ALLIANCESALLIANCES

UNIT 01UNIT 01

CAN YOU EXPLAIN THESE CAN YOU EXPLAIN THESE WORDS?WORDS?

●●MERGER ● ACQUISITION ● TAKEOVER MERGER ● ACQUISITION ● TAKEOVER

● ● FRIENDLY TAKEOVER ● MULTINATIONALFRIENDLY TAKEOVER ● MULTINATIONAL

● ● HOSTILE TAKEOVER ● LEVERAGED BUYOUT HOSTILE TAKEOVER ● LEVERAGED BUYOUT

● ● HORIZONTAL INTEGRATIONHORIZONTAL INTEGRATION

● ● VERTICAL INTEGRATIONVERTICAL INTEGRATION

● ● BACKWARD INTEGRATION ● CONGLOMERATEBACKWARD INTEGRATION ● CONGLOMERATE

● ● FORWARD INTEGRATIONFORWARD INTEGRATION

● ● AMALGAMATION ● CORPORATE PARTNERSHIPAMALGAMATION ● CORPORATE PARTNERSHIP

DO YOU REMEMBER THE DO YOU REMEMBER THE WORDS?WORDS?

two or more companies join together to form a larger two or more companies join together to form a larger companycompany

one company buys another one, or  buys part of another one company buys another one, or  buys part of another oneone by making a successful takeover bid by making a successful takeover bid

getting control of a company by buying over 50% of its getting control of a company by buying over 50% of its sharesshares

a takeover that a company being taken over agrees toa takeover that a company being taken over agrees to a takeover that a company taken  over does not want a takeover that a company taken  over does not want

and doesn’t  agree toand doesn’t  agree to a person or company buys a company using a loan a person or company buys a company using a loan

borrowed against the company’s assets; these assets borrowed against the company’s assets; these assets can  then be sold to pay off the debtcan  then be sold to pay off the debt

a merger with or the acquisition of one’s suppliersa merger with or the acquisition of one’s suppliers

a merger with or the acquisition of one’s marketing a merger with or the acquisition of one’s marketing outlets, that is distribution systemsoutlets, that is distribution systems

joining with firms in other stages of the production or sale joining with firms in other stages of the production or sale of a productof a product

merging with or taking over other firms producing the merging with or taking over other firms producing the same type of goods or servicessame type of goods or services

a large company, a corporation or a group of companies a large company, a corporation or a group of companies which combines unrelated businesses into a single which combines unrelated businesses into a single corporate structure, thus marketing a large number of corporate structure, thus marketing a large number of different goods or servicesdifferent goods or services

it is formed when two or more companies decide to co-it is formed when two or more companies decide to co-operate on a particular project or missionoperate on a particular project or mission

when two or more organizations join, often in order to when two or more organizations join, often in order to increase profits by cutting costsincrease profits by cutting costs

an organisation that has offices, factories, activities, etc. an organisation that has offices, factories, activities, etc. in many different countriesin many different countries

LET’S RECAP...LET’S RECAP...Successful companies, by definition, make a lot of money, Successful companies, by definition, make a lot of money,

which soonerwhich sooner or later has to be spent. or later has to be spent.

HOW DOES A COMPANY INVEST ITS CASH RETURNS?HOW DOES A COMPANY INVEST ITS CASH RETURNS?

☺ to invest it all in R&Dto invest it all in R&D → → innovation and diversificationinnovation and diversification → → if successful it leads to evenif successful it leads to even greater cash returnsgreater cash returns

☺☺ a company can grow by way of a company can grow by way of takeovers, takeovers, mergers and mergers and acquisitionsacquisitions ( (spend money by acquiring other companies, spend money by acquiring other companies, whetherwhether suppliers, distributors,suppliers, distributors, competitors or companies competitors or companies in unrelated fieldsin unrelated fields) ) →→ if successful, leads to even greater if successful, leads to even greater cash returnscash returns

HOW DO COMPANIES GROW?HOW DO COMPANIES GROW?

higher revenue through innovation and higher revenue through innovation and diversificationdiversification

more assetsmore assets more employeesmore employees expansion into foreign marketsexpansion into foreign markets mergers and acquisitionsmergers and acquisitions

HOW ARE LARGE CONGLOMERATESHOW ARE LARGE CONGLOMERATES

SPLIT UP?SPLIT UP? LEVERAGED BUYOUTSLEVERAGED BUYOUTS

MERGERS ('a merger of equals')

☺occur in a friendly setting where executives from the respective companies participate in a successful combination of all parts:

HORIZONTAL – where two merging companies produce

similar product in the same industry VERTICAL – when two firms, each working at different stages in the production of the same good, combine CONGLOMERATE – when the two firms operate in different industry☺all the owners of stocks of either company get the same

amount of stock in the new combined company ☺can resemble a takeover, but result in a new company

name (often combining the names of the original companies) and in new branding

ACQUISITIONS (of un-equals, ACQUISITIONS (of un-equals, one large buying one small)one large buying one small)

can involve a cash and debt combinationcan involve a cash and debt combination,, or or just cashjust cash

can involve can involve a combination of cash and stock a combination of cash and stock of the purchasing entityof the purchasing entity

can involvecan involve a purchase of the a purchase of the stock or other stock or other equity interests of the target entityequity interests of the target entity

can involvecan involve a purchase of all or a purchase of all or substantially substantially all of its assetsall of its assets

MOTIVES BEHIND MERGERS MOTIVES BEHIND MERGERS AND ACQUISITIONSAND ACQUISITIONS

TO ADD SHAREHOLDER VALUE THROUGH:ECONOMIES OF SCALE: reducing the number of duplicate departments → lowering costs relative to the same revenue→increasing profits INCREASED REVENUE/INCREASED MARKET SHARE: absorbing a major competitor → increasing its power (by capturing increased market share) to set prices SYNERGY: better use of complementary resources → increased market share → greater competitiveness CROSS SELLING: for example, a bank buying a

stockbroker could then sell its banking products to the stock broker’s customers, while the broker can sign up the bank’s customers for brokerage accounts

MERGERS AND ACQUISITIONSMERGERS AND ACQUISITIONS

MERGERS - MERGERS - PROBLEMS PROBLEMS

☹ often, terming the combination a merger rather than acquisition isoften, terming the combination a merger rather than acquisition is

donedone purely for purely for POLITICAL OR MARKETING REASONSPOLITICAL OR MARKETING REASONS

☹☹ net loss of value due to problems caused by net loss of value due to problems caused by INCOMPATIBILITYINCOMPATIBILITY

(technology,(technology, equipment or corporate culture) equipment or corporate culture)

☹☹ inadequate research or inadequate research or CONCEALMENT OF LOSSES OR CONCEALMENT OF LOSSES OR

LLIABILITIESIABILITIES at one at one of theof the partners partners

☹☹ OVERLAPPING SUBSIDIARIESOVERLAPPING SUBSIDIARIES or redundant staff may continue, or redundant staff may continue,

creating creating INEFFICIENCY INEFFICIENCY

☹☹ NEW MANAGEMENTNEW MANAGEMENT may cut too many operations or personnel, may cut too many operations or personnel,

losinglosing expertiseexpertise and disrupting the employeeand disrupting the employee culture culture

☹☹ similar to those encountered in takeoverssimilar to those encountered in takeovers → → if its is not to be if its is not to be

considered a failure, it must considered a failure, it must INCREASE SHAREHOLDER VALUEINCREASE SHAREHOLDER VALUE faster than if the companies werefaster than if the companies were separate, or prevent the separate, or prevent the

deteriorationdeterioration of shareholder value more than if the companies were separateof shareholder value more than if the companies were separate

HOW DO THESE CARTOONSHOW DO THESE CARTOONSRELATE TO MERGERS?RELATE TO MERGERS?

AND THIS ONE?AND THIS ONE?

TAKEOVERS – PROS OR CONS?TAKEOVERS – PROS OR CONS?WRITE ‘CONS’ OR ‘PROS’ IN GAPS:______________: Increase in Sales / Revenues (e.g. Procter & Gamble

takeover of Gillette) Venture into new businesses and markets Profitability of target company Increased market share Eliminating competition Increased efficiency______________: Reduced competition and choice for consumers in

oligopoly markets Likelihood of price increases and job cuts Cultural integration/conflict with new management Hidden liabilities of target entity

WHAT DO YOU KNOW ABOUT SOME WHAT DO YOU KNOW ABOUT SOME RECENT EXAMPLES OF RECENT EXAMPLES OF

TAKEOVERS AND MERGERS?TAKEOVERS AND MERGERS?

HOW DOES THIS CARTOON HOW DOES THIS CARTOON RELATE TO TAKEOVERS?RELATE TO TAKEOVERS?

WHAT IS ALLIANCE?WHAT IS ALLIANCE?An agreement between two or more companies to work together.An agreement between two or more companies to work together. The two companies agreed The two companies agreed to formto form an alliance. an alliance. An alliance An alliance betweenbetween AOL and Bertelsman... AOL and Bertelsman... Warner-Lambert said it Warner-Lambert said it entered entered an alliance an alliance with with Boots to promote two Boots to promote two

new drugs.new drugs.

STRATEGIC ALLIANCESTRATEGIC ALLIANCE is an alliance formed as part of a plan with is an alliance formed as part of a plan with important aims important aims or to meet a critical business need while remaining or to meet a critical business need while remaining independent organizations.independent organizations.

Singapore Airlines and Lufthansa have Singapore Airlines and Lufthansa have announcedannounced a strategic alliance a strategic alliance

with with broad implications for competition in the industry.broad implications for competition in the industry. ppartners may provide the artners may provide the resources resources such as products, distribution such as products, distribution

channels, manufacturing capability, project funding, capital channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. equipment, knowledge, expertise, or intellectual property.

tthe alliance is a he alliance is a cooperation or or collaboration which aims for a which aims for a synergy where each partner hopes that the benefits from the alliance will be where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often greater than those from individual efforts. The alliance often involves involves technology transfer (access to knowledge and expertise), (access to knowledge and expertise), economic specialization, , shared expensesshared expenses and and shared riskshared risk..

CAN YOU IDENTIFY THE COMPANIES CAN YOU IDENTIFY THE COMPANIES AND THEN DECIDE WHICH OF THEM AND THEN DECIDE WHICH OF THEM

HAVE FORMED STRATEGIC ALLIANCES?HAVE FORMED STRATEGIC ALLIANCES?

LISTENING – SB, p 8LISTENING – SB, p 8

TASK 1TASK 1Listen to a consultant talking about alliancesListen to a consultant talking about alliancesand check your answers.and check your answers.

TASK 2TASK 2Listen again and answer the questions.Listen again and answer the questions.1.1. Why did each of the pairs of companies Why did each of the pairs of companies want to form an alliance?want to form an alliance?2.2. Which alliances succeeded, and why?Which alliances succeeded, and why?3.3. Which alliance failed and why?Which alliance failed and why?

MERGERS AND ACQUISITIONS – MERGERS AND ACQUISITIONS – READING - READING - SPRING IN THEIR SPRING IN THEIR

STEPSSTEPS – SB, p 9 – SB, p 9TASK 1 – Read the text and decide if the author is TASK 1 – Read the text and decide if the author is

generally optimistic or pessimistic about future generally optimistic or pessimistic about future

strategic alliances.strategic alliances.

TASK 2 – Read the text and find the answers to the TASK 2 – Read the text and find the answers to the

following questions:following questions:

1.1. Why did CEOs reduce their involvement in mergers and Why did CEOs reduce their involvement in mergers and acqusitions for a time?acqusitions for a time?

2.2. Why should CEOs ignore the statistics concerning the Why should CEOs ignore the statistics concerning the success rate of acqusitions?success rate of acqusitions?

3.3. What should CEOs be aware of when venturing into What should CEOs be aware of when venturing into alliances?alliances?

MERGERS AND ACQUISITIONS – MERGERS AND ACQUISITIONS – READING - READING - SPRING IN THEIR SPRING IN THEIR

STEPSSTEPS – SB, p9 – SB, p9TASK 3 – Are the following statements TRUE or FALSE?TASK 3 – Are the following statements TRUE or FALSE?1.1. In the first paragraph, the author says that CEOs can no In the first paragraph, the author says that CEOs can no

longer find targets for mergers and acquisitions.longer find targets for mergers and acquisitions.2.2. Studying facts and figures from the recent past won’t Studying facts and figures from the recent past won’t

necessarily help CEOs to form a successful alliance.necessarily help CEOs to form a successful alliance.3.3. The trend in the 1990s was for companies to build The trend in the 1990s was for companies to build

portfolio with diverse investments.portfolio with diverse investments.4.4. The author suggests that media mergers are always The author suggests that media mergers are always

likely to improve share value.likely to improve share value.5.5. CEOs need above all to find the right company to CEOs need above all to find the right company to

acquire.acquire.6.6. If business planners wish to avoid some of the errors of If business planners wish to avoid some of the errors of

the 1990s, they should be prudent when taking risks.the 1990s, they should be prudent when taking risks.

HOW DO THESE CARTOONS HOW DO THESE CARTOONS COMMENT ON ALLIANCES?COMMENT ON ALLIANCES?

LANGUAGE CHECK - REVIEW LANGUAGE CHECK - REVIEW OF TENSESOF TENSES

Match the tenses withMatch the tenses withtheir fuctions:their fuctions:

1.1. PRESENT SIMPLEPRESENT SIMPLE

2.2. PRESENT PRESENT CONTINUOUSCONTINUOUS

3.3. PRESENT PERFECTPRESENT PERFECT

4.4. PAST SIMPLEPAST SIMPLE

5.5. PAST PERFECTPAST PERFECT

6.6. FUTURE SIMPLEFUTURE SIMPLE

regular events and repeated actionsregular events and repeated actions predictionspredictions permanent situationspermanent situations temporary situationstemporary situations unspecified past timeunspecified past time timetables and scheduled eventstimetables and scheduled events future arrangementsfuture arrangements newspaper headlinesnewspaper headlines things happening nowthings happening now past action that preceded or caused past action that preceded or caused

another past situationanother past situation changing situationschanging situations changes that affect the presentchanges that affect the present finished past actions and eventsfinished past actions and events situations that started in the past and situations that started in the past and

continue in the presentcontinue in the present definite time periods in the pastdefinite time periods in the past

GRAMMAR BIDGRAMMAR BID The company’s annual bid is The company’s annual bid is

published every June.published every June.

They are manufacturing They are manufacturing electrical goods.electrical goods.

The CEO will arrive on Friday.The CEO will arrive on Friday.

Miramax is signing deal with Miramax is signing deal with Disney.Disney.

We are negotiating an alliance We are negotiating an alliance with them.with them.

We do not look for partners this We do not look for partners this year.year.

We are signing the contract next We are signing the contract next week.week.

Are the shareholders informed Are the shareholders informed yet?yet?

We agreed to share technologies.We agreed to share technologies.

Costs are rising for several years.Costs are rising for several years.

He was the CEO for ten years.He was the CEO for ten years.

He worked with them for two He worked with them for two

years.years.

We merged with them last year.We merged with them last year.

We were celebrating last night We were celebrating last night

because we have signed the because we have signed the

agreement.agreement.

By the time of the acquisition, By the time of the acquisition,

negotiations had taken nearly negotiations had taken nearly

a year.a year.

The merger won’t be finalised The merger won’t be finalised

until next month.until next month.

WHAT DO YOU THINK ABOUT WHAT DO YOU THINK ABOUT THESE CULTURAL THESE CULTURAL STEREOTYPES?STEREOTYPES?

‘ HeavenHeaven is where the police are British, the is where the police are British, the cooks are French, the mechanics are cooks are French, the mechanics are German, the lovers are Italian and it’s allGerman, the lovers are Italian and it’s all organized by the Swiss.’organized by the Swiss.’

‘ ‘ HellHell is where the police are German, the is where the police are German, the cooks are English, the mechanics are French, thecooks are English, the mechanics are French, the lovers are Swiss and it’s all organized by the lovers are Swiss and it’s all organized by the Italians.’Italians.’

PEOPLE FROM SPECIFIC PEOPLE FROM SPECIFIC CULTURES...CULTURES...

PEOPLE FROM DIFUSE PEOPLE FROM DIFUSE CULTURES...CULTURES...

seem f_________ and seem f_________ and a_________ because they give a_________ because they give information freely about information freely about themselves from the very first themselves from the very first meeting.meeting.

seem h________ to know seem h________ to know because they don’t tell you because they don’t tell you much about themselves much about themselves u________ they know you u________ they know you well.well.

have friendly relationships with a have friendly relationships with a lot of people who are not lot of people who are not necessarily c_________ or necessarily c_________ or lifetime friends. These lifetime friends. These relationships may seem relationships may seem s_________ to people from s_________ to people from difuse cultures.difuse cultures.

have a few close friends, with have a few close friends, with whom they have a l________-whom they have a l________-t________ relationship and t________ relationship and share many a________ of their share many a________ of their private lives.private lives.

are happy to talk about personal are happy to talk about personal m_________ with anyone they m_________ with anyone they meet.meet.

don’t like to talk about personal don’t like to talk about personal matters in the c_________ of matters in the c_________ of

a business relationship.a business relationship.

PEOPLE FROM SPECIFIC PEOPLE FROM SPECIFIC CULTURES...CULTURES...

PEOPLE FROM DIFUSE PEOPLE FROM DIFUSE CULTURES...CULTURES...

seem seem friendlyfriendly and and accessible accessible because they give information because they give information freely about themselves from freely about themselves from the very first meeting.the very first meeting.

seem seem hardhard to know because to know because they don’t tell you much they don’t tell you much about themselves about themselves unless unless they know you well.they know you well.

have friendly relationships with have friendly relationships with a lot of people who are not a lot of people who are not necessarily necessarily close close or lifetime or lifetime friendsfriends.. These relationships These relationships may seem may seem superficial superficial to people to people from difuse cultures.from difuse cultures.

have a few close friends, with have a few close friends, with whom they have a whom they have a long-term long-term relationship and share many relationship and share many aspectsaspects of their private lives. of their private lives.

are happy to talk about are happy to talk about personal personal mattersmatters with anyone with anyone they meet.they meet.

don’t like to talk about don’t like to talk about personal matters in the personal matters in the context context of a business of a business relationship.relationship.

CULTURAL CONSIDERATIONSCULTURAL CONSIDERATIONS Use of first names and/or titlesUse of first names and/or titles (other person’s position in (other person’s position in the hierarchy in relation to one’s own – but may also varythe hierarchy in relation to one’s own – but may also vary from culture to culture)from culture to culture) Order of introductionsOrder of introductions (e.g. in Japan, a senior member of (e.g. in Japan, a senior member of staff would expect to be introduced before a younger/less staff would expect to be introduced before a younger/less senior employee)senior employee) Gestures and body languageGestures and body language (conventions regarding (conventions regarding handshaking and the exchanging of business cards mayhandshaking and the exchanging of business cards may differ from country to country)differ from country to country) Formality of languageFormality of language (may vary according to culture and (may vary according to culture and situation)situation) The topics considered to be appropriate for social The topics considered to be appropriate for social conversationconversation (e.g. aspects of people’s private lives) (e.g. aspects of people’s private lives)

BREAKING THE ICEBREAKING THE ICE

Greetings and introductionsGreetings and introductions

Making small talkMaking small talk (journey, travel, hotel, (journey, travel, hotel,

conference, jobs, company, etc.)conference, jobs, company, etc.)

HospitalityHospitality (offering a seat, drink, etc.) (offering a seat, drink, etc.)

Keeping the conversation goingKeeping the conversation going (expressing (expressing

interest, asking follow-up questions, etc.)interest, asking follow-up questions, etc.)

Building a positive relationshipBuilding a positive relationship

Cultural issuesCultural issues (both national culture and (both national culture and company culture)company culture)

MAKING CONTACT AND MAKING CONTACT AND BUILDING THE RELATIONSHIPBUILDING THE RELATIONSHIP

Say hello and introduce yourself to others.Say hello and introduce yourself to others. Use eye contact and smile as your first contact with Use eye contact and smile as your first contact with

people.people. Make an effort to remember people’s names.Make an effort to remember people’s names. Be articulate and positive about who you are and what Be articulate and positive about who you are and what

you do in a few short sentences.you do in a few short sentences. Ask open questions.Ask open questions. Encourage others to talk more by showing interest.Encourage others to talk more by showing interest. Respond positively to what they say.Respond positively to what they say. Look for common interests, goals and experiences that Look for common interests, goals and experiences that

you can talk about.you can talk about. Be tolerant of other people’s beliefs if they differ from Be tolerant of other people’s beliefs if they differ from

yours.yours.

MATCH THE FUNCTIONS WITH MATCH THE FUNCTIONS WITH THE APPROPRIATE PHRASESTHE APPROPRIATE PHRASES

GREETINGS AND GREETINGS AND INTRODUCTIONSINTRODUCTIONS

OPEN QUESTIONSOPEN QUESTIONS CLOSED QUESTIONSCLOSED QUESTIONS MAKING A STATEMENTMAKING A STATEMENT USING A QUESTION USING A QUESTION

TAGTAG SHOWING INTERESTSHOWING INTEREST USING A POLITE USING A POLITE

PHRASE TO MOVE ONPHRASE TO MOVE ON MAKING CONTACTSMAKING CONTACTS OFFERING HELPOFFERING HELP

I don’t think we’ve_______. I’m...

How_______. I’d love to hear more.

When can we set up a meeting? Here’s my_______. I’m...I_______ for Digital

France. We_______ products and services in...

Is there _______ I can do? What did you _______ of...? I _______ the last

presentation too long.

MATCH THE FUNCTIONS WITH MATCH THE FUNCTIONS WITH THE APPROPRIATE PHRASESTHE APPROPRIATE PHRASES

GREETINGS AND GREETINGS AND INTRODUCTIONSINTRODUCTIONS

OPEN QUESTIONSOPEN QUESTIONS CLOSED QUESTIONSCLOSED QUESTIONS MAKING A STATEMENTMAKING A STATEMENT USING A QUESTION USING A QUESTION

TAGTAG SHOWING INTERESTSHOWING INTEREST USING A POLITE USING A POLITE

PHRASE TO MOVE ONPHRASE TO MOVE ON MAKING CONTACTSMAKING CONTACTS OFFERING HELPOFFERING HELP

The CEO is a brilliant speaker, _______ he?

How are you _______ the conference?

Hello, I’m... Can I _______ you?

Do you _______ much in your job?

You’ll have to _______ me a moment...

What are the things_______ in your country? Well, it was nice _______ to

you, but I really have to go now.

CONVERSATIONAL CONVERSATIONAL RESPONSESRESPONSES

Think of a comment that could lead to each of the Think of a comment that could lead to each of the following responses:following responses:☺☺/ / ☹☹ Oh, really?Oh, really?☺☺/ / ☹☹ That sounds good.That sounds good.☺☺/ / ☹☹ What a pity.What a pity.☺☺/ / ☹☹ That’s true, yes.That’s true, yes.☺☺/ / ☹☹ It is, isn’t it. It is, isn’t it. ☺☺/ / ☹☹ I’m afraid not.I’m afraid not.☺☺/ / ☹☹ How nice.How nice.☺☺/ / ☹☹ Not really.Not really.

SPEAKING TASK – MAKE SPEAKING TASK – MAKE A SMALL TALKA SMALL TALK

You’re attending a welcome party on the firstevening of a conference. Start a conversation withat least three other people. After a few minutes, stop the conversation and move on to someone new. Remember to: Use open questions (those that are more likely

to lead to a longer response) Respond with interest Use a polite phrase to move on

WRITING - MEMOWRITING - MEMOWHAT IS A MEMO?WHAT IS A MEMO?Common form of business communication between peopleCommon form of business communication between peopleworking in the same organisation. Usually focuses on only working in the same organisation. Usually focuses on only one specific topic, such as:one specific topic, such as: GIVING INFORMATIONGIVING INFORMATION (reporting back the minutes of (reporting back the minutes of

meetings or summaries of brainstorming sessions)meetings or summaries of brainstorming sessions) REQUESTING INFORMATIONREQUESTING INFORMATION (asking employees to (asking employees to

send in requests for the use of office parking spaces)send in requests for the use of office parking spaces) GIVING INSTRUCTIONSGIVING INSTRUCTIONS (telling employees to display (telling employees to display

identity badges when entering the building)identity badges when entering the building) RECOMMENDING OPTIONSRECOMMENDING OPTIONS (informing people in the (informing people in the

company of the decisions reached on the best way to company of the decisions reached on the best way to solve a company dilemma and recommending that these solve a company dilemma and recommending that these options be implemented)options be implemented)

LAYOUTLAYOUTMEMOMEMO________________________________________DATEDATETOTOFROMFROMSUBJECTSUBJECT_______________________________________________INTRODUCTORY PARAGRAPH (introducing the subject matter)

MAIN POINTS (indicated by HEADINGS)

CONCLUDING PARAGRAPH (recommending the action to be taken)

CLOSING (the name or initials of the person sending the memo)

REGISTER AND STYLEREGISTER AND STYLE The opening is more direct and less formal than

in a letter, with no greeting such as Dear... Starts with the introduction to the main points Concludes with a request for action The closing is generally just the initials of the

sender Less formal than business letters Neutral tone Simple language Short and clear sentences

USEFUL PHRASES – USEFUL PHRASES – GIVING GIVING INFORMATION, REQUESTING INFORMATION, REQUESTING

INFORMATION, GIVING INSTRUCTIONS INFORMATION, GIVING INSTRUCTIONS oror RECOMMENDING OPTIONS RECOMMENDING OPTIONS??

It is recommended It is recommended that...that...

It is in the best It is in the best interests of...interests of...

Having considered all Having considered all the alternatives, I /we the alternatives, I /we suggest...suggest...

It is advisable to...It is advisable to...

I would like to have...I would like to have... Could you provide me Could you provide me

with...?with...? If you have any If you have any

questions, please...questions, please... Could you inform us Could you inform us

about...?about...?

USEFUL PHRASES – USEFUL PHRASES – GIVING GIVING INFORMATION, REQUESTING INFORMATION, REQUESTING

INFORMATION, GIVING INSTRUCTIONS INFORMATION, GIVING INSTRUCTIONS or or RECOMMENDING OPTIONSRECOMMENDING OPTIONS??

Please read...

We/I kindly request...

Make sure that...

...is permitted only...

You will be happy to hear...

I am/We are delighted to inform you...

I am delighted to be able to announce...

I would like to remind you that...

I have recently been informed...

ACCURACY – SPOT THE ACCURACY – SPOT THE MISTAKE!MISTAKE!

They need more sellers.They need more sellers. One of the best product was...One of the best product was... I am the responsible of I am the responsible of

Marketing.Marketing. Write to the manager and see if Write to the manager and see if

he can help.he can help. The manager which looks after The manager which looks after

this...this... It is the company who makes...It is the company who makes... Who’s fault was it?Who’s fault was it? Neither the invoice or the order Neither the invoice or the order

arrived.arrived. There is no change despite of There is no change despite of

the new machine.the new machine.

Please cancel our last order, e.g. Please cancel our last order, e.g. the one for 20 Cartier watches.the one for 20 Cartier watches.

We stock many brands, i.e. We stock many brands, i.e. Gucci, Dior, etc.Gucci, Dior, etc.

I am interested for the problem.I am interested for the problem. I’ve been waiting the order since I’ve been waiting the order since

two weeks.two weeks. The children are most affected The children are most affected

by the advertising.by the advertising. A document you requested has A document you requested has

been sent. been sent. We succeeded to decide...We succeeded to decide... I would like to drive to the I would like to drive to the

conference instead of to fly.conference instead of to fly.

HOMEWORK ASSIGNMENTHOMEWORK ASSIGNMENT vocabulary, grammar and writing – HANDOUTS – have

to be filed in a folder (STUDENT’S PORTFOLIO) optional HW – Dilemma & Decision TASK

ASSIGNMENTS

1. WRITING - ALLIANCE – FRIEND OR FOE? Write an argumentative article discussing arguments in favour of and against alliances; include examples

2. PRESENTATION OR RESEARCH PAPER – THE MOST SUCCESSFUL ALLIANCES IN THE 21st

CENTURY