business english 1 resource bank - · ** mk = coursebook english for business studies written by...
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1
BUSINESS ENGLISH 1
RESOURCE BANK
2016/17
Compiled by:
The Department Of Business Foreign Languages
Nada Gjukić, mag., Dr. sc. Višnja Kabalin Borenić, Boglarka Kiss Kulenović, M.A.,
Mr.sc. Ankica Knezović, Vera Krnajski-Hršak, M.A., Dr.sc. Borka Lekaj Lubina,
Mr.sc. Iva Planinšek Čikara, Mr. Tamara Sladoljev-Agejev
2
COURSE CONTENTS
TOPIC TEXT SOURCE
INTRODUCTION
Course Contents
RB Contents
Business English I: Information for Students
RB*
RB
RB
1 UNIVERSITY ESSENTIALS Introduction
Universities and Colleges
Bologna: An Overview of the Main Elements
RB
RB
RB
2 ECONOMICS vs. ECONOMY Economy and Economics
Why Economics?
RB
RB
3 THE THREE SECTORS OF THE
ECONOMY
The Different Sectors of the Economy
Business Sectors
Manufacturing and Services
Where Did All the Jobs Go?
A Survey of the 20th
Century: Freedom from
Want
MK 7
RB
RB
RB
RB
RB
4 THE THREE TYPES OF ECONOMIC
SYSTEMS
The Three Types of Economic Systems RB
5 THE PUBLIC SECTOR
The Public Sector
The Role of Government
Government and Taxation
Taxation
What is Privatization, Anyway?
The Corporation
The Pendulum of Control
RB
RB
MK 22
RB
RB
RB
RB
6 THE PRIVATE SECTOR: TYPES
OF BUSINESS ORGANIZATIONS
Venture Capital
The Private Sector
Business Organizations in the UK
Business Organizations in Croatia
Legal Types of Business Organizations:
A Contrastive View
Entrepreneurship
Crazy Diamonds
Finding the Funds
Student Entrepreneurs
MK 15
RB
RB
RB
RB
RB
RB
RB
RB
7 MANAGEMENT Management
Company Structure
Company Structure: Exercises
MK 1
MK 7
RB
8 EMPLOYEES AND LABOUR
RELATIONS
Work and Motivation
Efficiency and Employment
Employees and Labour Relations
MK 2
MK 25
RB
9 RECRUITMENT Recruitment
Recruitment: Exercises
MK 5
10 MARKETING Products
Marketing
Advertising
The Centrality of Marketing
The Four Major Promotional Tools
MK 11
MK 12
MK 13
RB
RB
SKILLS REFERENCE
Note-taking & Note-making
Paragraphing
Presentations
Business Correspondence
RB
RB
RB
RB
* RB = Resource Bank compiled by the Dept. of Business Foreign Languages ** MK = Coursebook English for Business Studies written by Ian McKenzie and published by
Cambridge University Press 2010 (the figure indicates the unit related to the specific topic)
3
RESOURCE BANK CONTENTS
TOPIC TEXT PAGE
INTRODUCTION
Course Contents
RB Contents
Business English I: Information for Students
2
3
4-5
1 UNIVERSITY ESSENTIALS Introduction
Universities and Colleges
Bologna: An Overview of the Main Elements
5-7
8-11
11
2 ECONOMICS vs. ECONOMY Economy and Economics
Why Economics?
12-15
16-19
3 THE THREE SECTORS OF THE
ECONOMY
Business Sectors
Manufacturing and Services
Where Did All the Jobs Go?
A Survey of the 20th
Century: Freedom from
Want
20-22
23
24-25 26-29
4 THE THREE TYPES OF ECONOMIC
SYSTEMS
The Three Types of Economic Systems 30-32
5 THE PUBLIC SECTOR
The Public Sector
The Role of Government
Taxation
What is Privatization, Anyway?
The Corporation
The Pendulum of Control
34-35
36-37
38-41
42-43
44
45
6 THE PRIVATE SECTOR: TYPES
OF BUSINESS ORGANIZATIONS
The Private Sector
Business Organizations in the UK
Business Organizations in Croatia
Legal Types of Business Organizations: A
Contrastive View
Entrepreneurship
Crazy Diamonds
Finding the Funds
Student Entrepreneurs
46-47
48-50
51-53
54-55
56-58
59-62
62
63
7 COMPANY STRUCTURE Company Structure 64
8 EMPLOYEES AND LABOUR
RELATIONS
Employees and Labour Relations 65-67
9 RECRUITMENT Recruitment 68-70
10 MARKETING The Centrality of Marketing
The Four Major Promotional Tools
71-72
72-73
SKILLS REFERENCE
Note-taking & Note-making
Paragraphing
Presentations
Business Correspondence
74-76
77-79
80-90
91-111
4
Business English I Information for Students
COURSE AIMS
This course aims to:
develop your business communication skills (written and oral)
help students acquire specialist vocabulary (on selected business topics)
strengthen students’ academic skills
help students understand the difference between written/spoken language and formal/informal language
develop students’ critical thinking skills (analysis, synthesis, foreseeing, deducing, selecting...)
help students learn how to use dictionaries and other reference material
COURSE REQUIREMENTS
1 Regular attendance and class participation
Regular attendance is obligatory.
Class participation implies contribution to class work, which requires preparing for classes in
advance (home assignments, research, project work, studying, etc.).
2 Passing one oral progress test (presentation)
The presentation should demonstrate:
Successful team work
Thorough research
A clear structure
The effective use of the language of presentations
3 Passing two written progress tests or one comprehensive written test at the
end of the term
The written tests will examine:
your reading skills: understanding articles and reports concerned with contemporary
business issues
your writing skills: ability to write business letters using the appropriate style
(register, clarity, coherence, concision, layout)
your recognition and active use of specialist vocabulary
4 Passing the final oral exam
At the final oral exam, you are expected to:
demonstrate your ability to clearly and coherently discuss business topics covered by
the course using specialist vocabulary
express a viewpoint on a topical issue (advantages, disadvantages, agreeing,
disagreeing…) and ask relevant questions.
INTRODUCTION
5
REQUIRED LITERATURE
MacKenzie, I. (2010) English for Business Studies (3rd Ed), CUP
Business English Resource Bank 1, 2016/17
RECOMMENDED LITERATURE
Business dictionaries:
Longman Business English Dictionary (most recent edition)
Oxford Business English Dictionary for learners of English & CD-ROM (2005)
Poslovni rječnik (Englesko-hrvatski), Školska knjiga (2006)
Špiljak-Ivir: Englesko-hrvatski poslovni rječnik, Masmedia (2000)
Zgombić: Business Dictionary (englesko-hrvatski), Zgombić & partneri
Grammar books:
Murphy, R. (2004) English Grammar In Use with Answers and CD ROM: A Self-study Reference and Practice Book for Intermediate Students of English (Paperback), Cambridge -University Press
Strutt, P. (2000) Business Grammar in Usage, Longman
Emmerson, P. (2002) Business Grammar Builder, Macmillan SUGGESTED ADDITIONAL SOURCES
Business Week, The Financial Times, The Economist …
CNBC, Bloomberg, business programmes on BBC and CNN
web sites: bized.com, investopedia.com, quickmba.com, startup.wsj.com,
dictionary.com, harvardbusinessonline.hbsp.harvard.edu, encarta.msn.com,
acronymfinder.com, uefap.com, cusd.com/calonline/econ
6
I Study the university essentials below and on the opposite page. Find English equivalents for the following Croatian words/expressions:
predmet pohađanje nastave
program predmeta Sveučilište u Zagrebu
obavezni predmet brucoš
predavač preddiplomski studij
Katedra za računovodstvo redovni student
nastavni program pasti ispit
seminarski rad diplomski studij
magisterij završni ispit
izborni predmet diplomirati na smjeru
dekan upisati predmet
predati rad referada
nastavnici Pročelnik katedre
prijaviti se za ispit izvanredni student
EFZG poslijediplomski studij
doktorat diplomirati ekonomiju
II Answer these questions.
1 What do you study?
2 Where do you study?
3 Are you a graduate or an undergraduate student?
4 Are you a part-time or a full-time student?
5 Are you a freshman or a sophomore?
6 Which degree will you earn when you graduate?
7 Will you hold a Bachelor’s or a Master’s degree after a 4-year undergraduate program?
8 Will you hold a Bachelor’s or a Master’s degree after a 4+1 graduate program?
9 When do you choose your major?
10 What does ECTS stand for?
11 Who is the Dean of the Faculty of Economics and Business?
12 Who is the Head of the Department of Business Foreign Languages?
13 Is BE a compulsory or an elective course?
14 Will you have to write papers in BE course?
15 Is there a difference between class attendance and class participation?
16 Why do you have to attend this course regularly?
17 How do you become eligible for the teacher’s signature at the end of the semester?
18 Where can you find the BE syllabus?
19 How do you apply for the exam?
1 UNIVERSITY ESSENTIALS
7
ACADEMIC DEGREES:
1ST degree Bachelor's degree Bachelor of Arts (BA) v. Bachelor of Science (BSc)
2nd degree Master's degree Master of Arts (MA) v. Master of Science (MSc)
3rd degree Doctor's (doctoral) degree, (PhD)
In writing :Jake Lenard, BSc In conversation: «Mr Lenard, ...» (no title)
Anne Stern, MA «Ms Stern, ...» (no title)
Henry Hill, PhD «Dr. Hill, ...» (title)
Examples: She is a Bachelor of Economics.
She has a master's degree in economics.
She is a Master of Business Administration (MBA).
He has a BA in Economics.
He has received his PhD degree from the University of Zagreb.
STUDENTS
full-time students
part-time students
first-year students
second-year students
undergraduate students
graduate students (*BE vs. AE* vs. Bologna)
postgraduate students
freshmen (AE)
sophomore (AE)
junior student
senior student
She is a major in Finance.
She majored in Finance.
ORGANIZATION
The Faculty of Economics and
Business
The University of Zagreb
Rector (Vice-Chancellor)
The School, The Faculty, The
Department*
(Dean and Vice-Deans)
Department (e.g. Department of
Accounting)
Head of Department
Student Administration Office
FACULTY (TEACHING STAFF)
professors, lecturers, assistants
COURSES
core course vs. non-core course
compulsory (mandatory) course
vs.
elective course, optional course
curriculum (sg.), curricula (pl.)
syllabus (sg.), syllabi (pl.)
take a course in...enrol on a course (enrolment)
attend a course in .... (attendance)
participate in classes (class participation)
He read history at Oxford.
PAPERS AND EXAMINATION
exams
written exam / oral exam
final exam, comprehensive exam,
mid-term exam, preliminary exam,
quiz
sign up for an exam
apply for an exam
take an exam
pass an exam
fail an exam
papers
write a paper on monetary policy.
submit a paper
hand in a paper
correct a paper
grade a paper
mark a paper
grades, marks
8
UNIVERSITIES AND COLLEGES
I Read and fill in the gaps in the sentences with the words from the box.
Going to university in Britain
1 After school many British students go to university. They apply to several universities
through UCAS (Universities and Colleges Admission Service) and receive offers of a place
on condition that they achieve certain grades in their A levels.
2 Most universities receive some money from the state. The oldest and most famous are
Oxford and Cambridge. Other much respected universities include London, Durham and St
Andrew’s. Some universities such as Birmingham and Manchester are called redbrick
universities because they were built in the 19th century with brick rather than stone. The
newer universities have their buildings grouped together on a campus.
3 A , which is usually an honours degree, generally takes three years.
Most courses end with exams called finals. Results are given as classes (=grades): a first is
the highest class, seconds are often split between upper second and lower second, and
below that is a third. Graduates may add the letters BA ( ) or BSc
(Bachelor of Science) after their name. Some graduates go on to study for further degree,
often a or a doctorate.
4 Higher education is not free. In principle students have to pay a contribution to the cost of
teaching ( ) and have also to pay their living costs
( ). The government provides loans to help them pay for university
education which have to be paid back from earnings once their income reaches a certain
level.
Going to college in the US
5 Americans talk about “going to college” even if the institution they attend is a university. To
Americans the phrase “going to university” sounds pretentious. Most colleges offer classes
only for students studying for a bachelor’s degree. Community
colleges offer two-year courses leading to an , and afterwards
students transfer to a different college or university to continue their studies. Universities are
larger than colleges and also offer courses for students who study in
graduate school. Many universities also have separate professional schools, e.g. a medical
school or a law school.
6 American high school students who want to study at a college or university have to take a
standardized test, e.g. the SAT (Scholastic Aptitude Test) or the ACT (American College
Test). Students from countries outside the US who are not native speakers of English must
also take the (Test of English as a Foreign Language). Each college or
university decides on the minimum score it will accept, though test scores are never the only
factor taken into account. Students apply direct to between three and six colleges in their last
year of high school. Each college has its own form and most include a
question for which the student must write an essay. The student also has to send a
(=an official list of all the subjects studied and the grades received) and
letters of reference.
master’s degree maintenance tuition fees first degree Bachelor of Arts
application TOEFL associate’s degree transcript graduate
undergraduate
9
7 There are many private colleges and universities but most students choose a public
institution because the costs are lower. All universities charge tuition, and students pay extra
for room and . Prices range from a few hundred dollars a year to well over
$25 000 at some private colleges. Students whose families cannot afford to pay the full
amount apply for . Many students receive a financial aid package which
may be a combination of from the government, a , a student
and work-study (=a part-time job at the college).
8 The most famous universities are those in the_ , including Harvard and
Yale, but many others have good reputations. Large universities often put most emphasis on
research. Smaller colleges tend to concentrate on teaching undergraduates, and many
students prefer these colleges because they offer smaller classes and more personal
attention from teachers.
Teaching and learning
9 The US academic year may be divided into two semesters of about 15 weeks or three
quarters of about 10 weeks each. Students take courses in a variety of subjects, regardless
of their main subjects, because the aim of the liberal arts is to produce well-
rounded people with good critical skills. At the end of their (=second) year
students choose a (=main subject) and sometimes a
(=additional subject) which they study for the next two years. Students take four or five
courses each semester from the course catalogue. Courses may consist mainly of lectures
or may include discussion sections or lab sessions.
10 Students are given grades at the end of each course. The highest grade is A; the lowest
is F, which means that the student has failed the course and will not get for
taking it. To check a student’s overall progress, the university calculates a grade point
average (GPA). Students who finish their degree with a high GPA may be awarded Latin
honours, of which the highest is summa cum laude.
11 At most British universities the academic year is divided into three terms. Students study
a main subject throughout their degree course, which is usually a mix of
courses and . Teaching methods vary between universities. Most students
have lectures and seminars (=discussion groups) and there are for those
doing a science subject. At some universities students have individual or
supervisions.
12 In Britain a professor is the person in charge of a department or a senior member of staff.
Other teaching and research staff are called . Junior academic staff may be
called research associates.
In the US most people who teach at colleges or universities and have a doctorate are
addressed as professor. professors are senior to associate professors,
assistant professors and instructors. Graduate students working towards a higher degree
may teach undergraduate courses at larger universities. These grad students are called TAs
(teaching assistants). In return, TAs do not have to pay for their own tuition and get a small
amount of money to live on. Source: Oxford Guide to British and American Culture, OUP (1999), OUP (2005).
grants financial aid Ivy League scholarship board loan
credit minor curriculum major sophomore
lecturers
electives
full tutorials practicals compulsory
10
II Answer these questions.
Paragraph 3
Which academic degrees may students earn when they graduate in Great Britain?
How does the academic grading system work in Great Britain?
Paragraph 4
Do universities charge a tuition fee in Great Britain?
Paragraph 5
What is the difference between a university and college in the US?
Which degree will you hold if you graduate from a community college?
Paragraph 6
What is required to be admitted to an American college or university?
Paragraph 7
What does a student’s financial aid package include?
Paragraph 9
How is the US academic year divided?
How do students select their courses in the US?
What types of classes are there?
Paragraph 10
How does the academic grading system work in the US?
What does GPA stand for?
Paragraph 11
How is the academic year divided in Great Britain?
What types of courses are there in Great Britain?
What types of classes are there at British universities?
Paragraph 12
What are the different titles for university teachers in Great Britain?
What are the different titles for university teachers in the US?
What do TAs do and what are the benefits they get in return?
III Find English equivalents for the following expressions in the text.
1 Prosjek svih ocjena stečenih u određenom razdoblju
2 Visoko učilište u SAD-u koje izvodi dvogodišnje
programe
3 Diploma dvogodišnjeg preddiplomskog studijskog
programa (Diploma Preddiplomskog stručnog studija)
4 Bod koji određeni predmet nosi
5 Prijepis predmeta i ocjena
6 Novčana potpora, pomoć
7 Studentski kredit
8 Semestar
9 Medicinski fakultet
10 Docent
11 Izvanredni profesor
12 Asistent
13 Redovni profesor
14 Školarina
15 Konzultativna nastava
11
IV Fill in the table and compare the universities.
CROATIA GREAT BRITAIN THE US
What is required to
apply?
Do they charge a
tuition fee?
Which degrees can
be earned?
How is an academic
year divided?
What types of
classes are there?
What types of
courses are there?
How does the
grading system
work?
V Read the following text and underline the key terms referring to the Bologna
Process.
BOLOGNA – AN OVERVIEW OF THE MAIN ELEMENTS
The Bologna Process aims to facilitate mobility by providing common tools (such as the European
Credit Transfer and Accumulation System – ECTS and the Diploma Supplement) to ensure that
periods of study abroad are recognised. These tools are used to promote transparency in the emerging
European Higher Education Area by allowing degree programmes and qualifications awarded in one
country to be understood in another.
Three Degree Cycle
Two basic degrees, Bachelor and Master, have been adopted now by every participating country;
sometimes in parallel to existing degrees during a transition period, sometimes replacing them
completely. European universities are currently in the implementation phase, and an increasing
number of graduates have now been awarded these new degrees. Typically, a Bachelor degree
requires 180-240 ECTS credits and a Master programme between 90-120 ECTS credits, with a
minimum of 60 ECTS at Master level. This allows for a flexible approach in defining the length of both
Bachelor and Master programmes.
Many participating countries have made substantial changes to their systems in response to the
Bologna Process. Introducing the new degrees has required a tremendous effort in reviewing curricula
and expectations toward students. Already over half of European universities have reviewed their
curricula entirely, using the Bologna reforms to implement a more student-focused approach and new
quality procedures.
In the third cycle, European PhD programmes are not defined by ECTS credits, however, common
principles are currently under discussion.
Source: The European University Association http://www.eua.be/eua-work-and-policy-area/building-the-european-higher-education-area/bologna-
basics/Bologna-an-overview-of-the-main-elements.aspx
12
INTRODUCTION
I Study the key terms and do the exercises that follow.
Economics (noun) The study of the way in which wealth is produced and used.
Economy 1 (noun) The system by which a country’s goods and services are produced
and used.
e.g. The transformation from a command economy to a market one.
2 (noun) The careful use of money, goods, time etc. so that nothing is wasted.
e.g. In trying to achieve the economy, the National Health Service is cutting on
its spending.
3 (noun) A way of spending less money, the intentional saving of money, or
less commonly the saving of time, energy, words etc.
e.g. They’ve had to make economies since Collin lost his job.
4 (adjective) An economy fare, hotel etc. is cheaper than other things of the
same type.
e.g. Kuoni Travel offers a range of economy and medium-priced hotels.
5 (adjective) An economy size product or packet contains more than a normal
one and is cheap compared to the normal size product.
e.g. The small-size offerings that used to fill shelves have been replaced with
economy-size packages.
Economist (noun) Someone who studies the way in which wealth is produced and used in an area.
Economic (1) (adjective) Having to do with the production, distribution and consumption of wealth and income e.g. economic development/planning/policy
(2) (adjective) Relating to the science of economics, or to commerce and industry. e.g. economic activity /economic theory
Economical (adjective) Using time, money, goods etc. carefully, without wasting.
e.g. Adults generally watch a movie on video once or twice, making it more economical to rent than to buy .
Economize (AE) /Economise (BE) (verb) To reduce the amount of time, money goods etc. that you use.
e.g. The company will continue to economize by shedding further 2,000 jobs this year.
Economies of scale (noun in plural) The advantages that a big factory, shop etc. has over a smaller one because it can spread its fixed costs over a large number of units and therefore produce or sell things more cheaply.
(Sources: Longman Dictionary of Business English, Cambridge English Dictionary)
2 ECONOMICS AND ECONOMY
13
II Fill in the blanks with the words from the box.
1 (adj) a) Relating to or involving economics, money, finance. b) Which produces enough profit to make it worth continuing with.
2 (n)
Someone who studies the way in which wealth is produced and used in an area. 3 (v)
To reduce the amount of time, money, goods etc. that you use, to save money.
4 (n) a) The system by which a country's goods and services are produced and used, or a
country considered in this way. b) The careful use of money, goods, time etc. so that nothing is wasted. c) A way of spending less money.
5 (adj)
Using money, time, goods etc. carefully and without wasting any. 6 (n)
The study of the way in which wealth is produced and used.
III Translate the words in italics into English.
1 Gospodarstva of the transition countries have undergone major changes recently.
2 Ekonomija is the system by which a country’s goods and services are produced and
used.
3 The ekonomska situation in Croatia is very serious.
4 Ekonomija is a fascinating subject to study.
5 This production process is very ekonomičan.
6 As businesses grow they may achieve ekonomiju razmjera.
7 The Italian ekonomija is in big problems.
8 A decrease in the gospodarski growth was recorded last month.
9 Some students study ekonomija, while others do business studies.
10 Ekonomije razmjera can arise in several areas: e.g. purchasing, marketing,
administration or research and development.
IV Fill in the gaps with either economics or economy.
1 She studied music at Oxford but after a year switched to politics, philosophy and
.
2 The finance minister favours tax cuts to stimulate the .
3 The slowing global _
exports.
has weakened demand for Japan's high-technology
4 Macroeconomics is the field of
as a whole.
that studies the behaviour of the
ECONOMIC/ ECONOMISE/ECONOMICAL/ECONOMICS/ECONOMIST/ECONOMY
14
V Fill in the gaps with economic or economical.
1 The word is related to the economy or finances, money matters, or
wealth.
2 refers to avoiding waste.
3 Try to be with the fabric when you cut out the shapes – we haven’t got any
more.
4 There was a rise in unemployment due to the downturn.
5 An car uses a minimum amount of petrol to drive a maximum number of
kilometres.
6 The climate is slowly improving.
VI Fill in the blanks with the words from the box.
1 The country is facing a severe crisis.
2 The climate is not likely to improve significantly this year.
3 He expects Europe’s over the long run to grow faster.
4 What are the prospects for recovery?
5 The system was extremely because it ran on half-price electricity.
6 We have to keep fares high enough to make it for the services to continue.
7 I find the leg room on most flights insufficient.
8 She has a degree in .
9 Consumers are interested in small _cars which do not use a lot of petrol.
10 This region’s _is still largely based on manufacturing.
11 How could the most use of our time be organized?
12 The national is the system of the use and management of a country’s
resources.
13 is the oldest in social sciences.
15 Strikes were damaging the country’s .
16 What has gone wrong with the system?
17 J. M. Keynes was a famous .
18 Choosing your life’s occupation is the most important decision you will
make.
19 The earliest _theories were explanations of how the worked.
20 As a scholarly discipline, is two centuries old.
ECONOMIC, ECONOMIST, ECONOMICS, ECONOMISE, ECONOMY, ECONOMICAL
15
21 The political agenda is full of issues.
22 Many countries tried to on fuel in the 1970s.
23 Some analysis is required here.
24 It is usually more to buy large quantities of a product than small
quantities.
25 She majored in at Harvard.
26 Fourteen top have signed a statement criticising proposed tax cuts.
27 New software was introduced to on management costs.
VII Sort out the words in the box by copying them in the right column.
economics economy
VIII Use the above word partnerships in sentences of your own.
INTERNATIONAL THEORETICAL KEYNESIAN BOOMING HEALTHY
BLACK CLASSICAL FRAGILE APPLIED GLOBAL
16
WHY ECONOMICS?
I Discuss these questions.
1 Do you think everybody should have some knowledge of economics? 2 In what way do you think knowledge of economics can help people in their lives? 3 What is the difference between economics and business? 4 What do economists do?
II Before reading Why Economics match the words/phrases on the left to the explanations on the right.
1 issue A impossible to measure, very great
2 affect B an advantage that somebody already has before they start doing
something
3 infinite C to have an influence on something
4 commodity D to happen, to start to exist, to occur
5 a head start E an important topic that people are discussing or arguing about
6 assumption F a physical substance (a raw material, e.g. coffee, bananas,
metals, etc.) which is traded on special markets
7 arise G kept as a prisoner; unable to escape
8 captive H a belief or feeling that something is true / that something will happen,
although there is no proof
III Skim the text adapted from Samuelson’s book Economics* and decide which
paragraphs should be given the following headings. Each heading reflects the main
idea presented in the paragraph.
A Scientific tools and methods
B Scarcity of resources
C Discovering an objective reality?
D Informed voting- civic duty
E Chief interest of economics
F Impact on personal life
G Careful allocation of resources
H Obstacle: clinging to familiar theoretical conceptions
I Research topics in economics
17
IV Read the text, check your predictions and write the headings on the blank lines. Then, choose the correct bold-typed words.
1 All your life you will run up against the brutal truths of economics. As a voter, you will make decisions on issues - on the government budget, regulating industries, taxes and foreign trade - that cannot be understood until you have mastered the basics of economics.
2 Choosing your life’s occupation is the most important economical / economic decision you will make. Your future depends not only on your own abilities but also upon how economic forces beyond your control affect your wages. Also, economics / economy may help you invest the nest egg you have saved from your earnings. Of course, studying economics / economy cannot make you a genius. But without this knowledge the dice of life are simply loaded against you.
What is economics?
3 Economics covers all kinds of topics. But the core is devoted to understanding how society allocates its scarce / abundant resources.
The law of scarcity
4 Economists study the way goods are produced and consumed because people want to consume far more than an economy / economics can produce. If infinite quantities of every good could be produced, people would not worry about the efficient use of scarce resources. In such an Eden of affluence, there would be no economic / economical goods, goods that are scarce or limited in supply. There would be no need to economical / economize on consumption and indeed economics / economy would no longer be a vital science. All goods would be free, like sand in Saudi desert or water at the beach.
5 So, economics / economy is the science of choice. It studies how people choose to use scarce or limited productive resources (labour, equipment, technical knowledge), to produce various commodities (such as wheat, overcoats, concerts, and missiles) and to distribute these goods for consumption.
How? Why?
6 How could anyone hope to know in a precise and scientific way why economy / economics of Japan has grown rapidly while the economy / economics of the Soviet Union has stagnated? Can economists really explain why some people are fabulously rich while others hardly afford one square meal a day? Of course, economists have no monopoly on the truth about the important issues of the day. Indeed, many phenomena are poorly understood and highly controversial.
7 But economists and other scientists have developed techniques – sometimes called the scientific approach, that give them a head start in understanding the complex forces that affect economic / economics growth, process and wages, income distribution, and foreign trade:
Observation: This is about observing economic affairs, especially historical records: Why did inflation in Germany in the 1920s, reach 1,000,000,000,000 percent in two years, destroy the middle class, and, as many think, bring Hitler to power?
Economic analysis: History and facts are important, but facts cannot tell their own story. By developing and testing economic / economical theories we can simplify and organize the jumble of data and facts into a coherent view of reality. That is why economists use a set of assumptions and then deduce logically certain predictions about the economic behaviour of people, firms or the overall economy. (There is a wonderful joke about three men stranded on the deserted island: an engineer, a chemist and an economist. One day a can of beans washed up on the shore. The hungry men debated how to open it. The
18
engineer suggested hitting it on the rock, but there was no rock. The chemist suggested to heat it to great temperature, so it would burst open, but they could not start a fire. Suddenly the economist announced: “Let’s assume we have a can opener.”
Statistical analysis: Governments and businesses issue volumes of data that can help us analyze economic behaviour quantitatively. While actual application of such information requires advanced tools in probability and econometrics, understanding the results requires only common sense. Let’s say that you are wondering why, on average, women earn only 60% as much as men. You collect data on wages of men and women, along with their personal characteristics (education, years of experience, occupation and so forth). You employ statistical techniques and see that men have on average spent more time in the workforce and have generally entered higher-paying occupations. But after all the statistical dust has settled, a significant part of the wage differential is unexplained. Some believe this remaining differential is due to discrimination.
Experiments: The economic / economical world is enormously complicated, with millions of households and billions of prices. Economists are relying more and more on experiments to explain economic behaviour. For example, in one of group of controlled experiments over the last two decades, economist measured people’s reactions to different kinds of government programs to raise the incomes of the poor. Other experiments today examine how markets behave with a small number of producers.
Subjectivity
8 There are many obstacles to mastering economy / economics but perhaps the greatest one arises from the subjectivity we bring to studying the world around us. We sometimes believe that the task of our studies is to uncover an objective reality – to learn the facts and laws of nature or economics.
9 Unfortunately, learning is not so simple. When we are young, our minds are open to new ideas. As we grow up, we begin to organize our ideas and to learn about the world from our family, friends, and teachers. But no sooner do we begin to understand our world than we become captives of our own knowledge. Scientists are just like other people; they are prisoners of their theoretical preconceptions. In his Scientific Autobiography, Planck reports what he observed in the development of physics: “The experience gave me also an opportunity to learn a fact – a remarkable one in my opinion: A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.”
* Samuelson, P.A. Economics, 14th
edition, ed. McGraw-Hill, 1992
Samuelson – Nordhaus, Economics, 18th
edition, ed. McGraw-Hill, 2005
V Organise the main ideas visually. Refer to pp. 74-76 for advice on making notes.
19
VI Go back to the text and underline the terms/expressions that primarily belong to the language of economics and business.
e.g. government budget, foreign trade, etc.
VII Find the words in the text which mean the following:
ekonomija
zanimanje
ekonomski rast
vjerojatnost
nadnice (plaće)
distribucija dohotka
ekonometrija
obilje
vanjska trgovina
radna snaga
ekonomska analiza
oskudni resursi
kućanstva
znanstveni pristup
VI There are several figurative expressions in the text. Match up the half- sentences below to explain these expressions.
1 If the dice are loaded against you,
eat properly at least once a day.
2 To invest the nest egg means
you experience difficulty.
3 People who have a square meal a day
you are out of control, facing uncertainty
and risk.
4 When you run up against something
that you use your savings to increase
your wealth.
20
BUSINESS SECTORS
I Read the following text and find out about the different types of economic
activity.
Firms operate in different sectors of the economy. They form a chain of production which
provides consumers with finished goods or services.
The primary sector involves the extraction of raw materials and natural resources from
the Earth. For example, ores are mined, oil drilled from the ground, stone, sand and gravel
are quarried, foodstuffs farmed and fish trawled. Primary production is also known as extractive
production.
The secondary sector involves the transformation of raw materials into part-finished or
finished goods. All of manufacturing, processing and construction lie within the
secondary sector. It involves making plastics from oil, chocolate from cocoa beans and
smartphones from plastic, glass and metal. It also involves constructing products, e.g. building
houses, ships, bridges and roads.
The tertiary sector provides commercial services that support the production and
distribution process, e.g. insurance, banking, transport, advertising, warehousing and direct
services such as teaching and health care.
The quaternary sector of the economy is an extension of the tertiary sector. It concerns the
intellectual services: research and development, higher education, information generation,
information sharing and consultation.
II Find the words in the text that mean the following:
1 in its natural state, not yet changed, used or made
into something else
2 to extract stone or other material from an open
excavation or pit
3 to catch with a large net
4 the process of storing goods within a storage facility
5 a naturally occurring mineral containing a valuable
constituent for which it is mined
6 small stones and pebbles, or a mixture of these with
sand in naturally occurring pits, underwater or on
beaches
7 the various stages through which the production of
goods passes to reach the consumer
3 THE THREE SECTORS OF THE ECONOMY
21
III Fill in the missing words.
IV Study these terms and do the exercises that follow.
Business 1 (uncountable noun) The production, buying and selling of goods and
services for profit.
2 (countable noun) A person or organization that produces and sells goods or
services.
Company (noun) An organization that makes or sells goods and services in order to
make a profit.
Industry 1 (uncountable noun) The production of raw materials and goods.
2 (countable noun) A business that produces a particular type of thing or
provides a particular service. e.g. pharmaceutical industry, hotel industry
Resource allocation (noun phrase) The way that the resources of a country, company etc.
are used for different purposes, and how this is decided.
Firm (noun) business or partnership;
Sources: Longman Dictionary of Business English, Cambridge English Dictionary
Primary: extracting r materials
farming, forestry, fishing, m , quarrying
Secondary: m , turning raw materials into products
b , making machines, making products for consumers
Tertiary: p services
trade, commerce (banking, insurance, communications, t ,
retailing, advertising…)
d services (teachers, doctors, hairdressers…)
Q sector: providing information and knowledge- based services
information and communication technology (ICT),
r (R&D), culture, higher education,
consulting, news and media
Adapted from: D. Butler, Business Studies, OUP
22
V Match the definitions of companies with the corresponding industries.
1 A company which makes aspirin. a) automotive
2 A company which mines diamonds. b) construction
3 A company which makes men’s suits. c) consumer electronics
4 A company which sells package holidays. d) financial services
5 A company which makes trucks. e) confectionery
6 A company which distributes electricity. f) software
7 A supermarket chain. g) telecommunications
8 A company which builds houses. h) media
9 A company which makes washing machines. i) pharmaceuticals
10 A company which sells hamburgers. j) beverages
11 A company which makes TVs. k) textiles
12 An airline. l) toiletries
13 A company which makes fighter planes. m) real estate
14 A company which makes shampoo. n) transport
15 A restaurant chain. o) utilities
16 A newspaper publisher. p) household goods
17 A company which sells things over the internet. q) retail
18 A company which makes mobile phones. r) fast food
19 A company which sells investment advice. s) catering
20 A company which makes chocolate. t) defence
21 A company which makes beer. u) e-commerce
22 A property company. v) tourism
23 A company which writes computer programmes. w) extractive
Source: Steve Flinders: Professional English (Business Intermediate)
VI Classify the industries under the names of corresponding sectors of the economy:
PRIMARY SECTOR
SECONDARY SECTOR
TERTIARY SECTOR
23
MANUFACTURING AND SERVICES
I Read the text and answer the questions below:
Two hundred years ago, the vast majority of the population of virtually every country lived in
the countryside and worked in agriculture. Today, in what many people call "the advanced
industrialized countries", only about 2-3% of the population earn their living from agriculture.
But some people already talk about "the post-industrial countries", because of the growth of
service industries, and the decline of manufacturing, which is moving to "the developing
countries".
Is manufacturing industry important?
Is its decline in the "advanced" countries inevitable?
Will services adequately replace it?
II Read this extract from an interview with the well-known Canadian economist,
John Kenneth Galbraith, and answer the questions.
1 Why do people worry about the decline of manufacturing?
2 Which activities are as important as the production of goods?
3 Should people worry about this state of affairs?
We worry about unemployment and the loss of manufacturing industry in the advanced
industrial countries only because we don't look at the larger social developments. The US, for
example, no longer depends on heavy industry for employment to the extent that it once did.
This is related to a larger fact that has attracted very little discussion. After a country's people
are supplied with the physical objects of consumption, they go on to concern about their
design. They go on to an enormous industry persuading people they should buy these
goods; they go on to the arts, entertainment, music, amusement - these become the further,
later stages of employment. And these are things that are extremely important.
Paris, London, New York and so on do not live on manufacturing; they live on design an
entertainment. We do not want to consider that this is the solid substance of economics, but
it is.
I don't think it is possible to stop this progressive change in the patterns of human
consumption. It is inevitable.
(J.K. Galbraith in conversation with Steve Platt, New Statesman and Society) Source: Ian MacKenzie, English for Business Studies, 2nd Ed, p
24
Where did all the jobs go?
I Read the text below to find out about employment trends globally. Take the
following steps:
a) Read and underline the topic sentences
b) Read the topic and the last sentences
c) Read the whole text paragraph by paragraph.
From the 1750s to the middle of the nineteenth century, Britain led an industrial revolution
that changed manufacturing forever. With other Western countries, it produced consumer
goods for the rest of the world well into the 1960s. Generations of workers spent their entire
careers in the same workplace. Yet, nowadays, most of the consumer goods we buy have
been made in the East. If, by magic, our shoes could return to where they were made, most
would march all the way back to China or Vietnam – and the jobs have gone with them.
Manufacturing gravitates to countries with lower labour costs, or more efficient production
methods. Since the US economy started to recover in 2003, unemployment has remained
high. This is because two million manufacturing jobs have gone elsewhere.
China is undoubtedly the latest big success story. As well as making 90% of world’s toys, the
country is now responsible for a quarter of global steel production. By contrast, much of the
US’s industrial heartland has been a “rust-belt” for years. In Western Europe, too, industry
has been declining for decades. European shipyards have been closing one by one ever
since South Korean rivals learnt how to build more efficiently and cheaply. Nearly all Britain’s
coal mines have ceased production since it became cheaper to ship coal all the way from
Australia. Since the 1980s, tens of thousands of British workers have lost their jobs in these
sectors.
Some workers may have retrained and found jobs in hi-tech industries; however, most have
ended up working in services. In the UK, more people are now employed in making
sandwiches than in making steel. Even jobs in knowledge-based services are threatened by
globalization. Improvements in telecommunications have allowed firms to outsource work
thousands of miles away. Bangalore, with its workforce of highly-skilled computer
programmers and engineers, has transformed itself into India’s answer to Silicon Valley.
Many UK businesses have relocated their call centres there too – an Anglophone Indian
worker will work for a fraction of his British counterpart’s salary. This all proves that even
though employment in hi-tech sectors such as pharmaceuticals and aeronautics remains
strong, for most of us the idea of a job for life – or at least a safe job - has been untrue for
years.
Source: Jon Nauton, Profile 2, OUP
II Find the words in the text that mean the following:
Pg.1: whole ; production ; job
Pg.2: iron & carbon mix ; the central part , stopped
Pg. 3: endangered ; to move ;
very small part ; to arrange for somebody outside a company to do some
work for the company
25
III Complete the notes.
MANUFACTURING GROWS IN THE EAST
EXAMPLES OF GROWTH IN THE EAST:
INDUSTRY → COUNTRY
MANUFACTURING JOBS DECLINE IN THE WEST
EXAMPLES : 1)
2)
3)
• CONSEQUENCES: 1)
2)
3)
LOSS OF JOBS IN KNOWLEDGE-BASED INDUSTRIES
1)
2)
X Use the notes to practise retelling the text.
1)
2)
3)
• REASONS: 1)
2)
26
A SURVEY OF THE 20TH CENTURY: FREEDOM FROM WANT?
I Do you agree with these statements? Explain your view.
a) From each according to their ambitions, to each well beyond their needs: that
is the capitalist creed.
b) Wealth brings happiness to people.
c) In terms of economic well-being we are now better off than we were 100 years ago.
II Read the text and answer the questions.
1 What has happened to each of the three sectors of the economy in the past 100 years in
developed western countries?
2 How are workers treated nowadays?
3 What is the connection between mass labouring in factories, mass consumption and mass
advertising?
4 Why has the power of trade unions diminished towards the end of the 20th century?
5 How has spending on leisure changed in the last 100 years?
6 How has inequality changed in the last 100 years?
7 What does the text conclude about happiness and wealth?
IF YOU look at the past 100 years in the 40-50 countries that are now considered rich, what trend do
you see? Bradford De Long, a professor at the University of California at Berkeley, describes it in the
title of his forthcoming book on the 20th century as “Slouching towards Utopia”. Slouching, because
despite huge material and scientific progress, people are grudging about it all. Utopia, not because
perfection has been reached or is attainable, but because the state of wealth and knowledge in 1999
would have more than satisfied the Utopias envisaged by many previous crystal-gazers and
proselytisers. Consider what has happened:
Farming, forestry and fishing, which for centuries had meant hard labour, in 1913 accounted for 28%
of employment in America, 41% in France and 60% in Japan, though only 12% in Britain. Now,
mechanised farming and new technology have hugely increased food production, yet the proportion of
the workforce employed in these arduous activities has dropped below 6% in all those countries.
Services, seen today as a modern sector of the economy, in some countries already accounted for a
larger share of jobs in 1913 than did farming: 43% in America and 44% in Britain, though only 27% in
France and 22% in Japan. Now the figures range from 60% in Japan to about 75% in America. But the
nature of those services has changed. A century ago, most of them involved a direct personal service:
being a servant, in other words. Now, most are indirect and concerned with information: education,
accountancy, government, communication and so on.
So the rich today have far less direct command over people—fewer servants, fewer exclusive
services—even though they have far more command over things. Household tasks have become
increasingly mechanised, through washing machines, vacuum cleaners, dishwashers and so on, and
food production more industrialised, reducing the time devoted to cooking at home. That means far
fewer women are employed as cooks and maids, but many more are able to go out to work.
Mass labouring in the fields was replaced by mass labouring in the factory, and with it employment by
new, large corporations, amid mass urbanisation and at times mass unemployment, a new concept.
27
This accelerated a change already under way in the 19th century. But industry changed, too: production
that had involved a lot of craft skills was replaced by machine tools and routine assembly work. Early
cars were made by craftsmen, and each one was slightly different. Beginning in the 1920s in America,
though much later in Western Europe and Japan, products and processes became standardised.
•Workers started to be treated as interchangeable, albeit trained, units, organised more or less
scientifically to make processes more efficient. That was true for several decades in American
capitalism, German Nazism and Soviet communism alike. But whereas in Germany and Russia
production was celebrated and wages and consumption were suppressed, in America and the rest of
Europe consumption was king. As the century wore on, more and more people were employed for
their technical, literary and professional skills, as “white-collar” workers. Employment in non-profit
organisations—charities, private hospitals—also began to rise, providing nearly 8% of all jobs in
America in 1995, 6% in Britain and over 12% in the Netherlands.
Mass consumption gave rise to mass advertising, through the new mass-communication outlets of
radio and television, as products were sold with more emphasis on style, image and brand. Vance
Packard complained in a 1957 book that advertisers were “hidden persuaders”, manipulating minds
and denying free will. But people went on buying, and advertisers went on trying to work out why.
Throughout the century, “knowledge”—i.e., brainpower—was increasingly taking over from manpower,
horsepower and material power. Norman Angell, a British socialist, pointed this out in “The Great
Illusion” in 1910; Peter Drucker, by then a management guru, wrote a book about it in 1967; Tony Blair
and Bill Clinton caught on in the late 1990s.
Mass employment in mass production led to the creation of mass trade unions and the securing of
mass labour rights. By 1930, 6.8% of workers in America and 25.3% in Britain belonged to a trade
union. By 1950, the numbers had risen steeply to 22.3% and 39.9% respectively. By 1996-97, as
employment had shifted away from mass production and unions were felt to have become less
effective at increasing most people's bargaining power or job security, union membership had declined
sharply, to 14.1% and 30.1% respectively.
America led in virtually everything: growth, productivity and incomes, new products and new
processes, applying new ideas first or most effectively even if it did not invent them. Early in the
century, it received a big influx of migrants from Europe. By the end of the century it was virtually
alone among the rich countries in still permitting substantial immigration, although by now most of its
migrants were from Asia and Latin America.
Inequality diminished sharply, thanks to mass education, higher wages, progressive taxation and the
increasing value, particularly for the poor, of public services and job protection. War broke some social
barriers and taboos, but education made the biggest difference. Some countries—Germany, Japan—
became more equal than others, such as Britain but especially the United States. In the past 20 years
inequality has begun to increase again.
Government spending as a share of GDP in 1913 ranged from 1.8% in America, 6.3% in Sweden,
8.3% in Japan, 12.7% in Britain and 14.8% in Germany to 17% in France. Now it ranges from 34% in
America and 54% in France to 65% in Sweden, requiring levels of taxation that would have caused
riots in 1900. Health care and education were two growth areas, but the biggest slice went to transfers
and subsidies—the taxing of one person to hand the money to another, who would not always be
poorer.
Spending on leisure—which is hard to define, but includes travel, entertainment and holidays—was
also a new thing. It grew from 2-3% of GDP in America in the early 1900s to roughly 10% now. Where
at the turn of the century a Briton worked for 2,700 hours a year, by the 1990s people in rich countries
generally put in only around 1,400-1,800 a year. Paid holidays became the norm, ranging from two to
three weeks a year in America and Japan to six weeks a year in Germany. Beginning in the 1960s and
1970s, ordinary people joined the jet-set.
28
Happily on holiday?
Of this list of change and plenty, that last point is especially worth dwelling upon. Commentators in the
early 1900s would have been surprised by all that money being spent on leisure, and especially by the
idea that time off is being enjoyed by the poor as well as the rich: no work at weekends, holidays at all,
let alone abroad. But they would have been most surprised that, once ordinary folks' basic needs were
covered, they carried on working hard. In his book “In Praise of Idleness”, Bertrand Russell wrote in
1935: “The idea that the poor should have leisure has always been shocking to the rich.” But he went
on to argue that: “Only a foolish asceticism...makes us continue to...work in excessive quantities now
that the need no longer exists.”
John Maynard Keynes would also have been surprised. In “Economic Possibilities for Our
Grandchildren”, written to brighten up the gloomy days of 1930, he forecast that 100 years from then
we would be eight times better off in economic terms (which has already happened), and that this
would mean the long struggle to produce enough to meet basic needs would at last be over. The
majority would then work for only 15 hours or so a week. A few would work harder, in pursuit of
wealth. But most would not, seeing the love of money as “one of those semi-criminal, semi- pathological
propensities”.
He was wrong, and most do not see money in that way. Why not? To want more than you have,
whether in monetary or other terms, is a basic human instinct. As they sang in “South Pacific”, if you
don't have a dream, how can you have a dream come true? But also, work has a value beyond
providing a living, and that applies to humbler occupations as well as the high-brow. The view held by
Russell and Keynes, and echoed by Hannah Arendt in “The Human Condition” in the 1950s, that
human beings are really frustrated philosophers, keen to spend time in contemplation, has proved to
be bunkum. After all, to those writers contemplation was not leisure; it was their work.
Are people happy amid all this plenty? Andrew Oswald, an economics professor at Warwick University
in Britain who has studied data available for America and Europe, finds that the most extreme
indicators of unhappiness—suicide or attempted suicide—show a clear fall in the rich countries in
proportion to the population. In 1911, he says, 2,600 men in England and Wales committed suicide; in
1990, the figure was 2,800, in a much larger population. Less extreme data are less reassuring,
however. In polls, people in both continents say they have become happier in recent decades,
especially in Europe, but everywhere the rise in happiness is a lot smaller than the increase in wealth.
The most plausible explanations are that relative wealth matters far more than the absolute sort, and
satisfaction is always relative to expectations. “Positional goods”, i.e., ways to establish your relative
status through your car, clothing or other possessions, become important in a society that is not only
affluent but has also shed the clear social rankings and rigidities that were common in Europe and
Japan. Fred Hirsch, a British economist (and once a writer on The Economist) who coined the term in
a book in 1976, argued that the rise of positional goods would limit growth, since by definition they had
to be scarce. Yet people have proved ingenious at creating ever more sources of exclusivity.
The importance of relativity is also a big reason why inequality remains a serious issue even in
countries where the poor have video recorders. Rich conservatives often decry this. But if those plump
and prosperous types care about having more than others, why should it not be legitimate for the
poorer people to care a lot about having less? Still, inequality is at its most potent when it reflects an
inequality of opportunity or access, the sense that there are firm barriers to progress regardless of
effort or merit. That was particularly true in Britain, for example, before mass public education and the
breakdown of hereditary rankings.
Another reason, however, why plenty seems to bring neither happiness nor relaxation is that luxury
has not brought security, except for a lucky few. Indeed, some think that modern capitalism has
increased insecurity, by substituting a heartless “cash nexus” (i.e., wages) for old ties of faith, family,
community or social position. This is an odd view; in western society at least, social position has
always, in the end, been founded on money. Jane Austen's novels were about little else. But perhaps
the more that you have, the more you are worried about losing it. Marxists used to talk of inevitable
“crises of capitalism”. They were right in one sense: capitalism has proved worryingly unstable.
The Economist Sep 9th 1999
29
II Study the text to make notes (for guidelines refer to pp. 74-76):
30
I Read the following text and answer these questions.
1 What is the basic economic problem?
2 How is it solved in the three types of economic systems?
MARKET ECONOMIES
In market economies (also known as capitalist economies or free market economies)
resources are allocated automatically by the forces of demand and supply (market
mechanism), which stimulates competition. This should lead to lower costs, a wider choice of
goods and services and better quality for consumers. The role of government in a free market
system is limited. Some of its main functions are to pass laws, to provide certain essential
products and services such as policing, national defence and the judiciary, and to ensure a
level playing field (fair competition) for all competitors. In market economies, market
imperfections can occur. Some goods and services are not provided by private firms such as
defence. Furthermore, private firms are not interested in services which do not make a profit.
Another implication of the working of a free market economy is that firms may choose to
sacrifice public interest in exchange for lower costs.
PLANNED ECONOMIES
Government has a vital role in a planned economy (also known as command economy). It
plans, organises, and co-ordinates the whole production process. This is unlike a market
economy, where planning an organising is carried out by firms. Planners encourage the
production of standardised goods with little variety and choice for consumers. Another
difference is that resources in planned economies belong to the state, and goods and services
are distributed to consumers by the state. In planned economies, there tends to be a more
equal distribution of wealth and income, production is for need rather than profit, people tend
to be less motivated to work efficiently and the standard of living is often lower compared with
countries which use other types of economic systems.
MIXED ECONOMIES
In reality, no country has an economy which is entirely planned or free market. Most economic
systems in the world have elements of both. They are known as mixed economies. In mixed
economies some resources are allocated by the government (in the public sector) and the
rest by the market (in the private sector). In mixed economies the state usually provides
a minimum standard of living for those unable to work. The public sector is responsible for the
supply of some public goods and services and this is decided by central or local government.
Public goods are usually provided free when used and are paid for by taxes (e.g. roads). In
the private sector production decisions are made by firms in response to the demands of
consumers, and individuals are allowed to own the means of production. One of the roles of
the government is to ensure that there is fair competition in the private sector. All private
goods and services are allocated as in the market system. Adapted from: D. Hall, R. Jones, C. Raffo: Business Studies, 2
nd ed., 2000, Causeway Press Limited
4 THE THREE TYPES OF ECONOMIC SYSTEMS
The function of an economy is to allocate scarce resources amongst unlimited wants and to
solve the basic economic problem which is often broken down into 3 questions:
What should be produced? How should it be produced? For whom should it be
produced?
How the above questions are answered will depend on the type of economic system: the free
market economy, the planned economy and the mixed economy. The way business activity
is organised will be different in each of the systems.
31
II Make notes on the text with the help of this table.
Market
economy
Planned
economy
Mixed economy
Public sector Private sector
Role of the
government
Ownership of
resources
Allocation of
resources
Competition
Advantages
Disadvantages
III Make word partnerships from the two columns below and copy them in the
third column.
1 unlimited sector
2 scarce goods
3 basic mechanism
4 market distribution
5 standardized wants
6 income economic problem
7 public/private resources
32
IV Find the words in the text which match the definitions below.
1 An exchange mechanism that brings together sellers and buyers of
a product, factor or production.
2 Goods and services provided by a government for the benefit of all
or most of the populace.
3 The choosing of the particular use to which a scarce resource
(means of production) is put, e.g. whether to use water for electric
power or crops
4 Raw materials and means of labour (tools, machines, etc.)
employed in the production process
5 Products that are the same because they satisfy the same
technical requirements.
6 The branch of government that includes courts of law and judges
7 The inability of markets to deliver goods or services.
8 The level of wealth, comfort, material goods and necessities
available to a certain socioeconomic class in a certain geographic
area.
9 An organized way in which a state or nation allocates its resources
and apportions goods and services in the national community.
V Fill in the grammatically correct version of the missing verbs to establish
word partnerships.
The government:
1 resources in a planned economy.
2 laws in all three types of economies.
3 only essential goods and services in a market economy.
4 fair competition in a market economy.
5 , , the production process in
a planned economy.
6 income more equally in a planned economy.
VI Find synonyms for these terms in the text.
1 market economy:
2 planned economy:
3 forces of supply and demand:
4 means of production:
5 rivalry:
6 level playing field:
7 insufficient, limited:
33
LEARNING LOG (1-4)
Summarise what you have learned so far:
Key words:
Key word partnerships:
Key notes:
34
I Study the differences between the public and the private sector.
THE PUBLIC SECTOR THE PRIVATE SECTOR
means government ownership for the
benefit of everyone
includes public corporations,
municipal enterprises, etc.
contains the army, the police force,
most schools and hospitals, etc.
means private ownership by private
individuals
includes businesses that are run for
the benefit of the people who own them
contains almost all businesses
II Read the text and find appropriate terms for the definitions below:
The public sector is made up of organizations which are, directly or indirectly, owned or
controlled by central or local government. They are funded by the government and in some
cases from their own trading “surplus” of profit.
Certain public goods and merit goods are provided by the public sector. Public goods are
goods where consumption by one person does not reduce the amount available to others
and, once provided, all individuals will benefit (e.g. street lighting).
It is sometimes argued that the public sector should also provide merit goods. Examples
include education, health and libraries, in other words, services that may not be available to
all individuals if not provided by the state. If the individual is left to decide whether or not to
pay for these goods, some would choose not to or may not be able to. The provision of merit
goods is said to raise society’s standard of living.
The public sector consists of public corporations, including some public utilities (e.g.
electricity), nationalized industries, local authority services (e.g. municipal services), central
government departments, government agencies etc. The public sector has an important role
to play in certain areas of business activity yet, for various reasons, some public sector
businesses have been transferred from the public to the private sector.
Adapted from; D.Hall, R. Jones, C. Raffo: Business Studies 2nd
edition, 2000, CPL)
5 THE PUBLIC SECTOR
Companies previously owned by private owners which were taken into
public ownership
Goods which are underprovided by the private sector and are sometimes
supplied by the state.
A business enterprise, such as a public service corporation, performing an
essential public service (e.g. electricity, railroads) and regulated by the central or local
government.
35
III Identify all expressions in the text collocating with “public”:
public public
public public
IV Find verbs for the following nouns:
NOUNS VERBS
transfer
choice
decision
provision
inclusion
exclusion
argument
reduction
decrease
ownership
V Describe the public sector using the following verbs:
make up own control fund provide argue
VI Explain the meaning of the following saying:
“The market has a keen ear for private wants and a deaf ear for public needs.”
36
THE ROLE OF GOVERNMENT
I Read the following extract from a talk by J.K. Galbraith and answer this
question:
What areas does Galbraith describe as responsibilities of the state?
The Good Life Beckons
The good society accepts the basic market system and its managers, but there are
some things the market system does not do either well or badly. In the good society
these are the responsibilities of the state.
Some areas of state action are evident. In no country does the market system provide good
low-cost housing. This is a matter of prime importance and must everywhere be a public
responsibility. Few things are more visibly at odds with the good society than badly housed
or homeless people.
Health care is also a public responsibility in all civilized lands. No one can be assigned to
illness or death because of poverty. Here Britain can proudly point to its leadership.
The state has many other essential functions. It must also be borne in mind that many of
these - parks and recreational facilities, police, libraries, the arts, others - are more needed
by the underclass than by the affluent. Those who attack the services of the state are usually
those who can afford to provide similar services for themselves.
In the good society, there must also be attention to a range of activities that are beyond the
time horizon of the market economy. This is true in the sciences, not excluding medical
research. The market system invests for relatively short-run return. To support science is
pre-eminently the responsibility of the state.
Some of the truly important industrial achievements of recent generations - the great
improvements in agricultural productivity, modern air transport, advanced electronics - have
depended heavily on such public investment. Necessary also - a matter we are beginning
reluctantly to recognize - is investment and regulation in the longer-run interest of the
environment. The good society protects and improves life in its planetary dimension.
(From New Statesman and Society)
II Read the text again and answer these questions:
1 What does Galbraith say about people who criticise government services?
2 Why, according to Galbraith, is the market system not sufficient to guarantee scientific
research?
3 According to what you have read here, how would you characterize Galbraith's politics?
4 Read the definition of the welfare state: “A political system based on the premise that the
government has the responsibility for the well being of its citizens, by ensuring a minimum
standard of living for everyone.” What is the term that Galbraith uses for the same concept?
37
III Find words and expressions in the text which mean the following:
1 obvious
2 inexpensive
3 inconsistent with or contrary to
4 bad health
5 remembered (not forgotten)
6 poor or unemployed people
7 rich or wealthy people
8 successes
9 unwillingly, not eagerly
10 global or worldwide
Source: Ian MacKenzie, English for Business Studies, 2nd Ed, pp 129-30.
IV Find more word partnerships in the text that you would like to remember:
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38
TAXATION
I Do the exercises in MK, p. 112 and then explain what the following terms
mean.
government debt public spending
tax evasion – tax avoidance regressive tax – progressive tax
budget deficit – budget surplus a loophole in the tax law
II Read the text and match the headings with the paragraphs.
A Tax evaders are not punished. E Tax morale: why it is high in some
countries.
B Introduction: the problem with Greece F Tax morale: why it is low in some
countries.
C Cultural change needs to precede tax
reform
G Tax evasion in Greece and its
consequences.
D The Greek government’s solution H The vicious circle of tax evasion.
Dodger Mania
1
Greece is a fairly small country, but for the past year it has been causing an awfully big uproar.
Burdened by a pile of government debt that could force it into default (and the European banking
system into a meltdown), Greece has had to adopt ever more stringent austerity plans in order to
secure a bailout from the European Union. Explanations of how Greece got in this mess typically focus
on profligate public spending. But its fiscal woes are also due to a simple fact: tax evasion is the
national pastime.
2
According to a remarkable presentation that a member of Greece’s central bank gave last fall, the gap
between what Greek taxpayers owed last year and what they paid was about a third of total tax
revenue, roughly the size of the country’s budget deficit. The “shadow economy”—business that’s
legal but off the books—is larger in Greece than in almost any other European country, accounting for
an estimated 27.5 per cent of its G.D.P. (In the United States, by contrast, that number is closer to
nine per cent.) And the culture of evasion has negative consequences beyond the current crisis. It
means that the revenue burden falls too heavily on honest taxpayers. It makes the system unduly
regressive, since the rich cheat more. And it’s wasteful: it forces the government to spend extra money
on collection (relative to G.D.P., Greece spends four times as much collecting income taxes as the
U.S. does), even as evaders are devoting plenty of time and energy to hiding their income.
3
Greece, it seems, has struggled with the first rule of a healthy tax system: enforce the law. People are
more likely to be honest if they feel there’s a reasonable chance that dishonesty will be detected and
punished. But Greek tax officials were notoriously easy to bribe with a fakelaki (small envelope) of
cash. There was little political pressure for tougher enforcement. On the contrary: a recent study
showed that enforcement of the tax laws loosened in the months leading up to elections, because
incumbents didn’t want to annoy voters and contributors. Even when the system did track down
evaders, it was next to impossible to get them to pay up, because the tax courts typically took seven to
ten years to resolve a case. As of last February, they had a backlog of three hundred thousand cases.
39
4
It isn’t just a matter of lax enforcement, though. Greek citizens also have what social scientists call
very low “tax morale.” In most developed countries, tax-compliance rates are much higher than a
calculation of risks would imply. We don’t pay our taxes just because we’re afraid of getting caught; we
also feel a responsibility to contribute to the common good. But that sense of responsibility comes with
conditions. We’re generally what the Swiss behavioural economist Benno Torgler calls “social
taxpayers”: we’ll chip in as long as we have faith that our fellow-citizens are doing the same, and that
our government is basically legitimate. Countries where people feel that they have some say in how
the state acts, and where there are high levels of trust, tend to have high rates of tax compliance. That
may be why Americans, despite being virulently anti-tax in their rhetoric, are notably compliant
taxpayers.
5
Greeks, by contrast, see fraud and corruption as ubiquitous in business, in the tax system, and even in
sports. And they’re right to: Transparency International recently put Greece in a three-way tie, with
Bulgaria and Romania, as the most corrupt country in Europe. Greece’s parliamentary democracy was
established fairly recently, and is of shaky legitimacy: it’s seen as a vehicle for special interests, and
dedicated mainly to its own preservation. The tax system had long confirmed this view, since it was
riddled with loopholes and exemptions: not only doctors but also singers and athletes were given
favourable rates, while shipping tycoons paid no income tax at all, and members of other professions
were legally allowed to underreport their income. Inevitably, if a hefty chunk of the population is
cheating on its taxes, people who don’t (or can’t, because of the way their income is reported) feel that
they’re being abused.
6
The result has been a vicious circle: because tax evasion is so common, people trust the system less,
which makes them less willing to pay taxes. And, because so many don’t chip in, the government has
had to raise taxes on those who do. That only increases the incentive to cheat, since there tends to be
a correlation between higher tax rates and higher rates of tax evasion.
7
Even while dealing with protests and open riots, the new Greek government is trying to change things.
It is rationalizing its tax-collection system. It has simplified taxes and done away with some of the
loopholes. And it has stepped up its enforcement efforts in ways large and small—tax officials have,
for instance, been sending helicopters over affluent neighbourhoods looking for swimming pools, as
evidence of underreported wealth. These efforts have made some difference: the self-employed seem
to be reporting more of their income, and the evaders have had to step up their game. (There’s now a
burgeoning market in camouflage swimming-pool covers.)
8
But a social inclination toward tax evasion, once established, is hard to eradicate. One fascinating
study, by the economist Martin Halla, showed that tax morale among second-generation American
immigrants reflected their country of origin. And getting tough can backfire. Research suggests that
overemphasizing enforcement can actually weaken tax morale, by making taxpaying seem less like a
freely chosen part of the social contract. The reason tax reform will be such a tall order for Greece, in
sum, is that it requires more than a policy shift; it requires a cultural shift. Pulling that off would be
quite a feat. But the future of the European Union may depend on it. ♦
Adapted from: James Surowiecki, “The Financial Page: Dodger Mania”, The New Yorker, July 11, 2011
40
III Answer these questions.
1 What are the two reasons for Greece’s fiscal problems?
2 How much money goes unpaid by Greek taxpayers?
3 What does the author mean when he writes that Greece’s tax system is “unduly
regressive”?
4 Why don’t Greeks pay taxes? Give two reasons.
5 How is the tax morale of Americans and Greeks different?
6 Does the author of the article think that the Greek government will solve the problem
of tax evasion easily? Why?
IV Find terms for these definitions in the text.
1 To be unable to repay a loan.
2 A government’s efforts to reduce public spending to try to shrink
budget deficits.
3 The act of offering financial assistance to a failing business or
economy to prevent it from going bankrupt.
4 Businesses offering legal goods and services but not paying taxes
on their income.
5 Ensuring obedience to the law.
6 The income that is gained by governments through taxation.
7 A legal system for assessing and collecting taxes in a country.
8 How much taxpayers obey the tax laws of a country.
9 Freedom from a certain tax usually given by governments to
encourage some types of activities or businesses.
V Find word partnerships with “tax” in the article.
TAX E TAX M
TAX R TAX C
TAX S TAX E
TAX O TAX R
TAX L TAX R
VI Use some of the word partnerships to fill in the gaps in these sentences.
1 Tax is illegal, tax avoidance is legal.
2 The country is not collecting enough in tax so there is not enough
money in the budget for education and health care.
3 Most countries have a progressive income tax .
4 Tax are responsible for enforcing the tax .
41
5 In countries where tax is low, tax is also low, i.e.,
people do not pay their taxes and they are often proud of having evaded the highest
possible amount of taxes.
6 There is a tax on gifts and inheritances in Croatia. My neighbour
didn’t have to pay anything when he inherited his grandmother’s house.
7 According to many economists, the country should carry out a tax :
VAT and income taxes should be reduced. They argue that lower tax
would encourage investment and entrepreneurship and would also reduce the number of
people who cheat on taxes.
VII Use the mind map to make notes of the text.
42
WHAT IS PRIVATIZATION, ANYWAY?
I Discuss the following questions about privatization. Then match the
questions to the paragraphs below which answer them.
1. What is privatization? PARAGRAPH
2. Is this a new idea? PARAGRAPH
3. How is denationalization accomplished? PARAGRAPH
4. Why privatize? PARAGRAPH
5. Does it work? PARAGRAPH
6. What's the downside? PARAGRAPH
A) It depends on the individual
country and company. Former
members of the Soviet Bloc, in
order to leap from socialism as
quickly as possible, typically
have simply given away big
chunks of state enterprises to
citizens, in what is known as
“mass privatization“.
A common technique is to issue
vouchers to the general public
that can be exchanged directly
for shares in a privatizing
company.
Often, the citizens elect to sell
their shares to investment
companies, which then exercise
great control over the company.
In other cases, the state turns
over ownership directly to the
workers and managers of a
factory or store. In capitalist
countries, privatizations tend to
occur either through auctions or
broad public stock offerings.
Some countries, in a twist on the
mass privatization concept,
have also endeavoured to put
stock in the hands not only of
wealthy investors, but also of
lower-income people. Chile
came up with an unusual, and
highly praised, plan to allow
workers to convert their vested
pension interest into shares of
privatized companies.
B) Most available evidence shows
that privatization increases a
company's efficiency. The World
Bank’s International Finance Corp.
affiliate reports that 67% of the
companies it has helped privatize
now report “good“ profitability, up
from 29% when they were still
state-owned.
C) Government planners try to
achieve a number of goals through
privatization, some of them
contradictory. An oft-stated aim is to
wring more efficiency out of the
enterprises being privatized, and
thus to make the economy in general
more productive.
Governments also use privatizations
to raise money. Unfortunately, since
buyers are willing to pay more for a
monopoly, sometimes the goal of
raising money gets in the way of
making a company more efficient.
Another aim of privatizing,
particularly in developing nations, is
to invigorate and expand to local
capital markets and to attract foreign
capital.
D) Initially, privatization
can lead to widespread
layoffs of workers, as the
new owners clean house
to increase profits.
However, proponents
argue that an effective
privatization program can
provide more jobs over the
long term because of its
positive impact on the
overall economy.
E) Not exactly.
Governments have been
privatizing their activities in
one form or another for
centuries. Back in 1492,
Queen Isabella and King
Ferdinand of Spain hired a
private contractor to seek
an alternative route to
India - though nobody
called it privatization.
F) In the broadest sense,
privatization means relying
less on government to
meet people's need for
goods and services, and
more on private
institutions such as the
marketplace, the family
and voluntary
organizations. Source: The Wall Street Journal
43
ARGUMENTS FOR AND AGAINST PRIVATISATION
“Industries will become more efficient if
they are subjected to the «disciplines of
the market», that is the fear of being taken
over or of bankruptcy.“
“When industries become more efficient,
they often do so by closing down a plant
and laying off workers.“
“Private firms will be able to diversify into
new areas of business and take up new
business opportunities, whereas in the
past they were limited in scope by the Acts
of Parliament that established them.“
“In pursuit of profit, private firms may
engage in activities that are not necessarily
in the public interest instead of
concentrating on those services they were
set up to provide. “
“The managers of the businesses will be
free from the intervention of government
ministers.“
“Once in the private sector, businesses will
be more interested in profit than in
operating services for broader economic
and social reasons, which can be
guaranteed by state control.“
“If there is competition there will be
alternative suppliers so trade union power
within the old state owned industries will be
reduced. “
“If trade unions are weakened by
privatisation, they may not be able to
protect workers' interests in the event of
new working practices being adopted. “
“Selling shares in essential industries
expands the number of people in the
country who own shares and who,
therefore, have a greater interest in the
prosperity of these concerns.“
“State owned industries already belong to
all the people in the country who,
therefore, already have an interest in the
prosperity of these concerns and in the
services they provide.“
“Selling the state owned industries raises
revenue for the Government.“
“State owned enterprises can only be sold
once. Financing government spending in
this way is like ‘selling the family silver to
pay the butcher's bill.’ “ (Lord Stockton).
44
THE CORPORATION: The Pathological Pursuit Of Profit And Power
I Read the excerpt from the book by Joel Bakan and say how the author
describes the relationship between the state and corporations. How have
globalization and deregulation affected the role of the state?
The corporation was originally conceived as a public institution whose purpose was to serve
national interests and advance the public good. In seventeenth-century England, corporations
such as the Hudson’s Bay Company and the East India Company were chartered by the
crown to run state monopolies in the colonies of England’s empire. During the eighteenth
and early nineteenth centuries too, in both England and the United States, corporations
were formed primarily for public purposes, such as building canals and transporting water.
The modern for-profit corporation, programmed solely to advance the private interests of
its owners, differs profoundly from these earlier versions of the institution. Yet in one crucial
respect it remains the same. It is, as it has always been, a product of public policy, a creation
of the state.
The state is the only institution in the world that can bring a corporation to life. It alone grants
corporations their essential rights, such as legal personhood and limited liability, and it
compels them always to put profits first. It raises police forces and armies and builds
courthouses and prisons (all compulsorily paid for by citizens) to enforce corporations’ property
rights –rights themselves created by the state. And only the state, in conjunction with other
states, can enter into international trade deals and create global institutions, such as the
World Trade Organization, that, in turn, limit its ability to regulate the corporations and property
rights it has created.
Without the state, the corporation is nothing. Literally nothing. It is therefore a mistake to
believe that because corporations are now strong, the state has become weak. Economic
globalization and deregulation have diminished the state’s capacity to protect the public
interest (through, for example, labour laws, environmental laws, and consumer protection
laws) and have strengthened its power to promote corporations’ interests and facilitate their
profit-seeking missions (through, for example, corporate laws, property and contract laws,
copyright laws, and international trade laws). Overall, however, the state’s power has not
been reduced. It has been redistributed, more tightly connected to the needs and interests of
corporations and less so to the public interest. Thus, it is only partly true to say, as Daniel
Yergin and Joseph Stanislaw do in The Commanding Heights, that “the general movement
away from traditional state control of the commanding heights [of the economy] continues,
leaving it more to the realm of the market.” While that statement captures the diminishing role
of the state in protecting citizens from corporations, it ignores the expanding role of the state
in protecting corporations from citizens.
45
THE PENDULUM OF CONTROL
I Fill in the gaps with the words from the box.
Every nation grapples with a fundamental economic issue: Should the government determine
economic outcomes, or should society rely instead on «the market» to fashion economic results?
Historically, the pendulum of control has swung in both directions. The eighteenth – century economist
Adam Smith argued that nations would prosper with less government (1) _ _ and more
reliance on the «invisible hand» of the (2) . As we saw it, markets were efficient
mechanisms for deciding what goods to produce, how to produce them, and what (3)
_to pay. Smith's writings (The Wealth of Nations, 1776) encouraged governments to
take a more passive role in «the business of business. »
Karl Marx saw things differently. In his view, a freewheeling marketplace would cater to the whims of
the rich and neglect the (4) of the poor. Workers would be (5) __ by industrial
barons and great landowners. To «leave it to the market», as Smith had proposed, would encourage
exploitation. In the mid–nineteenth century, Karl Marx proposed a radical alternative: overturn the
power of the elite and create a (6) _ state in which everyone's needs would be fulfilled.
Marx's writings (Das Kapital, 1848) encouraged communist revolutions and the development of (7)
_ planning systems. The (people's) government, not the (8) _ _, assumed
responsibility for deciding what goods were produced, (9) what prices they were sold,
and even who got them.
The choices have not always been so dramatic. In the history of the United States there haven't been
any «all-or-nothing» transformations like those in Russia, China, Cuba, Burma, or Eastern Europe.
The alternatives of government control or market reliance have been a question of degree, not
revolution. The New Deal was about as big a change as America has experienced. In the depths of
the Great Depression of the 1930s, President Franklin Roosevelt greatly expanded the (10)
_ role in providing income security, regulating working conditions, and limiting the power
of large corporations. The English economist John Maynard Keynes (The General Theory of
Employment, Interest and Money, 1936) also encouraged governments both here and abroad to play
a more active role in (11) _ _ unemployment.
The pendulum of control hasn't always swung in the direction of more government. In the 1990s, the
central (12) _ systems of (13) _ and (14) Europe were largely
dismantled. As communism (15) , people in Russia and Eastern Europe turned to
the marketplace for direction. State (16) _were sold to private (17) . The
(18) lost their control over prices. (19) _ _ and (20) _ were
no longer guaranteed by the state.
The pendulum swung in the same direction in Western Europe, Latin America, and Asia. In the mid-
1980s, Italy, France, and Great Britain (21) _ formerly government-run enterprises in
railroads, steel, telephones, and electricity. Mexico moved in a similar direction, as did India, Vietnam,
and a host of other countries. In every case, the motivation for change was the belief that (22)
directed economies would outperform government-directed ones.
The Republican sweep of the 1994 U.S. congressional elections also represented a movement away
from government regulation. Public-opinion polls such as the one accompanying Headline showed
that Americans were dissatisfied with the pace of economic advancement and increasingly sceptical of
the government's ability to fix things. When the Republican party offered to reduce the role of
government and rely more on the marketplace to (23) jobs, raise (24) _ and
promote prosperity, (25) responded positively.
Source: B. R. Schiller: Essentials of Economics, 2nd
edition, McGraw-Hill, 1996
II The historical overview ends with the mid 1990s. How would you end the text
today? Think of the direction of the pendulum.
marketplace exploited reducing
collapsed
wages
create
interference jobs central
planners investors needs communist Eastern at
market incomes wages privatized enterprises Central
government’s market voters planning
46
I Read this definition of the private sector.
II A good idea is not enough for a business to be successful or even to start.
What should one think of before starting a business? Think of a business you
are familiar with and discuss the following:
1. Who owns the business?
2. How was the start-up capital raised?
3. Who manages the business? Who makes major decisions?
4. Does the business need to publish (disclose, unveil) its accounts?
5. Who claims the profits?
6. Are the owners personally liable for losses if a business goes bankrupt?
7. Is there a legal difference between the owner(s) and the business?
III Make word partnerships from the two columns below and copy them in the
third column to get collocations typically used when talking about businesses.
1 set up a profit
2 be liable the profits
3 raise a loss
4 go shares
5 make a business
6 make capital
7 claim the company’s accounts
8 issue bankrupt
9 disclose for the company’s debts
6 THE PRIVATE SECTOR:
TYPES OF BUSINESS ORGANIZATIONS
The private sector is characterized by private ownership in the hands of private
individuals. It includes businesses that are run for the benefit of the people who own
them.
47
IV Fill in the gaps with the words from the boxes.
The private sector includes all those businesses which are (1) by
individuals or groups of individuals. Most business (2) is
undertaken in the private sector. Businesses will vary according to the legal form they take
and their (3) . They are broadly divided into unincorporated businesses,
with no legal difference between the owners and the business, and (4)
businesses, with a separate (5) identity
from its owners. In other words, an incorporated business can be (6) ,
taken over and liquidated (i.e. sold).
Individuals and groups of people doing business as a partnership, have unlimited
(7) for debts. If the business cannot pay its debts, any creditor can have it
declared (8) . In order not to lose their personal (9) , most
people doing business form (10) companies, i.e. legal entities separate
from their owners and only liable for the amount of capital that has been invested in it. If a
limited company goes bankrupt, it is wound up and its assets are (11) to
pay the debts. If the assets do not cover the debts, they remain unpaid and
(12) simply do not get all their money back.
Most companies begin as private-limited companies. Their (13) have to
provide capital themselves, or (14) from friends or a bank. A growing
company can apply to a (15) to become a public-limited company
(GB)/listed company (US), in other words, members of the general public can buy its shares
and become (16) in the company.
(17) of limited companies need to prepare two documents describing
their firms. The Memorandum of Association sets out the name of the company, the total
share capital and the kind of shares it will (18) . It also guarantees the
limited liability of its holders. The Articles of Association are a set of rules stating how the
company will run itself internally – the Memorandum deals with the company and its dealings
with the outside world. The Articles cover the powers and duties of the directors, the issue
and transfer of (19) , the calling of (20) and the
salary and appointment of a (21) . Directors of limited companies
are appointed by shareholders. If shareholders are not satisfied with the company's
performance, directors can be removed at an Annual General Meeting (AGM).
Adapted from: MacKenzie (2002)English for Business Studies, p.91
set up sued incorporated activity legal ownership
creditors assets liability bankrupt limited liquidated
owners shareholders borrow stock exchange
shares issue founders general meetings managing director
48
V Describe the business organizations in the UK as presented in the chart.
Before studying the chart, try to guess the meaning of the words below.
overdraft share incentive dividend Board of Directors public
*In a LIMITED PARTNERSHIP some partners can have limited liability. They provide capital and take
no part in the management of the business.
TYPE OWNER
-SHIP
CONTROL
AND
DECISION-
MAKING
SOURCES
OF
FINANCE
CLAIM ON
PROFITS
ADVANTAGES DISADVANTAGES
SOLE
PROPRIE-
TORSHIP
One
person
One person Past savings;
bank loans
and
overdrafts.
Sole owner
(sole trader)
Direct control of
business; quick
decisions; few
legal
requirements to
set up; claim on
profits provides
incentive.
Unlimited liability for
debts; no opportunity
to specialise; skills
limited to those of
owner; business
ends on death.
PARTNER-
SHIP
Partners By partners Capital of
partners;
bank loans
Partners More finance
than the sole
owner; each
partner can
specialize;
service of
specialists
available in
return for share
of profits; easy
communication.
Unlimited* liability for
debts; relatively
limited finance;
partnership ends on
death of any partner.
PRIVATE
LIMITED
COMPANY
(Ltd.)
Share-
holders
Board of
directors
elected by
shareholders
Sale of
shares (but
not to the
general
public)
Shareholders
by dividend
payments
Limited liability
for debts;
continuity of life
of business;
access to large
amounts of
capital; suitability
for larger scale
organisation.
More formalities to
observe when setting
up; difficulty for
people wanting to
sell shares; possible
conflict between
owners and
management.
PUBLIC
LIMITED
COMPANY
(Plc.)
Share-
holders
Board of
directors
elected by
shareholders
Sale of
shares up to
the limit of
authorised
capital
Shareholders
by dividend
payments
Limited liability
for debts;
continuity of life
of business;
access to large
amounts of
capital; suitability
for large scale
organisation.
Formalities and
regulations of
establishment;
disclosure of
accounts; increased
separation of
ownership and
management;
possible takeovers.
49
VI Describe each type of business organization from Ex. V. Use the
sentences below.
e.g. Sole proprietorship is a type of business which is owned by one person.
o ...is a type of business which is owned by ...
o It is controlled by ... and managed by...
o This business is financed by ...
o Business decisions are made by ...
o ... has/have a claim on profits.
o ... is (are) /is not (are not) personally liable for ... because the owner(s) has
(have) limited/unlimited liability.
VII Speak about advantages and disadvantages of the types of business
organizations presented in the chart. Make sure you understand the meaning
of the words below before you start.
takeovers legal requirements disclosure incentive liability
(lack of ) continuity separation access to capital
Make full sentences as follows:
The advantage(s) of … over … is/are that …
The disadvantage(s) of … over … is/are that …
VIII Note the difference in the meaning of the word public in public-limited
company compared to its meaning in the public sector? Answer the following:
1. In which of the two expressions does public primarily mean “owned by the state”?
2. In which of the two expressions does public mean “of, or related to all the people”
(“available to everyone”)? Explain your answer.
50
IX Fill in the gaps with the words from the box.
The simplest form of business is the individual proprietorship or 1) : for
example, a shop (US= store) or a taxi owned by a single person. If several individuals wish to
go into business together they can form a 2) ; partners generally
contribute equal capital, have equal authority in management, and share profits or 3)
. In many countries, lawyers, doctors and accountants are not allowed to
form companies, but only partnerships with unlimited 4) for debts – which
should make them act responsibly.
But a partnership is not a legal entity separate from its owners; like sole traders, partners
have unlimited liability: in the case of 5) , a partner with a personal fortune
can lose it all. Consequently, the majority of businesses are limited companies 6) (US=
), in which investors are only liable for the amount of capital they
have invested. If a limited company goes bankrupt, its assets are sold (liquidated) to pay the
debts; if the assets do not cover the debts, they remain unpaid (i.e. 7) do
not get their money back.)
In Britain, most smaller enterprises are private limited companies which cannot offer
8) to the public; their owners can only raise capital from friends or from
banks and other venture capital institutions. A successful, growing British business can apply
to the Stock Exchange to become a public limited company; if accepted, it can publish 9)
and offer its shares for sale on the open stock market. In America, there
is no legal distinction between private and public limited corporations, but the equivalent of a
public limited company is one 10) by the Securities and Exchange
Commission.
Source: Mackenzie, I. (1995). Financial English. LTP 1995.
bankruptcy corporations creditors liability losses
partnership registered shares sole trader prospectus
51
Business Organizations in Croatia
I Read the text and answer the questions below. There are different types of companies in the Croatian legal system. Most businesses are run
as crafts (e.g. shoemakers), independent professions (e.g. lawyers), limited liability
companies and joint stock companies / companies limited by shares.
The owners of crafts and independent professions generally have unlimited liability for debts,
and these businesses are not legal entities on their own. The most common types of
companies in which owners have limited liability for debts in Croatia are limited liability
companies (društvo s ograničenom odgovornosti, d.o.o.) and joint stock companies /
companies limited by shares (dionička društva, d.d.). In limited liability companies (d.o.o.)
one or more persons or legal entities invest in the capital, and they are called shareholders.
If they want, they can sell their shares, but not to the general public. The company must have
a management board (uprava) and an assembly (skupština). They optionally have a
supervisory board (nadzorni odbor) that controls the work of the management board. The
company is obliged to submit its financial reports regularly to the Croatian Financial Agency
(Fina).
Joint stock companies / companies limited by shares (d.d.) are companies which have more
complex structure, higher minimum amount of share capital and often more shareholders
than limited liability companies. Joint-stock companies in Croatia have three obligatory bodies
responsible for running the company: the general assembly (glavna skupština), a
management board (uprava) and a supervisory board (nadzorni odbor). Alternatively, instead
of having two boards, companies can have their functions merged into a single board of
directors (upravni odbor). Just like limited liability companies, they have to submit their
financial reports regularly to Fina. They also have to disclose their accounts publicly, i.e.
make all important financial information available to the shareholders, potential future
investors and the public in general. Companies limited by shares can decide to go public –
start trading shares publicly on the stock exchange.
Based on: English for Business, Kiss Kulenović. Planinšek Čikara, Linčir Lumezi, Lekaj Lubina
1 What are the simplest forms of business in Croatia?
2 What types of Croatian companies have limited liability?
3 What bodies have to be established by law in limited liability companies?
4 What is the difference between limited liability companies (d.o.o.) and joint stock
companies (d.d.)?
52
II Make word partnerships from the two columns below and copy them in the
third column.
1 Stock property
2 independent Exchange
3 personal board
4 management entity
5 legal capital
6 limited board
7 share assembly
8 general liability
9 supervisory professions
III Use the word partners from the above exercise in the following sentences.
1 When a company goes public it starts selling its shares at the .
2 Owners of craft businesses have unlimited liability and they can lose their in
the case of bankruptcy.
3 Members of the take all the important decisions in a company.
4 Joint stock companies have for debts.
5 Dentists can work as .
6 Limited liability companies are and they can be sued, taken
over or liquidated.
7 The bodies joint stock companies are obliged to have by law are ,
and .
8 Minimum for both limited liability and joint stock companies is
defined by law.
53
IV Find English words for these terms in the text.
1 obrt 8 skupština
2 samostalna djelatnost 9 nadzorni odbor
3 pravna osoba 10 glavna skupština
4 dioničko društvo, d.d. 11 dioničari
5 društvo s ograničenom
odgovornosti, d.o.o.
12 udjeličari
6 uprava 13 minimalni temeljni
kapital
7 upravni odbor 14 burza
V Study the chart on the next page and compare the types of business
organization in Croatia, the UK and the US. Write a paragraph on the
differences among the countries using connectors and linking words.
54
Legal types of business organisations – a contrastive view
UK
US
CRO
SOLE TRADER
SOLE TRADER
TRGOVAC POJEDINAC, OBRTNIK
PARTNERSHIP
«Messrs.AB&C», «Messrs.AB Bros.», «Messrs. AB&Co.»
general partner vs. limited partner
deed of partnership, partnership agreement, articles of partnership
general partnership
limited partnership
active partner, managing partner
dormant, silent, sleeping partner
DRUŠTVO OSOBA (trgovačko društvo)
cf. ortaštvo
komplementar vs. komanditor
društveni ugovor
cf. javno trgovačko društvo ( j.t.d.)
cf. komanditno društvo (k.d.)
članovi koji vode poslove
tajni član
COMPANY
PRIVATE LIMITED COMPANY
«ABC Ltd.»
CORPORATION
CLOSE CORPORATION
privately-held corporation *LLC - limited liability company (hybrid between a partnership and a corporation)
DRUŠTVO KAPITALA (trgovačko društvo)
cf. društvo s ograničenom
odgovornošću (d.o.o.)
PUBLIC LIMITED COMPANY
«ABC plc.»
OPEN CORPORATION
publicly-held corporation
«ABC Inc.», «ABC Co.», «ABC
Corp.»
cf. dioničko društvo (d.d.)
Companies Act
shares
shareholders
annual general meeting (AGM)
Articles of Association Memorandum of Association
Chairperson Board of Directors Supervisory Board Management Board
Managing Director (MD)
Model Business Corporation Act
stocks, shares
stockholders, shareholders
annual meeting of stockholders
bylaws charter
Chairperson/President Board of Directors Supervisory Board Management Board
Chief Executive Officer (CEO)
Zakon o trgovačkim društvima
cf. dionice (d.d.) i poslovni udjeli(d.o.o.)
ulog (d.d.) i temeljni ulog (d.o.o.) temeljni kapital (d.d. i d.o.o.)
cf. dioničari (d.d.), članovi (d.o.o.)
glavna skupština
statut (d.d.) društveni ugovor/izjava o osnivanju
(d.o.o.)
predsjednik uprave/upravnog odbora upravni odbor nadzorni odbor
uprava generalni, glavni izvršni direktor
55
BUSINESS ORGANISATIONS IN THE PRIVATE AND IN THE PUBLIC SECTOR
(UK)
I Fill in the missing words.
Adapted from D. Hall, R.Jones, C. Raffo: Business Studies, 2nd ed., 2000, Causeway Press Limited
56
ENTREPRENEURSHIP
I Answer the following questions, read the text and check your answers.
1 How would you define an entrepreneur?
2 What do you need to start up a business?
3 How can start-ups be funded?
4 What advantages and risks are associated with privately run businesses?
GOING INTO BUSINESS
New business ventures originate when entrepreneurs set up companies either to sell innovative
products or services or to compete against established businesses. Before starting a new business,
entrepreneurs often conduct market research to determine the validity of their idea and the feasibility
of their business model. All start-ups face a high degree of risk and it is estimated that only twenty per
cent of new businesses are actually successful in the long term. Future entrepreneurs always have to
provide a business plan in which they describe their concept and their business approach. They may
receive assistance from outside organisations such as incubators and venture capital firms or from
individual business angels, usually in exchange for a stake in the company. Start-ups can be funded
either directly by the founders or by using capital provided by investors or banks. In some countries
governments may provide low-interest loans or interest-free grants to entrepreneurs.
Source: Trappe, T., Tullis G. (2011). Intelligent Business, Advanced. Pearson Longman
II Find the words in the text that mean the following:
1 A document drawn up to show how a business is planned to work.
2 Money given by the government to help pay for something without the calculated percentage for the use of the money borrowed.
3 A business project or activity, especially one that involves risks.
4 An investment company that invests capital in potentially risky but profitable start-ups for above-average returns.
5 A rich investor who provides capital for a start-up in exchange for ownership equity or a stake in the company.
6 A person who sets up, owns and directs a company and takes commercial risks.
7 Ability to complete a project successfully, taking into account the possible negative and positive outcomes before investing too much time and money.
8 An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services and networking connections.
9 The state of being legally or officially acceptable.
10 The amount that someone has invested in a company often expressed as a percentage of the total share capital (=money invested in a business in the form of shares)
57
III Read the text again and fill in the gaps to make word partnerships.
1 C against an established business.
2 R assistance from incubators and business angels
3 C market research
4 F a risk
5 P a business plan
6 P a low-interest loan
7 D the feasibility of the business model
IV Fill in the gaps with the words in the box. Some sentences can have more solutions.
turn something into
put somebody out of run have
go out of
found set up do close down start up go into
1 The government introduced new regulations which unfortunately made a lot of start-ups
business.
2 New entrepreneurs a business either to sell their innovative products or to
compete against established businesses.
3 Our retail company business with an Indian manufacturer.
4 After graduating from the Business School, she business with private jet
operators.
5 Start-ups can be directly by the founders or by using capital provided by
private investors or banks.
6 When you decide to end your business operations, it can take time to
your business properly. You need a careful plan that will protect your
personal assets and your reputation.
7 A business incubator provides a new entrepreneur with complete business support to
overcome initial difficulties and a business successfully in the future.
V Sort out the verbs from exercise IV and decide which can form partnerships with
“a business” and which with “business”
a business business
58
Is change a ?
Are you ?
V Fill in the words which are missing in the questions. Then read carefully and
find out if you possess personality traits to be an entrepreneur.
organised hard working realist risk challenge
network plan committed
Are you a taker?
1 No business is risk free, so you need to judge the level of risk and be prepared to live with
consequences.
2 Can you minimise its downsides with careful thought and planning?
3 Being self-employed is not an easy option, especially if you are working on your own.
Results are often only produced by working long hours.
4 You will need to be an excellent time manager. You will need to juggle
tasks, meet deadlines and prioritise conflicting demands.
5 It is essential to be able to market yourself and your business in social situations. A lot of
business is made by networking.
6 Do you believe in yourself and your business idea? Doubts or a
half-hearted approach can be disastrous.
7 You need to do this to minimise uncertainties and maximise your chances of success.
Good planning ensures work keeps coming in.
8 Can you gauge in practical terms what is possible to achieve or produce within a certain
period?
If you answered YES to all the questions then you have the right personality traits to be an
entrepreneur. Adapted from: http://www.xlntelecom.co.uk/business-resources/starting-your-own-business/
Are you ?
Are you ?
Can you ?
Do you ahead?
Are you a ?
59
CRAZY DIAMONDS
I Can you explain the sentence:
Are you able to anticipate some of the themes in the article Crazy Diamonds on
the next page?
II Mark the sentences TRUE or FALSE, then read the article and check your
TRUE or FALSE answers again.
1 Entrepreneurship today is a synonym for economic progress.
2 The term entrepreneurship mostly covers start-ups.
3 A common misconception is that entrepreneurship means new technology.
4 Only geeks and innovators are able to create high-growth companies.
5 Small businesses are not as vital for an economy as high growth businesses.
6 A businessman is an entrepreneur.
7 An entrepreneur sees the opportunity where a conventional businessman can see
nothing worth trying.
8 Some of the most successful entrepreneurs are distinguished more by the ability to
achieve the impossible than by the originality of their ideas.
9 Policymakers who would really like to encourage entrepreneurship should only give
an opportunity to particular type of businesses.
10 “Doing well by doing good” is the main motivator for entrepreneurs to take huge risks
and endure years of hardship.
11 Entrepreneurs enjoy taking risks which create big losers but also fabulously rich
individuals.
12 Economic progress takes place in “cracks” and “leaps” rather than “tiny steps”
because it is driven by rule-breaking entrepreneurs.
III Read the article again and answer the questions:
1 What is the difference between a small business owner and an entrepreneur?
2 What should governments do to encourage entrepreneurship?
3 In what ways are governments wrong about what entrepreneurship is?
“True entrepreneurs find worth in the worthless and possibility in the
impossible.”
Note on Joseph Schumpeter: 1
One of the 20th
century’s great economic and political thinkers. He is well known for his theory explaining the activities that lead to economic growth in capitalist economies. His theory centres around entrepreneurial innovations and their role as the key driver of economic growth. He argues that competition among market participants leads to a desire to seek out new ways to improve technology, new ways to do business and other types of advantages that would increase profit margins and directly impact the entrepreneur’s standard of living. Schumpeter describes the act of new innovations replacing old innovations as “creative destruction”. Source: Investopedia
60
CRAZY DIAMONDS
True entrepreneurs find worth in the worthless
and possibility in the impossible
1 ENTREPRENEURSHIP is the modern-day philosopher’s stone: a mysterious something that supposedly holds the secret to boosting growth and creating jobs. The G20 countries hold an annual youth-entrepreneurship summit. More than 130 countries celebrate Global Entrepreneurship Week. Business schools offer hugely popular courses on how to become an entrepreneur. Business gurus produce (often contradictory) guides to entrepreneurship: David Gumpert wrote both “How to Really Create a Successful Business Plan” and “Burn Your Business Plan!”.
2 But what exactly is entrepreneurship (apart from a longer way of saying “enterprise”)? And how should governments encourage it? The policymakers are as confused as the gurus. They assume that it must mean new technology; so they try to create new Silicon Valleys. Or that it is about small businesses; so they focus on fostering start-ups. Both assumptions are misleading.
3 Silicon Valley has certainly been the capital of technology-based entrepreneurship in recent decades. But you do not need to be a geek to be an entrepreneur. George Mitchell, the Texas oilman who pioneered fracking, did as much to change the world as anybody in the Valley. Nor do you need to be a conventional innovator. Miguel Davila and his colleagues built a huge business by importing the American multiplex cinema into Mexico. Their only innovation, says Mr Davila, “was putting lime juice and chilli sauce on the popcorn instead of butter.”
4 Equally, there is a world of difference between the typical small-business owner (who dreams of opening another shop) and the true entrepreneur (who dreams of changing en entire industry). Jim McCann, the creator of 1-800-flowers.com, is an entrepreneur rather than just a florist because, when he opened his first shop in 1976, he looked at the business “with McDonald’s eyes”, as he put it, and laboured for years to build the world’s biggest flower-delivery business.
5 These misconceptions matter because they produce lousy policies. The world is littered with high- tech enclaves that fail to flourish. Malaysia’s biotech valley has been nicknamed “Valley of the BioGhosts”. The world is also full of small-business departments that fail to produce many jobs. Kauffman Foundation, which researches such matters, has shown that the bulk of new jobs come from a tiny sliver of high- growth companies.
6 Daniel Isenberg has spent 30 years immersed in the world of entrepreneurship as a (sometimes failed) entrepreneur and venture capitalist as well as an academic (he previously taught at Harvard Business School and is now at nearby Babson College). He
a new definition of entrepreneurship. In essence, entrepreneurs are contrarian value creators. They see economic value where others see heaps of nothing. And they see business opportunities where others see only dead ends.
7 There are plenty of striking examples of this: the founder of Celtel, saw the possibility of bringing mobile phones to sub-Saharan Africa when telecoms giants saw only penniless peasants and logistical nightmares. On a trip to Tobago Sean Dimin and his father Michael observed that fishermen were leaving tonnes of fish to rot, so they created a company, Sea to Table , to get the surplus fish to New York restaurants.
8 Mr Isenberg emphasises that successful contrarians also need the self-confidence to defy conventional wisdom and the determination to overcome obstacles (it took the Dimins two years to get the fishermen to change their habits). Indeed, some of the best entrepreneurs are distinguished more by their ability to achieve the impossible than by the originality of their thinking. TCS is essentially a Pakistani version of FedEx. But to get it going, Khalid Awan had to overcome “insuperable” problems such as striking deals with the gangs that control the haulage industry and sweet-talking the politicians who can shut a new company at the drop of a hat.
In it for the money
9 Mr Isenberg has two important bits of advice for policymakers who genuinely want to foster entrepreneurship. First, they should remove barriers to entry, and growth, for all sorts of business, rather than seeking to build particular types of clusters. Second, they should recognise the importance of the profit motive. There has been much fancy talk of social entrepreneurship”, harnessing enterprise to do good deeds, but in truth the main motivator for entrepreneurs is the chance of making big money. This is what drives people to take huge risks and endure years of hardship. And this is what encourages investors to take a punt on business ideas that, at first sight, look half-crazy
10 Politicians and bureaucrats do not just confuse entrepreneurship with things they like-technology, small business-they also fail to recognise that it entails things that set their teeth on edge. Entrepreneurs thrive on inequality: the fabulous wealth they generate in America makes the country more unequal. They also thrive on disruption, which creates losers as well as winners. Joseph Schumpeter once argued that economic progress takes place in “cracks” and “leaps” rather than “infinitesimal small steps” because it is driven by rule- breaking entrepreneurs. It might be nice to think that we could have growth and job-creation without a good deal of Schumpeterian cracking. But, alas, some thoughts really are worthless, impossible and stupid.
th
has also travelled the world accumulating examples - he is just as interested in Island’s generic-drug industry as in Silicon Valley’s giants. In a new book “Worthless, Impossible and Stupid”, he presents
Source: The Economist, July 20 2013
61
IV Find the expressions in the text which match the following expressions.
Paragraph 1
The capacity and willingness to develop, organize and
manage a business venture along with any of its risks in
order to make a profit.
Paragraph 2
A small business that has just been started.
Influential individuals who have the authority to set the
plan pursued by a government or business.
Any endeavor where the primary motive is profit and not mere employment for oneself and others.
Paragraph 4
A person who sets up, owns and directs a company and
takes commercial risks.
Paragraph 6
Private investors who provide start-up capital to
promising business ventures.
An opportunity to generate income as a business owner
and not an employment opportunity.
Paragraph 9
The existence of high start-up costs or other obstacles
that prevent new competitors from easily entering an
industry, market or an area of business.
V Can you summarize the main ideas about entrepreneurs as suggested in the
article? Use the prompts to complete them.
Entrepreneurs are since they
where the others .
They see where others
.
The successful need to have to defy
and the determination to .
The main motivator for entrepreneurs is
which drives them to and .
Entrepreneurial innovations in the world of technology and in the new ways of doing business
are the key factors .
62
VI Use the words in italics at the end of each of the following sentences to form
a word that fits in the blank space.
1 His drive and energy are
important for the success of our project.
(entrepreneurship)
2 studies are almost always conducted
where large sums of money are at stake.
(feasible)
3 She worked as a product manager at an internet
.
(to start up)
4 We have to with cheap imports from the
Far East.
(competitive)
5 When you decide to a business, intelligent
goal setting is an essential step.
(founder)
6 He received an award for the most
designer of consumer electronics.
(invent)
FINDING THE FUNDS
I Read the text and find out what crowdfunding is.
Once you have a good business idea, you have to raise money to fund your future start-up.
“Crowdfunding” has recently become very popular financing technique where a large group
of people invest money in a business idea, usually via the Internet.
II Make a business presentation
Imagine you want to attract your would-be crowdfunding investors on the Internet for your
start-up. You can either use your own business idea or choose one of the ideas listed below.
In order to be more efficient, read the crowdfunding tips at
http://www.smarta.com/advice/business-finance/start-up-finance/crowdfunding-advice-top-8-
tips-for-small-businesses/
Business ideas:
Food delivery service
Youth hostel
E-commerce site
House cleaning service
Pet sitting
Adapted from https://www.gov.uk/business-finance-explained/crowdfunding
63
STUDENT ENTREPRENEURS
I Read and fill in the gaps in the sentences with the words from the box.
Ana Burica (23) and Josipa Majić (23), the (1) of a medical (2)
IDerma, are not only business students from the
Faculty of Economics and Business in Zagreb, but also (3) entrepreneurs. In 2012 they
(4) special software that solves the problems in
communication between doctors and patients. A white- label medical application enables
dermatologists to collect information about their patients, profile disease and monitor their
therapy in a personalised way. At the same time, the patients can, by using a mobile
application, observe their health condition and get directly involved in the treatment. The
team can create a personalized white label medical application in only 48 hours for a (5)
price of $99.They already have a respectable number of
clients, mostly clinics and medical institutions, from around the world.
The (6) young women, who were selected by the European Commission to represent Croatia in the EU, would like to encourage students to build their own projects and (7) a business. The founders, who initially financed IDerma project by
themselves, claim a start-up is worth the risk because even if a new business (8) , young (9) will gain some valuable experience and benefit from new
business contacts. The ambitious graduates have just (10) another hi-tech medical (11) _, Teddy, the Guardian, a teddy bear with integrated sensors which can measure a child’s body temperature, blood pressure and heart rate, sending the information immediately to the parents’ mobile application.
Adapted from: Kiss Kulenović, B., Lekaj Lubina, B., Lumezi Linčir, M., Planinšek-Čikara, I. (2014). English for Business
II Answer the following questions.
1 What does the new business do?
------------------------------------------------------------------------------------------------------------------------------------------------------------------
2 What is the lesson a new entrepreneur can learn from these stories?
------------------------------------------------------------------------------------------------------------------------------------------------------------------
3 Do you know any other successful entrepreneurial stories from Croatia?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------
4 What were the problems these entrepreneurs had to deal with?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------
5 How did they raise money for their start-ups?
------------------------------------------------------------------------------------------------------------------------------------------------------------
start-up entrepreneurs
launched entrepreneurial
invented
start up
fails founders invention
innovative competitive
64
I Read the text and complete the organization chart:
I think we have a fairly typical organization for a manufacturing firm. We’re divided into
Finance, Production, Marketing and Human Resources departments.
The Human Resources department is the simplest. It consists of two sections. One is
responsible for recruitment and personnel matters; the other is in charge of training.
The Marketing department is made up of three sections: Sales, Sales Promotion and
Advertising, whose heads are all accountable to the marketing manager.
The Production department consists of five sections. The first of these is Production Control,
which is in charge of both Scheduling and Materials Control. Then there’s Purchasing,
Manufacturing, Quality Control, and Engineering Support. Manufacturing contains three
sections: Tooling, Assembly, and Fabrication.
Finance is composed of two sections: Financial Management, which is responsible for capital
requirements, fund control, and credit, and Accounting.
V Find the other four verbs in the text that mean the same as “to consist of”?
1 2 3 4
Source: MacKenzie,I. Management and Marketing, LTP, 1997
7 MANAGEMENT: COMPANY STRUCTURE
65
I Discuss these questions:
How do jobs differ?
What makes them more or less attractive?
What can employees do if they are dissatisfied with their jobs?
Can they get organized?
II Decide which of the jobs below may be described as follows:
III When an employee begins a job they will sign a written contract of
employment with the company, stating the conditions of work that have been
agreed. Look at the list of conditions and put them under the correct heading.
NUMBER OF HOURS
TYPE OF EMPLOYMENT
PAY
BENEFITS
DISCIPLINARY PROCEDURES
NOTICE
GRIEVANCE PROCEDURES
EMPLOYEE RIGHTS
Source: Robbins, S. (2003). Business Vocabulary in Practise. Collins Cobuild.
8 EMPLOYEES AND LABOUR RELATIONS
BLUE-COLLAR JOBS WHITE-COLLAR JOBS
MID-LEVEL JOBS JOBS FOR THE GRADUATE ELITE
computer programmer plumber
receptionist clerk
washing machine repairman tax advisor
teacher
architect delivery van driver
builder
lawyer
electrician
IT consultant
4 weeks’ paid holiday per year paid sick leave 48 hours per week
one month’s notice consequences of breaking company rules
who to contact to make a complaint £30,000 per year $9 per hour
trade union membership permanent/temporary job full time /part time job
66
IV Read the following:
V Match the words on the left to the definitions on the right.
1. COLLECTIVE
BARGAINING
A a general term for strikes, go-slows, work-to-rules, etc.
2. A STRIKE
B a deliberate reduction in the rate of production, as a
protest
3. A GO-SLOW (GB)
C a stoppage of work, as a protest against working
conditions, or slowdown (US) low pay, and so on
4. WORKING-TO-RULE
D negotiations between unions and employees about their
members’ wages and working conditions
5. INDUSTRIAL
ACTION
E to protest outside a factory or other workplace, and try to
persuade workers and delivery not to enter
6. TO PICKET
F deliberately obeying every regulation in an organization,
which severely disrupts normal operations
Source: MacKenzie, English for Business Studies (2002)
VI Unions are involved in a number of different activities. Discuss how the
following expressions may be related to union work.
redundancies benefits for members redundancy pay
legal representation pressure groups
social partners layoffs severance pay
unfair dismissals collective agreement
Labour relations or industrial relations are relations between the management of a company
and its workers. The two sides usually discuss three main issues: wages, working hours and
working conditions. Workers’ interests can be represented by trade unions (labour unions). If
dissatisfied with the course of the negotiations with the management, unions can call a strike
or organize other types of industrial action.
67
VII Read the text and answer the questions
1. What will companies with more than 150 employees have to do?
2. What will businesses be obliged to consult their workers about?
3. What two types of information will businesses be obliged to give their workers?
VIII Use the terms in the box to complete the paragraph.
Management and trade unions are jointly responsible for (1) .
Management and (2) often come together on a firm’s
(3) to attempt to resolve problems before they become too serious. If,
however, the issue cannot be solved, they may use outside (4) to assist
them. If all attempts to find a solution fail, the (5) may call a
(6) , or take other forms of (7) . If an individual
employee has a complaint, a company usually has a (8) procedure to
deal with it. Employees may also contact their trade union or an industrial (9)
if they have a complaint about their treatment at work or about a
colleague or a (10) .
Source: Robbins, S. (2003). Business Vocabulary in Practise. Collins Cobuild.
IX Do the vocabulary exercise in MacKenzie (2010, p.124), and answer the
questions below.
a) What positions may trade unions take regarding the issues listed in the exercise?
b) Are these topics important for Croatia? Find relevant examples.
A recent EU directive requires every employer with more than 150 staff to establish a works
council. Businesses will have statutory requirements for ongoing consultation on any
proposed changes in working conditions, and to provide information about recent and probable
developments and activities and about the establishment’s economic situation.
industrial action arbitration staff representatives strike
tribunal trade union grievance industrial relations
works council
co-worker
68
I Discuss these questions before doing the exercises:
1. What kind of job would you like to do?
2. What skills and qualities do you need for it?
3. What sort of duties would you have?
4. What sort of working week would you have?
II Read the definitions and fill in the missing words:
1. A record of a person’s education, employment, and interests.
2. Knowledge and skills that you gain by doing a job or activity.
3. Regular monthly payment for administrative work.
4. An official request for a job.
5. Certificates and diplomas are records of formal qualifications.
6. A meeting where you are questioned about your suitability for a job.
7. Statements of former employers or teachers about your character and abilities.
III Match the words and put the matched expressions in logical order:
attend the job 1
put on on the payroll 2
identify an interview 3
give a vacancy 4
advertise CVs and covering
letters
5
receive a shortlist 6
be notice 7
IV Complete the sentences with the right preposition:
People looking work generally read the vacancies newspapers. To reply
an ad is to apply a job. You fill the form, send it along your CV and a
covering letter. You are asked to give the names two people prepared to write a
reference you.
9 RECRUITMENT
69
V Match each form of payment in the box with the right person (1-10):
1. blue collar worker
2. student
3. white-collar worker
4. laid off employee
5. retired employee
6. lawyer
7. author
8. sales representative
9. senior manager
10. any employee for good work
(Adapted from: Steve Flinders: Test Your Professional English, Business: Intermediate, Pearson Education
Limited, 2002)
VI Fill in the gaps with the words from the box:
headhunting background contract applicants shortlisted
resumes interview recruitment experience description
The most important step to take when performing the process is a clear
understanding of the job for which businesses are hiring. Before meeting with the job
, hiring managers must decide upon the responsibilities of the position.
They must be clear about the educational and professional
they seek in the ideal candidate.
When the responsibilities, requirements and the salary range of a job are determined in
the job , hiring managers may post ads on online job search sites or in
traditional publications. They may also utilize the services of a agency
that maintains a pool of qualified, pre-screened candidates.
Then begin to pour in and hiring managers must screen each one.
Once the most appropriate resumes are identified, candidates are
and invited for an . When an ideal candidate has been
found, the applicant signs a .
(Adapted from: Ian Mackenzie: English for Business Studies, CUP, 2002)
royalty bonus
redundancy pay fees
stock option
salary
wage
commission
grant
pension
70
VIII Choose the words from the brackets to fill the gap:
1 (join/recruit)
We need to four new people for our office in Manchester.
2…(agency/head hunter)
We are using a recruitment _to find them for us.
3…(positions/applicants)
They advertised the in the local newspaper last week.
4 (application/situation)
We are going to look at all the letters of over the weekend.
5 (reference/short list)
On Monday, we will draw up a of ten or eleven people.
6 (interview/appointment)
Then we will invite them all to come for an .
7 (apply/appoint)
We hope to somebody by the end of the month.
8…(unemployable/unemployed)
Ivan has been ever since he graduated from the FEB.
9 (employee/employment)
The company has provided opportunities of for young people.
10 (employer/employee)
Lana won the of the month prize twice last year.
71
I Look quickly through the text and decide which paragraphs are about these subjects:
- company-to-company marketing - identifying market opportunities - the marketing mix - the selling and marketing concepts - the importance of market research
THE CENTRALITY OF MARKETING
1 Most management and marketing writers now distinguish between selling and marketing. The ‘selling concept’ assumes that resisting consumers have to be persuaded by vigorous hard- selling techniques to buy non-essential goods or services. Products are sold rather than bought. The ‘marketing concept’, on the contrary, assumes that the producer’s task is to find wants and fill them. In other words, you don’t sell what you make, you make what will be bought. As well as satisfying existing needs, marketers can also anticipate and create new ones. The markets for the Walkman, video recorders video game consoles, CD players, personal computers, internet, mobile phones, mountain bikes, snowboards, and genetic engineering, to choose some recent examples were largely created rather than identified.
2 Marketers are consequently always looking for market opportunities – profitable possibilities of filling unsatisfied needs or creating new ones in areas in which the company is likely to enjoy a differential advantage due to its competencies (the things it does particularly well). Market opportunities are generally isolated by market segmentation. Once a target market has been identified, a company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the final product or service comes into existence. It also means that the marketing concept has to be understood throughout the company, e.g. in the production department of a manufacturing company as much as in the marketing department itself. The company must also take account of the existence of competitors, who always have to be identified, monitored and defeated in the search for loyal consumers.
3 Rather than risk launching a product or service solely on the basis of intuition or guesswork, most companies undertake market research (GB) or marketing research (US). They collect and analyse information about the size of a potential market, about consumers’ reactions to particular product or service features, and so on. Sales representatives, who also talk to customers, are an important source of information.
4 Once the basic offer e.g. a product concept has been established, the company has to think about the marketing mix, i.e. all the various elements of a marketing programme, their integration, and the amount of effort that a company can expend on them in order to influence the target market. The best known classification of these elements is the ‘Four Ps’: product, place, promotion and price. Aspects to be considered in marketing products include quality features (standard and optional), style, brand name, size, packaging, services and guarantee. Place in a marketing mix includes such factors as distribution channels, locations of points of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, and personal selling, while price includes the basic list price, discounts, the length of the payment period, possible credit terms, and so on. It is the job of a product manager or a brand manager to look for ways to increase sales by changing the marketing mix.
5 It must be remembered that quite apart from consumer markets (in which people buy for direct consumption) there exists an enormous producer or industrial or business market, consisting of all the individuals and organizations that acquire goods and services that are used in the production of other goods, or in the supply of services to others. Few consumers realize that the producer market is actually larger than the consumer market, since it contains all the raw materials, manufactured parts and components that go into consumer foods, plus capital equipment such as buildings and machines, supplies such as energy and pens and paper, and services ranging from cleaning to management consulting, all of which have to be marketed. There is consequently more industrial than consumer marketing, even though ordinary consumers are seldom exposed to it.
10 MARKETING
72
II Match up the words or expressions on the left with the definitions on the right.
1 to launch a product
A places where goods are sold to the public – shops, stores, kiosks, market stalls, etc.
2 market research
B an idea for a new product, which is tested with the target customers before the actual product is developed
3 points of sale C collecting, analysing and reporting data relevant to a specific marketing situation (such as a proposed new product)
4 product concept
D someone who contacts existing and potential customers, and tries to persuade them to buy goods or services
5 sales representative
E to introduce a new product onto the market
Source: Ian Mackenzie: English for Business Studies. 2nd
edition, CUP, 2002
III Read the texts on marketing in English for Business Studies (MacKenzie
2010), p. 64-67 and make notes on the key ideas.
THE FOUR MAJOR PROMOTIONAL TOOLS
I Insert the following words in the text below.
1 The basic idea behind the ‘marketing concept’ – that you make what you can sell, rather than
sell what you make – does not mean that your product will sell all by itself. Even a good,
attractively priced product that clearly satisfies a need has to be made known to its (1)
customers. During the introduction and growth stages of the standard product
life cycle, the producer (or importer, and so on) has to develop product or brand (2)
, i.e. inform potential customers (and distributors, dealers and retailers) about
the product’s existence, its features, its advantages, and so on.
2 According to the well-known ‘Four Ps’ formulation of the marketing mix (product, place,
promotion and price), this is clearly a matter of promotion. Since budgets are always limited,
marketers usually have to decide which tools – advertising, public relations, sales promotion, or
personal selling – to use, and in what proportion.
3 Public relations (often abbreviated to PR) is concerned with maintaining, improving or
protecting the image of a company or product. The most important element of PR is publicity
which (as opposed to advertising) is any mention of a company’s product that is not paid for, in
any (3) read, viewed or heard by a company’s customers or potential
customers, aimed at assisting sales. Many companies attempt to place stories or information in
news media to attract attention to a product or service. Publicity can have a huge impact on
public awareness that could not be achieved by advertising, or at least not without an enormous
cost. A lot of research has shown that people are more likely to read and believe publicity than
advertising.
4 Sales promotions such as free samples, coupons, price reductions, competitions, and so on,
advertising aimed awareness channel loyalty
maturity medium tactics target trial
73
are temporary (4) designed to stimulate either earlier or stronger sales of a product. Free samples, for example, (combined with extensive advertising), may generate the initial (5) of a new product. But the majority of products available at any given time are in the (6) stage of the life cycle. This may last many years, until the product begins to be replaced by new ones and enters the decline stage. During this time, marketers can try out a number of promotional strategies and tactics. Reduced-price packs in supermarkets, for example, can be used to attract price-conscious brand-switchers, and also to counter a promotion by a competitor. Stores also reduce prices of specific items as loss leaders which bring customers into the shop where they will also buy other goods.
5 Sales promotions can also be (7) at distributors, dealers and retailers, to
encourage them to stock new items or larger quantities, or to encourage off-season buying, or the
stocking of items related to an existing product. They might equally be designed to strengthen
brand (8) among retailers, or to gain entry to new markets. Sales promotions
can also be aimed at the sales force, encouraging them to increase their activities in selling a
particular product.
6 Personal selling is the most expensive promotional tool, and is generally only used sparingly,
e.g. as a complement to (9) . As well as prospecting for customers, spreading
information about a company’s products and services, selling these products and services, and
assisting customers with possible technical problems, sales people have another important
function. Since they are often the only person from a company that customers see, they are an
extremely important (10) of information. It has been calculated that the majority
of new product ideas come from customers via sales representatives.
Source: MacKenzie, English for Business Studies, 2002
II Read the text again and find out:
a) 4 Ps: , , _,
b) 4 major promotional tools: _, _, ,
c) The key element of public relations:
d) 4 examples of sales promotions: , ,
_.
e) The key factor in personal selling:
III Read the text on ‘Advertising and viral marketing’ and find out about the
recent trends in marketing.
IV There is a logical connection among three of the four words in each of the
following groups. Which is the odd one out, and why?
1 advertising – competitors – publicity – sales promotion
2 advertising agency – advertising campaign – media plan – word-of-mouth advertising
3 advertising manager – brand-switcher – marketing manager – sales rep
4 after-sales service – guarantee – optional features – points of sale
5 brand awareness – brand loyalty – brand name – brand preference
6 competitions – coupons – free samples – line-stretching
7 credit terms – discount – list price – packaging
8 decline – growth – introduction – product improvement
9 size – shape – retail – quality
10 packaging – place – product – promotion
74
SKILLS REFERENCE
INTRODUCTION
I Read this job as advertised in the Economist and identify the skills required for this
position.
EUROPEAN CENTRAL BANK
The European Central Bank (ECB) established in Frankfurt am Main on 1 June 1998, is seeking to fill the vacancy
below in the Monetary Policy Stance Division in the Directorate Monetary Policy in the Directorate General
Economics of the ECB.
The ECB has its own terms and conditions of employment, including a competitive salary structure, retirement
plan, health insurance and relocation benefits.
ECONOMIST
(Ref.:ECB/181/04/ECO)
Qualifications and experience:
Advanced university degree in economics, together with a sound academic record in applied
macroeconomics, preferably related to monetary and financial economics and central bank operations. A Ph.D.
and a research and publication record would be considered additional assets.
Comprehensive experience in preparing policy-related briefing and analytical material, in particular on
issues associated with monetary policy implementation, the money markets, the operational framework of the
Eurosystem and related central banking issues.
Excellent analytical skills
Sound knowledge of statistical and econometric techniques for analytical purposes
Candidates should have good writing skills in English and the ability to draft well-structured notes within
strict deadlines. They should also be able to identify and address policy issues and present analytical findings in
non-technical terms.
A very good knowledge of English and a working knowledge of at least one other official community
language are required.
Starting date: As soon as possible.
Term of contract: Initially three-year fixed-term contract, which may be converted later into a permanent
contract.
Applications:
Applications should be submitted in English and include a covering letter, curriculum vitae and a recent photograph
together with references confirming the required experience and skills. They should be addressed, quoting the
reference number, to the European Central Bank, Recruitment and Staff Development Division, Postfach
16.03.19., 60066 Frankfurt am main, Germany and should reach the ECB no later than 8 October 2004. The
deadline will be strictly adhered to.
Candidates must be nationals of the member State of the European Union.
Applications will be treated in the strictest confidence and will not be returned.
This vacancy has also been posted on the ECB's website at www.ecb.int. To meet the deadline, a copy may be
sent by fax to +49 697 344 7979 or by e-mail to [email protected]. However, a signed application must still be
sent by post.
1 NOTE-TAKING AND NOTE-MAKING
75
II Discuss these questions:
When are notes taken?
Notes are taken while
... reading a text
... listening to a lecture or presentation
... attending a meeting
... interviewing a candidate
... making slides for a presentation
Why are notes taken?
information is the basis of decision-making in business
managers are swamped with information
notes communicate information in a shortened, time-saving form
note-taking is a useful skill in business communication (e.g. minutes, reports,
articles, presentations, meetings…)
How are notes taken while reading?
Follow this 5-step procedure:
1) SKIM- get the rough idea of the content (title, pull quote, introductory paragraph,
pictures?)
2) SCAN underline the main points: key words/key sentences (topic sentences),
3) GIVE HEADINGS to each paragraph
4) GROUP PARAGRAPHS (how many parts of the text? headings, subheadings?)
5) ESTABLISH LOGICAL RELATIONS between parts of the text
How are notes taken while listening?
There are many methods to take notes. The Cornell method is an example of note-taking.
What is note-making?
Preparing the notes for the user. When organizing the notes it is important to:
know the purpose of the notes
establish priorities to separate the essential, the useful and the irrelevant (key
words, key sentences, major concepts)
show clear structure which emphasizes the underlying conceptual relationship
(visual appeal through graphics: headings, subheadings, bold, indent, underline,
italics, mind maps, charting, etc.
76
How can notes be organised more clearly?
Use symbols and abbreviations instead of full words whenever possible.
FUNCTIONS FULL TEXT SUGGESTIONS
FOR NOTES
Examples
(illustrations)
For example,… For instance,…As an
example,… To illustrate the point,…
e.g.
Listing or giving
another argument
There are three reasons why…
First,…Second,… Third,…Firstly, …
Secondly, … Thirdly, …
Furthermore, … Moreover, … Also,…
1
2
3
Clarifying In other words, … that is… i.e.
Reason, cause –
effect
because
(of)…therefore…consequently…owing
to…due to…thus…since…
→
Contrast,
opposition
however, on the contrary, nevertheless,
conversely, yet, although, even though,
though, on the other hand
vs.
III Study these notes on the text Where did all the jobs go? on p. 24.
I MANUFACTURING JOB MOVEMENTS (pg. 1)
Before 1970s vs nowadays
GB – manufacturing → China, …
II MORE EVIDENCE (pg. 2)
US (rust-belt) vs. China
European shipyards South Korea
Steel, coal
III NOT MANUFACTURING ONLY (pg. 3)
Also: knowledge –based services: high-tech (telecom, computers, aeronautics),
pharmaceuticals
Conclusion: jobs in developed countries are no longer safe
77
I Study the key features of paragraphs and underline the main ideas.
PARAGRAPH
A paragraph usually consists of three or more sentences based on one main topic, so
you should start a new paragraph when you change topic.
Individual sentences within a paragraph should be connected using sequencing words
(e.g. firstly, then, finally), reference words such as pronouns (e.g. which, where, that) or
linking words (e.g. therefore, however). However, if they are overused, the text will
sound unnatural and be difficult to follow.
One-sentence paragraphs should be avoided, whenever possible.
A line space should be left to show where one paragraph ends and another begins.
TOPIC SENTENCE
A paragraph often contains a topic sentence, which introduces or summarises the central
idea of the paragraph. The other sentences in the paragraph expand, explain or
exemplify this main idea.
The topic sentence is often, but not always, the first sentence in a paragraph.
(Occasionally, a paragraph may have no topic sentence).
In a well-structured paragraph, the topic sentence is linked to the other sentences in that
paragraph with connectors or linking devices.
A good topic sentence should arouse the reader’s interest and make him/her want to
read on.
Adapted from M.Stephens: New Proficiency Writing, 2nd ed., 2002, Pearson Education Limited
II Study the following paragraph. Find the topic sentence and explain how the other
sentences in this paragraph expand, explain or exemplify the main idea.
Source: J. Naunton: Business Result – Skills for Business Studies Advanced, 2012, Oxford University Press
2 PARAGRAPHING
Most people face obstacles and setbacks in their careers, and many employees, blue collar
and white collar, change their jobs and even their occupations several times over their
working lives. As people’s experience of life changes over time, they adjust to some extent to
their concept of self and personal identity. There are some conventionally successful
individuals whose careers progress relatively smoothly and develop in a linear and ‘upwardly
mobile’ fashion. John Kotter’s 1982 study of general managers in the US found common
factors for success; it seems to be connected with achievements at an early age and major
responsibility being attained before the individual is in his or her mid-thirties.
78
III Tick () the linking words and phrases you know.
IV Study how the following linking words and phrases are used (at the beginning,
in the middle or at the end of a sentence)? What is their function?
1 Although I understand Martin’s motives for doing this, I do not approve of his methods.
2 The company provides good working conditions. In addition, it offers excellent training
opportunities for young employees.
3 The government has recently introduced incentives for employers to hire new people
in order to reduce unemployment.
4 Your comment was funny. It was, nevertheless, a bit unprofessional.
5 Despite going beyond our limits, we did not manage to finish the project on time.
6 The company has severe financial difficulties, and therefore a lot of employees have
been laid off recently.
7 Since you are unable to answer our questions, perhaps we should ask some of your
colleagues.
8 Life in the urban environment is often considered to be more exciting whereas living in
the countryside provides more opportunities for healthier lifestyle.
9 We should all be more cautious about energy consumption. For instance, we could
travel to work by bicycle instead of driving a car.
10 The school was far away from my hometown. Besides, it was too expensive.
11 Many people would like to do a challenging and creative job. On the other hand, most
people would always choose the job that is well-paid.
12 Owing to unexpected circumstances, we had to cancel our trip to London.
V Copy the linking words and phrases from the box above next to the
corresponding functions:
ADDITIONAL INFORMATION
REASON
CONTRAST
PURPOSE
RESULT/CONSEQUENCE
GIVING EXAMPLE
CONCESSION
●although
●owing to
●for example ●however ●because
●thus
●and ●due to
●furthermore ●therefore ●on the contrary ●so
that ●for instance
●since
●that's why
●despite
●but
●so
●because of ●moreover ●even though
●for example
addition to
●whereas
●as a result
●while
●consequently
●nevertheless
●in spite of
●yet
●in
●besides
●in order to ●on the other hand
79
VI Use the following sentences to write a paragraph about world tourism.
Organise the sentences into logical order by using the necessary connectors
and linking words.
Adapted from T.Byrne: Intermediate English File, Business Resource Book, 2nd ed., 2004, Oxford UP
The travel industry usually recovers very quickly, but will this always be the case in the
future? Tourism has become one of the world's biggest industries. In an increasingly
dangerous world, especially with an ever present threat of terrorist attack, people may not
be willing to travel as much as they used to. Estimates suggest that 590 million people
travel abroad every year, sometimes several times, not only for holidays but also for
business, and for personal, religious, or health reasons. After September 11th, there are
fewer Americans travelling, which has been disastrous for some global tourist economies.
It accounts for 11% of global GDP and employs around 200 million people.
80
INTRODUCTION
I Discuss the following questions.
1 What is a presentation?
2 For what purposes are presentations made in business?
3 What makes a presentation effective?
4 What is the worst presentation you have ever experienced?
5 Even experienced presenters can make mistakes during a presentation. Can
you give any examples from firsthand knowledge?
II Read the text below and finish the notes that follow:
Presentations are also referred to as "talks" in English. You can give talks on different subjects in all
kinds of circumstances or situations. The most obvious type is the sales presentation, but you can also
give presentations/ talks at conferences, lectures, board meetings, forums, etc.
THE ART OF GIVING PRESENTATIONS
Good presenters know how to attract their audience's attention. They show enthusiasm and make
what they say as if it really matters. They are well-prepared about what they want to say and know
how to best present their subject. They are in control of their body language, the aids (visual aids,
audio aids), time and voice. The art of giving presentations is an important and complex business skill
that can be mastered by gradually building up your competence and confidence through lots of
practice. Everyone needs to be an effective presenter, and everyone can become an effective
presenter. The way to do that is to observe the rules of good presentations.
PREPARING YOUR PRESENTATION
The preparation of a presentation is the most important step towards success. It includes external and
internal factors. One of the external factors is audience. You need to know as much as you can who
your audience is, how many people you can expect in your audience, what their level of knowledge on
the subject is, what mood they are in, and how much time they have at their disposal. The other
external factor is the location (venue) and its opportunities or limitations. These refer to the size, the
design, and the technical equipment.
The most important internal factor in preparing your presentation is to decide on the purpose which
can be to inform, to persuade, to train, or to amuse your audience. Once you have done that you can
set your objectives and the type of content you will gather. However, not all information you have
gathered will be appropriate for your effective presentation. It is very important to select only the
relevant points and eliminate the unnecessary information. The next step is to organize the points you
want to talk about into a structure and decide on suitable visual aids to support your talk. The structure
should always have the beginning, the body and the end.
DELIVERING THE PRESENTATION
During the presentation keep eye contact with your audience. Do not read. You may use notes and
prompts to help you follow the prepared structure. This way you will use the natural spoken language
and thus make it easier for your audience to listen. Fluency is important and can be achieved by
practicing before delivery. Use simple and transparent language and don't hesitate to repeat, rephrase
or give examples as long as you give the right signals. Your audience has to know at any point where
you've come from, where you are, where you are going.
Source: Špiljak, Liszt, Krnajski Hršak, Gjukic. English for Business 1, Zagreb, Mikrorad d.o.o., 2000
3 PRESENTATIONS
81
NOTES ON THE TEXT
PARAGRAPH 1:
A good presenter should...
- attract the audience’s .......
- show .....
- be convincing
- be ..........
- know how to ............
- be in control of ................................... and ................
- build ……….and …………….through ………………
PARAGRAPHS 2 AND 3:
In preparing your presentation consider the following:
the audience: - the venue: -
- -
- -
-
-
the purpose: to ……………………….. information: -
to………………………… -
to …………………………
to ………………………....
the structure: - beginning
-
- and ... ... ... ... ... ... .... to
support your talk
PARAGRAPH 4:
While delivering your presentation
1. keep eye contact 6. 2. 7 3. 8. 4. 9. 5. 10.
82
STRUCTURE OF PRESENTATIONS III Study the three main parts of presentations.
1 INTRODUCTION
Questions
2 BODY
3 CONCLUSION
Questions
IV Study how the main parts of presentations are organised.
A well-organised presentation with a clear structure is easier for the audience to
follow. It is therefore more effective. You should organise the points you wish to
make in a logical order. Most presentations are organised in three parts, followed by
questions:
Beginning Short welcome/greet your audience
introduction introduce yourself and your subject
explain the structure of your
presentation (outline the presentation) explain rules for questions
Middle Body of presentation present the subject itself
End Short conclusion summarise your presentation
thank your audience
invite questions
Questions and Answers
First you say what you’re going to say.
Then you say it.
Finally, tell them what you’ve said.
83
V Study the text below and find out what signposting is.
SIGNPOSTING AND USEFUL LANGUAGE
If you want your audience to understand your message, your language must be simple and
clear. Use short words and short sentences. Do not use jargon, unless you are certain that
your audience understands it. In general, talk about concrete facts rather than abstract ideas.
Use active verbs instead of passive verbs. Active verbs are much easier to understand. They
are much more powerful.
When you drive on the roads, you know where you are on those roads. Each road has a
name or number. Each town has a name. And each house has a number. You can look at
your atlas for the structure of the roads in detail. In other words, it is easy to navigate the
roads. But when you give a presentation, how can your audience know where they are? How
can they know the structure of your presentation? How can they know what is coming next?
They know because you tell them, because you put up signposts for them, at the beginning
and all along the route. This technique is called ‘signposting' (or 'signalling').
During your introduction, you should tell your audience what the structure of your
presentation will be. You might say something like this:
A member of the audience can now visualize your presentation like this:
Introduction Welcome
Explanation of structure
Body Europe
Asia
Africa
Conclusion Summing up
Recommendations
He will keep this image in his head during the presentation. He may even write it down. And
throughout your presentation, you will put up signposts telling him which point you have
reached and where you are going now. When you finish Europe and want to start Asia, you
might say:
When you have finished Africa and want to sum up, you might say:
And when you finish summing up and want to give your recommendations, you might say:
“I'll start by describing the current position in Europe. Then I'll move on to some of the
achievements we've made in Asia. After that I'll consider the opportunities we see for
further expansion in Africa. Lastly, I'll quickly recap before concluding with some
"That's all I have to say about Europe. Let's turn now to Asia."
"Well, we've looked at the three continents Europe, Asia and Africa. I’d like to
"What does all this mean for us? Well, firstly I recommend..."
84
VI Study the phrases used for performing different language functions in
different parts of presentations.
1) INTRODUCTION
The introduction is a very important - perhaps the most important part of your presentation.
This is the first impression that your audience have of you so you should concentrate on
getting your introduction right. The following table shows language phrases which are useful
in the introduction.
FUNCTION POSSIBLE LANGUAGE
1 Welcoming
your audience
Ok, let’s get started…
Good morning, ladies and gentlemen…
Good afternoon, everybody…
Thanks for coming …
My name’s …
For those who don’t know me…
2 Introducing
your subject
PURPOSE
What I want to do today is…
I am going to talk about…
The purpose of my presentation is to introduce our new range of
products…
In my talk, I’d like to discuss/highlight/show…
My purpose today is to talk about/report/ present…
TOPIC
The topic of my presentation is …
The subject of my talk is…
I’m going to talk about…
I’m going to be reporting on…
3 Outlining
your
structure
I’d like to give you a brief overview of my presentation.
My presentation is divided in three parts…
First, I’ll talk about /deal with…
Then/Next/Secondly, I’ll consider…
Thirdly/Finally, I’ll...
EXAMPLE: To start with I'll describe the progress made this year. Then I'll mention some
of the problems we've encountered and how we overcame them. After that I'll consider
the possibilities for further growth next year. Finally, I'll summarize my presentation
before concluding with some recommendations.
4 Giving instructions about questions
Do feel free to interrupt me if you have any questions.
I'll try to answer all of your questions after the presentation.
I plan to keep some time for questions after the presentation.
85
2) BODY
The body is the 'real' presentation. If the introduction was well prepared and delivered, you will now be 'in control'. You will be relaxed and confident. The body should be well structured, divided up logically, with plenty of carefully spaced visuals. Remember these key points while delivering the body of your presentation:
do not hurry
be enthusiastic
give time on visuals
maintain eye contact
modulate your voice
look friendly
keep to your structure
use your notes
signpost throughout
remain polite when dealing with difficult questions
FUNCTION POSSIBLE LANGUAGE
1) Signal the start of
each part
Let me begin with.. Now, if we turn to.. Let’s deal next with… This brings me to… I would like to go on to … …to move on to… Moving on to my next point… Let me expand/elaborate on that a little before we go on.
2) Summarize at the end
of each part
To summarise/conclude.. In conclusion,… I’d like to conclude by reporting… I’d like to recap…
3) CONCLUSION
In the last part of the presentation, you sum up the main points and give your main conclusion. Sometimes, it is possible to make a recommendation as well.
FUNCTION POSSIBLE LANGUAGE
1) Repeat your main
points
To summarise, I’d like to repeat….. To conclude,…
2) Give your main
conclusion
In conclusion,… Let me recap…
3) Signal an end Well, that’s all I have to say.. Thank you for your attention…
4) Handle questions GOOD QUESTIONS
I’m glad you asked about…
Good point,…
DIFFICULT QUESTIONS
I’m afraid I don’t have that information with me…
I don’t know that off the top of my hat.
UNNECESSARY QUESTIONS
I think I answered that earlier…
Well, as I mentioned earlier…
I’m afraid I don’t see the connection.
IRRELEVANT QUESTIONS
To be honest, I think that raises a different issue.
86
EXERCISES
I Underline the words/expressions /sentences in the presentation below that
can generally be used in most presentations.
“Good morning everyone, thanks for coming to my presentation. I know you're all very busy,
so I'll be as brief as possible. OK then, I’m going to talk about the new chocolate bar we’re
putting on the market, the St Tropez premium bar. I'll tell you about the test launch we carried
out in the south west of England a few weeks ago.
My presentation is divided into three parts. First I’ll give you some background about the
launch. After that, I’ll tell you how we got on and assess the effectiveness. Finally, I’ll outline
the future plans for the product. If you have any questions, don’t hesitate to ask.
Right, let’s start with the background to the launch. As you know, St Tropez is a mint and nut
bar with a distinctive taste. It’s been thoroughly tested in focus groups and special attention
was paid to packaging. It’s wrapped in a metallic foil. The colours are rich, strong, to give
high quality visual impact. OK everyone? Yes, John, you have a question…
So, that’s the background. Right, let’s now move on to the test launch. How successful was
it? Well, in two words, very successful. If you look at the graph, you’ll see the bar’s actual
sales compared to forecast sales. Quite a difference, isn’t there? The sales were over 20%
higher than we predicted. In other words, a really good result. Well above our expectations.
The sales show that the pricing of the product was correct. And they show that as a premium
line, the St Tropez bar should be successful nationwide. To sum up, a very promising test
launch. I believe the bar has the great potential in the market.
Right, where do we go from here? Obviously, we’ll move on to stage two and have a national
advertising and marketing campaign. In a few months, you’ll be visiting our sales outlets and
taking orders, I hope for the new product. Thanks very much. Any questions?”
Source: D. Cotton, D. Farley, S. Kent: Market Leader, Longman, 2000
II Practise reading aloud the presentation above as if speaking to an audience.
Try making eye contact with them as much as possible.
87
III Complete the following presentation excerpts with suitable words from the
boxes.
15-28
indicated talked interrupt
you will notice pointed out
draw your attention expand recommend
move on options priority referring
in conclusion on balance
Good afternoon, everybody. I’d like to 1) ___________ you all for being here.
My 2) ____________today is to 3) __________about our corporate strategy for the next
decade, and, more 4)____________, to 5) ______________with our plans for Europe.
6) __________ I’d like to 7) _____________briefly our current marketing policy in the UK.
8)___________ I’ll 9) ____________some of the problems we’re having over market share.
10) ______________I’ll 11) ____________ the opportunities we see for further progress in the
21st century. 12)_____________ ,I’ll quickly 13) ______________before 14)_______________with
some recommendations.
Please feel free to 15) ___________ me if you have any questions at any time.
Now I’d like to 16) ___________to Chart B showing our sales revenue and pre-tax profits over
the last ten years. 17) ______________that although turnover has risen, our profits have not
increased at the same rate. I’ve 18) ___________about our current position in the UK and I’ve
19) ____________some of the problems we are facing. Well, what 20) __________are open to
us now? Where do we go from here?
As I have already 21) ___________, I think our first 22) __________must be to build on the
excellent results we have achieved in certain European markets. I’m 23) __________, of
course, to Italy and Spain. Let me quickly 2 4) __________on those successes before
we 25) ______________.
We should not forget the French market. Admittedly our results there have been poor so far, but
there are signs the market is changing and we can learn a lot from our mistakes. 26)
___________, though, I think we stand to gain most from concentrating on southern Europe and I
strongly 27) ______________we put all our efforts into further expansion in Italy, Spain and
possibly Greece.
28) ____________, may I thank you all for being such an attentive and responsive audience.
Thank you also for your pertinent questions. Are there any final questions?
Source: D. Cotton, S. Robbins: Business Class, 1993
after that
1-14
finally
to start with
outline
specifically concluding
bring you up to date
illustrate purpose then thank sum up tell you describe
88
IV Think of a topic you are familiar with (e.g. tourism in Croatia, traffic problems
in your home town etc.). Use this framework to practice structuring an ad-hoc
presentation to deliver to your group in class.
o Good morning everyone, thank you for coming to my presentation.
o My name is _and I'd like to talk about
. o I hope this will not last too long, maybe minutes.
o If you have any questions please ask me at the end of my presentation.
o I have divided my talk into three parts. First, I'll talk about , then
o I'll say something about _and finally, I’ll
. o Ok, let’s start with my first point:
. o Let me now move on to my second point:
_ o My last point is
o To conclude, I’d like to repeat that
o Well, that’s all I have to say about
_, so if you have any questions, I’ll try to answer them now…
89
TALKING SLIDES
I Compare the speaker's introduction on the left and the slide which
accompanies the talk on the right.
WHAT YOU SAY: WHAT YOU SHOW:
II Try to organize the first slide for the presentation on page 86:
III Study these additional hints on how to avoid death by PPT.
1 Use no more than 3 slides per minute. 2 Minimize the reading-out-loud of each slide. 3 Ban all font lower than 24. 4 Avoid turning your back to the audience. 5 Keep the lights on. 6 Use a powerful projector. 7 Use the right graph type. 8 Tell your audience what’s coming, what is and what has been said. 9 You – not your slides – are the centre of your presentation!
Good afternoon everybody. My name is
Adrian Brown and I’d like to thank you all first
of all for giving up your time to come here
today and listen to me. I hope that by the end
of the day you’ll think that your time has been
well spent.
I’m going to talk today about a new product,
a new range of mobile phones, and I’m not
only going to tell you about the product but
how, by selling it, we can make profit by doing
just that. And that I suppose is the most
important effect of this talk – how we can
make profit in the coming year.
So, roughly I’ve divided my presentation into
three parts: firstly, I’ll present the new
product, then I’ll outline some sales
techniques and finally I’ll present the profit
projections for this line of mobile phones.
Well, now, let me turn to my first point…
UPDATE FOR SALES STAFF
Novelia xyz 007
Sales techniques
Profit projections for 2011
90
TYPES OF VISUALS/GRAPHICS
I Match the type of chart with its name:
_a flow chart _a line chart _a diagram
_a bar chart _a table _a drawing or illustration
_a pie chart _a plan
II Practice referring to visuals using these phrases.
Have/take a look at this chart/diagram/graph here.
As you can see in this …
The vertical/horizontal axis shows…
The solid line ( ) shows...The broken line shows (_ _)…The dotted line shows (…).
I’d like you to take a look at one or two interesting details…
I’d like to draw your attention to…
I’m sure the message here is…
I’d like you to think about the significance of this figure here.
If you look at this graph more closely, you’ll notice…
Whatever the reason for this, the underlying trend is obvious…
Whichever way you look at it, these are some of our best results.
I’m sure the lesson to be learned from this is clear to us all.
1 2 3 4
5 6 7 8
90
I’m sure the implications of this are…
91
I Discuss these questions.
INTRODUCTION
1. Why is it important for business people to develop business correspondence skills?
2. Can you think of concrete situations where business correspondence may affect
business activities?
3. Do you think e-mails will completely replace business letters one day?
4. Why is it important to use standardised business formats, clear style and accurate
language in business correspondence?
FORMAL BUSINESS LETTERS – GENERAL GUIDELINES
I Study the key features of formal business letters.
LAYOUT
o BLOCK STYLE (see page 95)
COHESION AND ORGANIZATION
o Avoid paragraphs and sentences that are too long (too much information at once).
o Avoid incomplete information.
o Avoid information that is in the wrong order.
o A paragraph can have just one or more sentences in it and it should have one central
topic.
CONTENT
Most letters have three parts:
o AN OPENING, which says why you are writing,
o THE MAIN MESSAGE, which gives the details, and
o THE CLOSING, which usually refers to future contact.
Each part is usually a separate paragraph, but the main message can be more than one
paragraph if you are writing about more than one subject.
REGISTER AND STYLE
o Avoid contractions (I'm…).
o Avoid short and direct phrases.
o Don't use language that you might use when you are speaking English.
o Avoid colloquial expressions.
ACCURACY (grammar, spelling and punctuation)
4 BUSINESS CORRESPONDENCE
92
II Study the following steps in letter writing.
1 Read carefully the letter you have received.
2 Make a plan for the letter.
3 Note down important/useful phrases.
4 Write a draft.
5 Check spelling, grammar, style and layout.
6 Make changes and corrections.
7 Produce a final version.
8 Read the letter again.
9 Send the letter.
REMEMBER!
Business correspondence should be:
Complete – contain all necessary information
Concise – brief
Clear – easy to understand
Correct – accurate both in content and language
93
ELECTRONIC MAIL - GENERAL GUIDELINES
I Study the general features of electronic mail.
1. OPENING AND CLOSING
Your emails should always open (Dear…) and close properly (Yours…). This is a sign of
politeness and educated style, but it also tells the reader that the message is for them, and
not just a copy (cc or bcc), and that the message has finished.
2. SUBJECT HEADING
Many people do not open all the messages they receive because a lot of them are junk mail
so they delete them straight away. That is why it is very important to write a short subject
heading which makes it clear what the message is about and which encourages the reader
to open the message. This can also help to ensure that the message goes to the right
person.
3. UPPER/LOWER CASE
Avoid capitals in emails because they are considered the same as shouting. Similarly, don’t
write all in lower case.
4. COPYING THE ORIGINAL MESSAGE
In some replies to emails, parts of the original message are copied back to the addressee.
These parts are then marked with >. Sometimes, however, copying parts of the original
message into a reply can make an email look untidy, leaving a poor impression.
5. REPLY
Most commonly a reply to an email does not contain the original message, unless it is
important to do so. The person you are replying to will normally have a copy of their own
original message.
6. ATTACHMENT
Your email should always mention what you are attaching, because sometimes the receiver
is unable to open, download and convert the file attached.
7. PARAGRAPHS
Divide your message into meaningful paragraphs. It is more natural and certainly less tiring
to read several short paragraphs than one long one. Use a line space between your
paragraphs.
8. STYLE
Using the right style of writing can be a problem for inexperienced writers. The wrong style
might leave the wrong impression despite the writer’s intention. For that reason, remember
that email language should be natural and not very formal. However, informal language
should be used with caution, and is generally recommended only if you know the person
well. Avoid text-message abbreviations, slang and ‘emoticons’ (symbols which people often
use in Internet chat). It is always a good idea to check your email for language and style
before you send it. A badly spelled, poorly written e-mail can give a very negative impression. Adapted from A. Littlejohn: Company to Company, Fourth Edition, 2006, Cambridge University Press
94
LAYOUT
I Compare the layouts of a BUSINESS LETTER and an E-MAIL. What is the difference? Which elements are the same?
Beewiz Co.
13 King Street
Manchester M35
England
TRIPFINDER Co.
4 Hawk Road
Manchester M35
England
Our ref: JG/st/4
5 June 2010
Dear Sir or Madam
Trip to Split
We are writing in connection with the above
trip.
We would like to inform you that the number of
people interested in the trip has changed.
There are now 22 persons on the list.
We hope that this has not caused you any
inconvenience.
Yours faithfully
John Gooding
John Gooding
HR Manager
Outlook Express
From: [email protected]
Subject: Trip to Split
Dear Sir or Madam
We are writing in connection with the above
trip.
We would like to inform you that the number of
people interested in the trip has changed.
There are now 22 persons on the list.
We hope that this has not caused you any
inconvenience.
Yours faithfully
John Gooding
HR Manager
Beewiz Co.
13 King Street
Manchester M35
England
www.beewiz.uk
95
BUSINESS LETTER LAYOUT
LAYOUT: BLOCK STYLE
I Study the layout of business letters, the “BLOCK STYLE”. How is information
organised? How are paragraphs separated? Where do they begin?
BODY
TITLE
SENDER'S
ADDRESS
RECIPIENT'S
ADDRESS SENDER'S AND
RECIPIENT'S
REFERENCES
DATE
OPENING
SUBJECT
HEADING
BEGINNING
MAIN
MESSAGE
ENDING
CLOSING
PHRASE
SIGNATURE (WRITTEN AND TYPED)
Beewiz Co.
13 King Street
Manchester M35
England
TRIPFINDER Co.
4 Hawk Road
Manchester M35
England Our ref: JG/st/4
5 June 2010
Dear Sir or Madam
Trip to Split
We are writing in connection with the above trip.
We would like to inform you that the number of
people interested in the trip has changed. There
are now 22 persons on the list.
We hope that this has not caused you any
inconvenience.
Yours faithfully
John Gooding
John Gooding HR Manager
96
II Copy the mixed-up sentences in the empty form below to write a correct
email. Divide the message into paragraphs leaving space lines. Add any other
necessary information, e.g. e-mail addresses etc.
To:
From:
Subject:
Dear Mr Zorić
I look forward to hearing from you.
I hope to be in Zagreb on 18 and 19 October. Would it be convenient to visit you on 18
October at 10 a.m.?
Visit to Zagreb
I am now planning a trip to Europe and I would be very pleased if we could meet to discuss
the new technology you would like to introduce.
Marc Sullivan Sales Manager Export Division www.buptech.co
Yours sincerely
97
TYPES OF LETTERS
o Letter of application or cover letter
o Letter of enquiry/inquiry
o Letter of complaint
o Letter of apology
Other types include orders, order acknowledgments etc.
PURPOSE
LETTER OF APPLICATION
The purpose of a letter of application is to apply for the position that has been advertised.
This letter should highlight the specific qualifications, accomplishments, and abilities or work
experience that have special relevance for the position you are applying for. The job
advertisement will always tell you how to apply.
I Read the following job advertisement and a candidate’s letter of application.
Source: The Economist, September 2008
Asian Productivity Organization (APO)
PROGRAM OFFICER
The Asian Productivity Organization (APO), a regional intergovernmental organization with its Secretariat in Tokyo, is seeking a dynamic, competent Program Officer with substantial work experience in the industry and service sectors. The main responsibilities are to plan, manage and implement projects to enhance the productivity and competitiveness of corporations and organizations through the applications of productivity tools and techniques and to undertake postproject evaluation, reports, and other necessary follow-up.
Interested candidates must be a graduate from a reputable college or university, preferably with a Master’s degree in economics, business administration, or engineering. They should have at least eight years of working experience in management, corporate planning, economic analysis, or technological development, with at least three years of staff management experience. Candidates must have sound knowledge of productivity improvement tools, techniques and methodologies and socioeconomic development issues in Asia and the Pacific. Proficiency in both spoken and written English is essential.
Candidates must be from APO member countries and in excellent health. Salary will be commensurate with qualifications and experience. Appointment will be on a fixed-term basis for two years and renewable on the condition of satisfactory performance and upon mutual consent.
Interested candidates should send a resume with photograph, reason for application, and job history by 16 September 2008 to:
The Secretary-General, Asian Productivity Organization 1-2-10 Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093, JAPAN e-Mail: [email protected]
98
The Secretary-General Asian Productivity Organization 1-2-10 Hirakawa-cho, Chiyoda-ku Tokyo 102-0093 Japan
Off the Arabian Gulf St. Opp. Al Maqsab Gate
Safat P.O. Box 193
3 September 2008
Dear Sir or Madam
Job application
I saw your advertisement in The Economist of 25
August 2008 for the position of Program Officer.
I believe my professional training and career objectives
meet your requirements. I hold a Bachelor of Science
degree in Economics from Bocconi University, and the
Master of Business Administration degree from Harvard
School of Business. As you can see from my enclosed
CV I have considerable work experience in project
management and economic analysis. This has helped
me develop an excellent understanding of
socioeconomic development issues in Asia where I
have spent most of my working life. I also believe that
my expertise in productivity improvement tools might be
of great interest to you.
I appreciate your time in reviewing my enclosed CV and
I would welcome the opportunity to meet and discuss
my qualifications and experience with you. I am
available for an interview at your convenience.
Yours faithfully
John Saunders
John Saunders
Encl: CV
MAIN MESSAGE
explain why you are
interested in the
position
give relevant personal
information
(education, work
experience, interests,
etc.)
explain why you are
suitable for the job
OPENING
say why you are writing
refer to the job ad
name the position for which you are applying
CLOSING
conclude the letter by
saying that you are
available for an
interview
99
CURRICULUM VITAE/RESUME
PURPOSE
A CV/resumé is a summary of a person’s business or professional qualifications,
educational background, and work experience for a particular position. Its purpose is to give
an overview of the applicant’s capabilities, qualifications, and credentials for a given job.
In a chronological CV, which is the most common and the most readily accepted format,
information about education and professional experience is arranged in reverse order
beginning with your present or most recent position. There are many ways how to write a CV.
CURRICULUM VITAE
PERSONAL DETAILS
Name:
Phone:
Address:
E-mail:
John Saunders
+965 241 5400 99 /244 7755
Off the Arabian Gulf St., Opp. Al Maqsab Gate
Safat P.O. Box 193
EDUCATION
1996-1998 Harvard Business School
Master’s degree in Business Administration (MBA)
1992 – 1995 Bocconi University, Italy
Bachelor’s degree in Economics (BSc)
WORK EXPERIENCE
2004 – present
2000 – 2003
1999-2000
Project Supervision Manager, Development Agency, Kuwait
Responsible for project evaluation and economic analysis
HR Manager, Business Innovation Center Singapore
Responsible for establishing recruitment procedures
Training Officer, IBM, Tokyo
Collecting information on training needs and organizing workshops
SKILLS
Computer skills: MS Office 2008
Languages: English (C1), Italian (B2), Arabic (B1)
Additional: Driving license (personal car)
HOBBIES AND INTERESTS
Violin playing, reading (fiction), sports (footing, cycling)
REFERENCES
Mr Hashil Samar
Director of the Development Agency Kuwait
E-mail: [email protected]
Phone:+965 241 5300-31
Professor Lina Tontodoni
Bocconi University
E-mail: [email protected]
Phone:+456 241 5300-21
100
I Name the headings and categories commonly used in CVs in which you list:
a details about your working life
b schools and colleges attended
c practical abilities
d family name
e what you do in your free time
f basic facts about yourself
g people who can give information about your qualities and character ______________
h when you were born
i proof that you have successfully completed a course
j where you live
II Find a job ad for the position you would be interested in. Then write a letter of
application and your CV.
LETTER OF ENQUIRY/INQUIRY
PURPOSE
The purpose of this letter is to get information products, services, prices, or any other
business issues. Here is an e-mail in which the writer is enquiring about a product.
say what you
require
ask for action
end the e-mail
by referring to
future contact
From: Marko Ivic
Subject: Inquiry about washing machines
Dear Mr Demer
I am writing to enquire about the washing machines which I found
on your website.
mention how you got the contact
give reason for writing
We are interested in your B2X washing machines. We are a Croatian
company exporting to the EU, and we need good quality products.
Please send us information about your product range and prices.
We look forward to receiving your reply.
Yours sincerely
Marko Ivic
Marko Ivic
Purchasing Manager
Velicro d.d.
Splitska 12
10000 Zagreb
Hrvatska
www.velicro.hr
101
I Read the reply and underline the phrases that typically appear in replies to
inquiries.
To: Marko Ivic
From: Mahmud Demer
Subject: Re: Inquiry about washing machines
Dear Mr Ivić
Thank you for your email of 25 May enquiring about our washing machines.
We are happy to inform you that we can supply the items you inquired about
directly from stock. We can offer a discount of 10% on orders over €10, 000. We
dispatch the goods within 24 hours of a firm order.
We are attaching our current catalogue and price list. You will see that B2X line of
washing machines is on special offer.
If you need any further information, please do not hesitate to contact me.
Yours sincerely
Mahmud Demer
Sales Manager
II Write a letter of enquiry. Use block style.
Write a letter of inquiry to Ms Linda Bertich at Oxford University Press inquiring about an e-
learning package for Business English. Ask if they offer any discounts for university students.
102
LETTER OF COMPLAINT
PURPOSE
Letters of complaint are sent when customers or business partners are not satisfied with the
quality of service or product they have purchased or agreed on. Complaints can be mild or
strong, depending on the situation. Here are two letters of complaint. Underline
words/expressions that indicate a mild or
a strong complaint.
I Write a letter of complaint. Use block style.
You work for Horvat &Horvat d.o.o. (Petrinjska 18, Zagreb). You have just phoned your bank.
They have informed you that Promet d.o.o. has not yet paid their debt. Write to Promet d.o.o.
(Sisacka 54, Karlovac), and tell them what you have learnt. Make a point (you agreed that
payment was to be made by 15 October, and now it is 10 November). Demand payment
within a week. Make a strong complaint.
ask for immediate action
say why you
are writing
explain the reasons for complaining
Dear Mr Ivić
I am writing to complain about the washing machine I bought from your website.
Unfortunately, the product you delivered is well below the standard I expected. When I called your company your staff was not willing to help me. The problem is that the machine does not take enough water and the laundry comes out stained.
I would appreciate it if you could replace the faulty machine as soon as possible.
Yours sincerely
Marija Horvat
give a
warning
say why you
are writing
point out what is
wrong
give further
reasons in
support of your
complaint
Dear Mr Ivić
It is now two weeks since I complained about the washing machine
and I still have not received any reply.
I would like to point out once again that the washing machine
repeatedly leaves the laundry stained.
I hope it is not necessary to remind you that such a reputable company
should have much more efficient after sales service.
Unless I hear from you within seven days, I will be forced to take legal
action against your company.
Yours sincerely
Marija Horvat
103
LETTER OF APOLOGY
PURPOSE
Letters of apology represent a reply to a complaint. The sender apologises for the problem
explaining what caused it. The sender also promises action repeating his/her apologies.
Dear Ms Horvat
I am writing in connection with your recent complaint.
I am sorry for the inconvenience we have caused you. I have spoken to the
staff involved and I assure you that your problem will be resolved
immediately.
To compensate for the inconvenience, we would like to offer you another
washing machine to replace the faulty one. We will inform you next week
about the exact time of the delivery.
I very much hope you will continue to use our products in the future.
Please accept our apologies once again.
Yours sincerely
Marko Ivić
Marko Ivić
Sales Manager
acknowledge
receipt of the
letter
apologise for the mistake
give a brief explanation
I Write a letter of apology. Use block style.
Write to NaPa Import-Export d.d. (Baruna Trenka 45, Osijek) and tell them that you cannot
deliver their order on time due to an accident in the plant. You expect your operations to be
back to normal by the end of this month. They will receive the goods within two weeks.
suggest a
solution
apologise
once again
104
BUSINESS LETTER LAYOUT
REVISION 1
Identify the parts of the business letter and fill in the empty boxes.
Beewiz Co.
13 King Street
Manchester M35
England
TRIPFINDER Co.
4 Hawk Road
Manchester M35
England Our ref: JG/st/4
5 June 2010
Dear Sir or Madam
Trip to Split
We are writing in connection with the above trip.
We would like to inform you that the number of
people interested in the trip has changed. There
are now 22 persons on the list.
We hope that this has not caused you any
inconvenience.
Yours faithfully
John Gooding
John Gooding HR Manager
105
BUSINESS LETTERS: USEFUL PHRASES
I Study the phrases below and do the exercise which follows.
OPENING AND
CLOSING Dear Sir or Madam - Yours faithfully
Dear Mr Brown/Dear Ms White - Yours sincerely
Dear Michael - Best wishes /Best regards
BEGINNING A LETTER
We are writing to inform…/confirm…/request…/enquire about…/
complain about…/apologise for…
I recently read/heard about…and would like to know…
We are interested in…and would like to know…
We are writing in connection with….
REFERRING TO
PREVIOUS CONTACT Thank you for your letter of 15 May asking if…/enquiring about…
Many thanks for your message, dated 6 June.
Thank you for your enquiry
Thank you for your email.
Thank you for your email, dated 15 May.
We have received your letter of 15 May enclosing…/
concerning…/regarding…
With reference to our telephone conversation yesterday….
Further to our meeting last week…
With regard to… REQUESTING ACTION/
REQUESTING
INFORMATION
Could you please send me…as soon as possible/immediately/
without delay.
We would be grateful if you could let us know (about/if)…
I am interested in obtaining/receiving…
We would appreciate it if you could give us some further details
about…
We would like to know (about/if)…
Please can you tell me…
Please could you send me (details of)… GIVING GOOD NEWS
We are pleased to inform/tell/advise you that…
I am glad/happy/delighted/pleased to announce…
You will be pleased to learn/hear…
We are able to… GIVING BAD NEWS
We regret to inform you that…
We are sorry to tell you that…
Unfortunately we are not able to…/unable to…
We have been forced to… MAKING A MILD COMPLAINT
I am writing to complain about…
I am writing to express my dissatisfaction with…
Unfortunately, we have not yet received…
Please could you…/We would be grateful if you could…/We would
appreciate it if you could…
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MAKING A STRONG COMPLAINT
The things that annoyed me most.../What made me particularly
dissatisfied/angry...
I should like to point out that…/I should like to draw your attention to
the fact that…
I hope it is not necessary to remind you that…
We must insist, therefore, that you take immediate action.
If you are unable to do this, we will be forced to cancel your contract
with us.
Unless we hear from you within a week, we will be forced to take
legal action.
APOLOGISING We are sorry for the delay in replying…
I would like to apologise for the delay/inconvenience…
We must apologise for…
We are extremely sorry for…
We hope this has not caused you any inconvenience.
Please accept our apologies once again.
With apologies once again. GIVING REASONS This is due to…/owing to…
This is because of…/as a result of…
ATTACHMENTS AND
ENCLOSURES I attach some information which I hope you find useful.
I have pleasure in attaching…
I am attaching our catalogue to this message.
I am attaching details of…
If you have any problems opening this file, please let me know.
I attach our price list and look forward to hearing from you.
Please find attached our report.
I am enclosing my CV. /I enclose my CV.
Please find my CV enclosed.
PROBLEMS WITH
ATTACHMENTS I am afraid you forgot to attach the report. Could you send your
message again, please?
Unfortunately, the attachment won’t open on my computer.
Could you send it again in a different format?
Sorry! I forgot to send the attachment.
ENDING A LETTER We look forward to receiving your reply.
Looking forward to hearing from you.
We look forward to doing business with you in the future.
Please contact me if you need any further information.
Please do not hesitate to contact me if you have any further
questions.
Please let me know if you need any further information.
I hope that this information will help you.
107
II Use the phrases from the previous section to write the most appropriate
sentences in the following situations.
1. You saw an advertisement about a trip to Vienna on the Internet and you want further
information. How would you start this email to a travel agency?
2. You want to know if the language centre in London offers scholarships for university
students. How would you request information in this situation?
3. You want to know the prices of the television sets from the catalogue you have seen on
the Internet. How would you request information in this situation?
4. A company wrote to you on 15 May. They wanted to know about the warranty period for
your computers. How would you start your reply in this situation?
5. You have received an email with an important attachment missing. How would you
request action in this situation?
6. You are going to an important conference in Paris next week. You have just realized that
your passport has expired. You want to have it extended urgently. How would you request
action in this situation?
7. Use different phrases to refer to the following situations: a) a meeting you had with Mr Carter last week
b) an invoice No. 546 for a washing machine
c) the results of your final exam
8. Use different phrases to give good news concerning the following situations:
a) a candidate’s application for a post as project manager
b) a discount of 10% if the goods are purchased in cash
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c) a bank loan granted for apartment adaptation
9. Use different phrases to give bad news concerning the following situations:
a) a candidate’s application for a post as project manager
b) a discount of 10% if the goods are purchased in cash
c) a bank loan requested for apartment adaptation
10. Use different phrases to give reasons for the following situations:
a) delayed flights – strike by flight attendants
b) no Christmas bonus – decreased profits
c) increase salaries – reduced income tax
11. You were dissatisfied with the quality of hotel accommodation. How would you make a
mild complaint?
12. The laptop you have bought recently has broken down the second time in the past six
months. You want a new laptop or your money refunded. How would you make a strong
complaint?
13. You were supposed to send a reply to an email you had received a week ago. How would
you apologise in this situation? Give your reasons as well.
14. A lot of customers have already complained about the unprofessional behaviour of the
shop assistants in one of your shops in the centre of Munich. How would you apologise in
this situation? Offer some compensation as well.
15. How would you end a letter in which you have given some information?
16. How would you end a letter in which you have tried to deal with a client’s complaint?
109
REVISION 2
I Fill in the missing words.
The name and the address of the addressee (the person you are writing to) are at the top
on the .
The date is on the .
The paragraphs are at the . Between each paragraph there is a
.
Under the _, there is the name and title of the writer.
II Circle True or False.
You can use a comma in the address or after 'Dear...' or after 'Yours faithfully/sincerely'
TRUE/FALSE
You have to write th, rd, nd or st after the day.
TRUE/FALSE
III How do you OPEN these letters? Fill in the missing words.
Dear to a company
Dear to a man if you do not know his name
Dear to a woman if you do not know her name
Dear to a married or unmarried woman
Dear to man
Dear to a married woman
Dear to an unmarried woman
Dear to a friend or someone you know well
IV How do you CLOSE these letters? Fill in the missing words.
Dear Sir or Madam – Yours
Dear Mr/Ms/Mrs/Miss Smith – Yours
Dear John – Best
V Fill in the missing words.
Subject draws attention to what the letter is about, so when we put a
heading we then use the word above e.g. if the heading is Invoice No...., we say: I am
writing about the invoice...
The body of most letters has three parts: AN OPENING, which says
, THE MAIN MESSAGE, which gives the
, and THE CLOSING, which usually refers to
contact. Each part is usually a separate
_, but the main message can be more than one paragraph if you
are writing about more than one .
110
VI Here are some ways to BEGIN A LETTER. Circle the correct answer.
We are writing to enquire for / about …
We are writing in / with connection to / with …
We are interested about / in ... and we would like to / Ø know...
VII Here are some ways in which you can write A REPLY TO A LETTER. Fill in
the missing words.
you for your letter of (date) … if …
We have your letter of (date) … about…
enclosing …
concerning …
regarding …
VIII Here are some ways to END A LETTER. Fill in the missing words.
I look to receiving your reply/order/products/etc.
Looking forward to from you.
IX If you GAVE SOME INFORMATION in the letter, you can END THE LETTER by using the following phrases. Fill in the missing words in the phrases.
I that this information will help you.
Please me if you need any further information.
Please do not to contact me if you have any questions.
Please me know if you need any further information.
X Put the following steps in writing a letter in the right order:
Produce a final version. ☐
Make changes and corrections. ☐
Write a draft. ☐
Send a letter. ☐
Read carefully the letter you have received. ☐
Check spelling, grammar, style and layout. ☐
Make a plan for the letter. ☐
Read the letter again. ☐
Note down important/useful phrases. ☐
111
XI There are some mistakes in this letter. Can you find the mistakes and correct them? Pay attention to accuracy (grammar, spelling and punctuation) as well as the layout. Then, write out the letter correctly, in 'block style'.
XII Finally, write a reply to this letter apologising for this situation, giving reasons for the misplaced order and offering some kind of compensation.
Source consulted: Littlejohn, A. Company to Company, Third Edition, 2000, Fourth Edition, 2006, Cambridge
University Press
168 Willow Street Ms Hilary Hendricks,
London W1J 9LE 463 Park Avenue
Tel 020-7459 9835 New York, NY 10022
Fax 020-7459 7836 USA.
Your ref Book order 3456
Our ref TF/mg
Email: [email protected]
www.willow.bookshop.co.uk
Dear Sir,
I’m writting to complain about the above order witch I placed with yours bookshop. It was now over six weeks since I ordered the books and I still don’t receive them. I want to remind you that I have alredy paid these books that I need for my thesis and couldn’t find in New York bookstores. I must insist therefore that you deliver them imediatelly or give me back my money.
Unless I don’t hear from you within the next few days, I will be forced to take legal action.
2010, june 21st
Best wishes,
Hilary Hendricks
Hilary Hendricks