Best Commercial Practice - ELI Publishing

Best Commercial Practice is a business English course that helps learners to develop the necessary communication skills for today’s international business environment.

INTERMEDIATE TO UPPER INTERMEDIATE B1-B2

With its clear layout and presentation, in-depth analysis of the world of business and the use of authentic articles and multimedia material (videos and internet links), this course combines both theoretical concepts and practical know-how and concentrates on the systematic expansion of reading, listening, writing and speaking skills.

Further material and activities can be downloaded from www.elionline.com

For the student

For the teacher

Coursebook

Teacher’s Pack

• Online resources on www.elionline.com

• 2 audio CDs • Teacher’s FlIp BOOk • CD-ROM Test Maker • Online resources on www.elionline.com

ISBN 978-88-536-1558-9

ISBN 978-88-536-1559-6

www.elionline.com

ONLINE RESOURCES

Contents MODULES

1

2 3 4 5

The World of Business p. 9

Business Organisations p. 49

Marketing and Advertising p. 81

International Trade p. 113

Transport and Insurance p. 145

BUSINESS in THEORY

BUSINESS in PRACTICE

Production • The production process • Needs and wants • Factors of production • Sectors of production

Commerce and Trade • Commerce • Trade • The supply chain • The distribution chain • E-commerce • Green economy

Business Communication • Methods of communication • Written communication • Oral communication • Visual communication

Types of Economic Systems • Planned economy • Free market economy • Mixed economy

• Types of company integration • Multinationals • Micro-multinationals • Organisation chart

Job Applications • Looking for a job • Recruitment ads

Private Sector • Sole traders • Partnerships • Limited liability companies • Cooperatives • Franchises

Public Sector • Public enterprises

Marketing • The role of marketing • Market segmentation • The marketing mix • The extended marketing mix • Market research • Internet marketing • Mobile marketing • Unsolicited offers • SWOT analysis • Product life cycle

Advertising • The purpose of advertising • Effective advertising • Advertising media • Product placement and sponsorship • Trade fairs

Studying the Market • Internet marketing questionnaires • Focus groups

Importing & Exporting • What is international trade?

• Economic indicators • Trading blocs • International trade organisations • Customs • Protectionism

Trading Procedures • Trading within the same trading bloc • Trading outside a trading bloc • Sales contract terms • Incoterms

Enquiries • Written enquiries • Telephone enquiries

Types of Transport • Transport by land • Transport by water • Container ports • Transport by air • Freight forwarding • Means of transport • Packing • The environmental impact of freight traffic

Invoices • The invoice • The pro-forma invoice

Placing an Order • Written orders • Order forms and online orders • Phone orders

Transport Documents • The road/rail consignment notes • The bill of lading • The air waybill

Insurance • What is insurance?

• Business insurance • Marine insurance • Focus on Lloyd’s

Curriculum Vitae • How to write a Curriculum Vitae • How to write a covering letter

Getting a Job • Job interviews • Personal branding • Working practices

Analysing Adverts • Features of an advert • Radio and TV commercials

Unsolicited Offers • Unsolicited letters, emails and phone calls

Replies to Enquiries • Written and oral replies

Replying to Orders • Accepting or refusing an order Modification and Cancellation • Changing an order • Cancelling an order • Counteroffers

Sending Goods • Contacting a freight forwarder • Shipping advice

BUSINESS LANGUAGE Vocabulary – Functions • Word formation (1) • Phone calls

Vocabulary – Functions • Word formation (2) • Talking about roles at work • Phone calls

Vocabulary – Functions • Word formation (3) • Intensifiers • Verbs for marketing and advertising

BUSINESS NEWS

MOVE to the NET

ONLINE WORKSHEETS

Grammar • Present simple • Zero conditional • What/Which • Present simple passive

Crowdsourcing

Web Conferencing

• Deindustrialisation • Information technology • Netiquette • Snail mail versus email • VoIP – Voice over IP

Grammar • Present continuous • The future • First conditional

Entrepreneurial Spirit

Online Profiles

• The rise of state capitalism • NGOs, non-profit organisations and charities • Can multinationals be ethical?

• First-class business schools in the UK • First-class business schools in the US

Grammar • Modal verbs • Comparatives • Superlatives

The Power of Advertising

Social Awareness Advertising

• History of advertising • Brands • Working in advertising • Ethnic advertising • Circular letters

Grammar • Past simple vs past continuous • Past simple passive • Present perfect simple

Made in China

The Silk Road

• Foreign remittance • Bretton Woods and the gold exchange standard • The European Monetary System

Grammar • Time expressions used with the present perfect • Present perfect simple vs present perfect continuous • for and since

Insurance Trends

The Panama Canal

• The ‘Chunnel’ • Acts of God insurance • Cancellation clauses

• Marketing strategies

Vocabulary – Phraseology • Verb patterns: verb + prepositions • Collocations with trade • Enquiries and replies

Vocabulary – Phraseology • Word formation (4) • Verb patterns: verb + -ing or to • too/enough • Correspondence for orders

MODULES

6

7

Banking and Finance p. 187

Globalisation p. 229

BUSINESS in THEORY

BUSINESS in PRACTICE

Payment Methods • Open account • Payment in advance • Bank transfer • Bill of exchange Central Banks • Documentary collection • The Bank of England • • The Federal Reserve System Documentary letter of credit • The European Central Bank Finance • Stock Exchanges and Banking Services Commodities Exchanges • Business banking • London and New York Stock • E-banking Exchanges • Cash machines and cards • Securities fraud and • Fraud speculation

Payment Issues • Credit references • Sending a statement of account • Requesting new payment conditions • Extension of credit

Banking Systems • Types of bank • Microcredit • Ethical banking in the UK

Introduction to Globalisation • The evolution of globalisation • Aspects of globalisation • Advantages and disadvantages of globalisation

Economic Globalisation • Economic globalisation • Outsourcing, backsourcing and insourcing

Payment Reminders and Replies • Written reminders • Written replies • Phone reminders and replies

Complaints and Replies • Making a complaint • Responding to complaints • Phone complaints and replies

Global Sustainability • De-growth versus sustainable development

Practice Round Up: Stages of a business transaction p. 257

Cultural Background DOSSIERS

1 2 3 4 5

Geography p. 262

History p. 278

Society and Identity p. 298

Economy p. 318

Institutions p. 338

UK vs USA

ESW

• The UK – quick facts • Geography of the UK • The USA – quick facts

• Geography of the USA • Climate in the UK • Climate in the USA

• Australia and New Zealand

• A brief history of the UK • The Industrial Revolution • The British Empire and the Victorian period • Key moments in the 20th century

• A brief history of the USA • Mass production • The great depression • Key moments in the 20th century • The UK and the US in the 21st century

• Colonisation in Africa

• UK population and identity • US population and identity • Religion in the UK and US • Education in the UK • Education in the USA

• Newspapers • TV & Internet • Origins and development of the English Language

• Pidgins and Creoles

• UK economy • Adam Smith

• John Keynes • US economy

• The Asian Tigers and Developing India

• The UK political system • UK general elections • The European Union

• The US political system • US elections

• Current Commonwealth Nations: Canada

Phraseology

p. 360

Abbreviations

p. 373

Business Word Bank

p. 374

Irregular Verbs

p. 382

Phrasal Verbs

p. 383

BUSINESS LANGUAGE Vocabulary – Phraseology • Linkers • Collocations with payment • Payment issues

Vocabulary – Functions • Phrasal verbs • Collocations with complaint

MOVE to the NET

ONLINE WORKSHEETS

Grammar • Past perfect simple • Past perfect continuous • Second conditional • Third conditional

Changes in Banking Culture

BUSINESS NEWS

Bank on Dave

• Credit unions • Time banking • Financial transaction taxes • Bank correspondence

Grammar • Relative clauses • Indirect speech • Modal verbs with past infinitives

One World, One Culture?

E-waste

• Global peace and NATO • Anti-globalisation movement • De-growth: ‘In praise of leisure’ • Glocalisation • Consumer rights and associations

• Phone calls: complaints and replies

GOING DEEPER

LIT CORNER

ONLINE WORKSHEETS

Global Warming

Wordsworth’s Romantic Nature

• Livingstone the explorer • UK industrial and financial centres • US megalopolises • Hurricanes and tornadoes • Whitman and the American ‘romantic’ nature

MOVE to the NET The Lake District

Gender Equality

Virginia Woolf and Feminism MOVE to the NET Equals

The Troubles

Multicultural Britain?

MOVE to the NET Multicultural Britain

US Banking Crisis

Arthur Miller and the American Dream MOVE to the NET The American Dream

The United Nations

Big Brother Is Watching You MOVE to the NET Big Brother Cab

• The Victorian compromise • The slave trade • The Marshall Plan • King and Malcolm X • The Cold War and McCarthyism • Education system in the UK/US • Music genres • The birth of the Internet • British English vs American English • Wilde and Joyce: Catholic Ireland • Britain’s industrial north in the 1980s • Mountaintop mining • Reasearch centres of excellence in the USA • ‘Occupy Wall Street’ • Local governmental structures • EU common policies • EU youth exchange programmes • Famous political speeches • The cost of US elections

Welcome to Best Commercial Practice is a business English course that helps learners to develop the necessary communication skills for today’s international business environment.

Here is a quick guide to the main features of the book.

There are 7 modules dealing with the world of business and 5 dossiers covering the cultural background of the UK and the US, organised as follows: Business in Theory – Business in Practice Each module is divided into two main parts, theory and practice.

• Business in Theory covers the world of business with theoretical texts, in-depth analysis and authentic articles, as well as multi-media material (videos and internet links).

• Business in Practice illustrates and explains all the stages of a business transaction, with particular emphasis on practical exercises, gradually moving from guided practice through to free production.

Each module includes exam preparation activities for Cambridge English: Business (BEC) Preliminary in the first modules and Vantage in later ones.

UK vs USA – ESW • The comprehensive culture section provides a comparison between the geography, history, society and identity, economy and institutions of the United Kingdom and the United States. Each dossier also contains an insight into the English-speaking world, covering areas like South Africa, Australia and the Caribbean.

• Each dossier includes exam preparation activities for Cambridge English: Preliminary (PET) in the first dossiers and First (FCE) in later dossiers.

The Business Language section is divided into two parts: • Vocabulary – Functions – Phraseology to develop and consolidate the specific lexis of the module and to practise the necessary phraseology for oral and written business communication; • Grammar to practise, after a brief presentation, some of the most important grammatical areas.

BEC exam preparation activities for Cambridge English: Business Preliminary and Vantage (BEC) PET exam preparation activities for Cambridge English: Preliminary (PET) FCE exam preparation activities for Cambridge English: First (FCE)

online ReSoURCeS

Extra material, MP3 audio files and the FliP BooK can be downloaded free of charge from www.elionline.com

The sections Business News (in the modules) and Going Deeper (in the dossiers) include articles from the English-speaking press and provide the opportunity to develop reading, listening, speaking and writing skills.

Each module ends with a page called Move to the Net with authentic videos and internet links.

The page is divided into four parts: • LOG IN!, a warm up activity to introduce the topic; • PASSWORDS, a list of lexical items from the video, with one or two exercises to help consolidate the language; • ON THE NET!, the video and a comprehension exercise. All the videos for this section are included in the FLIP BOOK; • LOG OUT!, an opportunity to discuss and debate the themes introduced in the video and the module.

Practice Round Up offers a summary of the business transaction, from the initial enquiry, negotiation and sales contract to payment and the resolution of complaints, with written or oral exercises for each stage. It can be used as supplementary material throughout the course or as final revision material.

Lit Corner, the final section of the five culture dossiers, presents a selection of British and American authors and genres, together with a video linked to one of the topics within the dossier.

The Phraseology section contains a list of the functions and expressions necessary for effective written and oral communication, useful as a reference section while carrying out the various exercises within the modules.

The Business Word Bank has the definitions of the key concepts and terms for business English.

The FLIP BOOK is the interactive digital version of the Coursebook and is full of resources and tools to be used with an Interactive Whiteboard (IWB), helping the teacher to involve the students and make the lesson more interesting and effective.

The FLIP BOOK contains all the contents of the Coursebook in multimedia format and groups together all the course components in one place: the interactive exercises with autocorrect, the audio files and videos from the modules and the videos from the Move to the Net pages.

The toolbar, on the right of the FLIP BOOK, makes working on the IWB easier as it contains all the functions such as paint, zoom, notes and print making it possible to move between the pages of the FLIP BOOK and use them in the best possible way.

The FLIP BOOK contains a complete User Guide which explains all the resources and tools available.

Module

1

The World of Business BUSINESS in THEORY

BUSINESS LANGUAGE

• Production • Commerce and Trade

• Vocabulary – Functions • Grammar

BUSINESS in PRACTICE

BUSINESS NEWS

• Business Communication

• Crowdsourcing

MOVE to the NET • Web Conferencing

9

Module

1 BUSINESS in THEORY

warm up 1 Match these words to the definitions.

1 2 3 4 5 6 a b c d e

f

production The production process

marketplace goods tangible shelf life output to purchase wares time before deterioration to buy production the place of commercial activities can be touched or seen

The production process is the way in which a business develops products which are then offered on the marketplace, where they can be purchased to satisfy a need or want.

The term ‘product’ – or output – refers to both services and goods.

Services are intangible and consequently cannot be possessed. A service is a benefit or assistance provided to the customer. Types of services include professional experience such as lawyers or doctors, computer server access, or movement of goods like the postal service delivering mail.

Goods, also known as wares, come at the end of the manufacturing process.

They are tangible items that can be seen and touched and are either durable or non-durable. Non-durable goods deteriorate in time (e.g. food or medicine).

This is known as having a shelf life. Instead, durable goods such as electronic devices have a much longer shelf life.

The diagram below illustrates the three main parts of the production process.

INPUTS

Land

Machinery

Raw materials

Labour

TRANSFORMATION PROCESS OUTPUTS

Finished goods

10

Services

The World of Business

Inputs are the resources required for industrial production (i.e. people, raw materials, information, finance) to obtain a desired output.

reading comprehension 2 BEC Read the text and choose the correct option.

1 What is the production process?

A The way in which a company operates on the marketplace.

B The way a business is organised.

C The method a company uses to develop its products.

2 Services and goods are also known as…

A inputs.

B outputs.

C needs and wants.

3 What does the term ‘shelf life’ mean?

A The time it takes to manufacture particular goods.

B The time certain goods can be kept and still used.

C The time it takes to sell specific products.

3

4 Productive efficiency is a result of…

A a well-organised transformation process.

B the use of the maximum number of resources.

C the number of finished products sold.

5 According to the text, a manufacturer should ideally try to…

A have the lowest prices on the market.

B produce a high number of outputs.

C offer its services or goods at competitive prices.

Goods or services? Write G or S. 1 trousers 2 refuse collection 3 teaching

___ ___ ___

4 tablet PC 5 advertising 6 motorbike

___ ___ ___

7 taxi company 8 police 9 transport

speaking 4 In pairs, explain these terms and give examples.

• • • •

goods services inputs productive efficiency

11

___ ___ ___

Activities

Inputs are necessary for the transformation process to produce outputs. For example a jeans manufacturer must have a factory where the jeans are made, as well as the machinery and workers who make the jeans. He also needs to design and purchase the material and parts to transform them into the finished jeans to be sold. The productive efficiency of a firm is determined by how well this process is organised. Using the minimum number of inputs to produce a maximum number of outputs is the objective of most manufacturers. This ratio will reduce the cost per unit of production and allow the company to sell the goods at a lower price. Some manufacturers, for example those in the luxury goods market, are still interested in production costs but are able to sell their products at much higher prices.

Ideally, the goal of the production process is to provide products and services to meet the needs and wants of customers in the shortest possible time at a competitive price.

| Module 1

Module 1 |

BUSINESS in THEORY

Needs and wants

warm up 1 Answer these questions and then discuss your answers with your classmates.

Activities

1 What goods or services do you consider essential?

2 What goods or services do you consider unnecessary?

All economic activity is founded on the needs and wants of consumers.

A need is defined as a necessity for the survival of a person, animal, organisation, etc. The concept is widely used in social sciences, with special attention being paid to so-called human needs. Basic human needs are food, shelter, clean water, protection from heat or cold and disease. Needs vary according to a person’s geographical location, age, job, health and many other factors.

Needs are frequently contrasted with wants or desires: needs referring to things that are necessary, wants referring to things which are desired.

A scene from the film Breakfast at Tiffany’s They are not essential for our survival but can make our lives easier. Things which in the past were considered wants, are now seen as needs in modern life, like a car, mobile phone or other electronic gadgets.

Wants are important for improvements. Most people work towards better conditions for themselves, their family and sometimes even for their community, their nation and the world at large. People want not only better living conditions and a cleaner environment but faster computers, stylish clothes and much more. People’s wants are infinite.

reading comprehension 2 Read the text and answer these questions.

1 What is the difference between needs and wants?

2 Why are consumers’ needs and wants at the basis of economic activity?

3

Needs or wants? Write N or W. 1 games ___ 2 handbag ___

3 water ___ 4 shelter ___

5 meat ___ 6 clothing ___

7 designer shoes ___ 8 health ___

9 smartphone 10 car

___ ___

vocabulary 4 Read the text again and find the equivalent expressions.

1 2 3 4 5 6 7 8

described to a great extent the study of society and the way people live a place that provides protection set in opposition devices the external surroundings where human beings, animals and plants live without end

________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________

speaking 5 In pairs, think of 3 objects that teenagers in your country need and 3 objects that they want. Calculate their importance in percentages and draw a pie chart (see page 42). Compare your ideas with the rest of the class.

12

The World of Business

Factors of production The factors of production are the resources of land, labour, capital and enterprise used to produce goods and services.

LAND

Land includes not only the production site but the natural resources above or below the surface, i.e. air, sunlight, trees, soil, minerals, oil, etc.

LABOUR

Labour is the human input in the production process. A company’s output can be dependent on the number of labourers it has in the factory.

Human capital

No company is fully automated; humans are involved in every business whether it is product or service based. The human capital of a company is the men and women working for the company with certain competences and skills that are learned mostly through higher education and training. One way to evaluate the success of a business is to see how well human capital is managed.

CAPITAL

As well as the supplies and materials necessary in the manufacturing process, other assets (material wealth) are needed to build a business, such as money, machinery and equipment.

There are various kinds of capital depending on the type of business. For instance, in a manufacturing business, production capital is used. This includes the machinery used to make the products and heavy equipment like forklifts and trucks, which are used to move and transport the goods. The building that houses the operation and stores the goods is also included.

Resource capital is defined by natural resources such as water, as well as the physical space a company occupies. Increases in the level of capital are called investment.

| Module 1

Patents protect the methods and processes that make things work, for example what makes a wheel turn or the chemical formula of your favourite fizzy drink.

A trademark is a sign which can distinguish your goods and services from those of your competitors. It can be words, logos or a combination of both.

Intellectual capital

Successful businesses rely upon non tangibles such as creativity, experience, entrepreneurial spirit, and know-how. These components are collectively called ‘intellectual capital’. Patents and trademarks are also considered intellectual capital whose value is indeterminable. It is almost impossible for competitors to duplicate intellectual capital, making it one of the most desired and useful assets a business can own.

ENTREPRISE

reading comprehension 1 BEC Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS).

T 1 2 3 4 5 6 7

There are four factors of production.

Natural resources are included under the definition ‘land’.

Human capital is only important for service companies.

Material wealth has the same meaning as company assets.

Machinery and equipment come under the definition ‘resource capital’.

It is possible to calculate the exact value of intellectual capital.

Entrepreneurs always invest large amounts of money in a business venture.

F

writing 2 Write a short definition for each of the four factors of production. Compare your definitions with a classmate.

13

DS

Activities

Entrepreneurs come up with original ideas often risking their own resources in business ventures.

They also often organise the other three factors of production.

Module 1 |

BUSINESS in THEORY

Sectors of production

warm up 1 In which sectors

Production is the creation of value or wealth. It includes manufacturing of goods or provision of services.

do most people work in your town/country?

Production includes: • a change in the form of resources, e.g. from wheat to flour, flour to bread; • a change in location, e.g. from warehouse to retail outlets; • the provision of services, e.g. personal services, financial services and social services.

The three major sectors of production are: 1 Primary production The primary sector refers to the extraction and production of raw materials from nature without any processing.

• Mining: extracting coal, ores etc. from the earth.

• Forestry: cutting down and removing trees from the forest.

• Farming: growing and harvesting crops.

• Fishing: catching or farming fish from the sea or fish ponds.

• Husbandry: breeding and raising livestock.

2 Secondary production The secondary sector refers to the transformation of raw materials into finished or semi-finished products. This includes the manufacturing of goods such as dry goods or soft goods (textiles, clothing, etc.), building and construction, the generation of power (electricity) or the production of petrol.

3 Tertiary production The tertiary sector of production refers to the provision of services and it is the sector which makes up the largest part of the economy in developed countries. Examples of tertiary production include: • Personal services, such as medical services; • Commercial services, such as transport, financial and insurance services; • Social services, such as social welfare, education, the police.

M ore about...

The chain of production consists of the various stages involved in the production of a particular product, all of which add value to the end product. For example, the production of bread includes these steps: cultivation and harvesting of wheat; grinding of wheat into flour; making and cooking the dough; end product.

14

The quaternary sector is often included as part of the tertiary sector as they are both service sectors. The quaternary sector refers to intellectual activities, such as ICT (information and communication technologies), consultancy and R and D (research and development).

The World of Business

| Module 1

Activities

reading comprehension 2 Read the text on page 14 and complete these sentences with the words from the box. tertiary • selling • cultivation • primary • finished • goods • primary • shops • insurance 1 ________________ production includes production resulting directly from the ________________ of land, the maintenance of animals or poultry for the purpose of ________________ them or their produce.

2 The secondary sector generally takes the output of the ________________ sector and manufactures ________________ goods.

3 ________________ production means the selling of the finished ________________ in ________________, as well as other services involved in helping business: banking, ________________, transport, etc.

3

Write P (primary production), S (secondary production) or T (tertiary production) next to each word.

1 2 3 4 5

mining clothes production police advertising farming

___ ___ ___ ___ ___

6 distribution 7 refinery industry 8 cattle breeding 9 transport services 10 forestry

___ ___ ___ ___ ___

11 12 13 14 15

banking manufacturing of toys insurance fish breeding education

___ ___ ___ ___ ___

listening 1.02 4

BEC Which production sector is forestry part of? Listen to this interview with Professor Warner, an ecologist, who is talking about deforestation. Choose the correct option.

1 What percentage of the world is covered by forests?

A 13% B 30% C 40% 2 Most of the reasons for deforestation are connected to…

A money.

B agriculture.

C paper production.

4 Deforestation causes…

A the death of 70% of the species living in the forest.

B the extinction of 70% of the world’s plants and animals.

C an increase in global warming.

3 Why do small farmers cut down and burn trees?

A to have more space for their families B to sell the land to bigger farmers C to grow food for their families

5 Professor Warner says that…

A deforestation can be stopped completely.

B deforestation has decreased over the last few years.

C there is a quick solution to ending deforestation.

speaking 5 Which areas of the world are affected by deforestation? Does it affect your country? Where? What could be done to help solve the problem?

writing 6 What have you learnt about production? Write a short essay about it following these guidelines.

• • • • •

What What What What What

is meant by the production process? types of product does the production process create? How? is at the basis of economic activity? Give a full explanation. is meant by factors of production? Describe them. is meant by sectors of production? How many are there? Describe them.

15

Module 1 |

BUSINESS in THEORY

warm up 1 Where do you buy the products you need?

Do you normally buy things in shops, superstores or online?

commerce and trade Commerce Commerce is a general term for the sale, purchase and distribution of goods and services. It encompasses all the activities which are involved in this process of moving goods from a production centre to the point of purchase. The main branches of commerce are:

Warehousing A warehouse is the place where goods are stored. A warehouse is needed to store the goods during the time gap between production and consumption of products: some goods are produced only in a particular season but in demand all year. Other products are produced throughout the year but in demand only during a particular season or for a specific festivity.

TransporT Goods produced by the manufacturer often need to be transported to the consumer, usually from a place of low demand to another place where demand is greater.

The growth of commerce depends largely on using the proper mode of transport; road, rail, sea or air.

LogisTics

Activities

The flow of goods, information and other resources, including energy and personnel, is managed by the logistics department.

reading comprehension 2 Read the text on these pages. Which branches of commerce correspond to these definitions?

1 ________________

The activity of attracting public attention to a product or business, using paid commercials in the press, on TV and electronic media.

2 ________________

The administrative and physical functions associated with the storage of goods and materials.

3 ________________

The process of moving a product from its manufacturing source to its customers.

4 ________________

The activity of accepting and safeguarding money owned by other individuals and entities, and then lending it out in order to make a profit.

16

The World of Business

| Module 1

DisTribuTion Distribution is the process of supplying goods, especially to retailers. It may be impossible for producers to reach the consumers directly so a number of middlemen are necessary to complete the process. Amongst others, wholesalers, retailers and brokers are all involved in the distribution process.

insurance A great deal of risk is involved in every aspect of commerce. The main risks are fire and theft. Insurance ‘covers’ these risks and compensates for possible losses or damage.

banking Banks hold money for businesses. They play a vital role in mitigating the need for funds. They offer a number of financial services such as loans and credit lines.

MarkeTing anD aDverTising

reading comprehension 3 BEC Read the text on these pages again and choose the correct option.

1 Commerce includes…

A the exchange of goods and services.

B the production of goods and services.

C the production and exchange of goods.

2 The point of purchase is the place where a product is…

A manufactured.

B sold to the end customer.

C warehoused.

3 The logistics department is important for…

A understanding consumer demand.

B the efficient internal organisation of a company.

C the promotion of a company’s image.

4 The distribution process usually finishes at the…

A brokers.

B middlemen.

C the final customer.

5 Companies take out insurance policies to cover…

A damage to goods.

B the sale of goods.

C both A and B.

vocabulary 4 Find out what the people engaged in each branch of commerce are called. Use a dictionary to help you.

1 2 3 4

trade transport distribution insurance

trader ________________ ________________ ________________

5 6 7 8

advertising banking warehousing market research

________________ ________________ ________________ ________________

speaking 5 Prepare a short presentation of commerce (3-5 minutes). Use these questions to help you.

• What is commerce?

• What are the branches of commerce?

• What role do they play in commerce?

17

Activities

The sale of products and services is possible only if the consumer knows of their existence, is aware of their availability and is interested in them. Marketing involves raising consumer interest through research, promoting, selling, and distributing products or services. Advertising is used to raise consumer awareness through print, broadcast or digital media.

Module 1 |

BUSINESS in THEORY

Trade

warm up 1 Are the clothes you are wearing or the things in your bag made in your country? Or have they been imported from another country?

An export is a product that is sold from its country of origin on the global market.

An import is a product that is bought into a country from the global market.

Trade is the act of buying and selling goods and services either for domestic markets (wholesale and retail) or international markets (import and export ).

DoMesTic or hoMe TraDe is the exchange, or buying and selling, of goods for money within a country from a producer to a consumer usually through wholesalers and retailers. Wholesalers buy goods at cost price from producers and sell them to retailers (i.e. supermarkets, department stores or specialised shops), who then resell the goods to consumers at a higher price. The price of the goods increases at every point of trade.

Activities

foreign or inTernaTionaL TraDe consists of the exportation and importation of goods and services between different countries. This can be done directly between a company and the final customer, or through the use of intermediaries such as wholesalers. Commodities can also be exchanged between different countries. A commodity is a physical substance, usually in bulk, such as food, grains, metals, petroleum, gasoline, heating oil and natural gas, which can be traded on a commodity exchange. The price of a commodity may fluctuate according to supply and demand, i.e. the amount of the product that is available and the needs of consumers.

reading comprehension 2 Read the text and match the two halves of the sentences.

1 2 3 4 5

3

a b c d e

Trade A wholesaler A retailer An end consumer The price of products

sells products to end consumers. increases at each stage. buys products at retail price. buys products at cost price. is the act of buying and selling goods.

Read the text again and answer these questions.

1 What is home trade?

2 How is it different from foreign trade?

3 Give an example of foreign trade.

speaking 4 In pairs, talk together and decide if your country generally imports or exports these products.

spices • natural gas • fresh fruit • pharmaceutical products • designer clothes • petroleum • grain • cars • furniture • TVs • shoes

I think that we export a lot of … because …

18

4 What is wholesale trade?

5 Who is the retail trade customer?

The World of Business

The supply chain A supply chain involves all the companies, information, resources and activities that are used in the movement of a product or service from a supplier to a customer. It links all the companies in the various stages of this process together. Information has to be efficiently shared up and down the supply chain between the different suppliers and clients and all their activities need to be integrated and coordinated in order to ensure that everyone involved can meet their needs. Successful supply chain management brings many benefits to a company: • keeping inventory at a minimum; • reducing costs; • optimisation of the time needed from production to market; • improved flexibility; • quicker reaction to changes in demand.

Elements of the supply chain are:

| Module 1

warm up 1 Reorder the steps which bring coffee from the producer to the consumer. coffee factory coffee growers consumer distribution company shipping agents retailer

JIT, which stands for ‘Just in time’, is an inventory strategy used by some companies to increase efficiency and decrease waste.

The idea is that goods are received only as they are needed in the production process so they do not need to be stored for long periods of time. This reduces inventory costs but means that producers must be able to accurately forecast demand.

pLanning Customer demand sets off the chain. The sales orders from various customers are combined and the planning department creates a production plan. purchasing The purchasing department receives the list of raw materials, components or services needed and is in charge of ordering them from suppliers to be delivered to the company on a required date. invenTory Supplies and materials are received and checked for quality and accuracy.

They can be either moved into the warehouse to be kept until needed or transferred immediately to production, in a process known as ‘JIT’ .

proDucTion Based on the production plan, the production process is completed and the goods are ready for storage or delivery.

TransporT The goods are delivered to the customers by the most efficient means and within the date indicated on the customers’ sales order.

Component

Manufacturer

Retailer

Consumer

reading comprehension 2 Read the text and decide if these sentences are true (T) or false (F). Correct the false ones.

T 1 2 3 4 5 6 7 8

A supply chain only links departments and activities within the same company.

It is important that information is exchanged among all the links of the supply chain.

Correct management of the supply chain can be advantageous for a company.

An efficient supply chain means a company is less flexible.

The starting element of the supply chain is the company.

The planning department is crucial for the creation of the production plan.

Supplies and materials are always stored in the warehouse before being used.

Finished products are immediately sent to the customers.

F

19

Activities

Raw Material

Module 1 |

BUSINESS in THEORY

The distribution chain

warm up 1 Think of five products or services that you buy regularly.

Do they come to you directly from the manufacturer/ producer or indirectly? What is the difference between direct and indirect distribution?

M ore about...

Activities

Distribution channels are not restricted to physical products alone. They are just as important for moving a service from producer to consumer. Take, for example, hotels that can sell their rooms either directly to the consumer or through middlemen such as travel agents, tour operators, tourist boards and centralised reservation systems.

How the output or final goods and services are moved from manufacturer to consumer is called the distribution chain (or channel). It links the point of production to the customer. A direct distribution channel is when a company sells its goods directly to the consumer, for example through sales agents or the Internet. Indirect distribution is when a company uses various intermediaries (middlemen) such as wholesalers, distributors, agents, brokers and retailers.

Wholesalers buy goods in bulk at a lower (cost) price from producers, store them in warehouses and sell them in smaller quantities at a slightly higher (wholesale) price to retailers. The retailer in turn takes the items, marks up the price (retail) to cover the costs and adds a profit, then displays them in their shops for the customers. Therefore the final price of the goods depends on the number of links involved and the difference between cost price and final price can be substantial.

In the past, the indirect distribution channel was the most common. Due to their lack of storage space which restricted quantities, retailers were much more dependent on wholesalers for holding and distributing goods. Today, traditional wholesalers are disappearing as many retail shops are either part of a multiple chain or buy goods directly from the manufacturer at a lower price. Small retailers, also referred to as ‘corner shops’, are now in steep decline because of supermarkets, department stores and hypermarkets, which sell a wide variety of products at more competitive prices. The increase in e-commerce and factory outlets – where manufacturers directly sell their products to consumers – also means that direct distribution is becoming more widespread.

reading comprehension 2 Read the text and answer these questions.

1 What is the distribution chain?

2 Who are the intermediaries along the distribution chain?

3 What happens to the price of goods along the distribution chain?

A typical corner shop

4 What are the wholesaler’s and retailer’s roles?

5 How have they changed over time?

6 Why has direct distribution become more widespread?

speaking 3 In pairs, choose one of the statements below to support: It is important for a manufacturer to concentrate on its core business of manufacturing goods and not have to invest in or worry about distribution.

Manufacturers should use direct distribution in order to keep profit margins high and to better understand their customers.

Develop ideas and examples to strengthen your point of view and then have a discussion with another pair of students with opposing views. Use these ideas to help you: • the size and location of the company; • the type and quantity of products or services;

20

• the type of customer and location.

The World of Business

| Module 1

Greek ‘Potato Revolution’ [March 2012] In Greece, incomes have fallen dramatically and retail prices and unemployment have risen over the past year; nearly one in five Greeks is currently unemployed and the government has recently raised taxes as a means to ease its debt.

In response to this, farmers and activists from Northern Greece have grouped together to provide a solution to the depressing economic situation which benefits both producers and customers. Activists in the town of Katerini started a ‘potato revolution’ by setting up a website to link up farmers and townspeople, allowing direct potato orders.

By shortening the supply chain and avoiding retailers, the consumers get their potatoes for around a third of the supermarket price, whilst farmers receive higher returns for their produce. Previously farmers in Katerini were receiving 0.12€ per kilo for their potatoes, which was below the cost of production. Now, by selling direct, they are receiving 0.25€/kg.

The first Katerini market saw 24 tonnes of potatoes sell out within four days; 534 families pre-ordered and turned out to collect their potatoes. The farmers involved have

said they are delighted with the scheme, as they receive more money that they would in supplying large retailers, are able to interact with the community they supply and receive their payment immediately. One of them said, ‘For us, what satisfies us most with this system is that we have regained our power over the middlemen, who have been squeezing us and profiting unfairly from everyone now for years.’

Following on from the success of the Katerini sales, agricultural students in Thessaloniki launched a similar programme and now other produce is being distributed in the same way, including onions and olives. Locals have to sign up to a website to arrange what they want to buy. The students then contact local farmers to arrange supply of the required amount and then they organise a place and time.

This system of direct selling has definitely proven to be a winner with the Greeks, who have seen their incomes fall whilst supermarket prices have remained the same, and the model has spread across the country.

reading comprehension 4 BEC Read the article and choose the correct option.

1 Which sentence best describes the economic situation in Greece at the time of this article?

A A lot of people without work and low government taxes.

B High employment rate and high prices in shops.

C Low wages and low employment rate.

2 What could be said to be the main reason behind this revolution?

A Supermarkets did not sell enough potatoes.

B Customers wanted to save money.

C Farmers wanted to increase online sales.

3 By cutting out retailers, farmers are receiving…

A more money than before.

B less money than before.

C the same amount of money as before.

4 According to one farmer, …

A middlemen were useful to the supply chain.

B middlemen treated farmers fairly.

C middlemen had too much power.

5 What do consumers think?

A They are enthusiastic about this method of selling.

B They are unhappy about the limited selection of products available.

C They prefer shopping in supermarkets.

6 What could be an alternative title to this article?

A Potato farmers revolt against high prices in supermarkets.

B Greeks start buying direct from the farmer.

C Greeks cannot afford potatoes due to government increase in taxes.

speaking 5 Do you know any examples of short food chains in your area? What are their advantages?

21

Activities

Source: www.farming.co.uk

Module 1 |

BUSINESS in THEORY

E-commerce

warm up 1 Have you ever bought or sold anything online?

What websites did you use?

Electronic commerce or e-commerce is business conducted electronically, i.e. over the Internet. The various channels of e-commerce include internet shopping, online transactions, the selling and downloading of software, documents, graphics, music and so on. Internet makes doing business faster and more accurate. Customers have controlled access to vendors and can better serve themselves.

E-commerce started in the early 1990s when the Internet became available for commercial use.

Today, electronic trade is booming.

An ever increasing number of products from books to car parts to cars themselves are being marketed and sold online. Electronic commerce has opened new markets for vendors, large and small, including those from developing countries. Websites such as Amazon, eBay, or iTunes are e-commerce giants with customers all over the world.

With the advent of e-commerce, customers can check out the options anywhere in the world and shop for the best price using comparison sites or bots , and buy from anyone at any time of the day or night.

ADVANTAGES

Activities

A bot is a computer program that automatically searches the Internet for particular products, compares their prices, and often gives customers’ opinions of their quality.

• Electronic purchase orders and sales orders are more economical to place, track and manage.

• Buying and selling can go on 24 hours a day, 7 days a week, 365 days a year from any location.

• It takes far less time to complete the entire buy/ sell process, which means that payment is faster.

• Businesses can find supplies anywhere in the world, in any time or currency zone.

• Low-cost entry, as there is no need for setting up a retail outlet or printing a glossy catalogue.

• It generates instant notification to identify, avoid or quickly resolve potential problems.

DISADVANTAGES • Shipp Shippiing tak ng es time and may cost more.

• There are many competitors on the Internet, which can make choosing a product confusing and more time-consuming.

• Risk of identity and credit card fraud (if the website is not secure).

• Risk of viruses, malware or hacking into your computer.

reading comprehension 2 Read the text and answer these questions.

1 2 3 4

How long has e-commerce existed?

How is it changing trade?

What are the main advantages of e-commerce for a business? And for a customer?

What risks should a customer be aware of before buying something online?

22

The World of Business

| Module 1

Activities

vocabulary 3 Fill in the gaps using the words from the box. networks • visit • trade • browse • technology • accessible • apply • downloaded These days, if a customer wishes to buy a book, he/she can (1) ____________ an online bookshop, (2) ____________ through the shop’s collection, choose a title and pay for the book online. The book can be delivered physically or, be (3) ____________ onto the customer’s computer or portable device. These new ways of buying books (4) ____________ to other goods and services too. However, since shopping online is also international, many challenging issues are raised regarding existing trade rules and copyright laws.

E-commerce – the production, advertising, sale and distribution of products via telecommunications (5) ____________ – is dependent on (6) ____________ and is transforming the way trade is conducted.

And these transformations make (7) ____________ cheaper and more widely (8) ____________.

4

Match these headings to the paragraphs below. Can you think of any examples of websites for each category?

1

B2C (Business-to-Consumer)

3

C2C (Consumer-to-Consumer)

2

B2B (Business-to-Business)

4

C2B (Consumer-to-Business)

There are four main categories of e-commerce: other. For example, a supplier selling This category is made up of companies doing business with each r. parts to a car manufacturer or a wholesaler selling goods to a retaile about e-commerce. It is where a business This is the category most people have in mind when they think lly use online catalogues and shopping sells goods and services to the general public. The websites typica cart software. ry which sees transactions between Over the last few years, there has been rapid growth in this catego auctions and forums so individuals can individuals. There are many sites which offer free classified ads, meant that it is easy and safe for people buy and sell online. Online payment systems, like PayPal, have to send and receive money online. can then decide to pay for them.

Consumers offer projects, products or services to a company, which companies together for this kind of Elance is an example of a website which brings consumers and to an online business and receives a transaction. Blogs and forums, where the author has a link back commission for any business, are another example.

speaking 5 If you have bought something online, describe your experience. Why did you choose to shop online?

Why do some people prefer e-commerce to regular commerce?

23

Module 1 |

BUSINESS in THEORY

warm up 1 Do you recognise

Activities

the Fairtrade mark? Are Fairtrade products available in your area? Do you or your family buy them?

Green economy The United Nation’s Environment Programme defines green economy ‘as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities’. This means that a reduction in carbon emissions and pollution, efficient use of energy and resources and the prevention of loss of biodiversity must accompany economic growth.

Fair trade Not all trade is fair. The people at the beginning of the food production chain – the farm workers in developing countries – do not usually get a fair share of the profits or other benefits of trade. The international fair trade movement is seeking to balance out this inequality by ensuring that workers and producers in developing countries get a fair deal.

Fair trade’s objective is to negotiate a decent price for goods that will cover the cost of production and guarantee a living income, as well as establishing M ore about... long term contracts which offer security.

The Another important aspect of fair trade is FAIRTRADE to provide the necessary support and Certification education so that producers and workers Mark is a have the skills to develop their business and registered trademark protect their environment for the future. which is used The fair trade movement also campaigns on consumer to change the regulations of conventional retail products that meet the international business and works towards Fairtrade Standards. There are general and product building consumer awareness of the issues specific standards which concerning trade in developing countries. producers and traders have Over the last few years, consumers have to meet. become more aware of the treatment of • €5 billion were spent on small-scale farmers and producers in poor Fairtrade products in 2011. countries and the demand for fair trade • There are 827 Fairtrade certified producer products has increased. Thanks to this organisations in 58 consumer demand, the number of retailers countries, with 1.2 million which sell fair trade goods, and the selection farmers and workers. of products available, continue to grow, • An estimated 6 million people directly benefit benefiting more and more communities. from Fairtrade.

reading comprehension 2 Read the text and complete these sentences.

1 2 3 4 5 6

www.fairtrade.net

The fair trade movement wants to get a fair deal for…

If producers receive a fair price for their goods, it means…

Support and education are important for producers and workers because…

Fair trade campaigns are aimed at…

The fair trade movement wants consumers to be more aware of…

Due to the increase in consumer demand, now there are…

internet research 3 Go to www.fairtrade.net, choose a product and find out this information for that product: • the problems the producers are facing; • how fair trade is helping the producers/workers; Then prepare a short oral presentation to give to the class.

24

• the country/countries involved.

The World of Business

A new kind of trade system is emerging in the business world. Sustainable trade is a type of trade that harms neither the social nor the ecological environment. It ensures that trade contributes positively to economic, social and environmental development. It can be applied to agricultural products as well as manufactured goods like handicrafts and textiles.

In developed countries, the markets for certified products have grown significantly in recent years. As a result, a growing number of socially-driven companies have become a medium to support sustainable agriculture and eco-friendly production activities in underdeveloped parts of the world.

Natural products are purchased directly from rural cooperatives growing organic coffee, cocoa, tea, fruit and spices. Buyers from these socially-aware companies are able to increase the incomes of small producers and enhance local productivity and competitiveness by offering steady markets, price protection, financial and technical assistance. Similarly, it is possible to purchase products which have been manufactured according to processes that cause minimal negative environmental impact, with respect for natural resources, workers and communities.

M ore about...

BioTrade, closely tied to sustainable trade, is the collection, production, transformation and selling of goods (e.g. medicinal plants, tropical fruit, coffee, tea etc.) from native lands to other countries worldwide.

reading comprehension 4 Read the text and match the two halves of the sentences.

1 2 3 4

Sustainable trade is a type of trade that It includes The market for certified products The organic agricultural produce market means that

listening 1.03 5

a b c d

has increased in developed countries. natural and manufactured products. farmers can compete on an international level. does not damage the social or the ecological environment.

BEC Listen to this short description of an initiative called ‘Aid For Trade’. Complete the notes

below.

AID FOR TRADE Aim: Start date: Facts: Projects: Recent report:

to improve trade and economic growth in developing countries which have no basic (1) ____________ and cannot compete in regional and (2) ____________.

(3) ____________.

US$137 billion, most of which is destined for (4) ____________ infrastructure projects. improvement to road networks; simplification of business rules; (5) ____________ for farmers and women.

(6) ____________, ____________ and finance sectors increased.

The (7) ____________ (e.g. commodity prices) affects Aid for Trade and its growth rate.

For more information, visit www.oecd.org and www.wto.org

writing 6 What have you learnt about commerce and trade? Write a short essay about it following these guidelines.

• • • •

What What What What

is is is is

commerce and what are its branches? the difference between domestic trade and international trade? the green economy and how is it changing trade? the difference between the supply chain and the distribution chain? How do they work?

25

Activities

Sustainable trade

| Module 1

Module

1 BUSINESS in PRACTICE

business communication

warm up 1 Decide if these sentences are correct or not.

1

2

3

Business communication only includes letters, faxes and emails.

All companies today use the services of a public relations company.

Virtual communication has increased over recent years.

Methods of communication Business communication is similar to standard communication and also includes the promotion of products, services or organisations. It is also used to transmit information within the business and manage legal issues. Moreover, it is the means of communicating along the supply chain. Business communication can be broken down into two areas:

eXTernaL (outside the company) Examples include branding, marketing, advertising, customer, media and government relations and business to business negotiations. inTernaL (within the company) This includes propagating the corporate vision, strategies, and plans. Internal communication is also important to motivate employees, which improves productivity.

The communication director is responsible for internal communications.

Business communication, like all communication, is conducted in a variety of ways.

M ore about...

Activities

The need to convey the right message to the public has evolved into its own industry, and now many companies turn to outside public relations firms to handle communications with the public.

• Telephones and emails are the most common since they are the fastest way to communicate.

• Business letters sent by post, although slower, are still used, in particular when sending original documents and contracts which require a signature.

• Business letters and other correspondence can also be sent quickly by fax or electronic fax.

• Presentations are held on a regular basis in every sector of business. Presentation software programs have facilitated the audio-visual aspect of this important way of communicating new strategies and introducing new products.

• Web-based or video conferencing is a very popular means of holding meetings.

It is an efficient way for companies with operations and personnel all over the globe, like multinational corporations, to convene with huge savings in costs and time.

• Face-to-face communication, although often replaced by virtual communication, is still an important aspect of business whether for internal meetings, appointments with clients, conferences or trade shows.

reading comprehension 2 Read the text and answer these questions.

1 What is business communication and what is its purpose?

2 Why is external communication important?

3 Who is responsible for internal communication in a business?

4 Why are presentations held?

5 What are the advantages of web-based or video conferencing?

speaking 3 In small groups, discuss which methods of communication would be most suitable in these situations.

• booking a hotel room • confirming an order

26

• asking for a price list • launching a new product

• applying for a job • an international sales meeting

The World of Business

Written communication When deciding which method of written communication to use, it is not only important to evaluate which is the most suitable for your purpose but it is also essential to decide whether you need to use a formal or informal tone. Emails and memos are usually informal, while business letters, faxes and e-faxes are normally more formal.

| Module 1

warm up 1 Which of these adjectives best describe an email? Why?

Emails

long • short • fast • slow • detailed • cheap • expensive • friendly • accurate • vague • concise • courteous • informal

Email (electronic mail) is a system of sending and receiving text messages digitally over a computer network and between personal computers or similar devices. It is fast, convenient and eco-friendly, as long as you do not print out masses of emails unnecessarily. Emails are so direct and instant they have changed not only the way businesses communicate but the structure of the office as well.

In the past all correspondence, from internal memos to formal business letters, was typed on paper using typewriters. Copies were made using carbon paper, hence the term ‘carbon copy’ still used toady in emails. A large staff of typists were necessary to carry out all of this work. Typewriters are practically obsolete, replaced by keyboards and monitors, and now most employees are responsible for their own correspondence. This fact, together with the ease and frequency of email communication, may have contributed to the decrease in the degree of formality in a lot of business correspondence.

The format of an email is as follows: FRoM: This is the name and email address of the sender of the email.

ATTAChMEnTS: You can attach one or more pictures, documents or links to your email.

To: This is the name and email address or addresses of the recipient(s) of the email.

SuBJECT: A short title for the mail which should refer to its contents.

CC: It stands for ‘Carbon Copy’. Here you can specify the address/addresses of those you want to share the contents of the message with. The CC recipient’s name is visible to all recipients.

DATE: This is the date and time the message was sent from the sender’s computer.

BCC: It stands for Blind Carbon Copy, the address/ addresses which will also receive a copy of the message, but whose names are not visible to the other recipients. The BCC recipients can see the To and CC addresses.

BoDY: The message.

27

Module 1 |

BUSINESS in PRACTICE

Petra Stewart <p.stewart@stewartfletcher.co.uk> Maurice Mitchell <mmitchell@wellness.com> Kathy Harrison <k_harrison@yogaapparel.com> Jack Fletcher <jack.fletcher@stewartfletcher.co.uk> 10 August 20.. 11.26 a.m.

Yoga/Pilates Gear Dear Mr Mitchell, We were given your name by Ms Kathy Harrison of Yoga Apparel Ltd. We are in the Yoga and Pilates clothing and equipment business and would like to widen our range of products.

We are looking for a supplier of yoga and Pilates mats, bands and balls and would appreciate it if you could send us your latest catalogue, as well as a detailed price list and sales conditions.

We have more than 35 shops in the UK and Europe. We expect to place substantial orders if the quality and prices of your products are satisfactory.

We look forward to your reply.

Yours sincerely,

Activities

Petra Stewart Stewart & Fletcher Ltd.

reading comprehension 2 Read the email and answer these questions.

1 2 3 4

3

5 What kind of business is Stewart & Fletcher Ltd.?

6 Why is the sender writing this email?

7 What does Ms Stewart want to receive from Mr Mitchell?

Who is the sender?

Who is the recipient?

Who is receiving a copy of the email?

Who is receiving a blind copy?

This is Mr Mitchell’s reply to the above enquiry. Put the sentences in the correct order.

Maurice Mitchell <mmitchell@wellness.com> Petra Stewart <p.stewart@stewartfletcher.co.uk> 11 August 20.. 9.45 a.m. wellnesscatalogue.pdf Your enquiry

Please do not hesitate to contact me for

You can find our complete range of products in the attached

any further information.

Thank you for your email.

Our company was established in 1975 and we specialise in top quality wellness gear.

Maurice Mitchell

Dear Ms Stewart, Best regards, I look forward to hearing from you.

I would be pleased to discuss special conditions for your first

catalogue and price list.

order with us.

writing 4 BEC

Write an email (60-80 words) to Maurice Mitchell at Wellness Ltd. In your email, you should include:

• how you heard of Wellness Ltd.; • why you are contacting the company;

5

• what sector your company operates in; • a request for their catalogue and price list.

Swap emails with a partner. Write a reply to his/her letter of enquiry.

28

The World of Business

| Module 1

Memos A memo (or memorandum – plural: memorandums/memoranda) is a short note informally conveying minimal information from one person, department or office to another. Memos can be on paper or electronic. They are used to tell employees about changes in procedures, rules or policy, or else for a specific purpose like a request to attend a meeting.

If the memo is to a specific person, include his or her job title.

The subject should be brief and specific, relating to the purpose of the memo.

Ms Whitman of Hampton Gadgets wants to discuss a matter with the company’s Purchase Manager.

She writes him a memo to arrange a meeting.

Memos do not usually contain greetings or closing salutations.

The text should be clear and to the point. Avoid long complex sentences with a lot of clauses. Short sentences make your message less confusing.

State the most important points first and then move on to the details.

reading comprehension 1 Read the text and the memo and answer these questions.

1 What is a memo?

2 Why should you write short sentences?

3 What formalities do memos generally not contain?

4 Why is Ms Whitman writing a memo to Mr Marks?

5 What is Mr Marks’ position at Hampton Gadgets Ltd.?

6 What should Mr Marks do before the meeting with Ms Whitman?

writing 2 BEC

You want to plan a trip to China to visit a new supplier. Write a memo (30-40 words) to your assistant: • saying which airport you need to fly to; • telling him the dates you would prefer to travel; • asking him to look online for a good hotel.

29

Activities

Use contractions and abbreviations.

Imperatives can often be used.

Module 1 |

BUSINESS in PRACTICE

Forms

Activities

You will probably have to fill in a form if you apply for a job or a passport, join a club, subscribe to a newsletter, request information from a company or shop online. Business and commercial documents are often forms, such as order, booking and application forms, income tax return and VAT forms, bank transfer forms and legal forms.

A form, whether it is printed or online, is made up of fields which need to be filled in with specific information.

It is important to follow the instructions carefully. For example, many printed forms require you to write in block capitals or to use only black ink. Online forms, on the other hand, often have required fields â&#x20AC;&#x201C; normally marked with an asterisk â&#x20AC;&#x201C; which must be filled in otherwise the form is not valid and cannot be submitted.

vocabulary 1 Find the synonyms of these expressions on the form below.

1 fill out ________________ 2 given name ________________

listening 1.04 2

3 family name ________________ 4 ZIP Code ________________

5 sex 6 mark

BEC Now listen and complete the form with the missing details.

Notes

M ore about...

Informal notes can be taken during meetings, presentations and telephone calls for later personal use, to serve as a reminder of things that need to be done, to be passed on to colleagues or to be written up more completely, for example as minutes or a report. Notes are normally written in a condensed and abbreviated form.

Activities

________________ ________________

listening 1.05 1

BEC Mr Berkley, Chief Financial Officer, calls Zoe in the accounts department.

Listen and complete her note to her colleague.

30

For (1) _____________, Give figures by (2) _____________ to CFO. Sent him (3) _____________ documents No payroll meeting next (4) _____________ Zoe

Post-its have become an indispensable part of office life. These useful sticky pieces of paper can be found stuck to telephones, monitors, documents and letters, serving as a reminder of something important.

They were invented by Art Fry, an employee at 3M, using an adhesive which had been invented in the same company many years earlier. The first Post-its which went on sale in 1980 were pale yellow, but now they are available in many colours and sizes.

The World of Business

| Module 1

Business letters

reading comprehension 1 Read the text and answer these questions.

1 What is a business letter?

2 What are the different types of business letters?

3 What are the 5 Cs of business writing?

4 How does a business letter differ from a personal letter?

5 Why should you know exactly what kind of letter you are writing?

6 Why should a business letter be short?

speaking 2 In pairs, talk about the characteristics of these different forms of business communication and complete this table.

Emails

Memos

Business letters

quick, _____________________ ___________________________

short, _____________________ ___________________________

___________________________ ___________________________ 31

Activities

A business letter is a formal means of communication between two people. Its purpose is to inform or convince the reader about something. It can either go top down (from a superior to a subordinate: i.e. a corporate head to shareholders or employees), or bottom up (from a subordinate to a superior: i.e. employee to employer, a job applicant to a potential employer). A formal business letter can also be lateral, that is business to business or customer/client to owners. Business letters differ from personal letters because they follow strict rules of composition.

When you write a business letter, make sure it is clear, correct, courteous, convincing and complete.

Before writing a business letter you always need to know exactly what type of letter you are writing, why you are writing and what you want to achieve. Consider what the letter is for: acknowledgement, adjustment, complaint, enquiry, sales, order. You also need to think about whether it is in response to another letter. This will help organise what you intend to say. Ideally your letter should not be too long, in order to respect the limited amount of time the recipient might have available.

Module 1 |

BUSINESS in PRACTICE

The elements of a business letter Sloane & Millford Ltd. 85 Melrose Terrace Milton Keynes, MK9 2EL Tel: 01908 689584 Fax: 01908 689588 Email: patrick.barnes@sloane.papers.co.uk

Letterhead or heading

References Date of writing

Your Ref.: AG/jw â&#x20AC;&#x201C; 18th October 20..

Our Ref.: PB/ck 21st October 20..

Inside address or receiverâ&#x20AC;&#x2122;s address

The Wallpaper Shop 52 Banbury Road Stratford-upon-Avon Warwickshire CV35 0RW

Attention line

Att: Ms Anna Gallagher

opening salutation

Dear Ms Gallagher,

Subject line

Your enquiry of 18th October We were pleased to receive your enquiry about the wall stickers we manufacture, and are sending you a price list and catalogue showing our full range of products.

We are also enclosing a few samples of our best-selling collections, and would like to point out that all our wall stickers are safe and non-toxic.

Body

We have adequate stock of most of the stickers featured in our catalogue and we can supply them within five working days of receiving an order.

We know you will be absolutely delighted with the quality of our products.

We look forward to doing business with you.

Closing salutation

Yours sincerely, Sloane & Millford Ltd.

Signature Position in company

Activities

Enclosures

Patrick Barnes Sales Manager Encl. (2)

reading comprehension 1 Read the business letter and answer these questions.

1 Who is the sender of the letter?

2 What company does he work for?

3 What kind of company is it?

32

Ms is now the most common title for women, although Mrs can be used for a married woman and Miss for an unmarried woman.

4 Who is the recipient of the letter?

5 What company does she work for?

6 What is the purpose of the letter?

The World of Business

Letterhead or heading

This normally contains: the company logo; the company’s full name and address, email address, telephone and fax numbers; website.

| Module 1

Subject line

This indicates the subject or purpose of the letter.

Body

This contains the text of your message.

References

Your Ref./Our Ref. are often the initials of the person in charge (capital letters) and those of the person writing the letter (lower case letters). They are optional.

Closing salutation

This depends on the opening salutation used and how well you know the person you are writing to.

Date of writing

This should always be written in full format; do not use figures. There are different formats:

uK Yours faithfully, Yours truly,

uK Day Month Year (21st June 20..)

Yours sincerely,

uSA Month Day Year (June 21, 20..)

Inside address

This is the name and address of the company that receives the letter. When addressing the letter to a specific person, the name and position in the company should be included here.

uSA Truly yours, Very truly yours, Sincerely, Sincerely yours, Yours cordially, Cordially,

if the letter begins with Dear Sir/Madam if the letter begins with the receiver’s name

Regards, Best regards, Kind regards,

with any salutation

Best wishes, All the best,

if you know the person well

Attention line (Attn.: …; Attention: …; For the attention of…)

This directs the letter to a particular person. The attention line can be omitted if the name of the person is specified in the inside address.

opening salutation

• If you do not know the receiver’s name: uK uSA Dear Sir/Madam, Gentlemen: (if you are writing to a company) Dear Sirs, To whom it may concern: • If you know the receiver’s name: In a formal letter these should be followed by the surname only: Dear Mr Ruthford, / Dear Ms Smith, In an informal letter: Dear Jennifer, / Dear Jack,

Signature

Every letter must be signed by hand by the author. The author’s name is typed under it and is generally followed by the official position in the company in the line underneath.

If the person signing the letter is not the author, you may find the abbreviations per pro/p.p./per p. (i.e. per procurationem) before the author’s name or the company’s name. They mean ‘for’ and ‘on behalf of’.

Enclosures

When the letter contains other documents, these are mentioned by Encl. or Encls., followed by the type and number, at the bottom of the letter.

1 2 3 4 5

3

Dear Ms Jefferson (USA) Dear Sirs (UK) Dear Sandra Dear Mr Sparrow (UK) Dear Sir/Madam (USA)

a b c d e

Activities

vocabulary 2 Match the opening and closing salutations.

Yours faithfully Truly yours Sincerely Best regards Yours sincerely

Write these dates in full.

1 11/12/2010 (USA) __________________________ 2 28.2.2009 (UK) __________________________ 3 9/11/2001 (USA) __________________________

4 4/17/2012 (USA) 5 18.03.2013 (UK) 6 21.8.2011 (UK)

__________________________ __________________________ __________________________

33

Module 1 |

BUSINESS in PRACTICE

The body of the letter opening paragraph

The first paragraph states the purpose of the letter. It also refers to any previous correspondence or dealings.

Middle paragraph

The middle paragraph or paragraphs are the main points of the letter, for example giving information about a company, specific details of a request or an explanation for a problem. Each point or theme should be in a new paragraph.

Closing paragraph

This suggests a course of action and tells the reader what response is required.

Dear Sirs, We have found your company on the Internet. We are one of the leading sunglasses manufacturers in China and we would like to propose our services to your company.

Our company is export-oriented and we have enjoyed an excellent reputation for over 17 years. We also have all the necessary certifications to meet EU requirements.

Please browse our website www.guangzhoulenses.com at your convenience. If you find anything of interest, please advise us of the item numbers and quantities and we will quote you our best prices. We are also pleased to offer a personalised service, where we manufacture samples according to your specifications and drawings and submit them for your approval.

Hoping to start a long-term business cooperation with you, we look forward to hearing from you.

Yours faithfully, Ken Liu

M ore about...

The most common way to separate paragraphs is to leave a line between them. It is also possible to indent the first line of each new paragraph.

Activities

Phraseology p. 360

reading comprehension 1 Read the text and look at the sentences below. Do they come from the opening paragraph, the middle paragraph or the closing paragraph? Write OP or MP or CP. 1 Once again, I apologise for any inconvenience. ___ 2 With reference to your letter dated 13th October 20... ___ 3 As you can see, our prices are extremely competitive. ___ 4 We refer to previous correspondence with regards to your complaint. ___ 5 Enclosed you will find our best quotation for 50 units. ___ 6 I am writing to enquire about the sports equipment you manufacture. ___ 7 If you have any questions, please do not hesitate to contact me. ___ 8 I received your address from the London Chamber of Commerce. ___

writing 2 Look again at the letter on page 32 and complete the letter of enquiry (on the right) that Ms Gallagher wrote to Sloane & Millford.

Writerâ&#x20AC;&#x2122;s address: ___________________________ Our Ref.: AG/jw 18th October 20..

Receiverâ&#x20AC;&#x2122;s address: ___________________________ For the attention of the Sales Manager Dear Sir, Enquiry We have seen _____________ in the magazine House & Garden.

We are currently _____________ a new supplier of wall stickers and _____________ grateful if you could send us the _____________ and _____________ regarding the _____________ you manufacture.

We _____________ to your kind _____________.

Yours _____________, For The Wallpaper Shop ___________________________

34

The World of Business

Faxes and electronic faxes A fax (short for ‘facsimile’) is an easy way of transmitting documents or pictures using telephone lines and a fax machine. It is therefore useful for sending documents to places which do not have a computer or an internet connection. However, as the cost of sending a fax depends on the time the phone line is connected, it can be an expensive option to send long, multiple faxes to distant locations.

An alternative to the traditional fax is the e-fax which is sent directly through a computer and Internet. The advantages of this system are that there is no additional cost – just the existing internet connection fee – and it is not necessary to print out the document.

E-faxes can also be sent from smartphones and tablets.

A traditional fax is normally signed by hand, whereas e-faxes can be sent using electronic or digital signatures .

| Module 1

Electronic or digital signatures are the signatures that replace a handwritten signature on documents sent electronically. Digital signatures offer more security with regards to the validity and authenticity of the signature, and therefore the documents they are attached to, due to the cryptographic technology they use.

reading comprehension 1 Read the text and the fax and answer these questions.

1 Who is the sender of the fax?

2 Who is the recipient of the fax?

3 Have they been in contact before?

writing 2 BEC • • • •

4 What is the purpose of the fax?

5 What is the second page of the fax?

Write a short fax reply (60-80 words) from Sally Burns to Clive Crisp. Include these points:

thank him for the amended order; inform him that the delivery will now be on December 11th; give a reason for this change; make a reference to future business together.

35

Activities

Fax messages are normally written on company template files or pre-printed forms which contain the following elements: • the sender’s name, position, company name and fax number; • the receiver’s name, position, company name and fax number; • the date; • the subject; • the number of pages; • space for the message.

Module 1 |

BUSINESS in PRACTICE

Oral communication Oral communication whether face-to-face, on the phone or via web conference is a vital part of business today. Therefore good oral communication skills – in both your mother tongue and in English – are essential to help you make a good impression, express your ideas clearly and get ahead in the business world.

Telephone calls Making and receiving telephone calls in a foreign language is one of the hardest things to do in the workplace. Because we are unable to see the person we are speaking to, we cannot use the usual non-verbal clues. Eye contact, facial expressions and body language are all unvoiced ways of communicating and help us understand our interlocutor.

Fortunately, phone calls follow certain standard phrases. Learning to pronounce them well will help you go a long way in mastering telephone skills and reduce the anxiety that is so common at first attempts.

Receptionist

Raul niser Clive Suarez

Activities

Phraseology pp. 360-361

functions 1 Read the phone call and find the equivalent expressions.

1 My name is Sam. This is Sam. 2 Can I speak to…? _______________ 3 She isn’t here. _______________

36

4 Would you like to leave a message? _______________ 5 Clive Suarez speaking. _______________ 6 Could I have…? _______________

| Module 1

listening 1.06 Listen to this phone call and write the missing words/expressions.

2 Mr Jack O’Neill of Pens & Pencils receives a phone call from Peter Greene of Wonderland Shop, who would like to add some items to an order.

Telephonist Hello, Pens & Pencils, this is Judy. How can I (1) ___________ you?

Peter Greene Hello, (2) ___________ I speak to Mr O’Neill, please? (3) ___________ Peter Greene from Wonderland Shop.

Telephonist Yes, Mr Greene, I’ll (4) ___________.

Jack o’neill

Sales Department, Jack O’Neill (5) ___________.

Peter Greene Good morning, Jack, (6) ___________ Peter Green from Wonderland Shop.

Jack o’neill

Hello, Peter. How are you?

Peter Greene Fine, thank you. (7) ___________ you about the order I emailed you last Friday.

Jack o’neill

What can I do for you?

Peter Greene (8) ___________ to add 50 Tinkerbell Character Pens and 25 Taz Character Pens to our order.

Jack o’neill

OK, Peter. (9) ___________ send me a fax confirming these new quantities?

Peter Greene Yes, of course. (10) ___________ make sure that these changes won’t delay delivery.

Jack o’neill

No problem. We can deliver everything next Monday as scheduled.

Peter Greene Thank you, Jack. Goodbye now.

Jack o’neill

3

Goodbye.

1.07 Reorder this phone call, then listen and check.

Mr Sam Crawford from Greystone Ltd. calls Mr Dawson of King Industries to make an appointment.

Mr Dawson

How about Tuesday morning?

Mr Crawford

Hello, Mr Dawson, this is Sam Crawford from Greystone Ltd. We met at the trade fair in London last June.

Mr Dawson

Well, Mr Crawford, see you next Tuesday. Goodbye.

Mr Crawford

That would be fine.

Receptionist Hold on, please, I’ll put you through to Mr Dawson.

Mr Dawson

Mr Dawson speaking.

Mr Crawford

We are interested in your capsule coffee machines. Next week I’ll be in Brighton and I’d like to make an appointment to see you. What day would suit you?

Mr Dawson

Of course, I remember.

Mr Crawford

No, 9.30 is fine with me.

Receptionist Good morning, King Industries. Can I help you?

Mr Crawford

Good morning, this is Sam Crawford from Greystone Ltd. I’d like to speak to your Sales Manager, Mr Dawson, please.

Mr Dawson

Well, shall we say 9.30? Or is that too early for you?

Mr Crawford

Goodbye.

37

Activities

The World of Business

Activities

Module 1 |

BUSINESS in PRACTICE

listening & functions 1.08 Listen to a phone conversation and answer these questions.

4 1 2 3 4

5

What is the purpose of the phone call?

Who will pay for the hotel room?

How much does the room cost?

How will James confirm the booking?

1.08 Listen to the phone call again and write down the expressions for these functions.

Then complete the table with other expressions from the previous phone calls.

Answering the phone

Introducing yourself

Asking to speak to someone

Saying why you are calling

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

___________________ ___________________ ___________________ ___________________ ___________________ ___________________

speaking 6 Work with a partner. Read the instructions and practise the phone conversation.

B

A You work for Coleman Brothers. Call Franks Ltd.

You work for Franks Ltd. Answer the phone.

Ask to speak to Ms Pearson.

Leave a message asking her to call you back urgently.

Thank the person.

Close the conversation.

7

Say Ms Pearson is not in the office.

Ask if the caller wants to leave a message.

Tell the caller you will give Ms Pearson the message.

Close the conversation.

Now practise mini-telephone calls with a partner for these situations. Remember to swap roles.

CALLER

RECEIVER

1 You want to speak to the Sales Manager of Cunnings Enterprise but he/she is out. Ask when you should call back.

1 You work for Cunnings Enterprise. The Sales Manager is away at a conference and will return to the office on Friday.

2 You call Mr Evans at Clarkson Cars to arrange a meeting for Tuesday. You are not available in the morning.

2 You are Mr Evans at Clarkson Cars. You are free on Tuesday and would prefer a meeting in the morning.

3 You call Jefferson Ltd. to ask for a copy of their new catalogue. You need it urgently.

3 You work for Jefferson Ltd. Your new catalogue is at the printers but you can send a copy by email.

38

The World of Business

| Module 1

Voice mail

listening 1.09 Listen to three voice mail messages and tick which of these points the callers include in their 1 messages.

When leaving a voice mail message, remember to: Caller 1 • say your name/position/company

Caller 2

Caller 3

3

• state your reason for calling • leave your contact details • give your availability • end the message

2

1.10 Listen to this automated information system and match the number to press with the correct option.

There are two extra options you do not need.

A

B

special deals

E

change your number

F

talk to an operator

payment enquiries

C

D

existing contracts

new business

G

technical assistance

39

Activities

Voice mail, or answerphones, are useful tools for both land lines and mobile phones. They allow a company to leave an automatic message regarding opening hours, holidays or alternative contact numbers, while individuals can leave a personal message for when they are unavailable.

With voice mail, callers can leave a message directly for the person they are trying to contact without the risk that a colleague forgets to pass on a message. It is easy to remotely access voice mail messages which is convenient when you are out of the office for long periods of time.

Many companies now use an automated information system for answering phone calls instead of the traditional figure of a switchboard operator or receptionist. These systems have a recorded message and a menu, listing the various services or departments available and the relevant number to press. This saves time and money for the company, but can be exasperating for the caller when the menus are excessively complicated or time-consuming.

Module 1 |

BUSINESS in PRACTICE

Face-to-face communication

Activities

In spite of all the hi-tech ways of communicating, face-to-face communication remains one of the most important forms of communication in the world of business. Within a company, face-to-face conversations are common between colleagues to discuss daily schedules, problems and solutions, as well as for meetings or presentations. It is also essential when dealing with people external to the company, whether they are suppliers, potential clients, customers or members of the public. Face-to-face communication is not only fundamental for formal situations, but also for informal occasions such as a quick chat by the coffee machine or socialising during a conference or an exhibition.

Naturally, the tone and content of what you say will depend on the context and how well you know your interlocutor, but it is always best to pay attention to body language and personal space. When travelling abroad and doing business with people of different nationalities, you also need to be aware of any particular local customs and sensitive issues which are best avoided.

reading comprehension 1 Read the text and answer these questions.

1 2 3 4

In what circumstances is face-to-face communication used in the business world?

Why do you think face-to-face communication is so important?

Why should you be careful of body language and personal space when talking to someone?

Why should you try to observe local customs when doing business internationally?

Cultural Faux Pas Can Doom International Business Deals

B

usiness travel is growing across the globe, especially with the booming economies in China, Brazil and Australia. But an innocent hand gesture can ruin what otherwise would be a very profitable trip across international borders.

To help make sure business trips go smoothly, Dean Foster, an American cultural etiquette expert, has put his 25 years of expertise

2

into a series of 20 apps, one each for countries such as China, Japan, India, Brazil and Turkey.

Among the tips offered by Fosterâ&#x20AC;&#x2122;s apps: - In any country where chopsticks are used, the app suggests that you never stick your chopsticks standing up in a rice bowl. This symbolizes death.

- In Brazil, it says never to make the-thumb-to-forefinger-OK sign,

which is a rude gesture that is likely to offend most Brazilians.

- When giving a gift in East Asia, the app says to wrap it in red or gold, colors that symbolize wealth and happiness.

- When giving gifts in Arab countries, it suggests using green wrapping paper, the symbolic color of Islam.

Adapted from Los Angeles Times

Read the article and answer these questions.

1 2 3 4 5 6

Who is Dean Foster and what has he made?

Why has he done this?

Why could a hand gesture spoil a business relationship? In which country could it happen?

Why is the colour of wrapping paper important in East Asia and Arab countries?

Are there any customs that people should observe when doing business in your country? What are they?

Are there any topics of conversation that would offend people in your country? What are they?

internet research 3 Think of a country you would like to travel to. Do some research on the Internet to find out about local customs and etiquette for doing business and socialising. Then prepare a short report to illustrate your findings.

40

The World of Business

| Module 1

Video conferencing

speaking 1 Read the text and then, in pairs, decide which of these things are essential for a web conference.

What other things could be useful in order to have a successful web conference?

computer • internet connection • browser • webcam • web conference service/software • microphone • whiteboard • telephone • video clips • PowerPoint presentation • comfortable chairs • meeting room • desk • coffee and biscuits

Activities

Video conferencing is an integrated audio and visual communications technology that can connect users anywhere in the world. With this technology, users can see and hear each other in real time, allowing natural ‘face-to-face’ communication and the use of visual aids. There are many different packages and software available which allow multiple users to also share files, edit documents and chat. It is also possible to set different security levels and issue access codes in order to protect the content of a web meeting or conference.

This technology is of great benefit to businesses as it allows participants to take part in meetings and conferences without everyone having to travel to the same location, thus saving time and money. Video conferencing is also beneficial in other fields, such as education and medicine.

Presentations

vocabulary 1 Complete these tips using the expressions from the box.

audience • conclusion • eye contact • gesticulate • introduction • key points • practise • purpose • slides • speak

Top tips for giving a presentation • When you prepare, consider who the (1) of your presentation is.

• Have a logical order, with an (3) • Keep your (5)

Activities

Presentations are used by companies to present projects and plans to employees and also for external uses such as the launch of a new product or service. They can be given by one or more people and are often followed by a question and answer session. It is normal practice to use some kind of visual aids (such as PowerPoint slides) in order to illustrate what is being said and to maintain interest throughout the presentation. It can be nerve-wracking to stand in front of a room full of people, therefore many companies send their employees on training courses to improve their oral communication and presentation skills, and to increase their confidence.

is and what the (2) , the main part and a (4)

.

clean and simple, without lots of text.

• (6)

. It might not make you perfect but it will help.

• (7)

clearly and not too quickly. Short silences will help underline (8)

• Stand up straight, smile and make (9) • Move around and (10)

.

. , but don’t overdo it.

41

Module 1 |

BUSINESS in PRACTICE

Visual communication Both oral and written communication can be enhanced by visual communication. Sales figures will be much clearer and easier to read with the data presented in a graph. A newspaper article about the Stock Exchange’s daily performance would be almost impossible to understand without charts and graphs. A brochure presenting a company’s services would be extremely dull without photographs, as would a product presentation without slides. Therefore it is essential to incorporate visual aids – such as photographs, drawings, maps, tables, diagrams and charts – in order to illustrate, compare, simplify or summarise facts, data and statistics.

However, if these visual aids are not created and used correctly, they can distract and detract from the purpose of the written or oral communication. Take, for example, a presentation where slides are changed before you have a chance to read all the information or a user manual with unclear diagrams or illustrations.

A

bar chart

Examples of the most common diagrams and charts Visitors in January E

Venn diagram

C

pictogram

B

D

Activities

pie chart

line graph

F

flow chart

reading comprehension 1 Read the text and list the advantages and disadvantages of visual communication.

2

ADVANTAGES:

___________________________________________________________________

DISADVANTAGES:

___________________________________________________________________

Match these descriptions to the diagrams and charts.

1 2 3 4 5 6

This is used to show parts of a whole. It does not show changes over time.

This is useful for showing trends or changes over a period of time, particularly when the changes are small.

This is used to compare things between different groups. It can also be used to follow changes over a period of time, especially when the changes are large.

This is used to show similarities or differences between sets of data.

This is useful to show a process clearly, using both symbols and text.

This represents data with a picture. A key is usually necessary.

42

reading comprehension 3 Now match these sentences to the most suitable diagrams and charts on page 42.

1 This next slide shows how our online registration process works. ___ 2 Last month, the number of male visitors to the exhibition was double that of female visitors. ___ 3 Our market share is just over 45%, making us the market leader ahead of our rival with 29%. ___

| Module 1

Phraseology p. 361

4 Our turnover has shown a steady increase for the last six years.

5 This simple diagram clearly illustrates our target audience, here in the centre.

6 Sales in Europe dropped dramatically half way through the year, while those in the USA increased.

___ ___

___

vocabulary 4 Look at the sentences in the first column and make their opposites choosing from the expressions from the box.

has changed • rose • decrease • lowest ever rate • fell dramatically • have been lowered 1 2 3 4 5 6

Sales ___________ in the first three months of the year.

Sales grew rapidly in the first quarter.

July saw holiday prices at their ___________.

Holiday prices reached a peak in July.

The price of oil ___________.

Oil prices have remained constant.

Interest rates ___________ by 1%.

There has been a 1% rise in interest rates.

There has been a significant __________ in output this month.

Output has increased sharply this month.

Mobile phone prices ___________ by 9%.

The price of mobile phones dropped by 9%.

speaking 5 Look at this line graph and describe it. You can use the expressions in exercises 3 and 4 to help you. overheads profits

In the first quarter, overheads decreased slightly.

6

What have you learnt about business communication? Prepare a short presentation (3-5 minutes) following these guidelines.

• What is business communication and what is its purpose?

• What are the most common ways of communicating for a business? How are they changing the way business is being done?

• Why is using the phone so intimidating in a foreign language and how can it be made easier?

• How do visual aids help oral and written communication?

• How might business communication change in the future?

43

Activities

The World of Business

Module

1

BUSINESS LANGUAGE VOCABULARy – FUNCTIONS Word formation (1) It is often possible to form a noun by adding a suffix to a verb or an adjective. Spelling changes may be necessary.

The suffixes -sion, -tion, -ment can be added to a verb, while -ence, -ance can be added to a verb or an adjective.

1

Change these verbs and adjectives into their noun form and write them under the correct column.

You may need to change the spelling.

accept • assist • create • decide • develop • divide • employ • govern • important • include • independent • inform • intelligent • organise • pay • prefer • produce

2

-sion

-tion

-ment

-ence

-ance

________________ ________________ ________________

________________ ________________ ________________ ________________

________________ ________________ ________________ ________________

________________ ________________ ________________

________________ ________________ ________________

Transform the words in brackets into the appropriate form (adjective, noun or verb) in order to fit the meaning of the text.

Nations with their own natural resources can (1) ___________ (exploitation) them by specialising in the (2) ___________ (extract) and (3) ___________ (produce) of these resources. For example, the (4) ___________ (develop) of North Sea Oil and Gas. A need is a necessity for the survival of a person, animal or (5) ___________ (organise).

Basic human needs are things like food and (6) ___________ (protect) from the weather.

Wants are things which are desired and they are (7) ___________ (importance) for (8) ___________ (improve).

3

Complete these sentences with the expressions from the box.

a message • could I • help you • I’m calling about • tell him • This is 1 Good afternoon. Simpsons Ltd. Can I ___________?

2 ___________ Mr Steele from Chicago.

3 ___________ speak to the manager please?

4

4 ___________ our meeting next week.

5 Can you give her ___________?

6 Could you ___________ I called?

In pairs, practise these phone calls. Remember to swap roles.

Caller

Receiver

1 You want to speak with Mr Frankson.

Leave a message if he is not in the office.

2 You want to speak with Mrs Midler to know if she has received your fax. The line is very bad so you need to ask her to repeat her fax number.

1 You are Mr Frankson’s assistant. He is not in the office today. Ask if the caller wants to leave a message.

2 You are Mrs Midler. You have not received any fax, so check that the caller has your correct fax number: 0171 896 3211.

44

The World of Business

| Module 1

GRAMMAR Present simple

1

We use the present simple to talk about: • permanent situations What does Joe do? He’s a manager. He works for a retail company.

• habits and regular actions Do you often give presentations?

No, I don’t.

• timetables (e.g. public transport, cinema) for the future What time does your plane leave tomorrow? It leaves at 3.30 p.m.

2

Complete these sentences with the present simple form of the verbs in brackets.

1 A How often ________ you ________ web conferences? (have) B Twice a month. We _____________ them every week. (not hold) 2 A How many people ________ the company ________? (employ) B It _____________ 1,650 employees. (have) 3 A What ________ your company ________? (produce) B It _____________ computer parts. (make) 4 A ________ you ________ your products? (export) B Yes, we do. We _____________ all over the world. (ship) 5 A ________ fair trade ________ poor countries? (help) B Yes, it does, but it ________ enough. (not be) 6 A What time ________ the conference ________ on Friday? (start) B Sorry, I ________. (not know)

Match the two halves of the sentences.

1 The price of a commodity fluctuates 2 If goods are not needed immediately, 3 It is safe to send and receive money online 4 If you travel abroad, 5 Profit margins are usually higher

Zero conditional a b c d e

What/Which We use Which…? when we are asking about one or some of a limited set.

Which goods or services could you live without?

We use What…? when there is an unlimited number of answers.

What is the importance of labour?

4

when a manufacturer uses direct distribution. when you use a system like PayPal. they are stored in a warehouse. if there is a change in supply and demand. you need to be aware of local business customs.

3

We use the zero conditional to talk about things that are generally or always true.

The sale of products and services is possible if consumers are aware of them.

It is also possible to use when.

When you fill in a form, it is important to follow the instructions carefully.

Complete these sentences with what or which.

1 ___________ of the two products should we order?

2 ___________ do you want to do about postponing the meeting?

3 ___________ is intellectual capital?

4 ___________ sector of production concerns the provision of services?

5 ___________ risks are likely to occur during production?

Rewrite these sentences in the passive form.

1 People often contrast needs with wants.

Needs ______________________________________________.

2 The manufacturer transports the goods to places of higher demand.

The goods __________________________________________.

3 Companies use marketing to increase consumer interest in their products.

Marketing ___________________________________________.

4 Banks play a vital role in providing funds to firms.

A vital role __________________________________________.

5 Wholesalers buy goods at cost price from manufacturers.

Goods ______________________________________________.

Present simple passive We use the passive when the focus is on what happens and not who does the action.

Advertising is used to help consumers be aware of products.

The goods are transported from the place of low demand to the place of greater demand.

We can use by + agent to say who or what does the action.

The world economy is affected by global events.

45

Module

1

BUSINESS NEWS LANGUAGE

crowdsourcing

All Together Now –

The Advantages of Crowdsourcing

N

EW YORK CITY was once the capital of manufacturing in America, with more than 1 million people working in the sector in 1950. Today that number is only 80,000, and they are employed largely by specialist producers in areas such as furnishing, food processing and clothing. However, thanks to the city’s entrepreneurial spirit, a new industry, crowdsourcing , is emerging. It might be called social manufacturing.

One of the firms involved is Quirky, which is as trendy as its name suggests. Its new design studio is in a converted warehouse near the Hudson river and includes a small factory complete with a couple of 3D printers, a laser cutter, milling machines, a spray-painting booth and other pieces of equipment. This prototyping shop is central to Quirky’s business of transforming other people’s ideas into products.

It works like this: a user submits an idea and if enough people like it (just like on Facebook), Quirky’s product-development team makes a prototype. Users review this prototype online and can contribute towards its final design, packaging and marketing. They also help fix a price for it. Quirky then looks for suitable manufacturers. The product is sold on the Quirky website and, if demand grows, also by retail chains. Quirky also manages the applications for patents and any necessary authorizations. It gives a 30% share of the revenue from direct sales to the inventors and others who have helped.

By using the comments and opinions of its large online community, Quirky can quickly establish if there is a market for a product and set the right price before committing itself to making it. Its most successful product so far is called Pivot Power. It is a $29.99 electrical extension lead with adjustable sockets, which makes it easier to plug in different chargers. Jake Zien of Milwaukee came up with the idea when he was at high school. He submitted it to Quirky and was helped by 709 people to bring it to market. By early April 2012, with over 200,000 of the gadgets sold, Mr Zien had made $124,000 from his invention.

Adapted from The Economist 46

The term ‘crowdsourcing’ derives from the words ‘crowd’ and ‘outsourcing’, that is contracting a job to a third party or another company. With crowdsourcing, the idea is to offer a particular task or project to many people through the Internet in order to reach the highest level of ideas and the best possible quality by combining their skills and knowledge.

The World of Business

| Module 1

reading comprehension 1 BEC Read the article and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS).

T 1 2 3 4 5 6 7

Quirky is one of the trendiest companies in New York.

Quirky does not invent its own products.

The opinion of a small team is decisive for a product’s design and price.

Quirky products are only available online.

It is the inventor’s responsibility to apply for a patent.

If you are involved in the realisation of a product, you have a part of the profits.

Quirky’s most successful products have all cost under $30.

F

DS

listening 1.11 2

BEC Listen to an expert talking about the use of crowdsourcing in recent years and complete the notes below.

CROWDSOURCING:

____ ideas used to acquire new (1) ______ _ think ___ and to learn what (2) ______

Used by: in Australia (3) __________ to their menu Domino’s Pizza to add a new ____ ___ ate (4) ___ to reinvent the brand and cre in the USA ts to have in their to understand the best produc Walmart (5) __________ customer comments as a source for new ideas and Starbucks tions at a (6) __________ for crowdsourcers: a lot of solu Advantages

_ reward or recognition for contributors: (7) _________

speaking 3 Discuss these questions in small groups.

1 2 3 4 5

How is crowdsourcing a good way for a company to improve its products?

How can it help a company to be closer to its customers?

Is crowdsourcing suitable for all kinds of companies?

What drawbacks could there be for some companies?

Do you think crowdsourcing and social manufacturing will increase in the future? Why/Why not?

writing 4 Write a short essay discussing the advantages and disadvantages of crowdsourcing for a manufacturing company. Follow these guidelines: • • • •

define crowdsourcing; state the principal advantages and give a concrete example; state the principal disadvantages and give a concrete example; draw your own conclusions.

http://dailycrowdsource.com www.crowdsourcing.org www.zooppa.com www.bootb.com/it 47

Module

1

The World of Business

MOVE to the NET web conferencing Log in!

1

1.12 Have you heard these terms before?

Do you know what they mean?

In pairs, try to find out how they are formed and write a definition for each one.

Then listen and check.

webinar • webcast

P asswords 2

Replace the expressions in bold with synonyms from the box ‘passwords’.

It is fairly simple to (1) get a room ready for a web conference, once you have all the necessary technical equipment. In order (2) not to waste time during the meeting, it is best to (3) hook up all the cables and test the equipment in advance.

However, you may still (4) encounter technical hitches which can be embarrassing if you (5) are in charge of the meeting.

set up a room share video content connect cables push a button run a meeting make a presentation review a document save/waste time cut costs have technical problems

on THe neT! 3

Have a look at this video about tips for successful video conferencing and answer these questions.

1 What should the background be like?

2 What kind of lighting is best?

3 Why is it important to think about where to put a whiteboard?

4 Where should the microphone be positioned?

Why? 5 What should you do with any equipment before a meeting? Why? 6 Why is it important to focus on the camera when you are speaking?

Log ouT! 4

Discuss these questions in class.

1 How could video conferencing change the way these organisations or people do business? multinational • lawyer • clothes shop • mining company • doctor • car manufacturer 2 How could it help during the different stages of the supply chain or distribution chain?

3 What about the other branches of commerce?

4 Are there any disadvantages?

48