some ody, qualify for
a alternative, compromise, concrete, detailed, helpful,
interesting, sensible, tentative, vague
b cash, genNous, good, h ge, large, low, five percent, speCial,
substantial, usual
c back, firm, i itial, au tanding, regular, repeat, rush, special,
urgent
d compromise, exclusive, fair, good, lucrative, malor, package,
two-year
order
discount
proposal
deal
62.S Continue as before.

1 ext nd, fix, have, impose, (f il to) meet. mi s, pass, set
work to
2 accept, agree on / to, arrive at, come to, find, look for,
make, offer, reach, seek, suggest
3 discuss, figure out, fin lize, go into, go over, itemize, sort
out, work out
4 extract, get, grant, make, offer, win
a brief, complete, complex, concrete, fmal, full, minor,

practical, precise, rough, technical
b generous, important, key, limited, major, minor, Significant,
sizeable, substantial
c acceptable, fair, necessary, potential, reasonable,
(un)satisfactory, sensible
d flexible, stnet, tight
that, but only on one
5 Would you be
Match a group of verbs 1-4 and a group of

adjectives a-d to the nouns below. Check any unknown
words in a dictionary.
at this
the
details
deadline
concession
compromise
26
1 Speaking practice: listen and repeat. Repeat
Meeting
1-<1
e tings - di I matic I nguage

Many learners of Business English think that it isn't necessary to kn w
abouL indirect (diplomatic) language. They Jrgue thaL dir cmess j the
b t 'hl)i e in bu'incss b caus Lhen p opJe can underst nd each other.
U'udlly U1is is t-rue. BLlt stop to thiI k about yuur \. n language. Camp re
hl'" Y lU tiJlk to your friend' dnd ClllleagLles with:
Talking to your boss.
Talkmg to new cust TIl rs.
Participating in a large meeting here you're 'on show'
egotialing a difficult issue while trying to keep a good atmosphere,

Diplomatic langtlag is about showing respect and allowing the other
per on to 'save fa e', ven if you come frorn a culture where directness
is valued, there will be situations in your future busl11 ss career where
you will n ed to modify your natw' I direc111 S5. iplomatic/indirc t
Ia.nguag show' oLher people that you're polite, ,du ated and respectful
of their opinion' nd feelings.
CompMc the 'direct' convffSation 'xtractb low with iL 'softer'version
underneath. Of cour'e, he xample is xaggerated to milkc a point.
Vers i
1 dir
Customer This product is ve:ry expensive.
Supplier It's more expenSive than the old model. But th quality is
much, much better
Customer If we buy thiS product, will you give us a good discount?
Supplier: What do you mean 7
Customer We want 5 %
5upplie:r' That will be difficult You owe us money on your account.
Customer: We have a problem with our cash flow.
Supplier You must pay the money you owe u.s now Otherwise a
discount on the new product is impossible
Study Version 2:
Notice at line 1 how the Customer U.l>es a
warning phra e 'To be h nest' and then
changes 'j J to 'seems'.
otice at line 2 how the Supplier changes
'mu -h better' to 'significantly better'. This i1i
more bU'iness-likc langllag
t line 3 the Customer uses a gran m tical
furm called 'the second condihon, I'. n1e pa,t
forms bOl/gllt and IVol/ld make the language
more hypothcticil[ and iodire t.
t line 6 the Supplier s ys That won't be
easy' instead of' hat will be dilficult'. LJsin~
/lot + a positi\'l.~ wurd instead of a ncgati\'e
word is typical of indire t language
At line 8 the uppli rises a r,egati e
question. This is abo pi I of indirect
language,

e'
Perhaps we hould ..
Maybe we could
ou d'
I'
1M would need a quality gu rantee
Here's n idea we could look at
That might be quite expensive.
5 '
Could I just go back to the point about.

There's just one thing I'd lik to add
Vers'on "'. mft r, more indirect

Customer: To b honest, this product seems quite expensive
Supplier It's a little more expensive than the old model, that's true, But
the quality is Significantly better,
Customer: If we bought this product, would you give us a good
discount?
Supplier What did you have in mind!
Customer: We were thinking of, say, something around 5%.
Supplier: That wo 't be easy, I'm just looking at my records here.
Actually, you 0 e us money on your account.

Customer: Yes, I know We have a bit of a problem with our cash flow
right now
Supplier Why don't you pay some of the money you owe US! Then
perhaps we could look again at the discount 011 the new product.
It seems to me that
There seems to be a problem WIth
r
Our competitors aren't vert! cheap
That doesn't give us very much time.
That won't be easy
Actually, .
To be honest, .
Unfortunately,
e
Why don't you ... ?
Wouldn't it be better / easier to . . ?
Isn't it the case that . . ?
s
We wer thinking of something around 5%
What did you have in mind?
If we bought this product,. ?
l30
63 MEETINGS - OIPLO
ATle LANGUAGE
Exercises
Write the line numbers from Version 2 opposite in
the boxes below.
a perhaps, maybe
b would, could, might
c just
d seems
e rephrase wIth not
f warning prase
g negati e question
h past ense
quite / a little / a bit (+ adjective)
a bit of a / a slight (+ noun)
Make the comments more diplomatic using the

words in brackets.
There's one thing I want to add, (Just / like)
2 That is impossible. honest / would / very difficult)

3 You're being too optimistic. (seems / me / that / little)
4 It would be better to use rail transport (wouldn' )
5 This line is unprofitable. (actually / not very)
6 We should leave that oint until later. ( hink / might / better)

In Version 2, notic how the speakers are polite and
respectful, yet at the same time firm and lear In Version 1
the language IS aggressive and creates bad atmosphere
Other techniques in Version 2 Include: acknowledging rhat the
other person is right (eg 'that's true' In lin 2, and 'yes I no
in line 10), avoidance of exaggeration (eg 'significantly' in
line 3); he use of 'vague' language eg 'say', ' omerh,n
around 5 Vo' in line 7); and suggestmg that a problem is
emporary ( g 'right now' in line 11).
Look at line 4 of Version 2 opposite.
If we bought this product, would au give us a good discount?

In grammar this is called a 'second conditional':
If we + past Simple, would / could you.,. ?
With the past form the if senten e is more hypothetJcal and
indirect - you're just exploring an Ide In a tentative way.
Change these sentences to second conditionals.

63
Match what you think 1-10 with what you say a-j.
You think.
1 Stop speaking and let me say something for a change.
2 Why are you always mixing up Issues?
3 I'm selling your product in my 5t re , and yet you want me
to pay all the advertising costs myself You're crazy

4 I have a really great idea! You're going to love this
5 You said that you could deli er these items by the end of
the week Now yo I've changed your story. Typical.
6 The cost of tha option is going to be way too high.
7 I have no idea when we can deliver the Items - there's a
problem at the f ctory and no-one can sulve it
8 You want It when! i I No way.
9 If you want quality, go somewhere else. I'm offering you
a cheap price.
10 That's completely wrong.
1 If
order 5,000 pieces, what sort of discount can you give)
2 If you pay 50% in advance, we will give you generous erms

for the remaining 50%

Actually It seems to me
that It might be a lIttle
difficult rrght now
You say ...

a I think it might better to consider that issue separately.
tl Here's an ide we could look at.
c I understood that you had these products in stock for
ImmedIate delIvery,
d Our products are ery good value for money in relation to
our competitors.
e Could I just interrupt for a moment!
f That doesn't give us very much time
9 That might be quite expensive.
h There seems to be a bit of a problem With our production
faCility at the moment.
i With respect, that's not quite right.
ouldn't au agree that it's fairer if we share some a the
promotional e pense )
M ettngs
131
M,~etings
- r view
Fill in the missing letters in this extract from a

meeting. Four people speak: the chair, Marek, camille
and Adriana.
The chair widens the discussion:

OK, what other ways are there to app
ch this) 15 here
any
gee we should con
er)
The chair opens the meeting:

R
, I think we can start. Well, good morning everyone,
and th
s f
c
g. Unfortunately, Bruce is jll and
5
s his apo
s.
Just a couple of hou

ping things before we egln
k around ten thirty, and [.J .
- we'll have a sh t b
Do you all have a c y of the
a7 Good Can someone
57 Thank you.
t e the mi
OK, let's move st
t 0 the first i
arek, would you
like to k
o?
Marek presents some alternatives:

There are several ways w could d
w
his iss
Let's look at the p 5 and c s ot each opt
[.] . So, in
general I'm In fa
r of option one because of the cost
advantages, al
gh [, .. ] .
The chair asks Camille for her reactions:
Thank you, Marek. Camille, can you tell us what you thlnk 7
This IS your f Id and I know you h e 5 e ex
nce
of thts p oblem.
Camille speaks:
I agree with Marek u t a p
t It may be t e that [ .. ] ,
bu we also have to onsider [.. ) .
So hat I' tr
9 to
is (J . Or, to p
it si Iy, [.J .
Adriana focuses the discussion:

I think we eed to an
ze this in a I
Ie more
[ ] And so, because of that, l t d to feel that [.J .
g, but M rek s
I'll c
Adriana reformulates:
Yes, I
me p
it a
an id
Marek rejects the suggestion:

That s
s like a good idea, but I don't think it would
w
pr
e. The p nt is l.. ] .
[J
Camille suggests the next steps:

I think the b
wa for
d IS for us to [.] .
The chair asks for rE!petition:
Sorry, can you r
thr
that again? I want to be sure
I understand.
.J '
what we've discussed s
. []
Camille speaks:
Abs
Iy. And it's not Just [ L it's also [.. J . So in terms
of ac on p
ts we need to [J
to be saying
, but in
erway,
ic?
The chair keeps the discussion moving:

Let' Ie e that as e for the moment - I'm not sure it's
rei
t.
The chair checks agreement:

OK Can we 9 r
the t
e and see if veryone
agrees 7 lJ Good, that's settled. I think we hould m e
n now.
Marek corrects the misunderstanding:

Perhaps I haven't exp
ned my
f cJ
Iy. That's not
what I me 1. Wh t I was t ing to say was [.. 1 As a
ma
r of f
, [ .. ] .
Adriana makes a suggestion:
Can I make a sug estion? I 's j
of I.. ], why don't we [ J)
tho
Marek asks for clarification:

You men
ned [., J ' Could you be a little more sp
The chair summarizes:

I see now. OK, let's g 0
The chair blocks the interruption:

Marek, could you j
I
Camille fi
b
to you in a moment
]:12
The chair reacts:

L 1's think car
lIy about the im
Ions of that.
o the 0
h
[J. but on the other hand [J .
Camille repeats:
Yes, f c
e, [
Marek interrupts:
Can I c e i here 7
Camille continues:
Co
t me if I'm wr
that [.] .
Camille gives an opinion:

From my p
t of v w, I think that [.J .
After some time, the chair closes the meeting:

Well, thanks for your i ut. everyone. I thinkt was very
u
ul discussion. Shall we f
the t
for the nex
meeting 7 [. J Oh, yes. Marek, can I just h
QU
w
with you before you disappear)
64 MEETINGS - REVIEW
Complete this negotiating dialogue with the words

and phrases in the box.
a viable option
are we talking
are you happy
are you looking

be p,-, pared
did you have
get down
have a deal
instead of
might be able
moving forward
really not sure
sounds reasonable
up fron t
Supplier OK, let's'

to
business So, you're Inter sted In our greetings cards
Customer Yes, the Arts Cards range - the ones with the
Images of famous paintings.
Supplier We sell a lot of those. What sort of quantities
2
for)
Customer: I run a chain of eight small retail outlets, and I'd like
to put the cards on a display stand by the checkout at each
one. What quantities do you suggest?
Supplier: We 3
to help you
with the st od But let's get back to the quantity. Perhaps
you should make an initial order of, say, 2,000 cards.
Customer: That seems lik qUite a large amount. I'd prefer to
have 1,000 cards and see how they go.
Supplier When you said 'display stand' earlier, what exactly
in mind)
Customer: A stand for the counter.
Supplier: S
a counter stand,
why don't you use floor stand 7 The capacity is much
bigger. A floor stand that turns round
Customer: es, I think that would work well Are they easy to
find7
Supplier We can give you one for each store, free of charge,
but you would need to order a minimum number of cards
Customer: What sort of figure
5
about!
Supplier 4,000 c rds. If you sell 100 per we k at each store,
you'll get rid of th m in five weeks
Customer: No, I'm orry; an order of 4,000 is not
7
. I Just don't have the
cash flow to support that kind of purchase.
Supplie : Cash low doesn't have to be a problem
Customer What do you mean?
Supplier: You don't need to pay everything in advance. If
you order 4,000 cards, we'll give you very good terms of
payment. Just 50% B
, and
the balance after 30 days.
Customer What is the cost per card)
Supplier: The suggested retail price to the public IS 2.90 We
sell them to stockists like yourselves for 1.20 each
Customer Well, to be honest, I'm
9
. I'd Ilk some time to
think about it. It's a lot of money - unless we can negotiate
the cost per card.
Supplier: I'm sorry, that's not negotiable.
Customer Can I suggest another way of

10
? Would you be
prepared to take bac any unsold cards from our order? We
don't know which ones people will buy
Supplier If we agree to that,
11
with the other points 7
Customer: Well, an order of 4,000 cards is far more th n I was
thinking of initially, but I guess it's possible
to take
Supplier: OK, we'd 11
back any unsold cards, but only from the first order, and
only if they were in perfect condition for us to res II
Customer: That 13
Supplier That's it, then. I think we
14
64
Make the comments more diplomatic using the
words in brackets,
That will be exp nsive
(might / quite)
2 We Will want a I rger dlscounl.
(would / significantly)
3 There's one thing I want to clarify
(just / like to)
4 Splitting the order into two consignments would be a
good idea
(wouldn't / better)
5 I'm unconvinced l)y this estimate
(not totally)
6 You said that we can have the products on a trial baSIS.
(understood / could)
7 What quantity are you thinking oP
(sort of / were)
8 It may be difficult to arrange that
(unfortunately / may / very easy)
9 We're having a lot of problems at our factory.
(one or two / issues / right now)
lOWe expected a two-year warranty.

(honest / expecting)
11 I think that your new range is the sam as your old range.
(s ems / me / more or less)
12 It would be easier to pay more and ship the goods by
Air Express
(wouldn't / little more)
iogs
1 3
usi e s report and proposals - repo s I

There are many different types of business report:
A ale report gives sale figures for different products in
differenl rcgi ns in different tin e p riods.
Market research analyzes con pan "competitive
po ihon in the industry, identifying new markets and
pro 1uct ,1rl:ilS, etc.
A financial report might discu:>s bu gets, or might be
the text tha Jccompanies company accounts such a.s the
quarterly or annual income statement (unit 26).
A progre report reports on the prowess of an ongoing
proj cl.
A cost-benefit analy i (CBA) looks
c t th
r ource'
needed nd potentiilll endil5 of a future i v stment
(eg an IT sy t 111).
An apprai al reporl is written b manag r about an

mploye '$ crformance, lraining net'd, te.
A fea ibility study is an investigation inte wether a
r rti 'ular system, project, prudu t line, et is ra tical,
de irable and finnncially viable.
bu iness plan describes the medium to long-term
strategy of the company. Sec unit 9.
An inquiry is an investigalion inlo an ong' ing pro [em,
identifyin ' eaus 'S c nd recommending acl-jon.
A ca e tudy is n ;.JnaIY'is of one particular compl ted
case ( g <ll engin ring proj~ct) that allow,; pr fe sionab
to I am less ns.
quaUty report is a r 'gular report that monitors
standctrds, identifies f<li illgs and sugg st action.
All th se type of report have cerlain featur' in C\lmmon in terms of slyle, layout n stru ture. See the table below.
Style
clear
conCise
factual
careful
balanced
measured
high level
of grammalical
accurac
Layout
systematic numbering of
sections nd sub-sec Ions
bullet points and lists
visuals such as tables,
charts, diagrams
areas of blank space
at the margins for the
reader to mak notes
Structure
(longer reports)
Cover page
Acknowledgements
(Table of) Contents
(Executive) Summary
Terms of Reference
Procedure
Findings
Conclusions
R commendations
Appendix
(shorter reports)
To / From / Date /
Subject
In roduction
Findings
Conclusions
Recommendations
Note: in a business report

the 'Findings' section Will
probably be replaced With
sections related to the
content of the report
For example:
Advantages /
Disadvantages
Option A / Option B
Market A / Market B

The aim I purpose of this report is to .
A k 'Y challenge facing us is
As requested in your email of 76 November, here is my
In the light of the above findings, we reached the following

conclusions.
report summarizing / analyzing
together with my
recommenda tions
On the basis of the figures presented above, .. would be

I'm wntmg this report at the request of ... / This report was
very profitable
commissioned by
There is clearly a gap in the market, how ver serious
It includes / consists of / is divided into / contains
obstacles still remain ..
It is clear that there are significant levels of .. . Unless these
It is based on interviews with. / information obtained from.
Information was gathered from the following sources. face-to
issues are addressed as a matter of urgency,
face interviews, a questionnaire sent to ... , internal company This has the potential to be a succ ssful project provided.
documents and market research carried out
We found that.
Our research shows that.
We identified the following key areas.
45% of those who replied to the questionnaire thought that ..
The survey showed the following areas of concern
This will inevitably have an impact on .
One of the big advantages of this proposal is .
1:4
Ther are three main recommendations to make.

We (strongly) recommend that
Th Marketing / Operations department should
Further research should be carried out to find out
A meeting should be set up between. and.
I recommend that we provide the funds for ... and move to
the next stage of dev lopment
The next stage is .
65 BUSINESS REPORTS AND PROPOSALS - REPORTS I
Exercises
6 1 Match some possible sections of a report in the box
with their descriptions 1-10 below_
ackn wledgement.s
appendix
conclusions
contents
cover page
executive summary
findings
procedure
recommendations
terms of reference
a short, overall view of the report together with the

conclusions and recommendations (It helps others to
deode whether they want to read the whole report)
2 the main body of the report- it contains all the information
that has b en collected, presented in a logical order,
and arranged under headings and subheadings
3 Include some or all of these the title; the name of the
person Who commissioned the report; the name of the
report Writer and his / her Job title; the or anization;
the date the report was issued; a reference number; the
degree f confidenfallty; the distribution list
4 the writer makes a personal judg ment about
specific etlons that should b tak n - these _hould
be based directly on the results of the investigation
5 a list of all the headmgs and subheadings that are

mcluded in the report, with the appropriate page numbers
6 the methods of investigation used to find the Information
(eg meetings and visits, interviews, published reference
sources, perso al observation, questionnaires and surveys)
7 supporting material that is too long, too detailed or too
technical to be included in the main report (or material
that is useful as background but isn't essential); It may
include tables, diagrams, graphs, dr wings, extracts from
other publications, etc
8 the exact subject of the report, its scope (= what it deals
with; its range) and limitations, why it was written,
who asked for it. who wrote it. when it was completed
9 the significant results of the 'Findlllgs' - this section

flows logically from the facts and points discussed earlier
65 2 Match definitions 1-18 with the words associated

with reports a-r below. Check any unknown words in a
dictionary.
1 the way In which text and illustrations are arranged on the
page
2 when a block of text is further to the right ttlan the block
above It
3 an early version of a report that may have changes nade
to it before it's fin ished
4 pictures and designs that can be digitally inserted Into a
rep rt
5 another word for 'summary' - used especiall in scientific /
technic I report
6 the method of holdlllg together the loose sheets of paper
( ften al 0 the cove of the report)
7 someone who answers questions (eg questions in a
questionnaire)
8 an item Ir1 a list with a small symbol in front of It
9 method of dire ling the re der to ano her part of the
report
10 letters of a particular style
11 a note placed at the bottom of a page, or at the end of
the report
12 information that appears at the or / bottom of every page
(eg the page number, 'some words or letters identlfylllg the
report)
13 the target audi nee of the report
14 an alphabetical list of unfamiliar, difficult or specialized
words and Ilrases, witl their explanations
15 a consistent style of writin (and layout) used by everyone
inside an organization
16 checking and maklllg corrections to a document
(particularly In relation to spelli g and inconsistenCies in
layout)
17 a short piece of Writing that introduces the report, written
by someone other than the main author
18 words printed near an illustration or diagram that explain
wha i IS
,I
a
b
c
d
e
glossary
draft
font
caption
binding
layout
g header / footer
h footnote
I cross-reference
J abstract
k I,ouse style
I bullet point
m
n
a
p
q
r
respondent
indentation
proofreading
readership
clip art
foreword
10 a paragraph or two where you thank all til people and

organizations who helped you during the preparation of
the report
BUSiness eports and proposals
I.).)
Bu:sine s re 0
an
ropos Is -
nit 65 described the structure ot a typi al report ilnd the

table there g ve om phrases for th . 111. in c lions. In order
to write a report, it's helpful to study the language areas
gin'n below, Ithough note that they're very di erse.
Topic sentences
Look at thi. paragraph.
Next year till;' C(<JllUlllY i' likely to low dowll ~i[{1lificantl.v, but
WitilOut soillg illto reccssioll. ConslIIllcr dellllllld will dnrcu5c as
people lb(, a grealer proportion of thl'ir incollle to save or to pal off
deb/s. Howevcr the wcukcr I'um will Ilelll I'xporfers, alld U7'er en.'
dC/IIand ill Brazil, il/dia lind C/zilla I"C1lIl1in. strong.
eports II
Linking words
Thi<; is a major language area
(,9. EXilmples are:
O\'en~d
in more detail in unit
in additioll, 11Owet'l'I', thereforc, altematil'ely, nl gl!nrral, dearlv.

in fllct, ill /JIlrtiCll!{/I', un the olhcr fralld, in (ollclllSWII Ie
Formal, "mpersonallanguage
Thc language or reports is more formal than .pee-h, but nut
so forma.l that it is liffi ult to under- tand. Inform 11 nguage
should he a\'oid~'d. The follOWing sentence has! (t 0
personal and an ntraction (too informal):
I've tlil/it/I'd tlii. report infu ...
e first sentence is called a 'topi sentence'. It introduce."

and summarizes the paragraph. Most paragraphs in formal
writing begin with. topic sentence, and they gi a solid
structure to y\)ur writing.
This report is ditrided into ...
Signposts
The pi! sive:
Instead, you might write:
Ways to make your writing a little more fonnal include:
look at these phra e".
a deLisioll i expected SnOIl

t he filial payrllellf will be lIIade ill DeCl'III1 1t'1'
The SIII,!!'y ~lrowl!d tlie followi'lg three areas of concern: .

SI' ti011 2.2 of tilt' rrport will dI5Cl1~$ this ill marc dctail.
It + p, sive:
fhese are 'il-,rnposts' - phrases that help the reader see where
() ['re g:1it g, or where they need to go. They are aids to
navigation.
Noun phrases:
!i/o
Vocabulary;
get> rer-tive, bad> I!"ativc, IJig > Il1rgr, II lot of

> eOIl~;riernble, IllOnry > jinan inl r 'iOllr "L'
Balanced, careful style

In a r port you don't W<1nt to sound too cert; in. or too
inflexible, in your thinking. Issues in the I' <11 world, re rarely

bla k and \ hite. 0 writer tend to use words and phrase
that produce a bal, need, car fut, mea 'ured style (like tend to
in this sentence). Other xamples are:
In general,
however,
On the whole. ... / but ..
Many / Some / Several / A majority of
usually / typically / often
would I could / may / might
It is possible thaI.
It seems that.
The project is expe ted to .
Inflation is likely to .
substantially / considerably
significantly I relatively
marginally / slightly
11 sllOlIlrl be i'lI/pltasized IImf .

It is recolI/lllel/ded IIwt ..
J Iliolival i01l1 snl ", el)l~fcn!llce Itrnllsporl

inslimllee dOC1llllf!llt-; 1 cOlI/pallY pmsimr piau
Repetition of words I structures

Repeating words in a report an be boring Jnd show J lack of
imagin<:ltion and poor style. But there are oc asions when the
rep lition of a key war or 'tructure adds larity and impact
ales in Italy dropped a little last YI'(I1~ wilile sale: ill Spaill
rCll1ained steady. HowevCl, sales ill I-raile" act Llally increased
by n~J.
In thIS example, r petilion of sail'S in 1+ country] highlight.
thE' Hilme f the countries and add impact.
Here are tw:1 further xilmples of repetition t add impact:
aLII'
Soal is to .... Ti> ae/lierll' this ::;oal we have to .
We've tried fa develup flexil)ility witli ollr .... However, this

flcxil?ility ha, COIIIl' with a cnst.
Language of trends
See units -4 ilnd 55.
66 BUSINESS REPORTS AND PROPOSALS - REPORTS II
Exercises
Read the following paragraph from a report about
IT spending carefully. The first sentence ('the topic
sentence') is missing. Choose the best first sentence from
the three options below.
2This solution should be an Integrated workspace that is
both an intranet and a central resource for our Clrganizatlon
-lWe need to
Access documents and information securely from
anywhere.
Organize calendars and schedules in a centralized
resource
Meet live, online - anytime, anywhere.
Share presentations and demonstrations
Collaborate with co-workers, partners and clients
anywhere.
IAchleving these goals Will result In increased creatlvi y and
Increased efficiency
a We need to inv stln an IT solution that allows us to reduce
costs in every department.
b We need to invest in an IT solution that allows us to become
the market leader In our industry
c We need to Invest in an IT solution t at allows us to share
information and collaborate with colleagues more ffectively.
6&. The extract above shows some examples of

'repetition of words and structures', Find:
1 two words in entence 2 that refers back to 'IT solution' In
the topic sentence
In the topc sentence that are epeated lat r in
the bullet points
3 a two-word phrase in the second half of sentence 2 that is
repeated in one of the bullets, with a slight change to the
form of one of the words
4 a word Ihat is repeated three times in the bullet points
2 two verbs
Notice also some r p ating structures

a verb in the infinitive after each bullet
'increased' + abstract noun in ntence 4
All these repetitions - combined with the clear, COllCISe 5tyl
- help to persuade the re der and give the paragraph Impact
Underline the alternative in italics that you think is

more typical of a business report.
1 We've made consider. ble / fantastic progress, and quality
levels will/are expected to return to normal within a few
weeks.
2 Sales tend to / nearly always drop a little over the ,ummer
period, although this probably won't be / might not be the
case this year if we continue the marketing campaign
3 Very soon / At th arliest possible opportunity we
will need to have a meeting to plan (he production / a
pro uction planning meeting
4 HIS performance over recent months has been bad /

quite poor, and it may be / Will be necessary to review I,is
mployment with us.
5 There is a rally / relatively high 115k of failure with this
project unless we invest more money / financial resources
at this early stage.
6 It is possible that / Maybe the survey is not ery accurate
as we only got / obtained response rate of 25% to our
questionn ire
7 A loss of Jobs is / is likely to be one of the consequences /

things that will happen if the process is automated
8 Today everyone is / many people ar looking at teleworking
as an option, but it leads to / typically leads to a sense of
isolation.
r
9 Some su gestions arising from / that come to my mind
from these results are given in a list / presented below
10 We carrie out lots of / numerous tests in our technical

department and the re-.sulls have been pretty good /
encouraging.
Rewrite these sentences using a passive form to

avoid 'I', 'you' and 'we'.
We can use the same strate y tor other products in the
range.
for other
products in the range.
2 I section 2.4 I will consider the environmental impact of
these changes
I section 2.4 the
3 You can only do lhis after the machines have be n serviced
This
after the
machines hav been serviced.
4 I should mpilasize that these results are only prOVisional.
It
that these
results are only provsion I.
BUSiness reports and proposals
..,,
"
us
S5
reports
nd proposals -
What is a business proposal?

Busines propo, b are written when, upplier (ArnE
endor) i tr ing to win a contr ct with a client company,
in competition with other similar suppliers. The writer is
tr 'ng to persuade -it's a sal s document- and there will
be stronger, more 'commerci. [' language thim in a business
report. The writer willu.e techniques from sales and
marketing su 'h as targ ling tl1(' client' nc ds ancl off ring
cle, r benefits. Typi 'al ontexts are:
Tryin t get the Ct)ntract for a small, independently
produced piece of work. x. mple:ome market research
for a cI it'n t COl pa y.
Trving to win a contract for one part of a large
integrated project, done in clos co-operation with the
client ompany. Example; a subconlra tc r who off rs
a speciulizccI ser ice and will work under the eli nt
company's project manager.
aking a proposal to form a continuin~ relclti H1ship with
the client. xample: a proposal from an aclv rtising Zlgency.
Outlining lhe case I' a more formali.ced partnt'rship
betwe 'n tvvo separate companies. Example: where two
equal parties co-operate to develop a new product or enter
new market.
roposals I
Th table giv s some' e. ample phrases taken from six

different section of six different pr posals (AB ,JKL, MNO,
etc are the nam s of the various client companies).

I
10
ABC is looking for assistance in choosing and

implementing . . r.J Upgradmg to a new system will
allow ABC to " and will cut invenlOry costs and shorten
production run tim s (.J An upgraded, state-of-the-art
system will position ABC as a leading player in the field of
with rhe ability to support the largest-sized customers
JKL's main goal is to outsource ... in order to reduce the

number of in-house employees These employees are
fully occupied {or only about 60% of the year.
A secondary goal i to minimize the time that )KL
managers spend on problems associated with . fJ
These goals re achievable. and our proposal offers
an ideal solution. We are able to deal with .. and our
customer service team can handle any problems that
might a cur
r. ]
Structure of a business proposal

A typical structure for a large-scale roposal is shown below.
Sh rter proposals will obviollsly b simpler.
xecutive summary
lntrodllction (analy is of the current situation, the
approach selected and why)
GoaL (I~ t of goals tc ken directly from what the client
h staid yOtl, with measurable t. rgets that your work
vill a hi've)
rwje t c pe and action plan (key con ponents and
actinns that yOtl ill provide; definin~ your rule in
r I tion to the client's role)
lmpl mentation (how you will work" ith the client; a
timetable/Gantt chari; deliverables; r sources n eded
su h S (lffi 'e space or access to information)
Areil' of p ciElI expertise (your specialized, and
preferabl unique, skilL and know-ho\ that show why
you'r the ideal supplier
PI' ject te m members (a paragr ph on eeleh p I' 'on to
establi h credibility with the client)
Pricing (your fee, other costs for you or the client, and
possibly a short paragraph at th end, empbasizi.ng how
the propo al i.~ co. t- ffectivc and how the client will benefit)
onc1u ion (a co t-b n ,fit analysis sh wing why the
price is worth paying)
pp ndjx (a Ii t c f your pa t projects; full detail' of your
team/the pricing/the Action PI, n etc)
I '.
We will deliver to MNO immediate sto k of ... and make
a commitment to supply an additional ... r.J In addition,

we will provide MNO IVith sales flyers and tore displays
for
fJ We will also conduct a marketing survey of
250 end uS rs, which can be used by MNO to .
r
STU needs a company with an in-depth under randing of
.. , and we have extensive knowledge of this field. {.. ]
manager and two.
Our personnel include a former
engineers. The engineers have considerable experience of
. fJ We've worked on similar systems in 28 locations
in
f.J Included in the Appendix is a list of projects
we've done . and t imonials from.
The total cost of the joint project with POR will be

40, 000. Of this total, our fee will be 30,000 The
remaining IO,OOO of expenses will be absorbed by
POR
POR's goal is to convert one-time customers
into regular customers by demonstrating the long-lasting
benefits of .. Our proposal shows how that c n be
Th resources
achieved in a cost-effective manner.
that POR commits to the project will also allow it to take
advantage of opportunities in . market.
r]
r]
See next column
67 BUSINESS REPORTS AND PROPOSALS - PROPOSALS I
Exercises
Find a word from 'Structure of a business proposal'
opposite that matches each definition below.
1 the range of things that a particular activity deals with
2 (two words) a di gram used In proJ ct management

that shows when each task/phase should start and end
3 tangible Items that are produced as a result of a project
such as phycal i ems, design specifications, research reports
Now do the same for words in 'The phrases you need'.

4 very new and modern
5 formal statements, written by previous clients, that describe
the abilities of a person or compan
6 an amount of money that you pay for profe sional services
1 Cover 'The phrases you need' opposite and below

with a piece of paper. Fill in the missing letters.
1 ut inventory costs and sh

2 pos
n ABC as a Ie
ten production run times

g pi
er in the field
ary go I
a sec
4 we will con
t (= do/carry out) a marketing su
y
of 250 en users
5 a company with an i -de
understanding of .
6 we have exte
ve knowledge of thiS f
d
7 the rem
g 1 0,000 of expenses will be ab
ed
by PQR
8 this can be achieved In a c
- ff
e ma er
9
g-Ias ng benefits
a he estab
ed mark t Ie der with d 40% market
sh
Look carefully at the example phrases in 'The

phrases you need' opposite. Dedde whether a or b is
correct each time.
In the Introduction section, the proposal.
a is wri en fr m the supplier's point of jew, sho ing
a company hi to and a bulleted list of product
features
b is written from the client's point of view, outlining
a sp cific need and a specific solution justified on
bUSiness gr unds
2 In the Goals section, he proposal:

a presents ome project goals that the supplier has
analyzed and thinks are necessary,
b presents some project goals that the client has
explained to the supplier.
3 In the Pricing section, the proposal
a presents an itemized list of all the components
of the project and their pri e,
b states the total cost 'n a Imple way, then moves
on to match the client's goals to thi~ cost and
also state an xtra benefit. (A detailed breakdown
of cos s is probably included as part of the
Appendix)
4 In the Concluson section, the proposal

a summarizes the main points in a careful, balanced
way, explain In
gain the different op ion for the
project and why thiS particular one as chosen
b makes strong recommendation that links to the
chent' goals, then mov s on to identify additional
valu beyond the immediate goals and explains
the benefit of this added value
4 If you understand the personality type of the

decision-maker in the client company, you can use words
in your proposal that are likely to produce a positive
response. Match the personality types 1-4 with the
words and phrases a-d,
1 Analytical values accurate facts and figures, wants detailed
analysis
2 Pragmatic: values aclion and r ults
3 Consensus-seeking wants a decision that everyone accepts
We recommend our solution as bing the best option

available to red ce costs over the medium to long term
J The market is
and reinforce XYZ's brand's image.
relatively new. and to date no significant competitors
to XYZ have emerged. An improved image should help
delay competition, [., When competition does emerge,
XYZ will be seen as the established market leader and
should be able to hold at least a 40% mar et share,
r..
iSlonary: entrepr neurial, likes concepts and big ideas
a easy to use, lexible, personal commitment, reliable, support,

widely ccepted, working relationship
b cite ia, evidence, logical, methodology, objective. p Inclpl
procedures, proof, proven, tested
c breakthrough, cutting edge, creative, exciting op ortunity,
innovative, long-term View, Original, willning
d bottom line, efficiency, performance, productive, profitability,
return on in estment. speed of d livery
Busmess r ports and proposals
13',1
sin
repo s an
In ev ry uccessful propo al th lIppller sends

mage 0 the client:
proposals - proposals II
thre~
main
We can match your needs as defined by

you (= compliance)
The cUent wond rs, 'Are the proposing what I need, or ar
th'y rop )-ing what Uley ha ?' Yuu won't win a c ntract
by imply d ('fibing yom product~ and services and saying
how good they Me. Vou have to recommend a specific
solution that will solve a specific problem and produce
positive business results.
This first theme n eds to app ar all the way through your
proposal, but in terms of the structure outlin d in unil 67,
it ne ds to be especiall . trong in sections 1,2,3,4 and 9.
We have the competence to deliver
(= capabilities)
The client won ers, 'Can tbey do the job on time and on
budget? Have they handled similar projects b fore? Is there
a risk that th y won't do l-he job properly?' To reassure
the client y u can include referen es, teslimonials, a list of
eli ll'i, a 'a e stud of a previous proj ct, aWMds, publish d
re i \ ,rep rts by independ nt analy ts in the field, C s of
key team members, project plan " a brief ompany hi tory
(hilt empha'ize~ growth through success, te. But less is more
in this area - one good case study from th same industry,
h wing the same kind of r suits that your client is seeking,
ma, be enough to win the contract.
Ln terms of the structure in unit 67, this theme is espc.ially
rei vant in sections 1, 5, 6, 7, 9 and 10.
We wil give you what you want, plus

maybe a little more. at a fair price
(= value)
lients want a fair price, with no hidden costs, and no
und restim<tting of th Hart and resources needed. hey
\ ant to see what kind of rptum on investment th~~y an
exp ct, and they ant to kn w if you're offering any added
value factors that go beyond the initial analysis. Your
prapo al must contain a clear, explicit value proposition - an
argument thilt 'hows the hent that th,y get more by buying
from you than they can get frum choosing anoth r supplier.
The table opposite shows how 'value' can mean a vari tyof
things, not JU, t financial value.
In terms of the structure in unit 67, this them is especi< 11y
relevant i.n sections 1, 8,9 and 10.
During the decision-making process, the client will probably
use the three riteria above in th order shown, ie first they
will dleck complian "e, then c pabilities, nd finall value.
10
Financial
get the 1000vest pnce, reduce operating exp nses, Il1crease
revenue, Improve cash flow, reduce bad debt, outsource
to remove fixed costs from the payroll, increase the
absolute value of each transaction, get a larger portion of
each customer's total business
Social
Internal increase employee Job satisfaction, enhance Job
performance, reduce turnover among key staft members,
re uce absenteeism, accelsr te employee trai ing
External: increase customer loyalty, improve brand
recognition, create a positive image in the community,
address a community / environmental concern
Quality
improve reliability, enhance maintainability, increase ease
of use, comply with regulatory tandards. conform to a
specific quality methodqlogy, reduce defect r tes, reduce
customer' complaints
Technology
get all the different pieces of har'dvvare and software
to \;vork together properly, improve system flexi iIi y,
implement the most advanced technology, preserve the
value of legacy systems, reduce owntime, add new
features or capabilities, automate a labour-intensive
process
Risk minimization
avoid the risk of failure. implement the most proven
approach, address health and safety issues, avoid liability
concerns
Competitive advantage
overt ke a competitor, become the market leader, enter
new markets qUickly, update products to keep them
competitive, focus on core competencies
68 BUSINESS REPORTS AND PROPOSALS - PROPOSALS II
Exercises
68.1 Check any unknown words in 'Value: what matters
to the client' in a dictionary. Then find a phrase that
matches the meanings below. Write your answers in full.
decrease the amount of money owed to you that you can
not coiled
,t
,(
2 fire your own staff nd have their work done by an outside
company instead
3 get orders for larger amounts of money instead of smaller

amounts of money
4 impro e the standard of p ople's work

5 stop so many important people leaving the company
6 make it easier to service qUlpment

7 make sure that your products have the level of qu lity that
the law requires
8 follow an established set of tools and standards such as

the EFQM Excellence Model. th
ISO 9000 series, Six Sigma
PROPOSAL
From:
eu'lom Cmnpllling
To:
Big Frid((p Nlanu(arluring Corporation
ey oals
Bib Fridgl: is cOllsickring an Ilpgrdde
10 decrease the time dUring which the machines in the

factory are not working
11
put into pradice something that has worked many times

before (and so has limited risk)
12 make the wo kplace less da gerous

13 reduce the worry that people might sue yOLi (= take you to
court) because of damage or injury that you have caused
14 just do what your company does best
68.2 Read the extract in the next column from a short

business proposal. Tick (1') the boxes at the end to show
whether the extract contains examples of Compliance,
Capabilities and/or Value.
ilS ERr (Ent rpriM,'
m,JllllraLlUI'illg' ba:sc ill I:.:.aslt::m Europe, Bii!," Fddgc walliS (I
know Ivllal uplions arc av'lilabl ... alld in panicular how il is
p >s'ibk to Lustomize a standard ERP packag-e,
.US
om
omputing: special e. 'pertise
CUS[O!ll COlTlplltin has extcnsin; experience or installing.
upgntding and CLISloOli/,in T fRP ~o!t \'are - a lisl or recent
prnj 'C sis includ 'r! in lite Appendix,
\V' kl 'e palticular rxpcrtj't' in the dlJme~tic appli:lIlce,
sec1or, an I r 'cellll" canid out a imibr pro.icn for QII<a1\
,llokers, I folll IHIJ 'lrwoy at Qnalil) ,o,)kn~ inrlinltt'c!
thai Ihe (lvcrage Illana~t:r saveel I,, h lin; p 'r \,' 'ek as <1
n; .. ult llf the lle\" ERP system. aud that lh SYSl m pai for
itself within six ll10mhs as a resull of improvcd productivitv.
lion phn a ld d
9 be able to still use your old technology alongside your new
technology
1)[
Res LIILe PIal 11ing) . oft ware In ..u]ow i\ to exp, nd its
e able
W> propose lhat CU$\Oln Computing wll!'ks Insely Wilh lhe
IT ckp,Htm III aud s 'ninr l1I;\nagcln 111. II Big Fridge for
a (wo-week perllld. 10 anal;VI\~ rh llptiOIl ~llld Cnsts or ;U1y
upgrdd
rrll
e .
W will assign 10 this plOjt'I't (lUI' enio!' System

lIillysl,
Dr KlaUii Mueller, OIH.' 01 rh ' I 'ading- pnl. 'SSiOI1J.ls in his
field, His . is inc.luclccl in lhe pp 'ndix,
At the nd of the two-week pel;od we will deliver' a
repon [0 fil, Fridge Wilh Uf recommcndations .lnrl lull
cosl ings,
Con III
1 11
Big Fridge is in a p )sition where it c<tn make 'ignillGUll
adv,m' 's in hotb prodtiClil1il)' ;lnd pro II hilil)' a.s a 1'1::.,1111
or inveslm nl., in ERP SOl'tW;ll"t', These ill\ lmen will
pusitiun Big Fridge as a leading p!;\yer in lhe whil ~() d'
inrlu try,
We ITCOIllIll 'nd lhat Big Fridge choose Cuslomer
Computing t, ellT) out the initial el'alualioll of lht' pliollS
;)I'aibll', Our (ra k r'ord show" th.llwe are ideally placed
(0 provide
ig <ridge w'jlll Ihi, analysis.
Sh )ukl Big Fridge d cide 10 go ah 'ad \\'ith am' upgr.td
Sollllion, Cll.slulll Computing' ,'ill hI' dclighll'cl LO prill a
lut'! her plOpl),al to carry OUI (h<; work,
Compliance
Capabilities
Value
See the Answer key for the specific references.
Busmess reports and proposals
141
usi e
re orts an
roposals - linking words
Compare the two texts below.
Version 1
TalkinA about the State, the probl m is that we only
have sales guy on the oasts. nd do you know what"
There's some tough competiti n out there. A couple of
our competitor. merged recently- their new comp ny is
\\'Jl.kiJ1g all ov r tiS. Our next quarter" sales fjgures ar
oing to be a di . t r. But you he V to look on the sunny
-i:l - maybe OUT heild office ill find a local company for
u to buy. Then 'e hilv i1 d1an -e. nywc _' head offke
has spent a lot of money over there - T~ues. they know
wh t they're doin~".
regarding, with reference to, in relation to

mar over, furthermore, in addition
so, therefore, as a result, for this reason
eg, such as, for example, for instance
in particular, especially, above all
ie, in other words
Version 2
In relation to th
market, our sill' force ther is
concentrt ted on th h
coast. Moreover, \ e face very
trang com etition from I al pI yer . In fact, two of our
'ompetit
have re~ent]y merged and the n w company
i'taking ome m Iket sh. re away rom us. Therefore it
i likely Ih. t the year-on-year reventle figures for next
quarter will be flat or e en slightly down. everUleless,
the long term utlook for the S i till very po iLive
- particularly if we can m ke a J xal acquisition to
increa'e our 1 arket n trahon. On the whole we are
C( nfident th, t
U[ inve'tment in th
S market will
r 'e worthwhile.
Version 1 is speech. Sentences <lrc short. Sometime' there is
no linking of one sentence to the next, other time' it is done
with simple words like And, BHt, Then, Anyway, et .
Version 2 has ver! sintilar content, but is cl arl, from a more
fonnal c ntext. fhis could be writ! 'n report, or it . uld be
a spoken presentation or a conLribution at a large rn ding.
Ob\'iou Iy tilE' vocabulary an g'n raltone j~ more formal,
but pay particulM attention to the linking words nd h, scs
in bold. They'r~ used t make the structure of the argument
cl 'ar. The reader/listener is warned about what is coming
n t: a change of topic (in relation to), a second point that
a ds to the first ne and rci.nfor es the argu111 nt (II/oreover), a
real siluation that the writer want to highlight (infilct), te.
When using linking ..'lords, think about their position in the
sentence:
Most of the examples in 'Th pi ras 5 you need' Gln
be u ed at the b ginning of a 'cnten e, and where
appropriate Me followed by a comma (ie where you
IVo II piluse in 'pee h). Version 2 above shows this.
Man} of these word::. can also be used in the middle of a
senten e ilfter mzd:
... , and in fact.
... , and therefore ...
A few arc II cd immediately afLer comm,. TIl' c include:
especially, sl/ch as and wlu:rms.
1-l2
in fact actually, as a matter of fact

first(ly), second(ly), third(ly), finally
then .. , and after that
the first stage / step is

in gen ral, on the whole, in most cases
I
however, even 50, nevertheless

in contrast on the other hand
whereas, while
of course, obviously, clearly
in conclusion, on balance, overall, taking everything into

consideration
actually ;':ktJll~lil adv
**
1 u cd for emphasizing what is really true
or what really happened: We've spoken OTt
the pholle lJut we've never actuaLLy met.
2 u eel for mpbasizing that omething Is
. urprising: 1 think 'he actually agreed to go
Out with him.
:I Ipokf'n llsed when m're hng a statement:
It was yesterday. flO actually it wa Monday
morning,
4 spoken used fur adJ111tting something: 'Did
you spend much money?' 'Well. yes. Quite a
lot. a tuaUJ', .
nevertheless /,nev;\ib'les! adv
**
despite a
fact or id a that you have jll l mntioned:
It's a difficult race. Nevertheless. about 1.000
runners participate eL'ery year.
69 BUSINESS REPORTS AND PROPOSALS - LINKING WORDS
Exercises
Now match an item on the left with an item on the right
with the same meaning.
1 regarding
2 moreover
b on the whole
3 therefore
4 in particular
5 In act
6 in general
7 however
8 clearly
9 on balance
10 Ie
a a result
Complete these four paragraphs taken from a

report by a Chief Information Officer. Read carefully to
see how each sentence and each paragraph links to the
one before. Write a capital letter where necessary.
clearly
\",--~
actually
in relation to
e 0 rail
f nevertheless
g above all
h furthermore
In other words
of course
m partiCular
regardmg
th longer tenn, there have been
several requests by employees to change our office
omputers from Mi rosoft to Apple 2
this is something that we have to conSider, as Apple has
som ignlficant advantages. 3

, Apple
uffers a better operating system and is less vulnerable to
hackers and viruses
9
Complete the sentences below with either 'eg'
or 'ie',
Fossil fuels,
all, gas and coal, are likely to pta a
smaller role in the overall energy mix
2 Fossil fuels,
oil and ga , are likely to playa smaller
role in the overall energy mix
The words eg and ie have Latin origins exempli gratia and
id est). They can be used in speech as w II as writing.
3
4
Sales rose In Germany and France. Moreover / Therefore,

hey rose in Poland, Hung ry and the Czech Republic as
well
Sale increased in Germany and Franc . Above all / In
contrast they were flat In Po and and Hun ary
Sale rose in Germany and Fran e. For example / In f. ct,
hey rose by over 10%.
In general/Furthermore, sales were strong in Western and
Central Europe. However, they fell slighlly in Spain and
Portugal.
Sales rose strongly In Germany and France On the whole
/ Therefore we will open ew offices in Frankfurt and
Marseille next year.
Sale were up In Western Europ In particular / For this
reason, France and the Be elux ountries howed strong
growth.
Overall / For instance it was a good year. Sal s were up in a I
major markets
Sales were strong in Brazil Even so / Clearly this was d e to
rapi growth in the economy
whereas
W ;'lra::z/ conJunctl1 n used for

hO\ ing thai ther is an important
dlfferen e b tween two things, people.
-ituations etc: Doctors' salaries !wv risen
suhstantial/y, whereQ nurses' pay !las
actually jallen.
in fact
moreover
on ihe whole
, Ap Ie com uters are already in
us in our organization - th two graphic designers in the
Communications d partment use them.
5
, we've noticed that many other
people bring to work the Mac lapto s that they use at
,thi does not seem to create
home. 6
any serious problems - the' Office sUite runs perfectly well
on a Mac.
for example
however
secondly
, there ar ome serious obstacles
to adopting Apple as the standard platform throughout
the organization Firstly, there i the question of price
Apples are signifi antly more expensive - they're targeted
at the consumer market here fashion and design bring
, there are some
a premium price. 8
, doesn't
serious technic I i sues. SAP, 9

run on Macs, and our IT upport staff are unfamiliar with
the Mac operating wstem
on bal nee
so
whereas
10
, to sum up, Microsoft offers
familiarity and ease of technical s pport at a reasonable
price, Ii
A pie offers design and
greater security at a higher pr'ce. What conclusions an
be drawn I 12
, it seems that the best
option is t continue uSln Microsoft PCs for the maJonty of
staff. We will of course continue to monnor the Situation,
particularly as the Internet replaces Windows as a day-to
day software platform
BUSIness reports and proposals
l-n
"
Busine
a d pro
sals - revi w
Complete the report extract by underlining the correct words in italics.

Sometimes the choice is based simply on style or usage.
To:
CEO. Auto Corporation
From:
Chief Economist Auto Corporalion
Subject: Outlook for the oil market and its implications for the Auto Corporation
Introduction
1Hans Oberlander. CEO of the Auto Corporation, asked me to write this report / This report was commissioned by Hans
Oberlander. CEO of the Auto Corporation The 2aim / scope of the repo IS to make a long-term forecast of trends in the
3 market for oil/oil market, and to analy e how the future pric of all will impact the automobile Industry 41n particular
/ Especially. the report will look at our own company, the Auto Corporation, and wh ther we are positioned to meet
future challenges in the mark tplace.
Oil market
The price of oil has been increasing Ssteady / steadily since around 1999. This has een driven by factors on both the
supply side and the demand side. On the supply sid , total world oil production has now p akecJ, with no 6significant
/ significantly new discoveri s on the hOrizon 7Talking bout demand / On the demand side, the growth of economies
such as China and India has meant a huge increase in the consump ion at oil
Our sresearch shows / researches show that these trends will / are likely to cantin e, and that oil prices will remalll
higll for the foreseeable future This will in vitably hav lOa force / an impact on the auto IIldustry, with 111gh fuel prices
causing customers to turn to models with lower running costs, l l such like / su h as electric cars.
Fuel efficient engines

At Auto Corporation we currently manufacture two hybrid electriC vehicles that combine a conventional gasoline engine
with an on-board rechargeable electric battery.
Sales of these models have been 12disappointing / terrible, and for this report we asked an independent 13company thar
does market research / market research company to 14carry on / carry out a survey to discover the reasons why. The
survey showed the following areas of 15 anxiety / concern on the part of potential customers
The relatively high initial price of hybrid cars - lDtypically / typical a hybrid car pays for itself in terms
of lower fuel costs after about three years.
The fact that hybrid cars 17are unable to go very fast / go slowly The additional size and weight of the
battery p ck means that the cOlwentional engine has to be smaller.
The added risk in an accident that the driver, pass ngers and rescue vvorkers will get electrocuted by
the high voltage in the car
Conclusions
In the light of the above 18foundings / findings, we reached the 1!In ext / following conclusions
Customers will 20increasingly / more and more want fuel-effiCient models, in ludlng electric cars, due
to continuing high oil prices
Govern ent legislation on reducing the emission of greenhous gases by automobiles will also drive
the 21 trend / tendency away from conventional engines.
Auto Corporation has been slow to respond to th challenges ahead, 22because / due to customer
resistance to the current generation of electric vehicles.
Recommendations
There are two
23 main
/ most important recommendations we would like to make:
The Board of Auto Corporation needs to take a longer-term view of the mark 1, 24p~ying more
attention to / thinking about the price of oil in its strategic decisions.
Auto Corporation needs to invest conSiderably more 2Smoney / financial resources in R&D to develop
a new generation of safe, inexpensive and reliable lectric batteries.
Discussion topics
Unit 1
In your country, what do people think about the issue of free

trade vs protectionism? What I your own view.
2 Free trade creates jobs In some Industries and unemployment in
others Which? Why?
3 Should certain II1dustnes e protected?
hich7 Why?
4 Work In small groups
Make your own list of arguments in favour of globalization,
and arguments against.
Put your list on the table in front of you so that everyone can
see it. Walk round the room and look at all the lists Write
down one or two questions that come Inlo your head as you
look
Return to your seats Ask your questions Everybody can
answer
Unit 2
1 'The cycle of boom and bust IS one of the wonders of apitahsm
it's what Schumpeter called "creative destruction". It's the process
by which Inefficien Industnes get replaced by Innovativf' new
ones. Attempts by policy makers to preven this cycle Ju~t support
old-fashioned tndu5tnes and make the economy less dynamic 0 er
the long term. Usually these attempt" to conlrol the mark ts fail
anyway'
Agree
Disagree
2 Are you bullish or beansh on the general stock market 111 your
country right now? Why? Is there a particular sector or industry
where you hold th opposite view 7 Why?
3 If the bUSiness cycle exists, where are e on the clock on
page 8 righ now? (Think about the following questions. Was
the last Interest rate move up or down? Is the stock market
nSlng or falling 7 Which sectors are doing well at the moment7)
Unit 3
hat areas of conflict are there likely to b between an
exporter and theIr foreign agenUdistributor7
2 Work In small groups.
First, hoose Q!l.e. of these products: slllall plastic children's
toys, herbal mediCines, high definition TV screens to hang on
the wall
A Vietnamese exporter wants to sell hese goods into your
market, and you're Interested In being their agent TI1ey
need your local knowledge. Prepare short presentation or
them on the opportuntties and challenges they face
Use your own Ideas and structure, although the seven bullet
points on page 10 may give you a few ideas to get starte
When you finish, give your presentation
Unit 4
Star ing your own business vs working for a large company,
what are the differences?
2 Think of an example of a small busirless that failed (perhaps
from personal experience, or the xpenence of f1endslfamilyl
colleagues, e c), Tell the group about the bUSiness, and why It
failed Could It have succeeded?
3 Work wi h a colleague:
You have each Inherited 0 5m from rich aunts (1
otal)
and now want to start a business together. Decide what your
bUSiness Will be
1-16
Use the contents page of th business plan on page 22 to

prepare a short presentatiol' to the rest of the group You
Will explain your business plan to them You don't nav to
lover every issue in the mind map.
Give your presentation and ask for questions at the end
Unit 5
'The Anglo-American model of pUrling the shareholder tirst
IS bad for the employees, bad for lhe community and bad for
buslrless,'
Agree
Disagree
2 In yOUi (Qun ry. is there tradilion of having a strong and
independent Board that represents the interests of the
shareholders and can hire and fire the CEO?
3 What are the advantages and dlsad anlages of wor ing "or a
medium-sized family-owned bUSiness, as compared a a large
public company?
4 Has there been a story in the ne s recently about weak
corporate governance at particular company7 Perhaps It led to
a finanCial disaster, or a corruption scandal, or something else
What do you know about It?
Unit 6
, Choose one of the SIX Issues listed under 'Geopolitics and the
world economy' on page 16. DISCUSS It With some colleagues.
When you finish, choose ano her
2 Choose one of the SIX replies given in the 'Management and
bUSiness' section DISCUSS It with some colleagues
hen you
finish, choose another
3 'We cannot reduce energy consumption No-one is gOing to
voluntarily accept a decline In their living standards Fighting
global warming is useless We're all going to fry Let the
cockroaches and ats lake over - they were her before us
anyway.'
Agree
Disagree
4 'Globalization has gone too far'
Agree
Disagree
Unit 7
1 Looking at the three basic management styies mentioned on
page 18, I would say tha
yawn s yle is (or would be) ..
becaus
2 'Good managers are born, not made.'
Agree
Disagree
3 Look at the five main fleadlngs under 'Personal qualities' I he
person specifICation. Can you add another fe Items under
each heading?
4 Draw a mind map of your own personal management qualttles
Put yourself in the middle, then have an Inner ring of headings
like the five in the person speCification, and finally outer
branches that sho\ your qualities.
Use your own ideas, but feel free to use the ideas In the unit as
a starting point.
When you Inish, sho
your mind map to a colleague and
discuss It
Unit 8
Look at the list of SIX time management tips in the text on
page 20. Can you add any other ips? Which ones do you
personally do?
2 Wha is he one thing that you could do - starting tomorrow
- to manage your time more efflciently7
DISCUSSION TOPICS
3 Look ilt what managers manage Can you ad another item or

two under each main heading)
4 Draw your own pe sonali.:ed mind map of 'How I spend my
time' If possible, focus on time a work. Otherwise, Just think
about your time In general
hen you finish, show your mind map to a colleague and discuss I
Unit 9
Unit 13
1 'Planning IS the baSIS of spontaneIty.'

Agree
Disagree
2 Harold Macmillan, a Britisl, Prime Minister, was asked what was

the greatest difficulty he faced He replied 'Events, dear boy,
events' Give an example from your own hfe of how events
changed (or destroyed) your plans
3 Brainstorming Close this book (everybody except one person or
the teacher).
On the board, write section headings 1-8 from the contents
page of the business plan on page 22. Everybody brainstorm
sub-sec ions for each section It isn't a memory test.
Unit 10
'Leaders and managers are different.
Agree
Disagree
2 A leader I admire is .. bec lise.
3 'Leaders have to take difficult deCisions You'll never be
if you need to be liked by 0 her people'
Agree
Disagree
3 Many Western countries have losllarge parts of their

manufacturing base over recent years. Is that necessarily a bad
thing)
4 Do yo know the haracter Dilbert from the American comic
strrp of the same name) Dtlbe t is an engineer. What kind of
per onallty and behaViour does Dilbert have? Are engineers
generally like thiS)
'Factones that make real things are the heart of an economy.
The service and finanCial sectors are lUst people smiling at
customers and playing with computers.'
Agree
Disagree
2 Do you vvork In a faaory) If so, draw a diagram on the board
to show the layout Then explain what happens in the different
areas of the factory.
If not, have you ever been inSide a factory? Describe what you
saw and your general ImpreSSions.
3 Would you be prepared to do shiftwork In a modern factory if
it was an interesting. well-paid lob reqUiring some s ilP Why? /
Why not?
Unit 14
leader
4 look again at the bar chart shOWing the results of the survey on
page 24. Do you think that people In their thirties responded in
the :.ame way as people in their fifties? Do you think that men
responded in the same way as women)
5 Talk about a recent occasion when you successfully influenced
someone (or a group). DeScribe ho you did it.
Unit 11
1 If you're working, explain the two or three bggest risks tha
your company currently fa es. If you aren't working. talk to
a friend or family member who has a job and knows their
business well Ask them about the risks their company faces,
and then explain them to the class in the next lesson
2 Do you k ow:
anyone who made a work-related insurance claim?
anyone who failed to check the small print on a legal
document?
anyone who worked In a cornpany where there was a case
of embezzlement?
If your answer IS 'yes' to any of hes questions, tell the story.
3 'In America people are too quic to sue each other'
Agree
Disagree
4 What IS your wn attitude to risk) Give an example of
some hlllg In your IIf that you nearly dId, but deCided against
because it wa too risky. Do ou have an regrets about that
decision now?
Unit 12
Did your country go through the same cyc.le described in the
ext: manufactUring boom in the middle of the last century,
then decline, then rebirth? If not, how and why wa It
different?
2 Does your country have a 'Rust Belt" What IS hfe like in that
area ow' Is there a strategy to redevelop the area'
How do you think the d y-to-day \ ark ot a purchasing
manager is different to the work of other managers in the field
of production and operations?
2 Managers involved in the procurement process Will spend a lot

of their time negotiating. What do you know about negotiation
strategies and tactics? ,
3 Do you know any news stories about compames using bribery?
Or maybe you yourself have been in a situation where someolle
expected you to give them a small 'gift' to obtain a service? Tell
the story.
4 If you're working, talk about how global sourcing has affected
your own company. If you're a student, summarize what you
have learnl about thiS topic on your course
Unit 15
SCM means hat the manufacturer has to share a lOt of
commercial Information with suppliers and c stomers, treating
them like partners Are there any risks 0 lhi )
2 Compare air, sea, road and rail from a logistics point of view
3 Work with a colleague. Draw a mind map of 'logistics' showing
what the term me ns to you. Close this book before you start
and use your own Ideas. t the end, compare With another pair
4 Make notes to prepare a pre entation on 'Logistics in my
company'. Use the headin s and Ideas from exercise 15.4
to help you When you Ii ish, give your presentation
Unit 16
Do you know anything else abou TPS, JIT, lean production or
kaizen that is Ilot mentioned in the text'
2 How could you change the organization of your own workplace
to ellmina e waste (of time, money and materials) and Improve
productivity? Draw a mind map to show your Ideas. When you
finish, explain your ideas to a colleague using your mind map.
If you're a student, you can do thiS activity for any part-time Job
that you've had
loti
DISCUSSION TOPICS
Unit 17
1 What does he word 'quality' mean to you? Brainstorm as many
idea as possible and write them on the board
2 What else do you know about TOM - beyond what IS
mentioned In the te ?
3 Does your own orgam,:aMn have p ocedures to check quality
If so, describe them
4 'You ge what you pay for' IS his always true l Think of so e
examples for both Sides of the argument
Here IS an Idea a get you started
A acke of hig -prrce, brand-name c reals I Sitting on a
supermarket shelf Nex to It a th shelf IS packet of the
supermarket's ow -label brand, eiling at lower p I.e. Th
contents are identical - h supermarket ought the cereal
rom lhe manufactur r and repackaged them.
Unit 18
1 The first paragraph of the text on page 40 suggests in a
humorous way that sales people and marketing people
sometimes don't value each other's work In your experience, is
this true l
2 Brainstorm either 'What quail ies does a salesperson need l ' or
'Modern sales echniques'. Close your book be are you start
(It isn't a memory exerCise.)
3 Can you think of any situations where a 'hard sell might be
appropriate I
4 Think carefully about the last tIme that a salesperson sold you
something. How did I ey discover your needsl How did they
present their case? How did hey andle your objectlons l Are
here any special techniques that they used but that you were
unaware of at the time?
Unit 19
1 A well-known slogan for customer serv'c s: 'Under-promise
and over-deliver' Wha does i mean? Do you agree with it!
2 Have you ever heard of a 'Chi f Cus omer S rvice Officer'!
Why does' ustomer service' have such a low priority insid
ompanles l
3 Tell a s ory rom your own experience about an example of
particularly good or particularly bad customer service What are
the lessons)
4 Work in small groups. Brainstorm ideas for customer service
under the headings: 'Little thing that make a big difference'
an 'Don' forget your eXisting customers'.
Close the book whde you do he brainstorming. (It isn't
memory eXE'rcise )
When you finish, discuss your Ideas with the class
Unit 20
1 Each person choose a product tha you have With you today
(eg In a bag or an object In he room). For each product,
diSCUSS th targe market.
2 Do he following:
On he board, draw he four headings. Product, Place,
Promotion and Price.
Each student choose a e item of vocabulary (a single word
or a phrase for each heading that you think your olleag
won't know You an use a bilingual dl tlonary to help you
Go up to the board and write your vocabulary I ems under
the correct headings.
When everyone has finished, go round the group and
explain all the word .
3 'Mar etlng is just there to make us buy things we don' need'

Agree
Disagree
4 Discuss how marketing IS differen
flies
Unit 21
1 Look again a the hlrty adjectives descnbin features In exerCIse
21.5 How many other can you think of! Brainstorm Ideas n
the board Ignore easy, a VIOUS words such as 'expensIve, 'fas .
'modern'.
2 Think of an exampl of a product With poorly deSigned
packaging How would you Imp ave III
3 Each member of the group choose one personal Item that
you have WIth you today. Choose something that has a strong
marketing campaigl behind It. Take a few minutes to prepare.
then deserib to he group:
the product's functional bE>nefits
the product's psychological benefits
the brand imaye
why you hose thiS particular model (if the product is part of
a line of products)
whe her you think the mar etlng campaign Influenced your
purchase
Unit 22
What are the key elern~nts of merchandising (how products are
arranged and displayed inSide a store)1
2 How is technology changing the face of retalling l Give some
examples rom your personal expenence.
3 Choose two or three retailers that all sellin a Similar market
Discuss the differences betvveen them
4 Direct marketing (catalogues, mailshots, TV shopping channels,
ad In the press With a toll-free number) is often Ignored in
diSCUSSions about marketing. How docs the distribution channel
affect product, promotion and pnce l
Unit 23
1 It's inueasingly difficult to reach customers through advertising.
Medl hannels are b oming ever more diverse and
fragmented Whal is he advertising industry doing to mee thiS
chall nge?
2 'The bet! r an advertisement is, the more people remember! e
advertisement and the less they remember the product.' Can
you think of an e ample of thiS) What are the implication
a) for he ad ertising agency, nct b) for the lient company?
3 Work wi h a coHea ue. M ke a mind map with th word
'Promotion' In the middle. Close this book before yo J start
(I isn't a memory ex rose) Wh n you finish, alk around
and look at other p ople's mlrld maps.
4 Do you agree with what is written in every box in exerCise 2 5?
Unit 24
Is It true that marketers al less about pnc than abou
produ t, distribution or promotion) If so, why do you think I
happens)
2 If yOll work in the marketing/sales a ea, d scribe how prices are
set in your own company.
DISCUSSION TOPICS
3 Each person choos an item tha you have Wit you now ( g In
your bag) It has to be one where you remember the exa t pnce
you paid. Then:
Sho it to your coli agues. First let them try La guess the
prce
Say what the price wa .
Say hether at h _ ime you thought this was expenSive,
reasonable or cheap.
ay the absolute maximum th t you ould have paid for this

product
DISCUSS, from a marketing pain of View, whether this Item
as priced correctly.
Unit 25
Have you ever taken part In market research - either as
a po entlal customer or a a researcher) Descnbe your
e penences,
2 Work With a colleague. Produce a lind map

If you're wor ing, use Ideas from your camp ny and write
'Our mar eting strategy' In tI e centre.
If you're a student, use Ideas you've studied on your course
and wnt 'Elements of a marketing strategy' in the centre
When you finish, walk aroUi d and look at other pea Ie's
mind maps. DISCUSS them
3 Presentation 'New P duct Development' Work with a
colleague.
Think of an idea for a ompletely new product. You're gal g
to presen the co 1 ept 0 your colleagues - make some
notes firs
Before giVing the presentation, deCide which p r on will tal
abou which points. It will be a team prese tatl n - you can
change the presenter once or several times
When you'r ready, give your res ntatJon Your colleagues
should listen carefully, take notes, then ask ractlcal
questions at he end
Unit 26
1 Follow these instructions:
Study he text on page 56 one more time. In a moment
you're going to try to wnte down the elements of an income
statement on a sep rate piece of pap r. No figures are needed
- Just the headings. You'll do this with the help of partner
Close thiS book now, and start.
2 You run a chain of small coffee/snack bar in your country.
(Your nearest ompetltor is Starbucks.) Last quarter, both
revenue and costs were above budget. ThiS balanced out, so
that the operating profit was In line with the budgeted figure,
Brainstorm as many reasons for this v riance as pOSSible
Unit 27
Follow the e instruction :
StUdy the ox 'What an balance sheet sh w)' at the
bottom of page 58 one more time
rite down on a separate piece of paper h se words:
IJqUJdity leverage book value fld profita aity
or ing ith a partner, write a short paragraph hat
explains each of these on pts. Close your book before you
begin!
2 Is there anyone In the group ho knows about accounts or
investing) Ask them this: 'You're thinking about investing in a
company, but can only look at one financial document, ither
the income statement or the bal nee sheet: which one would
you choose, and why?'
Unit 28
1 Is there anyone I the group who knows abou accounting or
investlng 7 Ask them to explain why the udy of a company's
cash flow IS important, and in particular how it shows things
that cannot e seen just from the P&L (Income statemen ) and
balance shee .
2 Ho v do you manage your own personal cash low. Do au
always have a egauve bank balance at the end of the mon h?
How could you manage your cash better?
Unit 29
Look again at the story of Manuela in exercise 29.5 What could
she ( nd the other players) have done differently?
2
ork in pairs (A an B)
Background. Studen A nnd Student B work in he accounts
departm n s of tw different companies. A received large
Invoice fr m B last month, but s III hasn't paid it (due to A's
own Internal cash flow problems),
Personalize A and B now prepare few more details
together. What is e business ilctlvity of the two ompanle~)
What as the inVOice for. How much was it for)
Role play. Sit ba k to back. Student B make telephone all
to Student about the unpaid invoice. Try to negotiate a
settlement that is good for both sides.
Unit 30
5 dy the text, graphs and exercise on page 64- 5 one
more time.
Wnte on the oard he wo ds 'break ven analYSIS',
, p rating leverage' and 'contribution margin'.
W rk In pairs, and B. Close your books. As explain to Bs
h three concept written on the board Bs should listen,

ask occasional questions, and help If necessary.
Keep the same role, ut work With a new partner, No B
have your turn to explain while A listen.
2 If you're working, explain how you analyze profltablli y In
your company If you're a stud nt, des rlbe any other areas of
management accounting that you've s udied.
Unit 31
'Financial mark ts have little to do with the real world. I 's Just
overpaid yuppies in front 0 computer screens chasing the latest
finanCial bubble.'
Agree
Disagree
2 Look again at the table f layers in the market on page 66
Can you ad any extra information about any of these players 7
3 Do you wo k In the finanCial mar ets 7 Descnbe your job.
4 The bo d mar et and foreign exchange market are much less
well-known than the stock market but the amount of money
traded on them is far larger. Can you explain ~ hy hey get so
little public and media attention)
Unit 32
Do you tallow the sto k market I What IS happenlnq at the
moment? Can you explain It is)
2 Do Y u per onally own any stocks or funds? Why did you
chao them? How often do you check. their pnce) When Will
you sell them)
3 If you had El0,000 to invest In Just one stock, which one would
you choose) Why)
.-..'
DISCUSSION TOPICS
Unit 33
Unit 37
I Describe your company's recruitment procedure. Is It successful?

How could It be Improved?
2 Work on your CV (resume) for ho nework - if you need to. In
the ne t class.
Put the CVs on the wall round the room. (Alternatively, lay
them out on the desks)
Go round and look at other people's CVs. You may be able
to get some ew Ideas
Go back to your desk and work with a partner Read each
other's CVs car fully. DISCUSS them together.
If necessary, make any chan es to your ey.
if you don't want to work all your own CV or you think it is too
personal, then simply help other people by reading their CVs
and asking questions.
1 Produce a SWOT analySIS for a company that you know. It could

be your own, or one that you've tudled as a student. You can
use the table on page 78 for Ideas, but feel free to include
other areas
When you finish, present your SWOT analySIS to the group and
then ask for question~.
2 Write a company presentation for a comrany that you know.
It could be your own, or one that you've studied as a student
You can use the t xt on page 78 and exercise 37 3 for ideas,
but feel free 0 in lude other areas.
When you finish, read your text to the group and then ask for
questions.
Unit 34
How important is pay) Would you work in a creative, satisfying
Job If the pay wasn't very ood?
2 What do you think about performance-related pay)
3 Are you paid what you're worth) Imagine that you're talking
to your boss, trying to persuade them to pay you more (You've
been invited to Join another company so you are speaking from
a position of strength) Explain why they ~hould pay you more.
Unit 35
1 Look through all the workplace iss es on page 74. Are nyof
these the subject of diSCUSSion in your workplace)
2 Look at the following list of workplace ISSUes Which ones are
more serious and could lead to dismissal?
arrivin I te nd leaVing early
being dr Ink at work
bullylOg and harassment
damage to property
discrimination
falling to follow health and safety procedures
fraud
personal appearance
personal use of the Internet outside of rest periods
theft
ark standards
Choose one of the issues. Write a short, imaginary dialogue
between line manager and rnployee where the issue is
discussed tor the first time
3 Do you wor in HR, or do you know anyone who does? Which
parts f the job, besides r cruitment, take up the most lime?
Unit 36
1 Practise speaking about your backgroLllld and career
Write a short Script - the text on page 76 wrll give you some
Ideas When you're ready, read It aloud to your colleagues.
Your colleagues should listen, make a f w notes, and ask
questions at the end.
In the next c1as , look at yo r script again briefly, then
put it away. Now work with a colleague, and expiain your
background and career as a free speaking exer ise. Your
partner should ask larificatlon questions and encourage you
o give more details.
150
nit 38
Practise speaking about our job
Write a short script - the text on page 80 Will give you some
Ideas. When you're ready, read It aloud to your colleagues
Your colleagues should listen, make a few notes, and ask
questions at the end.
In the next class, look al your script again briefly, hen put It
d\ ay. Now work with
colleague, and explain your job as a
free speaking exer is . Your colleague should ask clarificatIOn
questions and encourage you to give more details.
2 If you don't I ave a job, or as an a dition I activity, do one of
the followin :
Inter i w friend or tamrl member an ask them about
their job Tell your colleagues in the next class
Thll1k of someone ,you know and role play them, descnbing
their job Remember to say T - not 'he' or 'she'
Writing tasks
Unit 45
1 You work for an international pharmaceutical company with a
best-selling heart drug You're part of an International team,
preparing a report on competitors' products orldwide
Write an email to a colleague in Japan, Akiko Yamad
(a woman) Write 40-50 words.
Give the reason for writing.
Request Information about the competitors In Japa (market
share, advel1lslllg)
Offer to prOVide information about your own market
2 Personalization. Write two emails similar to ones that you have

to write in your own real-Ii e job Use th table on page 94 to
help you.
Unit 46
YOL 're the finance director f an international' ornpany You've
jus finished the company account for last year and the results
were very good However the outlook for next year looks more
challenging, Wri e an email toyourcolleagues.lIlng them the
news. Write 40-50 words,
Give the reason for Writing
Give the good news about last year. Thank everyone
Givp the bad news about next year.
2 Personalization Write two emails similar a ones that you have
to write in your own real-life job Use the table on page 96 to
help you
Unit 47
Follow hese instructions:
Look one more rime at emalls 1 and 2 on page 98, and at
he two emails in exercise 47.4 Then work with a colleague
a create a Similar bUSiness srtuation:

Whar product / service is the customer mrerested in?
How did the customer find out about It?
What information does the customer want?
What information will the supplier give?
Now, worklllg IIldlvidually, write an enquiry based on the
situation you created Note hat you and your colleague Will
be in he same role writing a Similar email.
When you finish, exchange emails and write a reply to your
colleague's enquiry. Again you will both be in the sallle role.
When you flf1lsh, compare your emarls.
2 Personalization Write a sllnilar pair of ernails based on ones

ha you have to write in your own real-life job Use the table
on page 98 to help you
2 Personalization Wrrte a Similar pair of emails based on ones

that you ha e to wrrte in your real-life job Use tl,e table on
page 100 to help you.
Unit 49
Work with a olleague. You will exchange emails, IIlVltlng each
other to viSit For simplioty, keep UW two SituatiOns separate
when you write
Before you begll1, look one more time at the emails on
page 102.
Now wrile the follOWing short emalls:
a) As host, inVite your colleague to Visit you. Give the
finished email to your colleague

b) As guest, reply to the email you lu-t received. Accept the
invitation Give the finished email to your colleague
c) A has, suggest an 11ineralY (Thl could Include some
local sightseeing.) Give he fimshed email to your
colleague
d) As guest, reply to the email you just received Include
details of your fligh . hotel, etc Give the finished email to
your olleague
e) As host, confirm everythlllg Grve the finished email to
your colleague.
When you finish, compare your emails
2 Personaliz tlon. Write one or two ~Imilar emalls based on ones
tha you have to write in your real-life job. You can be he host,
the guest, or take both roles for different emalls. Use the table
on page 102 to help you.
Unit 54
1 Find an article about business (In a magazine, newspaper or
online) written In your own language It has 10 be one that
describes a development or trend, and that contains at leas
one graph
Write four or five sentences In English describing the trend. Try
to use a good variety of language from the uM, You can invent
additIOnal information, for example whal happened In prevIous
years.
2 Choose a real-life, general-Interest topiC that shows a trend
over several years. You may choose somethlrlg like house prices
111 your country, or something personal like lime spent doing
sports / learning English Draw an approximate graph - the

exact details don't mailer. Label the X and Y axes
Wnte a few sentences descrlbll1g movements III the graph, Try
to use a go d variety of language from the unit.
Unit 48
Look one more time at emails 2 an 3 on page 100, and
at the emails in exercise 483 and 484 TI1en work with a
colleague to create a similar bUSiness situation:
What product / service is the customer complaining about?
Why is the customer complaining?
What reply is (he supplier going to giv ?
Now, working indiVidually, write a complaint based on Ihe
situation you created. Note that you and your colle gue will
be In the same role, writing a similar email.
When you finish, exchange emails and write a reply to y ur
colleague's complaint. Agalll you will both be in the same
role.
When you fif1lsh, ompare your emails.
1:;1
WRITING TASKS
Unit 55
1 Study th graphs below. You may wish to I vent more ontext,
for example the industry sector and th nam of the company,
so
.'.
".
Sales (
00 I month)
by product line
UneA
40
30
'. ',"'
- --
. ,
~,.,
Line B / -
//
20
:--.----.-.,..
, """"-._
_ ---.
10
01
Q2
04
03
01
02
last vear
03
04
this vear
Market Share
last year
This year
15%~
25%
Our company
40%
Competitor X
35%
20%
30%
Competitor y
~ Others
Write a short presentation xlracl where you describe and

analyze the trends Try to use a good vartety of language from
units 54 and 55.
If yo 're working In class, read your pr sentatiol to your
colleagues when you finish Ask for uestions at the end.
2 Personalization Repeat the exercise, but hi time draw a few
graphs from your real life. These auld be:
Business trends. Perhaps sales or profits or produ ion
volumes for various prod d lines, or market share of your
company and its competitors, or any KPI (key performanc
indicators) that yo deal with.
Ways that ou use your time. Choose either a ark context
(perhap pie charts omparing time spent on various
acti ities last year and this ear, or a domestic context
(perhaps a line graph sho ir g time spent wrth children on
different days of the week, or time spent doing sports over
several months)
Draw the graphs and label the X and Y axes Then wnle a ew
paragraphs, describing and analY7in the tr nds.
1 "1
~1
Interviews
Interview with a private equity investor
Exercises
1 Guess the missing words (some letters have been
given to help you).
he
private equity firm buys a arget co pany, It uses
a newly-formed ompany called an 'SPV' (Spe ial Purpose
Vehicle). As an example, half the money the SPV needs
capital provided by the new
might come from eq
0\ ners and the eXisting shareholders) and half might come
from d
a bank loan that has to be r paid).
2 After buying the target company, the rlvate quity firm
d up' (making the
restrudures it. This can involve a 'b
k down' (ma ing it smaller).
company larger) or a 'b
3 After restructuring, the private equity firm needs an e t
strategy.
4 There are many ther pi
s Involved in the buy-out
process, including la
rs, t
consultants and business
consulting companies.
1
Now listen to the interview and check your

answers.
3 Listen again with your eyes closed. Then listen a third
time while you follow the script (page 157).
4 Discuss any interesting issues with some colleagues.
los a
due diligence Investigation into the details of a )otential
investment
from scratch from the beginning
IPO inttial public offering (selling share on the stock market for
the first lime)
leveraged buy-out buying a company with a small amount of
your own money and a large bank loan
Interview with an entrepreneur

Exercises
1 Underline the words in italics that you think describe
the profile of a typical entrepreneur.
1 They come from poor / rich families.
2 They are risk-takers / careful.
3 They only trust themselves / have good instincts about other
people.
4 They go / don't go to univ rSlty.
5 They like to Ie d from the top / work alongside employ s
6 They get bored quickly / are perfectionists who enjoy
fmishing projects properly
7 They function well working on their own / need a good
team behind them.
8 They often have difficult / table family backgrounds.
2
Now listen to the interview and see whether
this particular entrepreneur matches your ideas.
Glossa
capital gain a profit from money you have 'nvested
collateral property or other goods that you promise to give 0
h bank If you cannot repay a loan
refurbish repair and improve a building by cleaning and
painting it ete.

Exercises
1 You are going to hear a management trainee talk
about their experiences of an assessment centre. During
one full day there are a variety of tests. Predict the
sequence of tests, from 1 to 6.
an interview with an HR manager with normal Job-related
question
lunch, where social skills are observed
a test for numencal and problem-solving skills
a teamwor test where a group of eo Ie diSCUSS a
scenano and choo the b t idea
a report writing exerCise
a roleplay exercise to test management skills
2
Now listen to the interview and find out the
sequence of tests done by this particular trainee.
Listen again with your eyes closed. Then listen a third
Glossary
assessment a process In hich yo milke a judgement about a
person or situation
assessor someone who deCides how well someone has done in
an activity
pitch try to sell somethin by saying how good it i_
scenario written description of a particular situation - with a
place, some characters, some background information, some
things that may happ n te.
Interview with a supply chain manager

Exercises
1 Decide whether these statements are true (T) or false (F).
1 The supply chain IS: raw materials supplier
first tier
supplier
secon tier supplier
manufacturing ompany.
T IF
2
any modern manufact rers ar really jus assemblers. T / F
3 It is important for the manufactur r to keep ommercial
Infer ation (such as demand forecasts) confidential. and not
to share too much Information With supplier . T I f
4 In modern manufaduring productl n is 'pulled' by real
customer orders, rather than being 'pushed' by forecasts.
T/F

.'
INTERVIEWS
2
answers.
3 listen again with your eyes closed. Then listen a third

Discuss any interesting issues with some colleagues.
Glossary
cluster a small group of things that are very close to ea h other
economies of scale a reduction In the cos of prod cing
an Individual unit, resulting flOm an increase in the overall
production volume
Just-In-Time a strategy for inventory man gement in which
raw matenals, parts and omponent are delivered from the
supplier immediately before they are needed
tracking following the progress of
Interview with a marketing director

Exercises
1 You are going to hear an interview with the marketing
director of an agrochemical company. Which idea do you
think he will discuss under each heading below, a or b?
Product
a genetically modified crop that respond well to chemicals

b running a focus group of farmers
Pri
a generous discounts for long-term customers

b paying for the chemicals not With money, but With crop
Place (Distribution)
working closely with hird-party logistiCs providers
b different distribution channe s fO!" big, medium nd small

growers
Promotion

Exercises
1 Make short notes in answer to the following
questions.
1 What is a 'key account manager'!
2 We all have an idea of the typical work of a sales consultant
- but how is this work different if it is in the B2B (business

to-bUSiness) sedoO
3 With a 'cold call', how do you stop th other per on putting
down the phone within five s conds 7
4 All sales eaple face the standard objection that the client
already works with another company, or that another
company is offering a better price. How can you deal With
those obJedions 7
5 Inside a company, wha other department might come into
conflict with Sales?
Now listen to the interview and find out how
the sales manager discusses the same issues.
3 listen again with your eyes dosed. Then listen a third

Discuss any interesting issues with some colleagues.
a using billboards at the side of roads in rural areas

b making a 3D movie With flyil1g saucers and aliens
2
answers.
Listen again with your eyes closed. Then listen a third
Glossary
crop a plant grown for food, usually on a farm

Exercises
The table below shows how the finance function can
be divided up in a large company. Complete the table
auditors
Treasurer
ossary
cold calf an mexpecte telephone call by someone rying to
sell something
'play it by ear' decide wha to do as a situation develops,
rather than planning what to do
prospects potential chents
testimonial a written statement about how well a person or
organization has one, provided by someone who has had
previous contact With them
15-1
cash flow
governance
invoices
recei able sheet vartanc
accounts payable
accounts I
cant d with banks (eg
overdraft
facility)
Chief
Accounting
Officer
preparing ccounts (Irlcome statement
3
statement, balance 4
preparing 5
tax plan ing
Financial
Controller
in ernal aUditing
budgeting (6
and actual b dget)
flnanoal planning
Finance
Director
supervising the three people above

taking issues to th senior management team
corporate 7
war ing with ext rnal 8
financing of large projects
between planned
INTERVIEWS
2
answers.
3 listen again with your eyes closed. Then listen a third

Glossary
corporate governance the rule and practic hal conlrol a
company, especially the relationship between management and
shareholders
outstanding stIli not paid
overdraft an agreement wi h the bank that allow you to
operate with negative balance
Interview with a human resources

director
Exercises
1 You are going to hear an interview with an HR
director who works in a European office of an American
multinational. Predict the answers to the questions
below.
In the European context there IS some difficulty in
implementing the HR policy from head office In the US.
Which two areas below need to be adapted for local
conditions!
a training and coaching
c equal opportunities
b dealing with poor
d health and safety
per ormance
2 Which of these two options do mothers employed by the

company prefer l
a a free kindergarten
b more fleXible hours
3 Which one area of training is very popular at the moment?
a teambuilding
c influencing skills
b English language
d conflict management
2
answers.
Glossary
appraisal an interview (often annual) bet een a manager and
an employee where they diSCUSS the employee'S performance,
training needs and future career path
compensation salary and benefits
equal opportunities where everyone has the same work
opportunities and no-one IS treated unfairly because of their
race, gender, age etc.
gender the fact of being either male or female
Listening scripts
d
cis
Exercise 39.7
Exerdse 51.5
ood morning, I . Jeres speaking. How can I help you?

Please hold while I try to onncct y u.
I'd like to speak to 'om on' in your account:, rlepartment.
The [t'.1 on I'm cCllling is becaus(' of th 'S. Ie' figures.
Illlw ni -e tu hear from you!
Thank.~ f r 'alling - did you get my email?
b this a g od time tu talk?
, re \'OU in the middle of something?
Is th<!IC unyt in!) Ise J can h Ip YOU with today?
OK, I 'il 'it V\ ith me -I'll call you tomorrow aft moon.
K, let's get started.

Betore I begin, I'd like to thank Frul1l;oise tor im'iting me here todav.
On behillf of Bee Inlernatll1f1<lII'd lik !I) wl'lcome ou here 10 our
offices.
I ..t me start by introducing m self.
The Jim of this pr s<'ntation is to gil' VOU .1n oveniew of our
compan '_
I'll s ak for about thirty minutes.
l'v> di,ided my talk intu four main sections.
Jf you h,w(; any que:;tions, pI a~l' fe I free 10 interrupt.
If you have any question:;, I'll b"!Mppy to, nswer them .Ilth' end.
OK, let's begin with this fir'l slide.
Exercise 40.5
lust beM with me for a moment.
Ri~ht, so"-y to ke p vou waibng.
Sorr, he out of lhe offi e lhi~ afternoon.
What~ it ill Cnnl1(;!Ltion with'
Can oua.khimtucallmebnck'
WoulJ you Itke II kave oJ m~ ~nge?
I et me just get a pen. OK. -; ahead.
Is that 'i' as in Italy, or e' as in [14YF t?
Ld m read that back to you.
I 11 m,lk u' he gets the mess, ~e.
Exercise 41.6
an you spe<1k more slowlv, plea e'
)ITY. J idn'! calch that.
Did yuu ~ay ifty, five-zero?
Wh,lt ex,ICtly du you mean by 'short term'?
r t m ju t check U,at I understand.
an I just go O\'er that .1 'din?
Can \ au, peilk up a bit?
Il sa rcallv bad line. You k ep bre, king up.
ty balter is very low.
\> e gol cut off. Sorry abuut that.
Exercise 42.4
hal time would be go d for 'ou?
What time arc you thinking of?
HllW <1bout I' -bruary he ninth?
-auld \ 'e make it the follOWing day in tad?
Would ele\"(~n-thirly ~uit you?
I'd prefer a bit later if ou don't mind.
I II send an email to confirm th' details.
'ruorlunatel) I C<111t make next ll("day.
mething urgent has come up. Com we reschedule?
I hope It s not 'l problem for you,
Exercise 43.6
V ere dl'ed the order this morning but you only shipped 80 pieces.
There seems to be a problem with the invoice.
I do apologize. I'm sure we Cun sort it out.
\\ hul exactly is the problem?
f nl'ed to a k you it lew quick questions.
an you l"'dl' it with m ?
'II look into it, nd g t bac to you thi' afternoon.
156
I need to check at thi end and se wh'lt's going on.
I'll send il replac menl immedialely by speCial delivery.
I'm sorry agai for any incon nience lhi~ has cau ed.
Exercise 52.5
K. Let 5 move on to the n xt point.
]'11 come' back to thi, in a moment.
[t might be useful to gi (' d littlE: b<Kkground here.
Let me explain with d concrL't,-!'xdmpl.,.
J think there are three questions to focus on.
What is the reason for thi ? The reason is the deSign.
As you can see on this next slide, the lrend is up.
I'd like tu highlight two things on this chart.
Are there dny qu<'stiol1 50 f,1[?
Does anyon . hdY ny comments?
Exercise 53.4
Right, that brings me to the end of my pr ntation.
Just to :;ummariLe the main points again ..
Th'1I1k you <111 for coming. J hope il's been useful.
rve got some handout~ here. I'll pass them round,
Here's my -m,lil in GISe you want to gel in tOllch.
Do au ha\'e any questions? Yes, the gentleman at the back
Thal's aver' good point.
Thal's an interesting question. Wh.lt'S your own opinion?
J think that's outside the scope of this prL' entation.
OK, I think there's time for one l<1st question.
Exercise 57.6
What do you think, hris 7
What I'm tryi g to say is w have no other option.
It seems to me that we have no other option.
B, sically, we have to look at branding in a r w wa '.
m my point of view it's worth it.

I totally agree with you.
[ agree up to a point, but I can see one or two problems
Don't you think this is going to be very expensive?
Really' 0 you think 50?
['m not so sure about that.
Exercise 58.5
Sorry, I don't understand - can you explain that again?
an you go over that again, pleas ?
If J und r tand you correctly, you're in fa\ our f ophon B. b thal
right?
Ho did you arrive at the igme of 1.5 million emos?
LISTENING SCRIPTS
auld you be a lillie more sp citi-?
Sllrry, th >re's been a slight misunderstanding.

Pocrhaps I h,wen't explained myself clearly.
Let me put it <mother way it's d good id <l hut it's too exp >nsive.
Could I just say sumething?
em I just finih my point?
Exercise 59.6
Ther 'are several ways e could d ',Ii wilh this,
Ld'~ h'ok at the ros and con~,
On the on(' hand, it would aw time, But on Ihe olher hand, it would
co:t money.
fn generall agree, Jlthough the cosl may be too high,
Can I m.:lke a sugge hon? Instead of waitiniS, why dun't we do
something?
L>h, think cardull) .:lbnut the impli -a lions of that.
yc.... I thinl-. Lh.:lt would work r ,lily well.
I -an s e one or t\Vo flroblems with that,
TI,at sounds like a good iJ 'a, but I don't think it would work in
pr, ctice,
I thIn
the best way lorward is to carry out a surve)'.
Exercise 60.6
. t'llonio, thi" is your field, Whdt do you think?
Mike, alter we've heard from 1{OSJ ('In we have your views?
One ill a tIme, please. first !irella, tllen Claude.
l'lJ com' bilck to you in a moment, ikola.
Perhaps we (' uld get back to the main point?
I think w should move on now,
We need to I ok at this in mure detail.
Whatllther ways arc Lh 'r" to. rprnach this?
Can we go round th table to see if 'veryone agrees?
OK, let' go over ""hat we've discussed su far,
Exercise 61.4
K,lel' geL down to bu"in '-5. \..vhat exactly do you need?
Fm u , the priori Lies arc qualitv and reliability
When you say 'reliability', what du you mean)
How flexible can vou be on price?
Wh"t 0) ou ha 'e in mind?
Whalsnrt 0
uilntity .1re you Lhinking of?
What kind of timescale are we looking at?
Wh, t sort cli figurp are we taJking abollt?
What kind of gu,lrantee c.1n you give u-?
Can I suggest another \\'dY of moving forward?
Exercise 62.6
W "d bE" prepared to ofkr better terms of payment,
!:lut onlv if ou Increased your md,,'r.
Would you be willing to a cept a compromise'
OK, we can agre to thJL.
That IV uld be very e1if icult for us.
Let' just take a m,Hncnt tu review what we've dis u""ed.
I think that's a f-ar as WI? can go at this st ge.
I dlln't ha '1" the 8uthorit t make that decision by myself.
It y u can agTee to that, w can clo I" the deal tuday.
So, if v u'd just like t sign h re
Exercise 63.5
Thill might b-' quite expensive,
Could I Just Interrupt for 11 moment?
There seems to be. pr blem with the invoice.
IL seems to me that you are being a little 0 timi tic.
Actually, this line is n(lt v r profitable.
That doesn't give us vel''' much time
'Il, be honest, that would be very difficult
Wouldn't it be easier to ship via I famt urg?
ewer' thinking of somelhio Jround 5%.

I understood you had tllese product~ in stc> k.
t r
1
PEf = Pri",lte equity inv 'stUI'
INTERVTEWER J'rllike you In explaill lllitllc n/muf primli' cqllily.

1 rrad auottl il illihefill/wrill 1/'('$', /Jill ['l'e 1It'l''''/' r<'nlly 1Il1ders/ood II.
I'EI Sure. The business of .:l privatI' 'l[uity 'omp.my is to inv st
mOllcy in two v'r: specific ways. Th(' fir'll way is ClS venture
capital- th.:lt mean looking tor a small st, rl-up (lJmpallV thill'
needs capital, funding the company to alJow it to grow, ,md then
later selling the company to make a profit. That's a separate
brat h of private equity, and it's not what I do.
TERVfEWER
OK, What's
l/iC
srcolld it'lltl Ihal prit'lIle eqllily illvests
II/olley)
rEI The other side

invo[,'ed in,
INTERVIEWER
priv~le
equity b bu -outs, which is what I'm
So Icil me a fittle 111M' clll()u/I!rni.
P[[ 11w first stage in a bUy-OLlt is to 100)." for iI target company to

buy. v e cilll that 'scouting', A typicill targ 't might be a medium
sizt>d company with a strong cash flo\\ where the owner~ ilre
prepar d to seJ] a stake in lhe company. For example, it mi 'ht be.:l
company lhilt an ntrepreneur has built up from scraLch, but now
he or she's approaching retirement or ha" other plans.
INTERVIEWER
PEl
OK. So
11011'
do
yOIl
tlc/lially
blll/ tlie COIIIPIl/Il/?
Let's imdgine tha.t the VJluc of the targ tis 40 million eurns,
so wc n ed 40 million to buy it. We ill buy the target cumpany

with a newly-formed companv called ,1 'Special Purpose ehicle'.
lldlf the money that the SPV nc d~, 20 million, mIght come from
equity. The uriginal shareholders ~ell uS their shares - they keep
~l)rnc of th ' money for themse.lves, but reinv,,'st th~ resl in lhlO SP
Perhaps tbey ontributp 8 million of the 20 million th > PV n cds,
We provide the remaining 12 million. In this exampl w <lwn
more equity than tl1em, so we have a controlling stake in the: SP
If we own less than them, \V call it a minority interest.
OK, so ltalf nf the 11/(JI/("j 10 bit!! ilw largel cmll,'~ a~
eqIlity,frolll yOllrselves lllldfroll1lhe orlgillll/5hareholders. Wlwt aboul
the othlT lUi/[!
INTERVIEWER
PEl
The other half, thE' other 20 million, comes as debt. It's a loan
from the bank. That's why it's called il leveraged bUY-OllL - we
use il smilll ilm unt of our own money to raise a large amount of
funds.
Ir TERVIEWER
RIgiJt, Ilnd as / llI1ders/ami it, I/Ull rrpm/ this bill/I.: Joall
witll t/le 1l_1i flow of the /aJ;<;t'f COn/prllll/.

rEI That's right. The loan might be for a period of three to seven
year,;, .Ind over th~t period the business just keeps running
norm.ull) dnd w(: Pp.1y the loan from the ca -h How. At the 'nd,
the srv owns the company with no debt.
157
LISTENING SCRIPTS
INTERVIEWER Y(1/1 sny 'ntlillilig llornlllll1f', //III.if cOllrse llrivali'

eqllity i.; r(P/ltrnt'l'r~illl beellll:i" "lIIlc/;'lIe, Iher, 111'<' 11 ig dlllllge' dllriliK
I' ill estate cornpanie:; in the past, but ,15 soon a<; I ( llthat I'd
I ,lmed enough, I I ft. I launched mown businesb. That was
IIri- paivl1.
about two
PEl
,mwtimt''' there are, 'om tim s not. The C;J,;es wh 're there arc
big ch~ng": dre when we buy il public eompilny listed on ~ stock
mark t, then de-Ii t it and restructure it, and then r '-I ist it dfter
we've made it more profit:Jble.
ERVIEWER
Whllt
IUlpP<,1I5
dllril/S the' rl'.;I"lIctllrillg 7
PEllmetime' I-ve do a 'build Ip'. Th t me,lns buying other

,m,llI r compJni and merging them with tll> urigin<lltargd
0mF';my tn m ke Iww,ldrg r, more profitdble company ther
times WI> do a 'bre'lk down' That means sdling non-core assets,
ulting c'osts, making the business me re efficient, and genemll,
refocusing the business.
I. TERVIEWER And
PET Welt often tile company waS n 'ver Ii -t 'd in the (irst place, it
was illwJys in private hiUlds, and "0 lJ1l'n we do an Iro 0 listing
for the I irst time. !lut the other exit strategies open to us arc firstly
to" ,11 to a mudl larg 'r comp<lny that is lookrng to divel"sify or
<'-\pan - for them it's jusl J normal acquisition - or secondly to
sell to another private "quity Wmpill1y. There is il S0 'ond buy-out.
Thi\t'~ qUilt' omm n.
II TERVIEWER OK, I tllillk It', IIllIclr dearer /1(11(1 Wlrllt is il1l'o!l'ed.

It'.; a/l Itapp '11;I1S at till "'r't!lliflltl' oWl/a>ltl~) IV'tl,e culllf,nllY -1J/lY/ll;';
INTERVIEWER
jlll7S
as
1101'111111,
IIlllm'lIre III what '.; IlI1ppl'lIillg,
III'
EPNR
PEl
il/,~,I1!eji
PEl FIrst there ilre the 1< wyers. The whole process is very complex
from a legal point of view Then there is d financial advisor who
e\'aluilles the vJlue or the lilrget company - in act that's my
own jnl->. Ther ilre accounting firms to do the due diligen e
and (he k til. bC10ks of the targct ompany to Jl1Jke sure that
e\"er ,thing is K. There are tax consull,mb to make sur that
there i. no outst"lnding lax. Then Ih 're <lfe the investment bilnks.
They ilrran e lh 'ci 'ht to buy the targ t company. for example,
they go to commer iill banks ilnd pre ent the fih'1Jres of the
target company, the ,trucrllfe of the rep,'yment <lnd so on. The
commercj,ll banks a tUill]y provide the lo.m. Finally there arc
bu iness consulting compani s. They are the ones who analyze
ho\\- th' bu~iness is 1'oing to b restructured or developed.
T R IEWER
/\//[I al/lltese people get 0 slice of tlte pie?
PEl
h )'es. If the vdlue of the target is 40 million urns, we might
actually need to raise another (our or five million on top to pay all
these different p "l)ple.
50 Ihal YOll ~ct
tI
capitlll
,\Ilill/ls ll't'l/lls I/lt' reIrl,
.1/folSl
How IIIUdl IIwlle!l did 1/[111 have 11.'1/1'1/ YI/II 'till led
lip by
by
nlOlIlIl
EP R I didn't have a lot. [ come from a poor family and everythiJl'

I have, ['ve eJnl I. I saved money from ,~arlil!r jobs, and then to
sta t my business I got J bank loan and u,C'd my own house as
()11"teRlI on the loan.
INTERVIEWER
(} .11011 nre a risk-lakeI'.
EPNR Yes [needed to barr IV a lot of money (rom the b~nk,

and it was ,l little frightening bccilusc my own future.:md the
futLl1'l:' of my f<1mily were <1t stake. Hut I enJoy ('aking risks, and
I'm confident thM I hdve enough detcmlination ilnd energy to
suc eed. I suppo, , I'm a typic, I entrepreneur in that respect
TERVIEWER
I'd like 10 ,xl'lnn' IIlisthcl/lc of the profile ora IIII,iOlI

tOllched IlII /Teo arl'l/s: bcill8 comfl1rtable wilh rJ~k.
l111d /l/l7Iill' ~l'If-cOlrftdl'lI c I1l/1i de/I'nl/III/ttioll. I IW/I 'ould Ifall add ttl
tlwllisl?
r
elltrt'I"'lIellr.
)'ull't'e
For me, the most illlportilnt thing for ~n entrepreneur is ttl

hO\'e very good instincts "bout people. It'>; il feeling thing. You
don't really need a gLlod education. I didn't go to university
bec~use [ thoug[lt it 1V0uid be boring - I wanted to sl~rl wllrking
ilnd ealllin~ money. I 0, I would say that what you n dis \'ery
good intuition to de ide immediately i( the person in fTont of you
is honest or not.
EP R
TIlat's right It's cilpitalism. Just speeded up a little.

Ami afillill qIIC.</ioll. WIUlI alit,., VillYaii lire
,..."id"J lial
,1I01lrsdt' YOII IIcet.lll lot of IIIOII"!! til slllrt 11Ii.< killd of 11II,'ille" - 10 /-111/ a
!'nJl'aty, spelld 1I1O/ICY 011 ii, /llId Ih"l1 Wllil lor 1Iu: 1'C1l t tv COIIIL' III /IIollllr
might
;1/ lite proCi!ss?
ill Ih~
EX:Jctly.
INTERVlEWER
'lIdd!'11/.l1 [/lid tlmt 'ltdr officI'S aI'(' c1o>fd, or 111111 tlley arL'lrnll~rerred
tv Illlvllrcr jab, or thllt t1l1'y't.c 1051 tlreir ,vb wlllpletdy -1111 for n'asoll"
al/l:lIt,' "f/hl';r ()IIlrol or /lilda,tallrlillg.
INTER J WER
prvpaty dCl'JelollC/'
fi,Jrilc hOlls<, pricc, arc goil/g lip.
ii, reslrucll1rillg it, thell <cllill,~ it. The peupll' lit Ihe bill/mil lIIiSill ;1151
CtIrry IlII tltcir
/lOW .1{Ollllre tI
EPNR Yes, thilt's rif:;ht. I buy bou 'es or apartments, rl'furbish th m,

and th "n rent them to tenilnts, Sometimes I sell the prop"rtv
immediiltely after refurbishment, but uSlwlly it's more profitable
10 hllld the property and collect the rcnt.
-lIllillS c()~15 11IId lo()~illg.ljn 4ftriell 1/llIem,,; IIml

,;Olllt' people will lose 1!J('ir jol,s.
RVIEWER OK. YOI/ lI1el1tiolled r,'-listillx UII the <tulk II1nrk~t 1151/11
Op/IOIl afla tl/(' reslwcll/rillg. Wlral at/IN exil strillt'gies 10 YOl/llntol'?
It's always been my drCilm.
>('cl(1/'.
lNTERVIWER
PEI ~ lIr argunwnt is th, t we make the ""hole husine'_ more vi<lbl '
in the long term. P'ople would have [Dst their jobs anyway if We
hadn't m<lde the necessarv changes sooner rJthcr thJn later. We
milk' the company profitabJ'.
YC'ilr~ dhO.
RVlEWER
Alld all '"sti'lfl for
a deal as wdills for 1/ persoll'
EP R Yes. You can ..mell a good dc",!. fcour'e the figm must
add up, but you Ilc:cL! that speoill gift of spotting straight ilwav
how to lllJke money - without doing too much i1n. Iysi.-;.
RVJEWER
UK What ,'1st!?
EP R You h:Jve to be vcry dire t with pet pit:, t ithout ing n.lde
I think otlwr people like it wlwn you're honest and d n't fUllt
around.
INTERVLEWER
Wililt
IlbouiIIOW'
allitlld,' ta "IIIII/t'lft't,,, 7
EPNR With employe ~ I think you hove to bE' infnnnal, allow them
to dress casuallv <ll1d so on. Of COUl1' ' I do draw certain lines
between me nd my employees, but it's very importdnt to me that
:;t,lff feel at home in the office. It milkes them more prndu live. I
don't like the bureaucratic atmosphere in a large compJnv Thc
best way to manil/ie people is to be thc,-e working <llongside them,
not hel" all sorts oi repDrling procedure ilnd meetings. I hal" all
that.
TERVIEWER
::in 'IOl/r 1lIIiIIIlgCI1IClIi style I" to ((lurk closely wit It stnlj

a leill/' leadcr, 10 lit' /1//1otimlor by t:XfIIl pic, [llId lI'itllll /Jig ('/IIpltilsis
(lll !,cr"olllli relnt iOllsilips.
II'
I'd
EPNR
1:l ,
Entr 'preneur
RVIEWER
CUll !lUll 11'111111' alilll,> nlmHt yOllrself
EPNR Yes, I'm 17 yc,11'S old, married, and [ have three kids. I've
,llway worked in th... property field. I W.15 an ... mplo 'ee in various
EPNR
Yes
INTER IEWER
Wllatllllppells
WItCII
thillgs go 1('1'011,..;7
EPNR I can give y,lu an example. I ll.lu , 11 employe" who va

having a bad influence on the other staff. I won't go inlll details.
But I took him to il rest~urant. We h:Jd a good hearHo-he<lrt
LISTENING SCRIPTS
diSCUSSion ov I' lun h. I was verI' direct with him, and verv
h"ne-t. 1 told him thJt I w,,:; goin tu change the wa . I p<lid him
- With a lower fi\t'd 'dlJry hut ,I hig;hl,r cnmmissil1n fnr each deal
that h c1ose:l. That solved everything -his performanct: really
lmpwvE'd ,nd everything wa, OK.
had done the online tests, dlld not a math genius brother or
somethinp; like th<lt l n,en we all w nl upstairs tor ,m interview.
lNTERVlEWER
It was a birly cunventional one-on-(me inll'n'il'w, with n HI{

m~l1,'ger tTOffi the company She ilSked III what I likfd "b ut mv
last job, wh t the worst Lhing abuut it was, why you would like to
work for my company in particular- normal questions_ 1 hen"" e
h<ld to gil' a Powerpoinl present<ltion. 1 forgot Lo tell you - one
WI' 'k brfor they h<1d giv n u a lopic ~nd we had 0 prepare a
I ,,1' P(lwerpoint pre,- ntation, m"I-in r up the slides and so In.
The whole inlet\ iew including th ptVsentatiol\ l~.,tei "bout an
hour. The.n il was time for IUllCh.
INTERVTEWER Ler~ gIl (Itlck 1I/17i11 10 111l~ topic of Ihe I'er,(lIl1Jliti/ <if 1711
.'IIII,'/m'lftH. We AIiOIl' Ihol' //1' clr sill! is uetJlhle, fyllllllli" /1//lf 11/11"
d('ci"'l/I "wk,'r. BII' HlIlyll" I11I .'lIln'p'Yllellr is 11/511 SOllleOlle wl/() S"I~
/1,,,,,.1 quickly '01/1".'11/1'1' ,! 'ry govd 1/1 slarlinx pro;ccl . /nll le;::s X "d
collsufldatill,' alld IllIild/llg TllCtl wanl Iv mov" VII and slnrt so/nclflin,\(
ef.;"t!.
EP
RYes, 1 think you are absolutely ri riot. llat's why every

ntrepreneur need a good team behind them. An enLT'preneur
is different 10 <l self-employed person - if vou redlly IVant
th II' lo!dom tll work entirel on your own, yuu becom ' s ,I t
empll,) ,d.
lNTERVI WER
",n
INTERVIEWER
M
,llildml.
EP R Wl'II, if e 1.,J...e my own family, ws, my pJrt'nh got divorced

\\'h n 1 wa young. YOli know I've never thought <lbvlJt it like! that
befon' - I mean 15 a positive intluen -e, in a way. Very int,'r('s(ing'
Greal. TluIIIA" .II"!J IIIIICh. L.!t's fi"i"h lIere.
rtar\agfem
~IT =
ManJgemenl trainee
INTERVIEWER So, /lgalll, liou're goin\! to It'll/IS n lillIe 111>0/11 VUlir

C\l'l'ric/lces ojau assess1IIeni rellire.
MT Yes. Man) large compallips u,;c ,1.'seSSmE'nt centres to select ilnd
recruit new employees. 1hev arc Ill. inly used or people in their
twenties, be < LJ~e recent graduates all have v ry similar
sand
sit's nol e sy tv chollse the best candidat's. Irl ,ln ~Sl>'SSl11cnt
-tmt~ th~ C(lmpany re.llJy se~s how you oper~t ~t ~ person,ll
k"el, and th y CJn tipot people with future m<lnagcment pot- 'nti,'l.
INTERVIEWER OK, silfir;::' 1<'11 liS ab(ml YOllr OWII parliCllll/r CIISe.
MT ['m 27, and I ap Ii d for ~ position within ~ l';fadLlilte
m. n<lg-ement trainee scheme f I' a large, int 'mational company
in the hospitality sectnr. The process st.lrl 'd onlinL" first with an
application form, and then with d s-'ries of p"ts - numeric,d te~ts,
pI' bl Jill-solving tests and so on, Her that there was a pprson,llity
test. again ('nlint:. AfLer passing all the test: ;}nd w:liting a fe\'"
days betw en t:ach one, they did a short telephone interview
Flllally, th :' a -ked me to come to the <lssessment cenLre.
lNTERVl EWER
WI,L'rt!
WlI' tll~ asseS_'llll'lIl
,'min"
Jl va, in a hotel abroad aIllI it I ~t~:d fur two days. TIley told
u~ thill the first da, was just to m~et the other pt'o IE' Jnd to
understand what was gving to happen, but 0 course I guessed
t!lat the asse osment would begin from the moment I arrived.
MT
INTERVIEWER
How IIInllY p,'ople IU,'f(' rhOSI'll
10 ~o
t.,
tv Ih" 115seS<II/l'I1t'
MT
/IIIIIIY nf /l1Il'"
38
l3eh\leen tt'n anJ fifteen people.
INTERVI EWER
OK. So nlA
III~
Ihroll,,<h tl/c' s<!cond dl1y, IlIe lI:;sCSSIII,-,1I
dav.
M1' )es. First we w\.'re r'tlo!stecl for our numerical and problem
sllh'ing "kilb, and they abo ~d\" u~ som~ 10E;ic tests ,1f1d Llse-of
langu<lge t b. 111';y want d to "ht: -k thnt it WnS I' '<lily us who
I'll/ 'Ilre/hl'l/!
W.,I
What/zap/wlll'd
nfta 1111/e/1 7
After IUllch thero was a roleplav exer -ise. -I hey gave YOU a
background situation, ~IlJ you he,d half an hour to read it dnd
think about it. Tht'n. ou did the rolepla) with one other pe '(In
who abo had a rolt:. In tht: room there was a silent ass sur who
["ok nules.
INTERVTEWER
Wlrat killd ,~t fuit'pllllj
ll'IlS
it'
MT I hud tu pby tht! 1'01 of ~n a~sbtnnt man<lger-like the job I

would really hdve if 1 W.l. success ul - ':1I1e1 the other per~on \\1.15
<l problem employee. Tht'Y were doing th ,jr job badly, tlpy v<"r'
challenging our ~uthoriLy. they h<ld been rude tf' S I1lIC cu,tomers,
ilnJ so on. But the team was Jlorl of members .lnd it was difficult
to find st~ff in the local labour m~rket- and so I coutdn't fire
them. Also, I was onJy the lssistanl miln<lger <lnd J didn't have the
au(-hurit to do that- in the scenario the main manager was aW<lY
on holicl'ly~ ~nd so I 10, cI to ti lk to th., ~mrloyee ~Ild tTy t,) control
the situation.
INTERVIEW R Vm/ cJral/<!/I,i(illg! How dId YOl//l/mil'" il?

M
I can't tell vou.lt's confidenti~l- it would be too much help to
other people if they were in the same Situation.
TNTERVTE:WER
OK, SO
1P},al
happmt'd lifter lire rolcplnll J
MT
. xt we h,\J a teamwork te.t. There were eight people around
a table - ag~in w,' were g-iven d background 'cenarill \\lith a
problem to solve, and \ e had to discu's I gcther and orne up
with a solution. In the room ther w 'rc !hI' (' silent assessors this
time.
TERVIEW R
CIlII.I/OH
sipe
II/C 1711
idL'll of/he scrl/ario?
MT Yes. We W 're suppo.ed to be the Bo~rd members of a company,

diS ussing idt:as fur how to improve the business. [aell person
had to pitch their own ide.l, which they gave you. For eX<lmple,
rcwarding the t'rnplv ce5 in a different way, bringing a new
product ontu the market, ~ loy~lt ,cherne for CLI tomer-, 'Ie. At
the end you could only -hoos . on ' id 'd.
TERVI W R ]7le ~l1enlllsse,sor" il/ItT",1

II 'I/!; tlrnll/wy were 100KIII,' for'
M1' They I,lld US tlMt th 'I" wpre 3,800 andidates who had fill d
in the initial application form, ~nd of these 38 were invited to the
assessment centre.
fNTERVILWER Su exacl/y (llie ill lIIII/Hllri'd. Alld l/lm'

!t','rt! thl!y g,'illg
>ffi'r II job 10/
OK.
MT Yes, il was J standmg-up lundl in the foyer with canar 's, and
w
Illoved lround 'lnd chatted. I'm sure tht:y were ubserving
(lur soci I ~kills during tlw lun h a weill
T RVIEWER (K 0/1(' ftl Jlllhlll~ 11/(,1'<' /t 1101100 I'ersonlll, l' 'C

rClld tlml (,llln'!lIl'1le/ll~ o!tt'llluIT'( II difficrill fiulitil/lll/fksr(Jlllld. 7(1ill,
dit"II'Cl'd parcn!" II//(I su Oil. ThiS ~ir'.,s Ihewilic ",.il'(: III ,/lccccli IJI/d
IlInk., "fOIWI/ bcmllsf /Ill'.'! 11'11111 Ille sellnily rl'llidl 1I1I'!!'''!','r hlld a'
IN rERVIEWER
W/Iill kiml (!fiIl1erview?
MT
IIIL'.
Whnt do you tllinK 1/
MT Well, communication kills obviouslv - to set' if ou can explain

y' ur idea~ dearly ,I!ld directly ~nd alo listen t other people and
d~k them good cluestions. Alsu to see if y,1U C n influence other
people anJ con vine" th 'm th t your id a" Me right.
ERVl WER
Wtl~
therL' IIIlytlllllg dse II/ier thill'
MT There W<lS one last exercise - a repol-t writin~ exerci

~ain
we were ijiven a b.lckground SItuation, and they ~a\'e us half an
hour to rt:<ld it - it was quite lengthy Then we had lwo hour to
writt: <I repurt basted un tht: situation.
INTERVTEWER
Whnt !ms /Iw silllillitill fllis lilli,"
MT We worked for a company that wanted to move it office, and

w" h.ld tl) choo'c between twu options. One loc,1ti<1n wa~ \"'ry
15')
LISTENING SCRIPTS
t'xp",n i f<:, but it had goo infmslTuctllre, and the 0111 I' 10 ilbon
Wit'> cheap, but it wa~ olJ ud lackcdomc bdsic f. ciliti '. YOli
had 10 choos.. J lociltion, justify it, dnd also giv' som 'fin,mcial
analysis. The idea, a lo write ,om ,thing th~t, t0l' nVlnag.. r
'ould read at a glance and make the final d cision.
ERVIEWEU Sa /I/(' wlrole dil!/ was pcry n'"II'l"clrell"Il'l'. A,; weli 1/'
tin' ('("Il'I'lllinllal illlt'nm'!v 11Ii'!llonked III y011r IIl11lwri alalld logical
"kills, ymlr illlclpersolialskilb, IlllllT IIIlI/rage/IIt'1I1 skills willi tile
awkward empl'llll'C, YOllr teamwork/lifo: abilily, YOUl writillg abilily
-[Terrllllilig.
MT
Oh yes
RVTEWER
Alld iI'ere 111I11 .'liCee"f"l?
MT Ye" I was! I got the job. Now I hav" one ye~r's training - st.'
months in two different countrie' - and the'n I wililp iln dssistdnt

manager and I can chouse where to wJrk.
technical specifications, dnd mJnv olllcr things. Over recent

years Ihere h VIe been big advances in this field of inte!,rating IT
"yst.. ms.
TNTERVTEW R I surss tim/ ill tilt' past 50111t: (If Ilti~ bIlSlm-~~
II Ijo n/m I/(II I il'OIl'" Imw /ICCII cOI/:;u/l'I"l'd CIJ/I/id"/Iliol.
CM Yes, But it's impmtant. For example, the more information
thM a sU[,l'li r has about future d milnd, the l"ss stock they need
to ,1rr,
iNTERVIEWER
l/oIIl/ced n 101ig-ll'rllI rdaliollsllip 11.'11//
S M Exactly, And it's not just in lerms 01 needll1g them to make

just-in-hme deliveries, it's more than that. For example, 'e
work with them on d ..velopinp; new products acc rding to our
requirements.
::;0 arll'c',1C lalkcrlatlold Ihl' IIp~/rL'l1In ('lid n tit"

supply chain. WIIIlI about tlte dOWIISUelllll 1'1/<I'/r(//IIIIIl' /ll1I/luti/durer 10
tile distributor?
INTERVI EWER
SCM
Yes. Here it depends a lot on the rel.ltive pow r of thl! tlVt'

sides. Big distributors a.re very powerful, and they can f rce
the m:lI1ufact Irer [0 adupt jusl-in-timle melllOds just as lJ1e
manufa tur!.!r forc~ th suppliers tu do the same.
SCM,. upplv dtain manager
INTERVlEWER OK, Alldrca, YOII're goillI.: 10 explaill ftlllll'aoollf

supplll cilaill Ilrallagl'IIl'llt
CM Yes, supply chain management is a re\'olution in the WilY
that Wl: see logistics. Instead of a company just ha"ing an internal
r U', it h;ls tn ha" a dll'Cct nnectiOI1 with it suppliers and
customers.
TERVl EWER
SCM You're fight. We call it a 'pull' "} -tern. In modern

manufacturing all the business acti 'it} right down the chain is
pulle I b (lStomer orders. You only m"ke what you need to.
Th ~ opposite, the old ,. a~, is called a 'push' system. With a push
system you work on for casts - all manufacture and distribute
on the basis of your fore~asts. The products ilre just therl', ready
madc, waiting for SOm<.:11l1e [1) bll\' them.
CM
Let's take an automobile company as an example. They'll

buy a whole module lik.. the dashboard or the door trom a rir~t
lieI', uppli"r, and thi~ first tier supplier, ill btly ~mall parts and
components from a second ti 'I' sLlppli r. Thi~ company will in
tum buy from draw makrial, Gupplier.
INTERVIEWER
C
In fact, supply chain management has developed because it

re luc s complexity. In the past.1 car m,. nufacturcr used to bu ;
"hug number or components and then put them tngeth I' itself
to m,llo.,l! ,>lIth.. module. ne..ded in the car. It was very difficult to
nllln,lge all tip pr(lce_se~ ~nd tu maint"in quality. Now they just
bu ' in the finished modules, nel aescmblc tlwm,
term~
of logi,lil:? F1','ryonc 1111.';
B/il surely SOllie paris of Ihl' supp!y dwill 51 iii work IlkI'
Yes. To be exact, the parts 0t the chain that work on a push

system are those where vou can achieve economies of scale. U
you c~n sav mane by makll1g" lot of 50melhmg all at one time,
tl1<'11 you go ahead ilnd make it, according to your fore a_ts. You
don't wait until it's needed. Flut you 111 L1Sl havt' accurat for casb,
othprwi;; 'you mnk ' too Il1ul..h proJu t anJ y u w,hte muney,
INT RVIEW R Earlier If011 used the automobll" illdllstry i/S YOllr
t'XI1/11plr (III ,evernl occasiolls -110'1' widl'slIrmd ar~ Ilil'se il1ms III otlI'"
i/liltlstrial <1'l'lv/:;)
S M
ormall thle ssembly plallt is locat-o in a low-cost country,
and the suppliers to this plant need to be very clost:' - in order
[0 put into pra tice 'Just-In-Time' elivery. So a littl cluster of
suppliErs grows IIp around the piaI1L. It provid 5 employment and
also -am skills tran t'r 10 the low-cost country.
Tt:R lEWER You',c IllCllliol1<' lilt' 1I1Gllll{tlc/lircr (10110

fill asscmbler), and its stlpplicrs. WilD else is ilrr'Oh'l'd?
TERVIEWER
tlmfl
SCM
II sOl/nds/ike a COIIII'iex sysll'lII.
INTER\'1EWER How dUI''; ifal/w(lrk il/

If) d/'/iva III evenIV1Jl' e1s~.
So f'l~'ryb()dy l'Illlb jt"t-il1-lilll,', a/l til(' il'ay d(1i!'/I til"
,.Itail/.
INTERVl WER So ~I"e /1/1' GIII'XiTlfI,lJ!e af tI,C d!ffc.'rclIl cOlI/l'al/h's

iI/ 1(I!<'t'd iI/ a stlpply elraill.
is
S M Supply hain management was developed initidll~ in big~er

companies, t'specially tbos~ producing cars, nd white g ods But
now it's used for all mdnufa tured constJrn r goods - ell phcme ,
laptop5, "ervlhin?;. Dell, for example, is very well-known for it~
just-in-time sYstems.
I'/'a/ly ;u<{
SCM There are all the logisti - pMlners, You'"" b"t the companies
responsible for transporting and w3rehou<;ing, and Ihese
companies could be involved at any point bch een first tier,
se nd ti r, manufacturer and distributor. If we stick with our
e , mpl,;: of th aut mobile industry, then yOll an also include the
. If a t' I tomer bllY~ a ar they might
financi<ll ser ice_ provid
'an.t credit h,l them to do that, or they might want to lea-e
rather than buy, Thcs' financial - [\'ic~, re provided by p rtner
companies, and in <l wa . the}' are part of the uppl. chain.
INTERVI WRit 1111151 be pay iffinlll 10 inlegrale 1/11' III/';illl',,;

oprrati/lll' of1111111e cOlI/l'l/Hies involved.
SCM Yes, you're right. W'" us.. IT to do that. We integrat ' the
160
'f/IIS 711I'I1I1S IlIa~
YOllr sllpl"iH:;, and tlll'1/ {n!conre II/OI'C like parillcr".
inf rmation sy-t ms of II the com.panies invoh'ed. I'm lalking

aboUllTacking the location of items in transit, ,lbuut sh'lfing
production forecasts, ,1buut providing infonllation regarding
ger
K M,. Key aCCL unt manager
TNTCRVI WER
OK, CfllI yOll 1<:// nr JOllr Jab lil/e ,md III.: indlblnf yl'll
11'1Jrk ill7
KAM Yes, I al11 il key dC ount manag<.'r, and [work in a lighting

c mpany. ur clients are I. rge companies in the hotel and retail
sectors who are looking to either construct <J ne\\l building, or
renovate an old one.
ERVIEWER
Wllat is II keyaccolllIllIlIJlla,'\t'r?
KAM It's a job on the saJes side, but dealing ith larg.. clients only.
The import_ nt cli,mb want one specific person <l.S their point "f
cont ct insid' il upl'liC'r Ol11pany.
TERVIEWER
OK,
.'0
wlIal d"
yOll
do dllmlg a Iypical day'
KAM First of aliI build our database 01 prospects. I use the

lnternet, new~papers, magil7jnes, elc to St.'(' whlCh companies
LISTENING SCRIPTS
mightfuwe plan.s for n '\'\ bl1ilding~, Then [ contact them, by
tel phone or ('mail, and try t" get an appointment to visil them
and make a ales pres ntation.
II TERVl EWER
TERVI WER
nffrring II Iletl~, IlricI' (1( 1l'IWtC71f'r'
KAM
/lIld if thl' eli/'ll I i.; i"h're,IL'd?
Then I get int d more d 'l:;1il d mn 'r~dtion with them

about til speciti project. But Hp architect who is working (or t'he
client is the real dc'iqion maker -Ihe a hit d has tu b' invllived
at an earlv stage, he bllildjng ontraclor i~ also important, but
they u~uaUy toIlO\\' what the architect says, So we ha e a seri 'b
of meeting with "Illhe parties involved, and if everything p;oes
,,'pll, then we an begm to talk about th time schedule for the
in t>1!1ntion, lh,: price, the w, lTanty, and .() on.
HIlu' i" y(1llr 10/1 ("!fi're/lt In the typiclIl idea Ihllt v,.
Ilill'" l~fll slIb ellll,-lIltfllrt?
il2 ,not 82B, In B2B th' diSCUbsions are more complex and
more t d1ni aL Wilh th' ar hitect IV hoI' to talk ahOUI our
manufaclurin pnlcess, gil, lity, reliability, and ~() on, Wilh the
contrad r we ha\'e t talk about ease of installatilln, d~)i\'er)' .mel
tlnlin~ With the final client we have to talk about how lighling
creilk~ un id~nhtv for their hotel, r their retail sp c, or their
offic ~ - h w it h Ips to create an image,
R lEWER
iIt
Firsl III>Olll Iltt' illitilll
Crill
'(1 tllC dimt, Tlrnl's 1/ 'cold
lIlher It'nrds Ihl' diclllllII'.,/'f f1sked for ii, IIIld '11<151Iwo/,ll' pili
f; 'C SI'COlld~, How dn ynrl ~I(lp Iltllt 11IIi'pl'l/lI1g?
TIw first per~on you sp ,k to i, probdbly a 5e I' telry. Here,

there arc three Ihing~. First, you h,w to irnnl('dialely gil' the
impression IhatthlS call is aboLlt s\-lmpthing important. You want
th secretary to feel that jf she do~~n't deal with vour all, then ~h >
might ~d into trouble. Then, you have to I'ry to cr 'ille some kind
f !l.>eling or emp.lthy with the person v 'ry quickly. And m<l1ly
, ou h,n e to get the name of the pe on inside the company who
you rea Iy V.lnt. Som tim 5 the secretary will put v( u through,
ther times tak 'J message, But _ou need a name,
KAM
"VIEWER Ami whm youjitlfllly >:1'1 l}mlllXh tn Ihe right persoll'
KAM
Our brand name op ns doo ,Right at the stilrt of Ihe

C{111\'ersation I il\ he br, nd name, with some priel in my \'oicc.
TI1~ 'are usu, liy preparL'li tll listen b ca Ise al tl ' 'nd of the day
thev do need u. or one of our cumpetitors - all bLlildin~ hav\;
to have lighting. Then you ha to' to get right to til 'point In B213
people are reallv bu 'y and they d n't like it if you waste their
tlffiC.
ERVlEWER OK, let's gl'/
III IlIc
<lag" Il'here yOtl I1r1';",.111 th"ir
offices lind //led them ill pel'Sonfor Ihenr,;/ lime. Whal is impurtllut?
KAM Yuu have to creal" an immedidte s nation nf being bu,in
55
like, hut also triendly and positive. Bing friendly is impOrl<1nt

bc ause you're selling to a person, not,
mpany 1 hling a nice
brochure as \ ell as a promotionallJ
to pia' on my laptop,
and 1 put th bro hure Oil the desk to have 50mething to refer to,
Then I pIa' it b) eM, Sometime' pe pie want <1 little more sodal
( nvcrsati,'n and rCldhonshif bllJlcling, Olh'r times le~", 1 teel it
intuitively. But J would say thai Inc rly alway begin by asking
th m questions, for example about how th ir bu ines' is going.
You want to give a message that yOll are inlcre t d in them, and
their busin '55, and you wanI to be a part of their business
lNTERVffiWER So Iwt so !l!lIdl ill lilt' mlr l!f n ~all'sml1t1, mol' 'liS 11
pllrtller,
KAM Yes, more." a partner. A good sales pl'rson doesn't give the
impression they are selling. They are there to listen and then to
theIr knowledge and to give a service.
~ve
(1111 yilll
It'll /IIC ifll/('n' is

fill'
KAM Yes, aLi call f'rodu bon and SilY '1 have this big order anJ th "
client needs it in ten d,wb' and Produl"tion savs it's impnssible, So
then I go ilnc! speak to Pruduction in p 'rson and try lo persuade
tl m Ihat my (Jr ler is mnre imp,)rtant than all the others, In the
l'nrJ you hav,' to ll'ie your inFluen 'ng and persuadin~"kilb not
just with the -lient. but inside your own )rganizatim as we.ll'
Of... LOll I !-Iv back to lJlle pr two Ihillg$ lfoll saM "l1r!ier?
dor/lll 111l' plwlll! willi ill
UK, 1I11cfillni ,/1Il'<li(}/L
Yes,
INTERVIEWER
call',
INTERVlEWER
"xlIlIlple, .1/011 promi"r' tile clil!/ll deliwrlj al!1 ecrlail, Iii/It', bill IIII'll
Produrlivrl snlf~ tltal Ih~11 ((TII'I /IIake tlte lalllps bl/ lhat li/lle
KAM W II, your idea of a sales consultant is probablv based on
KAM
You have to believe in vour products and talk ab ul

thL'm \vitb a pa sion and commitment. TIle client will fed this
immediate.!y But Y 1I don't g 't into a can 'rsahon about price, rr
'Ol1 ar' ~a ing th t your produ t::. are the be~t, then it's a mistake
to try tu ompete ,)[1 price, The be tis ne er tl
heapesL You talk
dboul gualit ,about innov.llion, abc ul deliver) guardntees, ilbout
service levels, and also ilb,)ut other ,;,atified cust,)mer", II's goou
to have 50m testimonials - we have ['hem in the bro hure,
amI II'II:.';U/I illside .'1111' COII/PallY l'elwl'ClI Sales mill Pnll/llc/hur?
TERVlEWER
Alld IlOw do yOIl dcal wi/It tlte ~lllndard ilbiCdi(l/l Iltnt
Ihey alrmdy work (IiI/III/willer ligill/ll,ll COII/PIllIY, or IlllOtlll'r (01l/}'111111 i~
MD = Mark ting director
INTERVfEWER
n,dlly we'l'l! soillg to {,(' 1,llkillS 1l1'01lt lite das'ic
of IIIe fOil I' Ps': pI' ducl, price, pilla 'lila proll/Olioll, bul
'/llur ,'IN' SOIIll' of tilt' dt'liliis lire vcry 1111I/SII<1I,
I/(trA('lill~ lIIix
ill
MD
hilt's right.
INTER IEWER
produd 1I/1l/' lfOll
YO/I'd vellclvegill VII cXl'laillillR II/efir'l 'P', lite
sell,
MD Sure. I managoe the m:lrk,,:linfj of 1l1l: p<1rticular agricultural

chemical lIsed for one particular rop in one par!icuiur clevel Jpmg
country, Before w formulated this clpmicaL we first ran focus
group 0 farmers, We asked thE:m what would be theIr idl'.-J[
rodud in an ide.11 IV rid,
INTERVIEWER
11111
did Iltey sa.ll?
MD They said that thev w"nt-ed a combined prodlJct which was

both an ins !icide and a fungicide. 1h ' idea of J combined
pmd LlCt was a new con' 'pt in the market, ilnd it came directly
irom the fa m 'rs.
TERVIEWER
~Irntl'
OK, '{ood. Now Idills II little bll avaul yow' priling
y, pcmu:;c I brli;:r:>e it's quite JIII/lSlml.
MD Yes, gi1in, we askcJ the fJrmQrs how they would like to p.ly
in iln ideal world, And they said that in an ideal world the' would
like to PQY not with mon 'y, but by giving us some at their rop~ in
exchange,
TERV1EWER
TIlllt's like IiiI' old dllYs
I!XdllWgillg
OIl('
pl'udllct
directiy/orallllll,,-r, without gnillS Ihrough tlte IIlcdll/lII of ea:.'}r.
MD
xilctly or the tarmers il'~ a WI' attractive solution, TI1e) are
good Jt producing the crops, but not 0 good at commercialiLing
them,
RVIEWER
OK, 11111 snme risk passes 1.1111 bemllSe yOIl /llmllllllc
f1 ..11f/menl COlI/pallY -sellillg ngrirull II 1'111
I'r"<7l/d5 is IIvt YOllr Ill/sillc"s.
MD
e usc commodity traders who sell on the opell m:lrket- we
to 51'111111' c['UII , YU/lare
don't sell oursc! s, Here', hmv it works, We 1';0 to the traders and
say th,lt we hav,:" forecast of 'X' bag-s of crops from the fam1crs
for the next season - how mu h (,111 you pJy? n,e trader, give liS
a price, olice that it's, Iready better for the farm 'r' because \ '
can use our Jdr~e voluml's to gel a b 'ttt'r price thaI t'hey could if
they sold individually Then, aiter thM, we create ,1 price list f, r
the f<1rmers: for example one kilogram 0 ur produ t for one bag
Ihl
LISTENING SCRIPTS
01' crops.lll<' t."lmlcr. decide how much of our product lhey W,10t,
and thl!y "ign a ' nlract with liS. When the crop is ready, th y
deliver it tL\ lhe lraJ 'r, nollo us, and llll:' t ad,'r pa s us. We ncver
get im (I'" 'd in selling the :TOrS on the market. lllM risk passes to
th~ tr.1dCI - bUllhey knuw lhcir business.
INTERVIEWER OK. 50 lI'("('e (O!II'/ed prodtlCI, wc'vt'cvt't'I'1'Ij ~1I';[,c
IIlJII' 1'/1'1151.'1"/1 /IS a lilt/t' /lil about plnL'e, ill Oilier words Iile dislributiolT
dumnc/.
MD Yes. We hilv' s >gmentalion in lhe markel, "ccording 10 the si.ze
( f the fann. WI' hav big, medium and sm,lll growers, "nd we take
., different Jpproach \ ilh each segment. With the bIg ("rmer" we
lise iI 28 approach, We h,we a key ,1Ccount m:miJgeT inside our
cornpiJny ~o that the (arme:r can pi k up the phone dnJ tillk 10 l)f1t'
r 'rson. The ne 'otiation is j l,t about rice. With the medium-size
farmers il's different. e s nd.1 ~alc: rep to visit th ir farms, but
in fa t thls kind of -,11e~ rep i~ .11<;0 an agricultur,l! consultant.
The reps I1J\'e a 5 "iCI1CC biJckground -lhey ,1I:'" agron0l11l5t .
The !;mners reali, appreciate this technical support, Jnd our
competitors don't offer it. TIle large-~i.(e tarm' . don't need
thL" techni at support becilllse they h" e th ir own Jgronllmi~ls
\\ .>rking fllr them.
INTERVIEWER
fi ance dir
INTERVIEWER 50
Ihe di:;lri/PHtM';.
Ill'
/IlW/('Y chilllge, IUlI/d, bdwt'l'II tllf/tlmWf' /l1It1
TERVIEWER II/Iii k ilwO/lld be illlacstil1l1l11 kll,>W !rOll' Iltcfilllll1C"

flll/clilm is dii:'idt'li III' inside a l/ll'ge mlllpill/Y. 1() rI 1I(111-IIIIS/I1e5,;
persoll..filll1llL'C is S[lIut'llOU> '/lore IUL/sler;ou, tlUIII 'lilt'S or MlIrkcllll:< ,'I'
T'rodl/clioll or HR.
FD
Well, I'll do my best I think my companv is quite typical

and J can describe how it works. I am thl' -inance ire tur an,l
I have thr . m.1nal'\ers rep rting tn mc, e.lCh V\ ith a diflcnmt
area at r 'Splln. ibility. The first ar"a is the treasury, the "" ond is
'lccounting" and the third is hudg 'tins iJnd pl;'Jnning.
INTERVIEWER
FD
MD Ye, LJ1 \lur market IIw m,1S$ me:did is less impurt<1nt, because
fanners don't watch so much TV and anyway there's a lot of
competition tor TV "puts. So we de ided 10 be re<lllv innoviltive.
We\' madC il mo\"ie - exactly the same as in th cinema with
some big-nJm' star" - and we invil" the f.1m1ers to come to
lhe cinema to Sf'(' it. 11'< a 3D muvie. We org;'Jni7e bLlse to take
lhe fann 'rs to the cinema, and then \ rh 'n the arrive, we giv\'
them s, me popcorn am.! , beer. You hdve to rem.:rnber th, t th'se
fMm '1'5 rat'"ly ).';0 to lhe cin 111.1.
INTERVIEWER
And ll.iI,,1 is til,'(iIIllI1!JoHP WI/at', iii.. Slory?
It starts with flying "'lUcer. It IMlds in our c u llry and some

alums appear, TI'e local farmer$ 't,lrt asking the i1lien::; que,;tions,
and the aliens take the f, rmers 10 their planet. When tltey get
tll the planet. they find that the :Jli~s used to have the same
pr bl 'm' will their crops as the f.1mlerS are having right now
here on [,1rth.
MD
f coursel How did, ou gUl!;is? But vou shuuld see the .,liens'
eyes in 3D - iI's r'ilily amdzing '
Y /1111 kil/d ,,{ills/nll/lmls'

ror exampl,>, d >rivatives I swap v<lriable inter t rates int
FD
fixed inter> t r<1tt's - that minimil.cs our risk it we t<lk' out a long
term loan.
ERV1EWER
FD
OK. Next
i~
acL'O III I I II/g.
e have iJ Chief Ace UI ting Of(ice:r who's l' "ponsible tor

preparing tile aCi:OlIl1ts: so that's the income stalem nl and cash
now statement on iJ quarterly and. nnuill basis, and the balance
sheet just annllall\'. 1he most important thin T for her is to prepare
ever. thing for the ilnnual report, whi h w\' hay\, il stiltutn . duty
to provide be ilLlse we'~ i1 public company -Th d.:counling Ie m
also pppar'~ thc invoices to ~l!nd to (ll'-tomer>, ilnd pr"ce. ses the
inv ices th" f we receive from ;;uppliers.

INTERVIEWER
PO
Rlgllt. Awlfl,.. flurd I1rm?
'~inall we hiJve iJ hnill1cial Controller who'- resp ln ibl'

for internill auditing, budgeting ilnd Jinancial planning. Thi
pt'r~ n rect'iv>~ ,111 the kL) indiCdtor5 r'!Jtin - to o~ls, in ',)me,
pre fitability, "ffi 'iency, Ic from Production, Purcha~ing ,md Sales
-and 'lsing tll ,~, figures he pI pare;; ,) weekI) report fM ,1thcr
manag'r" thmu >hout the compdny.
TERVIEWER By 'b,,,lg<'1illg' dOl/VII IIImll ,('!tillg

Irlllkill,'{ /It IlOw till' lJlldgl'l i< ISL'd?
FD
MD
INTERVIEWER All/I l!( IIlIr,e /ile alil!l1~ Itl1ve ,,,/ved Iltt'ir I,rublellls bll
u,ill!? yaHr pradllCIS.
11/11:;,' O/lt' by aliI'.
INTERVIEWER
Exactly. II Y(lU rel11('nlbl'r from bef n.', the arm 'rs pil.' lor their
chemicals with bag~ o( lrops delivered to tilt' oml11odity tr,lders.
The di tribulor5 <Ire paid b LL, out of the money that we get from
the ClllTlmoJity' tTildcrs. Il's a win-win partnNship between liS,
dIstributor, amler .1l1d trader.
,,,,,sl
OK.let'~ IIlJ..r
1he Treasurer IS responsible for cash and ca,1 !low, He ha::; a

small te<l.m that ar' r ~ponsible (or de aunts pilyabl\' an i d( Ulunt
r\'ceivable, so they make payments to suppliers iJnci l:olle:t
from ytoll1 r,. I he re:asurer is <1';0 tl e point of con tad inside
the: c lmp<II1Y i)r our banks, and th 'y talk LO~ether ,1b(lut our
overdrilft faedil', or alternativel how tu get the best interest rate
un any spare cash that' d\'ailat Ie. hese days th >r is .11 a quHe a
10101 discussion about speCIal financial instrul1l 'nb thill the bank
can offer.
MD
INTERV1EWER O\, I/It're's orll'.flllni 'P' le}i: pnlllw/ioll. I tlulIk Iltnl's

iI,lere:;lillg tJfll/.
Iile
or
fO = Fin,mc elir' 'lor
AI/d tile sml/I/ Irlrmrr~'
MD The ~mall ianner:. don't gel teelmical support. Thev just

order their chemicals directly from iJ dIstributor who delh'er: the
product 10 them. W, llpply the distributor, ,'nd pay them to fio
mund !he farm" doing the deli 't'rie~. llle distributor can also go
tll the medium ,t"d IMgt' iarms, or som ,tim >~ Wt' do that directly
- for '"ampl,! the sales rep can k1ke the product.
1/,,, IlIIdXd, Llr
I me,lJ1 the la t\'r - th rontrol aspe t of hudgeting. 50, looking

<Ilthe variance betw 'cn the planned budget ,md the actual budget
for all tlw costs of the ompan". lll" jir~t t 'pe of budgeting
- deciding how much mone 'each uepilrtmcnt needs and Ciln
spend in the future - is done by all the manager" togethcr a" part
of the wid l' business plilo. That's f1 annual proc" and it h~ to
r Idll' to the over;'Jll strilt y of th company,
INTERVI W R So tire filll1l1cilll COli/mila is tl,c 11<'/"011 wltO rea/ly

lllldcrsll1l1ds wlrrll is lrappe/llIlg ill 1111' ClJIII/JaIlY day I'lf doy,
FD
Yes, if an activity is going over budg't we need to kn w

immediately, W, have to take lKtiOIl to rectify th t ' _ itll<ltiun.
INT RVIEWER
Riflill CIlII I jllst go b/lck to sOlJlt'llrillg' Y<J1J sl1id
Ihnt Ille Irl'1I5U/'ll WI1S rl!SpolIsi/llc (or a(colIlIls pl1!1ll/l11' IlIId nccClTlllb
rrCl'l1'a/1/c, 11111 ilrl' rI['(Ollllls deparlmellf wn: rC"l'l'u,iIJ}efor hlt'lii 1Il1(.

Thai seems sliwlgl' bL?(all~e ill Illy milld [ /l,;S(1cill!<' RL'CllIlII/, "cL,'i,IIIVIc
u';llI II/POldllg,
FD
Well, inv icil1~ is, purely ildmini trillive proce~s - inv)i' > are
generilted automatic,dly by our IT ~y,t '111. Invoicing is imp Jrta.nt
LISTENING SCRIPTS
lor keeping the books, just like purcl1as 'S and orders, ,~nd so
thel>e things come under the control of the accounts offiCl'. But
a 'Ctlunts receivable is il more human and lT1,1nJ~eriaI proc '~,
- J~" 'elit co troller nlight need 10 telepbone a customer b Jut
an Jut tandil g bill, s nd them a reminder, d al with bad debts,
and sCIon. It's thl: tlow of cash into the company, and so it comes
under the treasury. !l's not just an administratlve thing.
OK,';o 11mI'.; tile til ref' an'as. UUl 1,/lIIlabolit yllll- 11t~
D(l yUlllwl'e allY s/JI'(4ic reSpllll$illilities Iltal fire nat
eOl'Crt'd by tile Ihrl'e people wider YUII'
TLRVlWER
F'nlllll:e
FD
ir~cll1r
Y", good llestion. Besides mJnagir g thes thre pl'opl' 'Ind

taking ,lilY important financial issue to the senior milnJg'mcnt
team, I also have r sponsibilit_ for corporate governance. So
J'm the on who calls the shareholders' meetings and takes the
mmut('s of thos' meetings, ,md I'm the one who works dose!
\\itl the external c uditor.'. nd i there" a very big project tu be
fin~need, then !'II speak tu the banks r,llh'r (-h, n the Treasurer.
TERVTEWER Grm!. I 1111 11k tile ollly Ihillg yOIl ill11lcll't lIIellliolled so
far I.' la~ mid tnl 1,lallllillg.
FD
I h hid Accountin!'\ OfficeT has to prep;]re the tax returns, and

turally that p -'rson is very invc,lved 1n tax plannin~, Hut this
i a complex area ilnd \\I~' often tlSe external consultants to lll.'lp us,
and in lhat.:as I would get invulved as well.
'011,
ERVIEWER Arid lIIy.fillal que -timl is Ihi~: wlllli is Illl' rlile 111111'\ tllll/
'lllll/hlii/'lk,. !'Ollr life {'osier Ill/d aIlOlL' 1/011 In VI' lIIore (~ff<'( lit'(' ill YOllr
jO[o7
FD
hat's "ilSy II finan ial directors suffer from informdtion

) ('rload E\ 1" day and every week lVe see columns dnd columns
of figur 'S, with lot of indi -dtms, and huried deep within tho;,c'
columns U1erc nre ~ome smdll pieces of information that are
important. But this information an be v 'ry dif ieult to spot. he
challen~e is to reduce the amount of information coming in to us,
to filler nul the backg-nlund nois', II that w(' 5 ' , just ,1 summar'
und we can oe IS on the real problems and the bigg r pi tur('.
HRD
= Hum
n r'S0U
TERVI WER
'S
1/(111
wor/.. ill Hllllltlll RI'<t>lIr
(~<
iii (/ luenl
offin' of n Inr~l' illllerimn/uod compllilY.

HRD
That's right_
I TERVlEWER
Call Ylm tell men li/Ilealmlll fill' HRfwrctirlll
ill 1/0111
ellll/pml!!?
HRD Ye~. n,cre Me about 200 people in uur oflee in total, cl!1d
of those, thcre ar' four of u" in HR Each person has their own
re-ponsibiJities. '" there is one person for compensation dnd
b nefils, one person in ch,Hg "f trdining, ne jltniur persun
tor admi.nislrJhon, and then me - I'm the HR director. I toells
especially on recruitment - J have to develop and impkm nt all
th pro edures, policies and initiatives
INTERVIEWER
Are thue 1/11.'1 oilier e:mlllples?
nother example i5 ec]ual opportunilies, Head office has

clsk"d me to dewlop if diversity slrate~}' -that's very important
in thl' States - and we ar focusing first on gender, and th('n on
age. e don't tr<1ditionally think ab ut investing in older people
- it cv n :olmds like a strange phril~e. But Europe has i1n aging
p pulation nd w; will n 'ed more older p ople inl>ide compilnie',
HRD
TERVIEWER What are yOll dOlllg ill rc'illtiol1 to gel/dcr) Hml' 01'('
IrlJlII." /0 aI/met lind retaill wenlll'lI in !/(llir (J,,\'1111::.atllm)
1/011
HRD We offer t1exible hours, part-time worlcing for mothers

returning to work, a free -indergarten - thilt kInd of thing.
TERVIF.WER A kinde/garlen is 1111 importallt decisioll_ With
e1l1ldcarc therc'$ afinallcial cost YOll IUI'1IC to Sc:lllp a special room,
I1rglllil:e!nod 1.7.'ery dal/,f/lld and I'ay II qlllllijicd perwllla
1'1111
it.
HRD We trit'd to sPl up a kiIllkrgart n last year, with th ba king

of head office. 111e first problem was that we only hdve a few
women here with babies of the ri~ht age to use it, md then there i~
the prohlem of our location. We're h3lf an hour',; drive (luhde the
city t ntre and the mothers hild to brin); the babje here and lake
them b, <.:k Jg~in, with the babies crying in Ihe b<1ck se t.,f the car
in th,-' rush hour. It was \'..,r\' difficult.
INTElWIEWER
PmU; til
JII'~/llelll'
HRD Ye~, ,0 I have to be honest (lnd ~ay thM th' women pr 'ferr 'd
to leave their chJldr 'n at hOl1l!.: - in nur culture til grc1l1dmothcr
often looks after the child during the da '. But what tlf(' ml\th~rs
an~ much more lllterest d in is work-lite balance - having more
time working out of the office.
INTERVIEWER
Alld wilat is y'1!1r polily
t!l~rc?
HRD W, 'ncuur<1g' n oth '" t'1work from ho e onl' tidy (l wee",

and we also have a contract wh re th 'y c, \ ()rk ~Iightly fewer
hours for slight! ' less m JI1 ' , but the)' can go 10m' e, rl and pi k
up the d1iJdren trom schooL Th.at's very popuJor_ In fa t W~ lind
that these women ll1anaf':e their lime very well, and. do more or
les~ the same amount 0 work as evervone else,
I NTRYIWER OK, lI.:./lirl' we jlllish, nil Wl' 'ome /ll!I;~ Ie' /11/11 iSollc 0.1
1'L'ljOr/lIllIlCI' Ciffture .IIOU IIIl'lI/iolled mrlier? You said thaI' peoplc call I bc'
dislllissedfor floor pe/!rmlll1l1(e, so Itoil' do 1/011 IIIt11ln:';C Pl'~"Or/lll/llnl
dlr ctor
I kllow 1/1111
I TIRVIEWER
Do Ihose policies COIIII! jrolllhl.'fld office ill /ltl' US.'
HRD Y's, most of th m. We luve to introduce them 10Ldlly,

sometimes adapting them, according to our laws.
INTERVl QVER
1111 !fUll gil'" IIII' fill ,-xlIlllplc' of (llIf' !Juliey III' /'I'f)(('Cillrl'
which ClIlIIl'/mlllhead uffiCl' amt wlri II W/l;; difficlllt tl1 nclapl 10 y(lllr
fuml ;;illla!iclII'
HRD For irbt,m I' in our countr' it's vel" difficult to dismiss
s nwonc. low m) ompany is \'ery fair, but it's Jlso I'ery strict
with poor performers. In the U there are t,I1"'ets to meet and
bjectives to dehi -I'e for all employees, and iI you ilre a poor
perform'r you ('cln stil)' in tlw company for maybe rwo years, but
no more. In my country things don't work like that, Our laws
Liun'l allow us to dJsmiss SOI111,;On -, for r"or per orm,. I1ce ,done.
HRD I"wo ways. !-irst, campen-ation is based on a threC-\.,'ilV

f rmula, Therc's a fixed part to the .-alary, th' biggest part, but th 'n
ther is also a part that depends on company p 'rf lrmil11 ',ilnd
a pari t! at depends on incii\ldual perfomlance, 0 \ e motivate
people through pay. The other way to manage perfom1ance i

through our appraisal process. 'very year the line ma.nilger meets
with the E'nlployee to revie\,' their pertol:11lance, and the ,1utcome
of that meehng u, an Individual development plan,
INTERVIEWER
InlJOh'illg (Mellill:'; 17/111 tmillills7
HRD Yb, thE' big thing right now is lnflu<:n 'ing ~"il" The ,lim
is to hel pcople in their everyday \Vorking rcl..ltionships, Vou
kno\V we have to work in a high-pressure, n lc!en bU'iine's
environment, to have conta t with peoplc in other departments, to
ark in cross-function.. l teams, ilnd much more, In rder to do all
this we have to influence uther people all the time, to obtain tile,r
help ilnd their ngreem nr.
INTERVIEWER
Bill call tll;- /Ie tmillcd)
til
lay ,tllbioIlS. Surdr/ it
jllst cotlles frotll illside /lIP 1"'1'''011, or it's S(lIll1.'ll/1/l:{ Ihat dL'7.'t'/'1I'S wltl
life e:rperi('//l'c. Call yOlI actl/aJly ;11 'r('as<, .lIl11eOlle\ illf1u('l/cil/~ s/..iIl, Ily
'L'lIdillg 1I/I.,tII 01111 cOllrse?
HRD [n my opinion, ye~. Particulurly thfl)u~h n'leplav, anti. aLo
<1n Iyzing Ccl~e srudies of what someone did in a pilrticulm:
situation in terms oi their behaviour, and why they gator didn't
get thl' r 'suit they wantt'd Vou have to invite people l reflect on
these things, J think it can make a difterence.
103
Answer key
The economy
Exercise 1.1
1 dnves
2 deregulation
3 subsidies
4 q otas
5 arlHs
6 constrained
7 liqUidity
8 bubbles
9 underlYing
10 dlHerentials
11 prosperll
12 liler cy
Exercise 1.2
1 ollsumer spendmg
2 free movement of capital
3 growth and contraction

4 life ex ectancy
5 open borders
5 standard of living
7 nwonmental damage
8 goods and services

9 Interest rates
0 cheap credit
11 social mobtlity
12 underlyln strength
Exercise 1.3
1 consumer spending
2 cheap credit
3 standard of livin
4 growth and contraction
5 Interest ra es
5 underlying strength
Exercise 1.4
1 on the verge of stalling
5 oughly
2 slump
3 boostmg
4 the Fed
The business cycle

Exercise 2.1
I an upturn
2 expansion
3 a downturn
4 con ractlon
b 1 recovers
3 turns down
4 bottoms
2 peaks
Exercise 2.2
I b
2 d
3 c
4 a
5 e
6 h
7 f
8 g
9J
10 i
Exercise 2.3
1 low I picks up
2 end / turillng down
3 bond I fixed
4 more expensive / cools
5 contract / recession
6 ltlclpate
7 before
8 bull/ bullish
Exercise 2.4
2 new borrowing
3 side-eHects
1 policy makers
5 government debt
6 labour market
4 tax cuts
International trade
Exercise 3.1
1 conomles of scale
2 on your behalf
3 warranty
4 warehouse
5 expertise 5 trademark 7 ee 8 royally
10 bill of lading
9 invoice
Exercise 3.2
1 take advantage of any under-used capacity
2 rely on Just your domestic market
3 spread the risk
4 ac on omebody's behalf
5 es ablish a presence m a foreign market
6 keep your own legal identl
7 handle the exchange of documents
8 pay according to the terms of he contract
Exercise 3.3
1 Cash-in-advance
2 Letter of credit
Documentary collection
4 Open account
5 ConsIgnment purchase
Exercise 3.4
4 tr ck
5 loading
1 customs
2 handling
3 premises
6 freight
7 documentation
8 transit
9 terminal
10 clearance

Exercise 4.1
1 edge
2 backers
3 collateral
4 legal entity
5 invoices
5 piling up
7 turnover
8 a gOing concern
9 acquIsition
10 thoroughly
11 stickIng with
12 false economy
13 neighbourhood
14 see money
15 loyalty
16 omplacency
164
Exercise 4.2
2 wait for mvolces to be paid
1 achieve a en ical milSS
4 employ more staff
3 grow or shrink year by year
5 pot a gap In the market 6 take 0 he ns of the bu~mess falling
7 bring in a huge amoun of money
8 enter a growth phase
9 ex end a line of credit
lOgo public
11 grow organically or by acqUiSitions
12 ell the business as a going concern
Exercise 4.3
1 overexpand
5 overspend
3 underperform
4 a ertake
2 underClJt
6 undercharge
7 a emde
8 underestimate
Exercise 4.4
I outlet
2 fee
3 fulfill
4 standards
5 runnmg

Exercise 5.1
1 debt/liabilities
2 0 ner / proprietor
11 shareholder / stoc holder I sta eholder
3 share / divide
5 a diVidend / profrts
Exercise 5.2
entity
Exercise 5.3
1 fully
2 legally
5 trade
3 personally
Exercise 5.4
1 overse
2 auditors
6 transparency
5 hold
4 potentially
3 dl idend
Exercise 5.5
1 limited liability
2 detailed legislation
4 non-profl rganization
4 stake
5 in egnty
3 legal entity
Exercise 5.6
Chief Execuli e Officer
2 Ann al GenE'ral Meeting
3 P blic limited Company' 4 limite Liability Company
Global issues for the 21 st century

Exercise 6.1
1 geopolitical Influen e
2 climate chang
3 global warmmg
4 sustainable growth
5 peak 011
6 green activists
7 maJo battlefield
8 liVing standards
9 pnClng power
10 declining birthr te
11 nowledge worker
2 enwonmental impact
Exercise 6.2
2 be hungry for resources
I e short of resource
3 be in short supply
4 have a common ASian currency
5 pnce oil In dollars
6 accuse omeone of hypocrisy
7 In the commg decades
8 for the foreseeable future
9 hold a Virtual meeting
10 have acces to arid marke
Exercise 6.3
1 value-far-money
2 loyalty
3 creatives
6 sustainable
7 backlash
8 sourCing
4 retain
5 gender
Exercise 6.4
1 warmmg / destruCllon / hreatenfng
2 aetivls I influen ial / environmental
3 engineenng / controversial I growth / pr ducllon
4 economiC Iindustnalizatron I strengths / weaknesses
Exercise 6.5
1 5t ndards
6 premium
2 prindpl s 3 po er y
4 access
7 subsidy
8 overproduction
5 gender
ANSWER KEY
Management styles and qualities
Exercise 10.3
Exercise 7.1
1 authontarian
2 demanding
3 consensual
4 coaching
5 mentoring
6 liaison
7 hierarchical
8 proactive
10 thorough
11 determmed
12 setback
9 conSCientious
Exerc.ise 7.2
1 bureaucratic
2 decentralized
3 unw-ope atlve / unhelpful
4 uncoordinated
') Indirect
5 inflexible I rigid
7 hands-on
10 careless
11 disorganized I messy
8 dishonest
9 rallonal
12 relaxed I calm
13 unsuppo Ive
14 bottom-up
15 unclear
Exercise 7.3
1 stressed
2 Inflexible
6 transparenl
3 hands-on
4 messy
ureaucratic
Exercise 7.4
1 lack vision and fall to show leadership
2 know where you stand
4 take the lniUallve
3 work on your own and b self-motivated
6 give feedback in
5 keep Up [0 date With development In the field
an appropnate way
7 recover qUickly after a setback
translate
general strategy into specific objectives
Exercise 7.5
1 Issuing
2 guiding
3 progress
II running
6 breathmg
7 report back
8 leedback
5 carry out
Organizing time and work

Exercise 8.1
1 ahead I workflow I chart / tlCke~ I guidelines I pnori\lze I
challenges I face I meet I stlmulatin I rewarding I sense I achievement
2 workload / paperwork I tlme-consllfnlng / behind I deadline I
stressed out I short-cuts I CIrcumstances beyond I frame I quick I dirty
Exercise 8.2
1 spend
2 filld
3 run
7 save
8 make up
OL t
of
4 allow
5 put in
6 waste
3 bnef
4 be in the loop
5 snag
Planning and setting objectives

Exercise 9.1
1 stakeholders
2 contingency plan
3 assumptions
d trends
5 legislation
highlights
7 plant
8 targets
10 forecast
9 gOing forward
2 achieve
Exercise 9.3
target 1b
plan: 3a
3 meet
4 make
Exercise 9.6
1 set I overall
5 reach
Issue 2c
Exercise 9.4
1 exceed I inttlal
2 fall shol1 of / annual
4 shelve I long-term
5 ral'ied I complex
Exercise 9.5
obJectiVe.: 2a
3 implement I three-year
schedule 1cudgel. 3b
2 stick to I tight
3 submit I drah
Leading and motivating

Exercise 10.1
I from scratch
2 the big picture
3 role
4 empathy
5 IIltultion
6 empowenng
7 trustworthy
8 outcomes
Exercise 10.2
praise
Exercise 10.5
1 a) leading b) leader c) leadership
2 al motiv ting b) demotlvated
3 a) managln
) unmanageable
4 a) satisfaction b) unsallsfacto
5 a) analytical b) analySIS
Exercise 10.6
1 achieve
2 assertlvenes
3 acknowledged
4 b
Z2
5 moan
Insurance and risk management

Exercise 11.1
1 prudent
2 liability
3 sue
4 Indemnity
5 vandalism
8 renewal notl e
6 awards damages
7 exclusion clauses
9 payout
10 compensallOn
1I bad debt
12 compliance
Exercise 11.2
1 be legally obliged to do something.
2 try to prove negligence
4 be liable for the c!lHerenc
3 avvilrd damages
5 take out an insurance policy
6 take on too much fisk
7 e sent a renewal notICe
8 check the small print
Exercise 11.3
1 dispute
2 reject
3 potential
4 aVOid
5 minimize
Exercise 11.4
1 on
2 for
3 take out
4 against I up to
5 for
6 on
7 made / for
8 to I from
9 at I of being
10 coun I rightful
Manufacturing and engineering

Exercise 12.1
1 raw materials
2 rust
3 blue-collar
6 Inventory
7 scope
8 breakdown
11 disposal
12 embedded
Exercise 8.5
It should be ' he person res, onslble'
Exercise 9.2
1 implement
6 set up
Exercise 10.4
1 POSitive feedback from your boss
2 negative ex erlences wllh
colleagues
3 sense of achievement
4 lack of recogllllion
5 company politICS
6 physical environment
7 task-onented
bUSiness world
8 financial reward
Exercise 11.5
I exposure to risk
2 fisk assessments
3 contingency plan
4 escalation procedure
5 remedial aellon
6 damage limitation
Exercise 8.3
1 budget
2 competencies
Exercise 8.4
1 constraints
2 tackle
6 figuring out
2 ./
4 unions
5 outdated
9 dams
lOde ices
Exercise 12.2
1 mass production
2 well-pai job
3 heavy Industry
4 core concepts
5 contlll\JOUS Improv ment
6 wide cope
7 residential buildings
8 consistent quality
Exercise 12.3
1 madllnery I equipment
3 waste / pollution
2 process I procedure
Exercise 12.4
anal ze / examme I go over
construct I assemble I put together
determ Ine I establish I find out
implement I put into operation I carry au
monitor I supervise I keep an eye on
ellmlilate I remove I get rid of
evaluate I assess I weigh up
manage I run / be In charge of
repair I fiX I put back Into working ordN
Simulate I replicate I model
The verbs in the third column are mor informal
Exercise 12.5
1 m uld
2 reliability
3 sLIm
4 upgrade
5 workforce
7 economies of scale
8 risk
6 up and runnlllg
ANSWER KEY
Inside a factory
Exercise 16.3
Exercise 13.1
1 plant
2 fitters
3 -wise
4 shift
5 discrepancies
6 facility
9 roiling off
0 Idle
11 wear and
7 tailored
8 throughput
ear
12 downtime
Exercise 13.2
1 long
2 wide
3 high
7 cross-section
4 leng h
9 weigh
8 square
Exercise 13.3
1 run out
2 snap off
3 Durst
5 width
6 leigh
10 rounded up
4 work lose
5 be Jammed
6 seize up
Procurement and purchasing

Exercise 14.1
! Quotation
2 lrack record
3 lrials
6 collusion
7 tenderIng
8 InVOICes
10 undertake
11 synergy
5 backhander
1 bottleneck
2 shape
3 Iralgh
4 sub-assemblies
5 synchronization
6 branch
7 customized
Quality
Exercise 17.1
1 features
2 durability
3 conformance to requirements
4 samplin
5 spot checks
6 was e
7 framework
9 fad
10 cycle limes
8 results onenTatlOn
1 1 deslgn-for-manufacture
12 supplier capability surveys
13 scrap
14 product re ails
Exercise 17.2
1 outstanding
6 enhance
12 drawbacks
2 estimate
Exercise 14.3
procurement = sourcmg
3 proposal
2 variable
3 Infenor
7 srecify
8 monitor
7 employee Involvement
10 roduct r -ails
+ purchaSing
5 ensure
8 cycle time
9 war ranty lalms
Exercise 17.4
nshore
3 nea rsllore
1 1 1 group (supplier) giv I prepare I provi I submit

2nd group (customer) ask for I get; accept
2 1'1 group (supplier) draw up ; make; put forward; ouUlne ; submit
2n group (customer) accept I consider; rewct
3 1" group (supplier) bid for; subml ; pUlln ; win
2" group (customer) In ite; put something out to; announce;
award
4 l' group key ; large ; leading ; maJor; !'lrinclpal
2n group external; foreign; outside; ov rseas; offshore
S 1" group lengthy; pro raded; prolon ed
2m! group unsuccessful; frUitless I unproductive
Supply chain management and logistics
1 performance I best In c1as

2 parameter I vary from the norm
4 mark I spOils he appearance
compliance I certified
5 methodology I eliminating defects
6 measures; throughou
business
7 predict I fewer mistakes
8 warranty laims I Improve
quality
Sales
Exercise 18.1
1 fancy
2 allor-made
~ rapport
4 competitive ad antag
5 scnpt
6 jargon
7 kno king
8 acknowledge
Exercise 18.2
1a
2f
3c
4g
Se
4 b
6d
7h
6 9
7 f
8b
Exercise 18.3
1 d
Exercise 18.4
Exercise 15.1
1 upstream
2 downstream
3 batches
4 warehouses
7 flag lip
S distribution entres
6 hird party logistiCS providers
8 bottlene
9 inbound
10 merchandise
11 unloadIng
12 hub and spoke
13 pallels
14 fork-lift trucks
15 track
16 stacked up
17 trailers
18 plck-and-pack
1 go ahead
6 for sale
2 up and running
3 k 0 k
olumes
8 accounts for
4 lates
5 on sale
Customer service
Exercise 19.1
1 logged
Exercise 15.2
I cargo
2 freight
2 refer upwards
5 flyer
3 commitments
4 bulk purchase
Exercise 19,2
Exercise 15.3
1 supply chain
2 finished goods
3 final customer
4 logistics proVider
5 diS ribution channel
6 forwarding agent
Exercise 15.4
2 forecasting
7 Nego iating
3 handling
4 balanCing
8 Warehousing
SLinking
Lean production
Exercise 16.1
1 idle ume
2 low
3 defects
4 rew rk
5 error-proofing
6 delivered
7 lead time
8 manpower
9 incremental
10 shine
11 tools
12 storage boxes
Exercise 16.2
1 add value
2 be Willing to pay for something
4 eliminate waste
3 deliver parts
5 make sure something doesn't appen again

7 att ch a kanban card to an item
6 perform a task
8 clean up the equipment so that It sh ines
9 error-proof a system
10 handle matenals
11 minimize Inventory
12 optimize the flow of materials
1 follow p a purchase with qUick call

2 provide a flyer
inSide every package
3 be passed from person to person
4 make speCIfic commltme IS
5 include a Ii e-lirne guaran ee
6 log details on a CRM system 7 resist he urge to argue
8 acknowledge any Inconvenience caused
Exercise 19.3
1 an initial enquiry
2 Infonmatlon
3 a quotation
4 the quotation
5 an order
6 lhe order
7 an InVOICe (with
the goods)
8 the payment
9 a complaint
10 the problem
Exercise 19.4
1 b dy posture
2 channel
4 on-screen information
5
6 pre-sales enquiry 7 bulk
8 money-back guarantee
a communication
3 common ground
preferred customers
purchase discount
satisfaction survey
10 warranty claim
Exercise 19.5
, warranty I guarantee
2 Frequently Asked Questions
3 run- round
Exercise 19.6
1 satisfaction
6 expectations
106
4 poor
1 random sampling
2 spot checks
3 zero defects
4 right first time
5 results orientation
6 continuous improvement
4 tender
Exercise 14.5
1 Ensurrng
6 Selecting
Exercise 16.4
Exercise 17.3
Exercise 14.2
1 quotation I quote
Exercise 14.4
1 offshore
2
4 delivery
9 back-of Ice
I Industrial; economy; produdlve

2 analYSIS ;lmprovemenlS
3 wasteful I exceeded
4 delivery I assembly
2 loyalty
7 profrle
3 feedback
4 survey
8 requirements
5 experience
ANSWER KEY
Promotion
Markets and marketing
Exercise 23.1
2 sponsorship
1 billboards
6 goodwill
phllan hropy
10 GPS
Exercise 20.1
~egmen s
2 gender
eers
4 urchaslng
5 pat ems of demand
6 reps
7 target
8 feasible
9 price POints
10 niche arket
11 ca alyst
12 eature
13 abel
14 elastloty of demand
Exercise 20.2
I markellng
2 promo Ion
3 adveni~ing
Exercise 23.2
1 build awareness of a new produ
2 stimulate demand b
offerin a free trial
3 ake an initial concept through to he final
advertisemen
4 place an ad In the media
5 ISSU~ a I ews release
6 keep -n ontact wi h ustomers
7 monitor how consumers
resp n to advertisements
8 push targeted ads to a mobile d vICe
4 publicity
Exercise 20.3
mark t forces {leader { price / sector / share
marketing ager cy / campaign { mix { strategy { tool
Exercise 20.4
1 market forces
4 mark'tlng tool
2 marketing mix
Exercise 23.3
1 placed / published { put / ran / took out
3 market share
Exercise 23.4
1 contest
2 coupon
3 discount
6 free product
7 loyal y program
9 trade-In
Exercise 20.S
1e
2 b
3 c
4 h
6 a
7 d
Exercise 20.6
break into: nter / open up / pene rate
ta e over: capture I corner / dominate
be forced our of be dnven out of I Withdraw from
Exercise 23.5
1 advertising
nhanced
3 catch
Exercise 21.2
1 ima e
2 manager
3 leader
4 loyalty
6 S1retchlng
7 "sSoclallOfi
8 awareness
Exercise 21.3
1 rand a\ areness
4 switch
3 PR
4 personal sellll1g
Exercise 24.2
2 take severa factors Int
1 lose sales an market share
considera ion
3 require a minimum return on your investment
4 cover the costs With sales revenue
5 gain hold In a new market
7 set the final
6 POSition yourself at the high end of he market
price that the end user pays
8 sell below cost 0 at ra customer
traffiC
5 equity
2 brand stretching
Exercise 24.3
1 prompt
2 scal {passed on
Exercise 21.5
1 Innovative
2 tully automatic
3 bUll -In
onable
5 com pac
6 rechargeabl
7 well-milde
8 state-of-theart
10 adjustable
11 easy to clean
12 optional
9 integrated
13 en rgy-efflClent
14 economical
15 recycled
6 environmentally friendly
17 reliable
18 available in a range
19 hlghperformance
20 waterproof
21 high-tech
22 shockabsorbent
23 har - earing
24 standard
25 stylish
27 user-fnendly
28 long-Iastlnq
26 limited
29 expandable
30 one-touch
Distribution (place)
Exercise 22.1
1 fee
2 retail outlet
3 mass coverage
4 ettle for
6 decor
7 keeping pace With
8 dnves down
5 layout
3 E-tailer
4 speCiality store
7 cash and carry
Exercise n.3
1 mark up
2 margin
Exercise n.4
1 slgnage
2 ag
3 merchandise
4 garment
6 checkout
7 furnishings
8 mix and match
3 channel
4 slac I sale
Exercise 24.4
Increase { raise / pu up
ower / cu {bnng down
set I establish / de ermme
negollate I nrrive at / selle on
calculate { figure out I work out
Exercise 24.5
2 low I bargalli I budget
1 hiqh {excessive I exorbitant / inflated
I reduced 3 good { allractlve / fair / reasonable 4 retail/list /
recommended / seiling
Exercise 24.6
1 set
2 held down
3 were forced to raise
4 received complaints about
5 matched
6 undercut
10 agreed to
7 re-thought
8 drop
9 freeze
4 a
Exercise 22.2
1 conventence store
2 cor er shop
5 supermarket
6 departmen store
8 franchise
4 free sample
5 free trial
8 personal Jppearance
Exercise 24.1
4 overs
3 miss out on
1 adjustable
2 revenLle
charge a premium
'I rick
5 gain a h Id
6 consisten
2 ncen Ives
11 bundle
9 markup
10 rOllil number
Exercise 21.4
1 exclUSive /IUXUry / upmarket / upscale
3 traditional
2 economy / value-f rom ney
4 bestselll 9 { favou 'te /Ieadlng
5 ell-knm n
Exercise 21.6
1 d
2 c 3 b
2 sales promotions
2 carried / publishe I ran
Price
Product
Exercise 21.1
1 complimentary
4 press kit
5 Aunts
3 coverage
8 convergence
9 traL Ing
5 deVice
Marketing management
Exercise 25.1
1 core competenCies
2 threats
3 survey
4 questionnaire
5 qualitative
6 focus groups
7 compe itive advantages
8 screening
9 breakeven point
10 beta tesllng
11 prototype
12 all cat
Exercise 25.2
1 (ost structure
2 product line
3 core competenCies
5 quantitative research
6 t u group
4 bargaining po pr
7 customer base
8 competitive advantage
9 concep developmen
10 hreak ven point
11 eta est
12 technical ImplementatIOn
Exercise 25.3
1 competitive advantage
2 bargaining power
3 core competencies
4 concep development
5 focus group
6 technical implementation
167
ANSWER KEY
Exercise 25.4
1 I k towards
2 gain
5 partlcJlar
6 large
3 treat with
Exercise 25.5
1 eSlgn
2 manufacture
b discontinu
Exercise 25.6
1 suggest the need tor
4 see he Iimita Ions of
3 launch
4 carry out
4 sell
5 upgrade
Exercise 28.5
1 on
2 In
2 put money into

3 carry a t
5 cut bac on
6 abandon
Exercise 26. ,
1 revenue
2 profit
3 th indirect om of selling a product and
runnll1 the office
4 In dlHerent places
5 amortizati n
6 gross
2 EBIr
Exercise 26.3
1 f,s(al
2 tangible assets
3 Income taxes
4 Dividends
3 rnterplay
3 guarantee
4 offset
5 satisfactory
Exercise 26.5
1 record I legitimate
2 extraordinary I excep ional
3 red I bankrupt I liqUidation
4 wntes off
5 adverse
6 accrual
Balance sheet
Exercise 27.'
lawn
2 owe
3 goodWill
4 set aSide
5 mortga e
5 for
6 back
7 thr ugh
Exercise 27.5
have: hold lawn I possess
buy. accumulate I acqUire I bUild up
sell, dispose of I reallz.e
3 perslstpnt
Exercise 29.2
Exercise 29.3
1 have a healthy cash flow

2 be well-established c pany
4 e managed on a day-to-day
3 have daily nperating expenses

baSIS
5 take advantage of a line of credit
6 see something, fr m
a strict accounting vie pain

7 ma e an initial depOSit
8 run credit checks

9 have heaVily discounted offers
10 have persistent low-paYing customers

I' negotrate extended
12 gi e an early payment discount
credit terms
Exercise 29.4
be s 01'1. of I run out of, in advan e I up front, in lows I recelp s,
InfUSion IrnJeCllon, generdte I rdis , holdln<:jS I res rYes, ODse I spare,
ne ds I reqUifemen s, payment (In full) I Sl? tlement, shortage I shortfall
Exercise 29.5
, turnover
2 delivery
3 ovprdraf
6 clear
7 squeeze
8 fulfil
4 limit
5 outstanding
tB
3 trademark
Cash flow statement

3 sums
3 9,560
3 20,{ 1100%
4 operating leverage
Exercise 30,4
Exercise 27.7
1 lie up
2 defaul S
Exercise 27.8
1 patent
2 copynght
Exercise 30.1
, 1 a 2 GOO,OOO
Exercise 30.3
1 fewer
2 more
Exercise 27.6
collect build up I incur I run up

pay back: clear I honour 1 payoff I repay I service I settle
4 deducte
4 940
5 outstandlllg
5 27,900
Exercise 28.3
I F 2 T (labour and salaries)
3 T (It'S paid in January at the
4 F (the first
start of he bUSiness, and then again in February)
utilities paymen IS In F bruary, b It the bUSiness was almost certainly
using u ilities from the tart)
5 T
6 F (the negative cash flow
IS due to bUying the Inventory that the bUSiness needs to start
trading)
7 T
8 F (the entry I~ mad for the 10l1th when the cash
IS ac ually receIved, ie February)
9 FlO T
16
Exercise 29.1
1 reassured
2 0 erdraft
4 fixed costs
5 shant a"
Exercise 30.2
1 A (advertiSing IS a fixed cost - see he text opposite)
2 B (materials is
ariable cost)
Exercise 27.4
accounts payable
Exercise 28.2
1 26.960
2 10,500
5 by
Profitability
Exercise 27.3
1 into
2 by
3 to
4 in
10 over
8 on
9 au of
Exercise 28.'
1 plan
2 iSSUing
6 capital
4 or
Exercise 26.2
Cost a go ds sold
Exercise 27.2
1 debt
2 bonds
payoff
3 as
Managing cash flow
Income statement
Exercise 26.4
1 Invest 2 boost
6 interim
Exercise 28.4
1 record something as an expens
2 pa off a credit account in lull
3 apply he same logiC 4 raise capital by Issuing new shares
5 presen information 'n il certain way
6 subtrac one figure from
anot leI'
7 buy back shares from he mar' et
8 borrow money
rom the bank
2C
3A
Financial markets
Exercise 31.1
1 fou ders
2 onds
3 exchange rate
4 speculators
5 volatility
6 underlying
7 on ehalf of
8 policyholders
9 pool
10 venture capital
11 buy-outs
12 budgetary surpluS
Exercise 31.2
bear 1 depressed I failing I w ak
oomlng I buill healthy I flSlng I stron
good I profitable I secure I sound I worthwhile
hlgh-ns I Isky I speculative
Exercise 31.3
1 go public With an IPO
2 list shares on a stoc marke
4 pay ack a loan th tnter s
3 raise capitol by iss ing bonds
5 fund short-term debt With commerCial paper'
6 manipulate
the ex(hange rate
7 hasE' short-term trends In the marke
8 buy shares on behal a a c1ien
9 support a start-up with ven ure
capital
10 take over company, then restructure It
Exercise 3'.4
1 pegs
2 props up
3 floats
4 appreCiates
Exercise 31.5
1 crude all, natural gas
2 (:ocoa, co ton
4 cattle, hogs
5 copper, iron or
Exercise 31.6
1 leverage
2 downSide rrsk
5 underlying asset
3 hedging
5 depreCiates
3 whea , soybeans
4 commodlt contracts
ANSWER KEY
Investing in stocks
Exercise 34.5
1 Incentive
Exercise 32.1
1 capital gain
2 benefit
2 Index
3 benchmark
4 outperforming
5 diversified portfolio
6 pICks
7 SWOT
8 pipeline
9 prospeds
10 barn..rs to entry
11 support
12 trading channels
13 sentiment
14 seasonalit
Exercise 34.6
Exercise 32.2
Exercise 35.1
1 union
2 enforce
1 make a dividend payment

2 quote a bid / ffer spread
3 have a diversified ortfolio
4 past performance
5 risk profile
6 growth prospects
7 (hart patterns
8 inv stor sentiment
Exercise 32.3
1 metrics
2 earnings
5 Qverpnced
3 bluff your way

4 profitability
6 share pnce
7 assets
8 capital gain
Recruitment
Exercise 33.1
1 skilise!
2 premises
3 allocate
4 qUclliflcalions
6 n..w reGulls
7 covers up (for)
8 looking throllgh
9 template
10 rappurt
11 rate
12 vacan
5 headhunting
1 on I of
2 under
3 reward
3 over
3 leave
4 norm
5 statutory
6 hygiene
7 cut corners
8 harrassment
9 bullying
'0 compensation award
11 grievance
12 address
13 appeal
14 diversity
15 precedent
16 whistie-blowlllg
Exercise 35.2
1 become the norm

2 sort something out informally
3 involve a unIon representative
4 create a precedent
5 be clear in principle 6 appeal against a deCision
7 give warnings 10 an employee
8 promote diverSity
10 enforce the rules strictly
9 address and resolve a gnevance
Exercise 35.3
1 grievance procedures
2 work-life balance
4 legal requirements
5 equal opportunities
Exercise 35.4
1 be on permanent conUact
2 re(rlli temps through an agency
3 war off he premises as a freelancer
4 allocate work in a
5 start looking elsewhere for a job
6 ask
different way
open-ended questions
7 focus on achievements rather than skills
8 keep an InterView on track
9 0 some background checks
10 draw up a short)lst of candid tes
1 statutory
2 legislation
5 inCident I accident
dismiss / fire
Exercise 33.5
1 an applicant / a candIdate
3 highlight I outline
Exercise 33.6
1 submit
2 carry out
5 thankless
6 conlract
2 classified ad I display ad
3 succeed in
4 be faced with
7 p licy
8 mindset
Exercise 33.7
considerable / e>::tensive, direct I firs -hand, relevant I appropriate,

pradlcall hands-on, prevIous I prior. limited I little
Exercise 33.8
borrng I dead-end, challengll1g I demanding, decent I worthwhile,

ideal I dream, manual I blue-collar, regular I steady
Pay and benefits

1 white-collar jobs
2 retain
3 Increments
4 pros and cons
6 resent
7 undermining
8 compliance
10 discflminaliOn
11 disability
12 fringe b nefits
5 pulling their weight

Exercise 34.2
1 compensation package
2 bargail1lng power
4 life insurance
5 minimum wage
3 IIlcentlve scheme
7 pension plan
8 end-of-year honu5
6 maternity leave
Exercise 34.3
1 retirement
omplaint I daim
1 cause for concern

2 alleged breach of rlisclpilne
5 suspen
3 mItigating ircumstances
4 redeploymen
6 heanllg
Your background and career

Exercise 36.1
1 grades
2 extracurricular activities
3 dropped out
4 grant
5 degree 6 tntern 7 vocational 8 staYing on
9 graduating
10 hectiC
11 burnt out
12 gav in my notice
13 backpacked
14 setLIe down
15 acancy
Exercise 36.2
1
3
5
7
8
gel a place at university

2 drop out af1er a fe month~
work YOllr way through college
4 spend a year as an Intern
be short-II ted for a Job
6 be promoted to Senior Analyst
register witll an online agency
find a acancy almost immedldtely
Exercise 36.3
4 ./
Exercise 36.4
1 make / oncentrate on
5
4 promising I ladder
2 break I ake off

3 move I be over
hosen / opportunities
Exercise 36.5
1 was working
2 had Just finishe
3 was writin
4 got
6 hadn't contacted
7 waited
8 wa listening
9 called
10 were waiting
11 had alread found out
12 wanted
5 was
Exercise 34.1
9 mandatory
3 regulation
3 healH, and safe y

6 gross misconduct
Exercise 35.5
Exercise 33.3
Exercise 33.4
5 for
Issues in the workplace
Exercise 33.2
employ / aPPoll1t / hire / recruit I take on

dismiSS I fire Ilay off I make redundant I terminate
hand in your notice I qLlitl resign I stand down
4 Into
2 life insurance
3 pension
Exercise 34.4
I ag
2 salary
3 Income
4 rE'muneration
5 overtime
6 commiSSion
7 royalty
8 bonus
9 weighting
10 perk
Your company
Exercise 37.1
1 milestones
2 restructuring
3 mark t capitalization
5 overview
6 competitive advantages
7 tailored
4 subSidiaries
8 overall
9 shnllki 9
10 product pipeline
1 I morale
12 commitment
13 market saturation
14 shortage
Exercise 37.2
1 m rket share
2 product range
3 il standard product
4 sooal trends
5 R&D
6 SWOT analySIS
7 distribution network
10 annual turnover
8 cost advantages
9 substitute products
Exercise 37.3
1 business model
2 affordable
3 founder
4 Industry standard
6 consumer tastes
7 prime locations
9 Income
10 contmued xpanslon
5 state-ofthe- rt
8 turnov r
ANSWER KEY
Your job
Exercise 38.1
I track record
2 draw up
6 number crunching
Telephoning - checking, clarifying, active

listening
3 oversee
4 ~Ign off
5 liaise
Exercise 38.2
, challenging I demanding
2 my boss I my line manager
3 colleague I cowor er
4 Opposite number I counterpart
Exercise 38.3
2 c
, b
'1
Exercise 38.4
1 make Initial ontad with a client 2 ta a ack sea for a while
3 oversee the whole process
4 handle Incoming calls
5 keep on top of the ftling
6 be on first-name terms
Exercise 38.5
1 for
2 i
3 in
4 for
5 to
6 ilt
7 wIth
8 to
9 in
10 ilh
1'I of
12 on
13 on I from home
14 out of work I off work
15 work I get 0 I at
16 checking
Exercise 38.6
1,1
2;<
3,1
4;<
5,1
Telephoning - making and taking calls
c are more polite, ancl b is more
3 anything
4 calling
Exercise 40.4
3 a
4 thlnkl g of
if yo don' mind
I 2 tw blocks away
Exercise 42.3
apPointment
4 j
6 I
7 f
8 i
9 d
10 k
2 f
3 I
12 i
Exercise 43.2
, lb
2 5k
4 h
3 10c
6 9
4 31
5 12i
8 d
9 I
10
6 7a
Exercise 43,3
, Can yOll leave It With me?
2 I'll look into it.
4 I understand how you feel
3 I'll get back 10 you this afternoon
5 I need to heck at this end.
6 I do apologize once more.
7 I'm sure we can 50rt It out.
8 What exactly IS the problem]
9 Sorry a ain for any Inconvenience his has caused
10 I'll send
a repl<lcement immediately.
11 I'll make sure the Ilems are sent
to you.
12 I've had a word With the warehouse,
fxercise 43.4
1 I thlllk there may be an Issue with our suppliers.
2 It's not gOing
to be easy to send a technician loda
3 There might be a ~hort
delay while we process the new order,
4 There seems to be a small
problen With the invoice.
5 I need to just have a quick word wi h
6 Wouldn't It be easier for you if
my level two supervisor abou this.
we Simply Issued a new InVOice'
Exercise 43,5
100 into I sort ou I ge back to
170
4 Exactly. (or That's nghU
Telephoning - arranging a meeting
1 b
11 e
Exercise 40.3
1 Hold on a mompnl I'll JUst check
2 Right, S rry to keep you
alting
3 I'm sorry but she's on maternity leave.
4 She's not
at her desk at the moment.
5 Do you know how long he'll be?
6 What's it in connection with'
7 Can y u ask him 10 call me back!
8 I'll make sure she gets the messa e
12 g
3 Ha- she?
Exercise 43.1
Telephoning - messages
2 h
Exercise 41.4
1 Great l 2 Vietnam I
5 So hat did you tiol
Telephoning - complaints
Exercise 40.1
1 speak I to
2 for
3 bear I With
4 must I In
5 need
7 make I of
8 in
9 out of
10 leave
11 let
6 call I back
12 for
13 on
14 ask
15 ma e
16 put I on
I 7 on
18 read I back
11 e
5 hold on
Exercise 42.2
3 look
4 can't make It
lover there
2 for the tme of year
5 come up
6 These thing happen
7 reschedule
8 stili open
1 I fits my plan,
1:Z 'II
9 would be good
10 sorry again
Exercise 39.6
laic
2b/d
1 c
4 go over
Exercise 42.1
I thlS is
2 r eet up
3 a little are depth
5 suit you
6 shal! w say
7 sounds flOe
9 Instead
lObe my quest' 11 by the way
Exercise 39.4
1 How can I help you?

2 I'd like to speak
3 Can I have your name, please?

4 It's
5 hoi
6 Glanfranco speaking
7 ask I about
8 can
Exercise 40.2
1 as
2 that
3 breaking up
Exercise 41.3
1 Right I 1see I Sure,
2 Yuh I Mhrn I Uh-huh
3 Exactly
4 That's fight
5 Great l
6 That's wonderful I
7 Did yOU!
8 Has she?
Half a million eurosl
10 Vietnam!
\1 And why was that?
12 So what did you do?
call back later?
Exercise 39.3
1 I was Just calling to see if everything's OK for Friday,
2 I wanted to ask you d question about Simon
3 I thought you might be interested In Ihi
Exercise 39.5
1 T (although in lheory a an
2 F 3 T
informal)
Exercise 41.2
1 cut off
2 sp ak up
6 gel throu9h
Exercise 41.5
1 I'll ha e to stop there I have \omeone wailing to see me
2 It's been nice talklllg t you And I'll st'nd the details you wanted
by email Bye.
3 Anyway I won't keep you any longer, I'm sure
yo 're busy
4 15 there anything else I can help you with today'
Exercise 39.1
1 his / spea Ing

2 nICe I hear
3 good lime I middle
4 close / down
5 reason / because
6 thought I might
7 get I back I to
8 leave I With
9 apprecia e
Exercise 39.2
1 Do you have a second?

2 Do you want me t
3 Are ou usy right now?
Exercise 41.1
2 You keep breaklOg up,
3 I dl n't
1 I 's a really ba line
catch thaI.
4 We got cut off.
5 Thanks for letting me know
7 Can you speak up a blt7
8 I II lust go
6 I have to go now
outside.
9 Can you hear me now)
10 What exactly do you mean
by.?
11 Let me Illst che,k that I understand,
12 Are yo saying
that
13 My battery IS very low
14 We're gOing to get cut
off
15 I'll give you a call tomorrow
16 Thilnks for calling,
ANSWER KEY
Emails - commercial
Telephoning - review
Exercise 44.1
1 in / WltI'
2 trom
3 for
4 on
5 out of
6 on
7 back
8 In
9 back
10 over
11 WI h !for
12 up
13 P
14 off
15 for
16 of
17 with
18 into / back
19 on
20 by
Exercise 47.1
1 stand
2 brochure / speCJflcation / range
3 partICular / SUitable
4 draw / illtention
5 mean ime / hesita e / direct line
6 Following / attached
7 delivered / latest
8 conditions / terms
9 shiPPing / inVOices 10 acknowledge
Exercise 44.2
1
2c
3q
Exercise 47,2
1 PO
2 DT
P
10 DT
4b
5e
6a
8h
Exercise 44.3
1 Just bear with me.

2 Shall I put you through to
3 Spea ing.
4 Would you like to leave a message?

5 Sorry, I didn't catch that.
5 Let me JUSt read that back to you

7 Exactly.
I'll ask her to
call you back.
Exercise 44.4
1 I'd like to speak

2 while I try to connect yOll
3 How nice to
hear from y u
4 How are things in Athens
5 is this a good time
6 Jus give me a momen

7 Go ahead
8 The reason
to tal
I'm calling is
9 I thought you might be
10 Of course
11 Le m Just check (that) I understand

12 an I Just go over that
13 III get back to you

14 Is there anything else
again
15 thank for ailing
16 It' been nice talking to you, too
Exercise 44.5
lB
2C
3D
10 D
11 C
48
SC
6A
78
8B
9A
12 A
Emails - basics
Exercise 45,1
1 I'm writing with regard to
2 Pleas feel free to contact me if
3 I look torward to heanng from you.
4 Thank you very much for
5 If I can offer any further assistilnce, please.
sending your CV
6 I hope you're well
7 This IS lust a quic.k note to .
8 I was wondenng If you could help m
9 I'd really appreciate IL
10 Grea to hear from yo again.
11 Shall I end you a copy of ... 7
Exercise 45,2
First email. Reason for wnting / Body of email/Final comments /
Friendly close
Second email: PrevIous contact / Body of email / Final comments
Third email: Fnendly open / Reason for wntlng / Request (or Body of
email) / Fnendly close I Final comments
Fourth email Fnendl open / Body of email/Offer help / Friendly lose
Exercise 45,3
1 great pleasure
2 very Impressed
3 with regard
4 useful discussion
5 wondering If
6 grateful fo
7 hearing from
8 As req ested
9 an ilttachment
10 relation to 11 don't he Itate 12 further assistance
13 re
14 Please
15 get back
16 Do you want
Emails - internal communication

Exercise 46.1
2 quick note / remind / Please
1 say / 'II
3 let / know I advance / c -operation
Exercise 46.2
1 here's / attached
l! Let / know / else
:2 Unfortunately / Significantly
5 Shall 6 Get b ck
3 want / to
Exercise 46.3
2 I'm sure you ill be pleased to
1 I'm pleased to tell you hat.
3 I waul also like to take the opportunity to tell you
h ar that
abou
4 Would all talf please note that
5 I thought you'd
be interested t know that
6 I would like a thank you all for
your valuable contribution.
7 Thanks again for ali your help. I really
8 I'm ve grateful for everything you ha e done
appreciate it
Exercise 46.4
1c
2d
3b
Exercise 46,5
Email 1. 1c + 8e
Email 2 2d ~ 6g
Email 3' 4a + Sh
Email 4: 3b + 7f
4a
5h
6g
7f
8e
3 PR
4 P
11 PR
12 P
5 PO
r
PR
7 PO
8 PR
13 PO
14 P
15 P
Exercise 47.3
1 if you have any further questions
2 I'm onfident that we can
supply
3 I also notice that you can personalize
4 I would be
happy a make a sample
5 we do offer quantity discounts
6 I have been looking at your webSite
7 I can find no mention
of discounts
8 you need to set up a trade account
Exercise 47.4
1 I ave been looking at your website
2 I also notice hal you Cdn
personalize
3 I can find no mention at discounts
4 I'm confident
hat we can supply
5 We do offer quantity dIscounts
6 you need to se ufl a trade account
7 I would be happy to
make a sample
8 If you have any further questions
Emails - customer issues

Exercise 48.1
1 I'm sorry to tell yo that I have to pos pone our meeting nex week
2 Once again, pleasE' ace pt my sincere apologies for any
Inconvemence cause I
3 I'm pleased to Tell you thaI the Hems you
ordere are now in stock. We Will be shipping your order toda .
4 I can assure you that we're dOing everything posslbie to resolve thiS
Issue as quickly as pOSSible
5 You Will be pleased to hear that we're
extending our online sale for another week.
6 I've talked to the staff
involved and I'm confident lh<lt our procedures ar robus and worklnq
prop rly.
7 We regret to Inform yo Iha
e cannol process your
order due to a large outstanding balance on your account.
8 Thank you ery much f r bnnglng this matter to my attention
Exercise 48.2
a) 3 / 5
b) 1 / 7
c) 4 / 6
d) 2 / 8
Exercise 48.3
1 reference
2 stili
3 delivery
4 assured
5 shipped
6 inconvenience
7 sales
8 Inslsl
9 attention
10 satisfactory
11 forced
12 long-term
Exercise 48,4
I was very concerned to learn aboul the Stllate delivery of he partS
wfu:rt you ordered from us

I have been spoken to our STaff in If,e packing department and I'm too
confident that the goods lef here last eek. I can only assume it that
there is an issue With the courier
I will contact WIth them personally and rna e lire that they resolve ffl _
this ma lter today.
Once again, fllease accept t;ftat my sincere apologies for any
inconvenience aused yett
Should you have any setfle questions, please do not heSitate to contact
me.
Emails - arranging a visit

Exercise 49.1
ld
211
3
4a
5g
5e
Exercise 49.2
1 111 / in
2 off I for
3 on / from / 10
7 at
8 for / at / With
8b
4 at / on
5 in
6 at
Exercise 49.3
1 lose
2 be annul/e
Exercise 49.4
dropped me off / chec -In / t'xcess baggage charge / through / queue /
ga e / ru h / board / turbulence / touched down / picked / rank / stuck /
riP me off / receipt / early rllght
171
ANSWER KEY
Exercise 49.5
1 freeway
2 eXit
7 Turn
8 past
13 follow
14 for
Presentations - closing and questions

3 slgnposted
4 on
5 for
5 miss
do. n
10 blocks
12 main
11 on
15 on
Emails - review
Exercise 50.1
1 feel I ontact
2 Shall
3 wonder
4 offer I hesitate
5 remind
6 know I do
7 would I take
8 appreciate
9 ote
10 postpone
11
el ome I discuss
12 send
13 take I resolve
14 notice
15 assure
16 offer
17 Insist
18 click
20 accept
19 acknowledge
Exercise 50.2
a) 5 I 7 I 9
b) 3 I 8
c) 2 I 10
d) I 14 I 6
e) 14
) 11 I 16 I 18
g 12 I 19 h) 13 I 17 i) 15 I 20
5
14 k
6 d
9 j
10 I
Exercise 50.6
1 gOing
2 wondering
3 equested
4 cause
5 FollOWing
10 concerned
6 dom
7 made
8 hearing
9 uSing
11 getting
12 buying
13 at ached
14 forwarded
Presentations - opening
Exercise 51.1
1 On behalf 0 BeC I'd Ilk to.
2 Can everyone ee at the ba )
3 J st a few words about myself
4 I'm in char e of public relation
5 I'd like to show you.
I'll tal about our market and how.
7 I'll mo e on to discuss ustomlzatton
8 We focus on tallonng a r
9 I'll give y u a little technical background
10 Let's
produ
begin Wit his first slide
Exercise 51.3
1h
2
3i
11 f
12 I
Exercise 51.4
1 dt cuss
2 give
bnng
8 take
4 b
5 f
;, g
4g
Sc
6J
3 show
10 make
7 a
7a
8d
9k
"lOb
Exercise 52.1
1 leads
2 mentioned
3 ome back
4 digress
5 I more detail
6 concrete example
7 fa us on
8 stress
9 As I can see
10 highlight
11 What IS
12 rei te I context
3 notice
6 emphasize
Exercise 52.3
1 As the Wind passes over these II they act like airfoils II and thiS
generates lif /I and turns the structure as a hole.
2 It's more
eff!Clen in terms of energy production, and it's also more stable with
its solid base.
-.,
] 1
d) 3 I 12
e) 7 I 13
Exercise 54.3
1 went up I gone up
2 grew I grown
3 rose I nsen
5 gro th
6 expansion
7 contraction
fell I fallen
8 I provement
r covery
10 vanallon
11 half
12 eterioration
Exercise 54.4
1 rapid
2 gradual
5 slight
7 e cellent
3 sluggish
4 enormous
5 moderate
9 dlsappoin Ing
8 ~ncouraglng
Exercise 54.5
I slow growth
2 significant rise
3 rapid detenoration
4 slight improvement
5 consldera I vana Ion
Exercise 54.6
1 from
2 of
3 0
5 in
Exercise 54.7
1 have seen
2 is causin
5 had already begun
3 will
5 at
4 was
ring
5 were riSing
Presentations - trends II
Presentations - main body
Exercise 52.4
2 talk about
1 move on to
5 take a look at
6 explain
10 focus on
c) 5 I 10
Exercise 54.2
1 boom I crash
2 double lilaive
3 dge up I dip
4 grow I shrink
5 improve I deteriorate
6 peak I hit a low
7 stay the same I vary
8 se I fall
8 d
4 talk
5 report
6 look
11 outline
12 deal
Exercise 52.2
1 have a look
2 highlight wo things
4 you can see h w
own view
5
7 at thiS point
8 let's 00
Exercise 53.3
a) 1 I 8
b) 2 I 5 I 11 I 14
f) 4/9
Exercise 54.1
, grow I expan
2 fall I rep
3 improve I recover
4 stay the same I be stable
5 move higher I nse
6 level ofi I stabilize
7 shrink I contract
8 edge down I dip
Exercise 50.5
1 with I to
2 In I to
3 for
4 for
5 back I to
5 on lover
7 in
8 all in
9 In I for
10 about I from
11 In
12 for lof
13 y I at
14 on
15 with
Exercise 51.2
2 e
3 h
1 c
Exercise 53.2
2 explain
3 expenenced
4 for
5 opinion
1 pOint
6 catch
7 sc pe / af erwards
8 glad
9 on
10 ust I come
1 spedfic
12 comment
13 hand I back
14 correctly
Presentations - trends I
Exercise 503
1 note
remind
3 finalized
4 attached
5 event
6 attend
7 get back
8 co-operation
9 re
10 put
11 CJr ulate
12 make sure
13 tell
14 done
Exercise 50.4
1 e
2 h
3 9
4
11 f
12 b
13 m
Exercise 53.1
1 that covers everything
2 the next teps
3 look at some ptlon
4 there IS the option to
5 ge erated a 10 of diSCUSSion
6 may be force
7 oul Ie d 0
8 some diffi ult decisions
our job is to consider
10 give the floor
4 tur my attention to
3 deal with
mention
7 cover
8 consider
Exercise 55.1
1 Because Qf our
2 Because cl we cu
3 due!Q our
Increase
4 a result Qf our
5 resulted 10 a significant
5 resulted ef from diffICult
7 ~ it fell
8 Moreover
hey
9 In spite Qf th fact that
10 Despite we delaytn
Exercise 55.2
1 due to
2 e' en though
5 However
5 Moreover
Exercise 55.3
1
2 a
3
3 In spi e of
4 as
result
5 b
Exercise 55.4
1 aXIs
2 highlight
3 reache a peak
4 have b en tla
8 mor rapidly
5 slight increase
5 NotICe
7 In line with
10 while
11 implica ions
12 Although
9 roughly
13 highly likely
14 lead to
Presentations - review
Exercise 56.1
lb
11 P
19 s
2g
12 k
20 a
3h
4 d
13 m
5 a
14 r
6 c
15 t
7 f
16 I
8 e
17 q
J
18 n
10 i
ANSWER KEY
Exercise 56.2
1 I've dl Ided my talk mto three mam parts
2 If you have any
3 Let'~ examine this In more
questions, lease feel free to interrupt.
detail.
4 Just to digress for a momen ,
5 OK, that's all I want
to say about tl e first pint.
6 Let's move on to the second pOint.
7 My own view on this IS ...
8 As you can see on this next slide, .
9 What IS the reason for this) The reason I
10 Let me explain
with a concrete example.
1 I I began by tellmg yo a httf about
Then I explallled ho
After that I talke about
12 Thank you
all for commg and I hope iI's been u eful
Exercise 56.3
1 at / about
2 into
7 on
8 on
9 on
3 wi h
4 on to
10 in/of
11 for
5 to
back to
12 in/In
Exercise 56.4
1 start / Introducing
2 digress / moment
3 useful/background
4 examine / detail
5 xplain / concrete
6 highlight / diagram
7 anyone / comments
8 brings / end
9 explain / again
10 question / opllllon
11 scope / afterwards
12 time / questIOn
Exercise 56.5
1 Notice
2 axis
3 units
4 draw
5 rose
6 steadily
7 have continued
8 Ithough
steady
10 growth
11 due to
12 Even so
13 on
4 over
15 to
16 figure
17 look at
18 took off
19 were really looking good
20 had done
21 However
22 has been
23 sudden
24 drop
25 reasons
26 about
27 comments
28 highly
29 lik Iy
30 by
Meetings - opinions
Exercise 57.1
1 what
2 in mind
3 seems to me
4 my POint of view
5 I agree
6 You're I igh
7 up to a point
8 you mean
10 about
9 may
Exercise 57.2
1 However
2 Actually
3 Luckily
4 Obvlou Iy
5 In general
6 The pOint is
7 Basically
8 By he way
9 In my opmion
10 In short
Exercise 57.3
1 Strong disagreement
2 Polite disagreement
3 Not grammaucally possible
Exercise 57.4
1 Really? Do you think so)
sony, that's not ho N I see it.
2 I'm not so ure out that.

3 I'm
4 I really an't agree with you there.
Exercise 57.5
1b
2 c
3 a
4 g
5 d
6 f
7 e
Meetings - making things clear

Exercise 58.1
1 mi5sed / say
2 clear J saying
3 how much / say
4 arrive / figure
5 exactly / mean
6 Correct / wrong
9 explained / c1earl
7 allow / explain
8 little / speCIfic
10 finish / pOint
Exercise 58.2
1 undE'rstand / explain
2 through
3 over
4 slight misunderstandmg
5 put / way
6 come In
Exercise 58.3
1 what
2 how long
3 when
4 how often
6 which
7 how much
8 where
Exercise 59.2
10K, let's do that.
2 What about
3 That's a complete waste
of time.
4 Why don't we .7
5 Yes. lhal would work really
well.
6 Shall we .. '
7 That sounds like a good idea.
8 Can I
make a su gestlon)
9 I can se one or two problems With that.
10 I'm not really sure about lhal
11 That might be worth trying
12 I don't thlllk it wouJd work in practice.
Exercise 59.3
a) 2 /4/ 6 /8
Exercise 59.4
1 a problem
b) 1 / 5/ 7 / 11
2 a solution
Exercise 59.5
1 are faced With
5 come up with
3 a
c) 3 19 / 10 / 12
~uggestlon
4 a deCISion
2 tackle
3 figure out
4 work towards
6 lends ~ eight to
7 implement
8 lies behind
Meetings - leading a meeting

Exercise 60.1
1 RighI/start
2 III/apologies
3 housekeeping I begin
4 bathroom / hall
5 copy / agenda
6 take / millutes
7 say / word.s
8 background / useful
9 agenda / get hrough
10 brief / pomt
11 straight / item
\ 2 kick / off
Exercise 60.2
1 agenda
2 mllllJtes
3 get through
4 Item
5 kICk off
Exercise 60.3
1 AmE
2 BrE
Exercise 60.4
, I think we can stop there.
2 I'd like to sum up.
3 There are
three main conclusions.
.:I In tE-rms of aclron pOints,
5 Ar
there any other pOlllts)
6 Have I missed anything?
7 I think it
was a very useful meeting.
8 I'll circulate the minutes.
9 an we
fix a date now?
lOan I Just have a quic word WI h you)
Exercise 60.5
1 Could you just hang on a moment please)
2 One at a time,
4 Can we come
please.
3 Let' leave lhat aside for the moment.
5 I think we need to look at thiS in more detail
back to this later)
7 Is there anything
6 We need to analyze thiS In a little more depth.
else we should c nsider)
8 What other ways are there to approach
this)
9 Can we go round the table to see If everyone agrees?
10 Let's go over whal we've discussed 0 far
Meetings - negotiating I
Exercise 61.1
1 business
2 exactly
6 fleXible
7 delivery
11 quoted
12 match
3 priori tie
4 mean
5 trust
8 mlllimurn
9 concern
10 timescale
13 reasonable
14 guarantee
Exercise 61.2
kind of / sort of / discoun / timescale / thinking of Ilalking about /
looking at
Exercise 61.3
1 quite high
2 were you expecting
3 omethlng around
4 s andard for this market
5 a little low
6 such large discounts
8 have in mind
9 production schedule
7 $0 long
10 terms of payment
11 pre-payment
12 regular customers
5 who
Meetings - problem-solving
Exercise 59.1
1 several/deal With
2 open up / views
3 suppose / fight
4 sounds / work in practice
5 pro / ons
6 On the one hand /
on the other hand
7 make a suggestion / In tead / why don't
8 implications
9 eneral / although
10 best way forward
173
ANSWER KEY
Adriana reformulates
Meetings - negotiating II
Exercise 62.1
1 minimum order
2 viable I cost-effective I run
3 pre-payment /
Irst Ime
4 upfront
5 'III advance / balance I delivery I cash flow
6 au hority / by myself
Exercise 62.1
viable
2 up rant
5 c
e) 8
6 9
f) 1 /9
7 h
of course
The chair summarizes

go over / so far
Camilie speaks
The chair checks agreement
go round the table I move on
After some time, rhe chair doses the meeting

inpul / useful I fix tile time I ha e a qUick
Meetings - diplomatic language

Exercise 63.1
al 13
b) 4 I 13
c) 8
d)
h) 4/6 17
I) 1 12
J) 10
Camtile repears
Absolutely I action pOints
Exercise 62.5
3a details I 1d deadline I 4b concessi n I 2c compromise
b st way forward
un through
Exercise 62.4
2c order I 4b dlscoun / 3a proposal I 1d deal
leave that aSide / relevant
Camille suggests the next steps

The cflalr as s for repetition
3 balance
Exercise 62.3
1 prefer larder
2 prepared I terms
3 have / mind
4 accepl I condllion
5 willing I compromise
6 should I possible
7 sounds / reasonable
8 moment / review
9 through I far
10 go I sage
11 close I deal
12 Justl sl9n
Exercise 63.2
1 e
2 a
3 j
let me put It another way
The chair keeps the discussion movmg
g) 12
8 f
C)
10
Exercise 63.3
1 There's Ju~t one thing I'd like t add
2 To be honest, tllat
auld be very ditficult.
3 It seems to me that you're being a little
optimistic.
4 Wouldn't It be better to use rail transport?
6 I think it might be better
5 Actually, Ihis line is not ery profit ble
to ledve that point until later,
Exercise 63.4
1 If we order~ 5,000 pieces, what sort of discount mu!Q yOll give)
2 If yOl Q2id 50% In advance, we would give you generous terms for
the remaining 501<
Meetings - review
Exercise 64.3
1 Thal might be qUite expensive.
2 We would want a Ignificantly
larger discount.
3 There's just one thing I'd like to clarify
4 Wouldn't it be beller to ~p"t the order into we con~lgnments)
5 I'm not totally can inced by lills estimate
6 I understood we
could have ttle products on a trial baSIS,
7 What sort of quantity
were you thinking 017
8 Unfortunately, it may not be very easy to
rrange tilal
9 W 're having one or two Issues at all( factory right
now
10 To be honest. we were expecting a two-year warranty,
1I It seems to me that your new range is more or less the same as
your old range.
12 Wouldn't it be easier to pay a little more and
ship the goods by Air Express?
Business reports and proposals - reports I
Exercise 64.1
The chair opens the meeting

Right I thanks for coming / sends Ilis apologies / housek~eping I short
break / copy of the agenda I take the minutes / straight I item / k/c off
Marek presents ome alternatives
Exercise 65.1
1 ex cu\lve summary
4 recommendations
8 terms of reference
deal With this Issue I pros and con / option I favour / al hough
Exercise 65.2
1 f
2 n
3 b
4 q
5 )
11 h
12 g
13 P
14 a
The chair asks Camille for her reactions

field I have some experience
Camille speaks
come in
The chair blocks the interruptloll
Just let I II1lsh I corne back
Camille continues
Correct / wrong I seems
Marek corrects rhe misunderstanding
e pial ned myself clearly I meant / trying I matter of fact
Adnana makes a suggestion
Just an Idea / Ins ead
Marek rejects the suggestion
sounds I work In practICe I pOint
The chair widen". the discussion
approach I anything else / conSider
Camille gives an opinion
point of iew
The chair reacts
2 findings
3 c ver page
5 conten s
6 procedure
7 appendiX
9 conclUSions
10 acknowledgements
6 e
15 k
7 m
16 0
8 I
17 r
i
10 c
18 d
Business reports and proposals - reports \I
up to a pOint I true / rying to say I put it simply
arek interrupts
ord
Exercise 64.2
1 get do n
2 are yo lookll1g
3 rillght be able
4 did you have
5 Instead of
6 are we talking
8 upfront
9 really not sure
7 a Viable option
10 moving forward
11 are you happy
12 be prepared
13 soumis reasonable
14 have a dea I
Exercise 66.1
c
Exercise 66.2
1 this solution
4 anywhere
2 share I collaborate
3 central resource
Exercise 66.3
1 conSIderable I are expected to
2 tend to I might not be
3 At the earliest possible opportunity / a production planning meetll1g
4 qUite poor I may be
5 relatlvel I financial resources
6 It is pOSSible that I obtained
7 IS likely to be I consequences
8 many p ople are / typically leads to
9 arising from / presented
10 numerous I encouraging
Exercise 66.4
1 The same strategy can be used
these changes willl.>e considere
be emphaSized
2 the enVlfonmental impac of

3 can only be done
4 should
carefull / implications I On lhe one hand
Adnana focuses the discussion
analyze / little / uepth I tend
Marek asks for clarification
entloned I specific
174
Business reports and proposals - proposals I

Exercise 67.1
1 scope
2 Gantt chart
5 testimonials
6 fee
3 deliverables
4 state-ofthe-an
ANSWER KEY
Exercise 67.2
Compliance:
1 cut I shorten
2 position I leading player
3 secondary
4 conduct I survey
5 in-depth
6 extensl e I field
7 remain ing I absorbed
8 cost-effective manner
9 long-lasting
10 established I share
We propose to con uet a review 0 your store to see how Closed

Circuit TeleVISion (CCTY) cameras coul be used most effectively, and
then complete the Installation of the sy tem.
Exercise 67.3
1b
2b
3b
4b
4 c
Exercise 67.4
1 b
2 d
Business reports and proposals - proposals II

Exercise 68.1
1 reduce bad debt

2 outsource 0 remove fixed costs from the
payroll
3 increase Ihe absolute value of each transaction
4 enhance job performance
5 reduce turnover among key statf
members
6 enhance mamlalnablll y
I comply with regulatory
8 conform to speCifIC q IIty methodology
standards
9 preserve the value of legacy systems
10 reduce downtime
11 Implement the most proven approach
12 address h alth
and safety issues
competenoes
13 ilvoiclilability concerns
14 focus on core
Compliance ./ (fir>! and third sentences of 'Action Plan and

Deliverables')
Capabilities ./ (first two sentences of 'Custom Computing: special
expertise'; second sentence of 'ACtIon Plan a d Dellverables'; fourth
sentence of 'Conclusion')
Value./ (third sentence f 'Cu tom Computing: special expertise')
Business reports and proposals - linking

words
Exercise 69.1
2 h
3 a
4 g
5 c
6 b
7 f
8 j
9 e
10 i
Exercise 69.2
1 Ie
2 eg
3 In fad
8 Clearly
4 In general
5 Therefore
Deliverables for thiS project will include.

App oXlmately 30 CTV cameras, With two aSSOCiated monitors at
the central desk, all f lIy IIlStalied and checked
All additIOnal matenals such as cables etc.
Capabilities .
Our approach is based on our twenty years' experience OT prOViding
security solutions in the letail sector
We have run thiS program successfully in ove sixty locations.
W will assign to this project the follOWing team
An in-store security expe t. Mr Bob Parker, who has over ten years'
perience in this field and previously worked for he police.
Four qualified electricians.
A Irainer. Ms Beatnce Sterne. member of the Instl ute of Training.
See the figures In he attach;d case study. which describes a very
Similar proiect that we carried out last year
1 Regarding
2 Clearly
3 In particular
4 In fact
5 Moreover
6 On Ihe whole
7 However
8 Secondly
9 for example
10 So
11
herea.
12 On ba ance
Business reports and proposals - review

Exercise 70.1
1 This report was comm sSloned by Hans Oberlander, CEO of the AUla
3 all market
4 In particular
5 steadily
Corporauan
2 aim
6 signiflCan
7 On the demand side
8 research shows
9 are Ii ely to
10 an impact
11 ~u h a
12 diS ppoinling
13 market rese rell ompan
14 carry out
15 concern
16 typICally
17 are unable to go very fast
18 findll1gs
19 following
20 Increasingly
21 trend
22 due to
23 main
24 paying more attention to
25 fmanCial resources
uerclse 7U.1.
You want 0 do hiS in a cost-effective way.

A speCial report on how to manage security personnel, particularly with
regard to always keepll1g their attentio on the job,
Exercise 69.4
We will harge a lotal fee of 2 54,OOO f r thiS project This indudes all
the items referred to above, with no hidden extras.
Based on tile figures you prOVided us and on Information obtained
from prevIous assignments we have carried out, we estimate that thiS
system will pay for itself ithin eighteen months
In addition, th system Will help prOVide a safer enVlfonmen for
shoppers. When they see the cameras they will feel les
orried about
dangers such as leaVing heir bags unattended on the floor while they
I ok at clothes. This safer e vironment is lIkely to lead to shoppers
spending more time Inside Fashion Superstore and therefore spending
more money
Compliance Capabilities Value
Understanding your stock losses
./
Key aoals
./
Project scope
./
Implementation and
deliverables
./
./
./
./
Staffing
./
Fees
./
Conclusion
A limetable for t he different phase of he project is Include as an

appendix. We estimate that the total time required for this project is
wo wee s.
Value
Exercise 69.3
'Moreover
2 In contrast
7 Overall
6 In particular
The plOje t will Include the following activities;

Identify the best locations for CCTV cameras and Install the carneras,
Identify the est location for a centIal secunty desk, With the
monitors and a isible presence of secuflly personnel.
We recommend that you contract our company to install a C

system inSide Fashion Superstore, This system will dramatically reduce
our losses due to shoplif1ing,
Exercise 68.2
1 d
Your goal IS to reduce shoplifting by Installing wall-mounted cameras

Inside your store, and to have thes linked to mOllitors at a central
security desk.
.I
.I
./
./
173
ANSWER KEY
Interviews
Interview with a private equity investor
1 equity I debt
2 build up I brE:'ak down
4 players I lawyers I tax
3 eXit
Interview with an entrepreneur

1
3
4
6
8
poor
2 risk-takers
have good instincts about other people
5 ork alongSide employees
don't go to
7 need a goo team behind them
get bored qUICkly
difficult

1
2
3
4
5
a test for numerical an problem-solving skills

an interview with an HR manager with normal Job-related questions
lunch, where social skills are ob erved
a roleplay exerCise to es managemen skills
a teamwork test where a group of eople discuss a scenario and
choose the best Idea
6 a report writing exerCISe
Interview with a supply chain manager

1 F (first tier supplier and second tier supplier are reversed)
2T
3F
4T

See scnpt
Interview with a marketing director

Product b
Price b
Place b
Promotion b

1 receivable
2 overdraft
3 cash flow
6 variance
7 governance
5 inVOices
4 sheet
8 auditors
Interview with a human resources director

Ic
176
2b
3c

Business Vocabulary

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Business Vocabulary

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The Macmi an Business Grammar

and Vocabulary Series

MaCl'T1ll1an fdur al'o ,

ublsters lin ted 2009

Autl 01 's ad,no ledgt'mel1~

PlIr ~d and bou d 111 Hong KOl1g

2013 2012 2011 201 2009

The words & phrases you need to succeed

The business cycle

Setting up and growing a business

Company types and corporate governance

Global issues for the 21st century

Management styles and qualities

Organizing time and work

Planning and setting objectives

Insurance and risk management

14 Procurement and purchasing

15 Supply chain management and logistics

34 Pay and benefits

35 Issues in the workplace

10 Leading and motivating

36 Your background and career

39 Telephoning making and taking calls

Telephoning checking, clarifying, active

42 Telephoning arranging a meeting

46 Emails - internal communication

20 Markets and marketing

Pre enta ion

52 Presentations main body

53 Presentations closing and questions

28 Cash flow statement

29 Managing cash flow

48 Emails - customer issues

49 Emails - arranging a visit

58 Meetings - making things clear

Interviews wi h business people

60 Meetings - leading a meeting

63 Meetings - diplomatic language

Business reports and proposals

66 Business I"eports and pmposals - reports II

Business reports and pl"oposals - proposals I

68 Business reports and pl"oposals - proposals II 140

69 Business reports and proposals -

70 Business reports and proposals - review

Interviews with busi ess p ople. exercises

Interview with an entr preneur

Interview with a management trainee

InterView with a supply chain manager

Interview with a sales manager

Interview with a finance director

!nte iew with a human resources director

Whatdriv . th, world economy? The simp]"! answeJ to

GOP growth for different countries

Government trade pol icy

The business cycle

Gen ral prosperity: lower prices, more employment

pportunity and sodaI ! personal mobility,

Improvements for poor countries: life expect ncy, infant

Inequality of wealth within nations - not much 'trickle

2 removing the rules and laws that control business activity

taxes on goods coming Into d country

10 (formaf) the degree of difference b tween things

11 when people have money and everything they need for a

Make phrases by matching an item from each column.