U Iii'

7 Finance

IFINAN(IA'L RES ULTS -'

Before you read

Ust 10' ex{P:resstons tha1 you might find in an artldle abolJ a company's fil'la nclal restllts.

Readin,g
Read llili5 article from the RllmlciI1t 7imo!s by Rose 'iGobs aad do tilt! exemises that folfow.

FT LEVU OF IDIFFIC.ULTY•• 0

Al-Fayed goes out in style as Harrods

leaps 40 per cent
Rose .iacobs

IMollamtd Al-Fayed's SW811scmg bo~t Hamxls io, Ma)' for! l.sibn. The ~ aJ,50 buscXI On possible
filD.aru:i.1Jn:suJl:S aJ: Hanods revealed Ahmad Al~Sa)'ed,the fu:nd's O:aief oven-eas expansion. deve10pmcml of
mal the depalitmelllf stose aw Executive. said the move w-as past an online offering and 6tending the
strong gJOwtb 111pre:fil5 itn the final of a strategy of adding "pmligious, sale of HlIIJ1Ods..bnmded sou\'en.in
yea under it colourful owner, 1ap-perrorming bu . C'SoSC • lo i fI them ct.
Me Al-'Payed d h" lopdiJccto - portfolio at low PO~llt in the s Mr AI-Sayed bas no spoken alK'IIIt
wbo re lgned "0 May fo lowjng eoooomic cycle. the cone uston dra n from tihc
the sale of the group to Q tar's liLt year' re u It how Qatar review. but me company is develop-
QY¢~ign wealth fu d - pcintN '11,'1 rook: on II: group "n !be mid t of a lll8 it f b'on 1KInM. Jming to
C temer toyally ciieme and sigll-Ilc:ut inve!ltmeol programme: Cleate 5eri rival 10online mar-
refurojshments 'Of tile grou.p·s Harrods put £3.5.6111 into refumisb- ket ltad.cr Net-&-Portet. eanwbile,
Knightsbridge store a a few of" Ihe ment of it Knighl5lbridge Store. willile ma.nage:fS have I'fd tbey
fo ee behind. a 12-per-cent rise including Ulc addit.ion of two restau- wooJd like to 'opell Harroes 'Yen e
in sales and 40wper-C:~lll !iI rge ranIS. and me opening of Ii sIlop in Sbangll' " - a move that W'OuJd
in prolit. boutiqlle m HcatJtro.w· Tecm1nal4. capitalise 011 growing demand for
1. The £78m ($1203m) in pre-tax The former managcmcn.L tnm luxw:y.goods from Chinese shoppers
profit reponed f'Or ttle yea to pro.m:i.&cd ". similar levcl of capital pJIUI.'l have been Mnounced. In
J IJII)' 3] arc two-:aru:l-a·lla1f times inve tment in 20 m". 2.009, £51.5.!im of lbe company·
IlIc £36m H8li1ods eerned iill L985, + nat son of capital expendi re £5 9.8m revenue w derived from
wJlcn Mr AI-flayed outbid riy I may increase uod!:t the 'Q Iaris: Mr arrods' tJK opemtio , with J~
bu i es IIWI Ti Y Rowland for Ihe AL-Sayod Ilii~ prius launched a the next bigjeSl oO.nttibutOf, at
group. pmnptin,g a. pol itieal fll:Jl0re. tIu:'et:-monll'l tfattgic ['Cview ofltbc n.5m.
Wben Qatar HOlding, a dicta mve - bUS·DCM. wlli II in.cludcd OOIItsi.dc.r-
meet vehicle for th.c: G 1I]f SLa~c, af on of a. makeover of Ute stoiC.

1 :z cDPear§Oi'I Education UmIted 2011 PIlIOTDGOPU.IJLE

 T£XJBANK •.•. UNIT7

1 Look through the whote artide to' match ~he " Find nouns in Exercise.3 to makh each of
figures (1-9) to th.e thlnp that they refer to these definitions.
EnH rrods' . c"OOunts(M). ) 50me-thing fnat ls avallab'[ foJ!'sale
1 £2.Sm a) increase in sales over the b) when you improve tile look ofsomettJing (two
2 nom pfellious ye.alf pre5S'OJls)

3 f35.6m b) increase in proli ovenhe' d IN ell you make something bigger

previous year when .,.01:.1offer new prQ{jucts !Ising
4 f515Sm <I) fhe prestlg~,
c) price pard bV Qatar Holding to et(:. ofy(Jii~ existin products
5 f519.Bm
bllY tIl@ company
6 f78m e) when you ~ot money into something for IlKlflf
.,ri.sbn
If) revenue worldwide
f) when you spend money on something
e] pmfits before tax

,
8 12 per cent
40 per cent
f) revenue in Japan
g) me ey put into improving the
5 Ghoose the best alternative (a, b or d to
repl ce - eh of the expressions In italIc -Ih
store Iparagraph s, tkeepingthe dosest meaning.
h) profit made in 1985 :I Mr AI-Saved has not splll~er-. about the
I) revenue in the UK cCJncllJ5iOnS drown from the review. ~.

a) endings of b) results of d effects of

2 Decide bether these statements about 2 •••bill ne company rs deveto ng its fashion
expre 5 1005 in paragraphs 1 ndl2· fietrue
1
portor. <lrmin to creal~a serious rival to online
or false. mal'lI:I!!tleade INet-a-Porter.
a) If sQmethlng Is your swonson9, it s the last time a) website b) service provfder £) doorw r>i
tha VOll do I • 3 Meanwhile, while malllagel'S have said tney would
b) IfYOll descrjbe someone as coloutful. you mean like to open a Hanod:s venae illl Shangnai .0.
that they are boring. iI,) meeting p ae b) concert hlU q store -i
c) If x ls described as Q force behind V,x ls the ITI
lj ...- a move that wou,!d capitalise 0" growing X
cause ofV. -i

cO A surge ioS it large increase.

ernand ror luxury goods ftom (hrnes! ahoppers
- no plalls have be n annoanced, ,..
to
Z
el IfYOLI outbid wrneone when buying something. ~ ilivest In b)1amOrtl'5e c) e)lploi ;:rc:
you offer more for i'. 5 £51S.5m ofrhe camp !'ifS f519.Sm
In 2009,
n furore Is a mild disagreement. revenue wa:s d flvedfrom Hal'l'OOs' UK operations •...
g) Something pn-stjgious 15 or high quality and is a) resu tM ill b) drew out hom () came from
famous. 6 ~ witll Japan as the next biggest contributor. at
h) Apo$lio is iii collection Qf dilWre_ t inYeslmellts. EMm.
o economic cyd~is a means of transpa rt.
The a) 5&0 tl hlghe5t source of profits
b} second mos.t important source of fevenue
,3 'Comp Ie thi,s tabl with words nom cl S oml gJleatest profit centre,
paragraphs 3 and (h and related word,s.
noun 01/er ~OYOII 1
Investment Gu batik to Be{oreyou ad. and the list of finll ndal
1
expreu ons that you made. How many olthem adually
expenditure ou~un d iJII the artideZ
.......... " ~.
••
expansion
Over to you 2
Think of anothetrretaller that you are Interested n•
••••••••••• / ••••••••• .1 offer
I
Research Its nllandid results forthe latofst .,.ear.and
compare: t em with those ~ Harroil,s..

PIIOTOCOPARLIE (D Pearson EduCiiltioll'llimite<l 101

UNIT

7 Finance

fINAN[IAL MATHEM,ATI(S~ ~

Before y u read
How Important is mathfl'martrs In the area of busln:ess that you wart In or \HU d Ii e to join?
Explain JOur Ideas.

Reading
Rea~(lbe artide ftil1.fn t!heFinarlci(!1 rimes by'Eillian lett and dQthe ~err:lses that to IQvII',

F LEVEL OF DiffiCULTY •••

What happens to markets when numbers

don't add up
Ten
I A few years ago, Tim Jolm!ion • .a 1 I this sense of indignation fair? been an old- fashioned Newtoaian
BritIsh academic al Heriol all Up to a point. yes. During the pw branch of physics, not the Theory of
University, was appointed to aceas couple ,of decades, the world of Relativi:ty. And insofilil' as bankess
all official public ""champion" for finance has certainly borrowed have used maths in tbe past two
financial m thematics. It init.ially he vily from discipline such ali decad • !hey - like 18th-cen11lry
seemed easy job. After alJ, befon: m.atru>and science. and some of Ibi cienti IS - bave typically lreilJiled
2007. polilil;;ins were no C~ pl~iMi m h pl'Odueed eli trou math 1Ma "'meJC" I.OO~.
'ntctestOO in lhings such as probabil- results. l Sllook ! all diose crazy Mo t academic m; thematic' n .
ity th.eory. So Dr Jebnson mostl)' investment deci "OriS inspired oowe:ver. ptefe 1.0 view thc"r di i-
u eel hi ugc grant to COOOiUC'l hi by ,,11.ta-c:ompLex - and fiawcQ - plinc: S ill (onn of in1C CClU l
~inpeulc. models to ass.c s ris . irlq~iry. Many aJ (I feci II comie -
:I 0 longer. ]n me years inee the: ~ But if you peer clos.ely at aI tJf s able about urn ing th al math
financial crisl expl0dcd, fi.mmc"aJ plagiarism, i-dogged by a bitkr c crude "lIbsolU1cs".So, ju
ma1hema .c has oome in the line of ire y. In public;. banks like to boast tbc T'bcory of ReI ' viI.)' • (OKed
!he. witb "quants" - analysts w~tb of thei abi it)' to buy the ubti$h sci :liststo ~se that spa~ and
qualificatio ..•ill advanced m1l1bll:- and be t"; iII pnICDCC. lhouglt. Ulc time: can apand or shrink in a re!a~
matics - and tlile-if models 'blamed :specific idca!l til t ban have bee1I bvi.st. mamJOt, so too Il'IC uch as Dr
for fuelling the: bmtkin.g woes. Hence importing from d-scipl:iru:. such all John.:son tend to Ihin.k thai c.alcula-
Dr Johnson now has his work. CUI math 0]' eoono:nli~ in tteeJll yt3iiS tion of "proballmty" e n l1ift
t, lie .nes to defend the world of h.a.v~ not always been "cutting :cording to context. Money and
maths. Or as be told II conference IZldge·'.On the contrary. many 0 the lali lie • in Qther words, an: nOl
this w.tell:: ··There is sense of i:Jnpott3 that: liave been ~ used ctI.I.4X, M¢d entities ( ~ h Vc:
bewilde:n:mcnt 1UDOJ185[ rIUltliem81t- - or bustd - weJ': di stinctJy out tended to a ume): in: tcad ,
CL n about the view that of date. Dr Johnson' ,,-sioH of "maths"
ma.t ema.f cs was: respoe sible fer .s For ellample, hen fina.m:e b s OOu d mose akin to [ e fi anc]aI
tb crisis." bo.rrowcd ideas from ph)'. ies, it has vasiOll of II ,antum mechanics.

144 ~ Pea son Educ tion limited 2011 PHOTOOO:P ..AI

 TEXT BANK •.•• UNIT.,

t hat or who from II ' graphs 1 and 2 do the II Find ·Untint( exp . fons from paragraphs §
ortis In Iiolle refer to? and 6 u - d to ._
a) Until the crash oJ 2007. h led a re!a1ive'lyqulet life. a) give aD!i usU'ation (two words).
iii) It was a job tlla:t seemed easy, b)1 say 1!lIatsomethi g is we Il p to a point but not
() They were not lnterested In flu! mathematical completely (twa words- can also be speUed as
tJheGril!s behind finance. four wo Ids).
d} Iris be ing increasinglv critir:l.sed. £) conuast two ideas (Oi'le WOJ'O.
e) It is.where Tim lehnsen spolc:e this week. d) a~d an idea (QII word).
r) Mallilematicians feel thfs because tlley have been e) introduce iii consequ nte ,elf an argument (olle
accused of ~esponsibility for the crash. wordi).
f'J add iii idea :similar to the one jll.5t stalled (two
2 Look. -I parapaphs 3 and and find ._ Wilrds).
a) a noun re~rrin£: to a feetillg conneded to anoH'ler g}I re.expre-ss an idea that has alrelldy been stared
feel]n&: III paragrapn 2. (three words).
b) a liIoun. used twice. meanil'lg 'subjects'. h) say that OIU~ideals true. rather tllan another just
statted (one W(I d).
c) an e.xipfession m,eanlnc 'to a cenaln extent".
d) a refen'ing to 1he copyin of ideas.
OUIli
5 (:hoosethe -- summary (a, berc)fordle
e) an expression IreFe,mngto very difficult
article as' whole.
mathem~tica' ideas1ilrlal were mlsrall:en.
a) i1nilndal mathematiCiians "taved a role ill he
f) a verb meaning 'to look closetY'.
cash. bUit ironically lbanks we-re not usln,g the',
g) a mrm ending In ~edused to refer to something most advanced ideas and m"ght 1I0t have falled if
that has been sub'ecHo problem.s. they had been using: them.
h) a noun mr the feelIng ~at sornethlilig odd has b) S.alil~ers do not understand financial JII1atherna1!h::5.
happened. the opposite of what was elCpected. and miSl.llllde,rstOQd the models that they were
I) an eJq)re~sion referrhlll to the mos Ilitelligent us 11g, intimidated by the brillianoo ofthefr
people. 'briglil est and be~t' fimmtial recruits.
D ani @xI)'ession refe'fiJing to the ml)st up-to-date c) Flillanela'l mathematics as JU c1!·5@din universi1iies
Tdeas. Inas nothing to do wilh th e !Oaths llSed by
financiallJIIstitutions.
:3 Choo", the best SIilITIR1'ilry I(a. b or cJ ofthe
m In point of para,graphs 3 and 4 OVer to you 1
Ananrfiill math@maticians ... Ho is 'wol'kiing fn the finall(~ mlusllYvlewed in your
OJ) art! entirely' to blam~ fur the fina cial crash of coumry? What are th best. qUiltlficatllons 10 have if you
2007 because oftihe Hawed and rJsky models waRt 10'worl!; ilil t?
they used at the banks.
b) are ent rely blameless, as they were not OVertoyeu 2
responsible for the out-(lf·date iii as that we.re Think about yo ur OWIil'area of business. 0' ene that you
being used by the ban 1I:s, wou d lrilte tCl work n. Is thelf ill dose link between it
cl contributed to ttle ensls. ~ut th& Id~as lIsed and ulilivers ties? Fa exam e. is uniVersity Ifesea~h,
by the bal'lks were Fl01 as advan[ed as Ulle relevant to, ttle buslness are ? Wily? f Why not?
tlheor"e~ developed by these people would !lave
suggestedl.

145
UNliT
8 Consultants
-

HEAD'HUNTERS

Be,fore you read

H,e dh.untiRg liS when exeeutives are approached by c:onsuttants. *"0 try to p~rsuade
them to tate another Job. Some people think It!i'llrs ~s IInetll cal What (tQ you ltI~n k?

Reading
Red this Interview with Niget Pal'Sltow !fromthe finclRuQI1imes and do Ule eJleKises tillat follow

0
FT LEVEL OF DifFICULTY ••

Candidates in some sectors

need a little coercing
ten' 'III' w'Ltb Ni· Panlowt UK MllIDlgilll(! Directort Ene lif;e:5

., ...........•. ?I ~ome tile UK ManQ,ing Dife.ct0l' in ta(geting a candidate for a role

The ."pcallics in 1M dcveleplDCilu and ultimately te mlnlgiRg les which ~ 1be'r career b.ackwa,nb
of lo g-1um rclltjoIlsh', i.lll EMEA-fCgio olglni •• ion, w'rth OJ doesn't pJay kI meir~.
clicnU, where !hey cmb.raoc:you 'n more Ihu 4,O(lOemployec1.
rb eir s1rategi c tbi nl iIIg an d •.•........•••• '1'
confidence, combined witb (tie ...............'!l TIts search iodusky wevoh-cd at a
aocoJades rec:cived from candrid'ale:s Mocrem soc.illl and business media dliffC'.re-.n1 pace m ditftR!Dt countrics.
tn securi ng grellt Ilppoi UPents for offer lin exceUeot means of III the US, it is mature, alld
them. As in all waits of life, it ':'5 colDmunicati;o:n to wide groups of camlidates work ha:n110 be on the
glle.l to be rernembeled. respected prespeedve CllJldidllte8. and to a.n ;adar of search consultants and IICC
and seen C01lbl ooling to clients' extent it Iu5 commodilised &.~IS vel)' TCIJl)Onsive.to caUs. O1lht:r
oojeah',es and candidates' li\'e5. of fi d'ng candidates. Tile best gmgn.phles an: less so. EYen in the
~b. .s acl!ieved ~gb appIryin.g. UK, there aM some furu:tl:OlllS and
............... 'P the principles of man !.gement ISeOlOl'S.that need mom coe:rcing in
The best ~ those c-a.nfjdates who consultancy within the eareh attqJIing a eaU. 5UOh as engim;ering
get a tOle through. me and pfOgres:s industry. This can only he done by and pam; of the indu:smalliC¢tO'.I'.
rap dly i the el lent OTgllllll al' on dialogue aJ1d exchange,
over several )'CIIIK. Two e~wnp!.es:a .............. :1'
UK mllilkcting man~r progressed .•••••••.••..•• 14 The ·nduBtry is based On 1nIst Md
to Sales· and Ma.rk~ti!lgDi~r and h" an'lI die prepar.foD. The there are no "tricks". :s Dcce:s.srn
then on tOnJnmng (IJ1C:ofd1e client' reseuchcr or the seam'll consultant ftlcrui1.~nt is based 0]1 work.ing
globa bus iDenes: nd a h.ould bave researched the tar8et closely with the candidate and 'the
manufl!dl.llriqg dlm;wrof a Gemwt- tHrollg,dy, u:se1l5ing expenise and client to ensure ilia.t IDe courtslU;p is
owned food ervices orgl!l.DisatiQ.III how the y,acanc), would be viewed mllJlaged ill a timely fu'hilm willi
plloglle ed oyer lI·ne year: to by tJhls candidate, There is no point absolute openness and integrity.

146 r.DPearson Education Umited 20n PItOfOCOPltAILI

 lOTI N ••••UN. 8

1 Read through th:e whole In rvJew· nd 5 'Complet.ethese talent nls u.slng .

match each oUhese q - stions (a-f) to the mm tic -11, pprop ,iale toms of
p -ph (1-6) that answers it. e.Kpress ions from paragraphs 4 and S.
a) Art! executives in some sedol'S more re.ceptWe to n.,
caiLs,than oth rs? a) yo.l.I m ke an a,..••.•.•. of a pal1icular sftuaUo
b) How do yOIi approa h th big phon call wilen you evaluate (t.
headnunting: someone?
b) you have a pill1ic:ular v or 50metlllJng tl1[&
c) How do you persuade reluctant movers to take a
is.your opinion orit.
post?
d) How do YQu se@yourjob? e;) you are an e " .. ilil iI[pam<:ul!!f area, yol:.! !have
e) Wha is thE! most effective mode of very good knowled e of t,
communication? d) you dt)ol!. t.. Iob, y,O\l do it in a cample w y.
f) What was YOU.!' best phu:em nt? e) you r... to II C/ol'lsultant's offer, YOIl are' wlIIJI
fa diS(uSS of.
2 look aUhe headline Gft1he rUde. Wluduwo f) 'f0u c. someone to do something you force
questions (a-f) In E - relse ]I does it most them to do if.
dosely ret . te to?
d 5.0met:htllS doesn'~p. to 50methinr else. it
dllesm't UJ.rrespond to it.
3 n d expressions In pa l'IB'8ph 1 th - t mean
h) a market secter I's m ,.....• a lot or, I1f [poop e k.no
the folio rng.
abollt It, part~[,lpate in it. etc,
a) attraction
b) dealings i~ people 6 In pa graphs 5· nel.6, find _.
c) dllftrell protes5icms, etc. a) a four'-'hom expressiolll originallv referring to
d) soals a [rrcraft 0 shipping, used here to talk about
e) jobs awareness of semeene,
f) obtaining Ib) a thre e-wa rd name (f neluding the) fOJ th e adivity m
)(
of he dhunters.. -I
g) praise
.::) no lin used tl'1 the plural. whr-;e S ngu tar form is
II OJ
h) warm y accept >
the name or a sublect tau hi in schools. Z
A
II) a nGUn that can refer to a physical area,. used here
4 D Jd- wh·therthese5talements bout
to alk.about a partlrut r b siness a.ctMty.
II' phs,l nd 3 are true 6:r false. or t
e) a p lllral OOIJIiI reflmlng to situations. where
Informat on Is no. giv III.
someon ischeated or fooled.
a) The best placements are ~he Dru1!SwileR! the
f) a noun that usually il£'fers to th-e ptriQd before it
candidate goe-s Olil to be proii'l1~ted quickly by the
{GI!lP e are married.
recruiting orlanisation.
Il) The first I!'lCampte ofa sa isfylnR placem fit was of
s:) a nOllil referring to hon sly.
a Bridsh e);ec.utLve. h) a nou refen os: to, not nldll'lg thfr1gs,
c) The-se<:ond ~Ilample of rhls relates; to a ~rmal"l
i!'xeclIliVf! Ov r 10 yoU 1
,CQ The rna nagar fn, the sece I'Id exa m,te ~mcted up III Go !lade to lilt answer VQugaw in B~{Dreyou read.
the us. WOllld It be IIi! same l"Iow that you have read the
e) Head untlng Is still a sophistic;ated actiloity dlat Inte- •.•••.
I w7 . hy71 h.,. not?
only hlghlv trained people ( n do.
t) N~el PaTSlow uses the same ideas &Sother
1000rtoyo 2
management conStll II • ·Modem soda ilnd busl ne~5 media offer an elicelLent
fie tries to impo5e lrIisIdeas 011liIis cl ents, means O:fcMlllluniuU'Im to wide groups of prnS;pecU~e
candl4 tes .. neUo all W!!I1IIt i has oommo~;HUsed
aspects of fin.d Illg talldidates • N gel s lhe-re refemng
to sites IiIce [j book. n LInked~n.Wha: II ,lIer ~ffe(ts
have sites like these had on the world of WOo Ie. in 'WOIH
vieW?

Ptlomeop ABU: ~ Pearson Education limited 2011 U7

UiNlT 8, Consults ts

CONSULTANCY IN A RECESSION

Before y _u read
When shou'ld org:anlsilt GJlSc,aUIn (OMIIl\tants?

Reading
Read IIts article from the Fim'lllci(1f Times by Dave IJllridl and do t~e ~rtises that foltow,

LEVEL Of DiffiCULTY •••

T- pS fo when the t· de tum'

One UlJ'i.eh

I If a ri.s.:ing!:ide lift.••all boats, a falling Olh rwise lind wiU eentinue to grow. p['lob em ,both lied nd
tide e)(pose5 aUIl w . In an uptUrn, In our wolk on. or.l!:ani tienal UnClpJ'l! 'sed, Thilored projects m an
companies may grow WU~QUI n: n, f(lfl'l1:a ion, Ic~d:ership brand. thlt ofI-t ie- heM :;;oll.l,lon arc
outside 31ch/cc,yet they M e 100 ey It I'eSOWU and tide l, we have ~pJa ed by itfnt [eaming. Clie lS
for cOIIIs.ulting services. n found ~ , mOR 1b!III ever. cl.:ients hould prep3J'le to ad pt. nO( adopt,
downtuen, comp nle bave Jess need innovative sohn1· M lllat may S<llUlioo fouod ~n other settings.
mOlley for con ti II e peril e. ~ be (oulld il'l their ow h.j tory. 6 ere live co ul anl- e gage "i

but need it more. And wh·lc They need to access and ply ideas Ii ICfiln,s and 4i gn ing iDO(t: than
demud for 'co u tan f.all, lheir and lion from the e jpericnce I"Ccomme:nding nd o,v·ng.
upiPl)' increa e as Dum)' Conner of ethers. Con. \lJ't!i t eransfe Targeted pro~ct mean !hat c i.e-nll!
employees ln oliher sectors "" 'vely k.n.owlcdge Illat lead to client s.IlO'U d find 00 suJtanlS who scope.
view con ulti g Ii tbeir e reer p:rodl.fcti ily, and boUl"ld their i I.ei:"'i'CIItiofis with
reU mption. 4 seeo d. to p raphra e Darwin. outcomes d tirnelices. Clients
2 These paTado es reveal the only the best SUn'lvc:. l bas become !loulc! le con 1I tam
e-1.o-0W
re lide. and apporty hie of trite to SI>' 1h t a.crisl i l¢:ITib 'e knowle<lge m her Iha.rJ rerr i ,
Co lUng i current. market IhiJ'ig 1.0waste.1bC' good new • !hal , e tab e proJect COme [rom
conditi ns, First, COIl, ultam mu t Ihi ecaoomic down um h exposed COIlSU ka LS who see the vstue of
offer I,lDiqlle value. wbi e low-cest, chari tan • f d· and wlu.t we caJl their wort for the clients' mv, LOn
generic prod ~I' ofte pn:: ail in a "cons thDg foo-foo". Qtlick-fi~ (economic y,alue), customers
lhrif(y economy, con Ilillant wh.o 00I) ullillg whlf on arc Iike fad (cu remer share value) a d
offer generic id and in igh wiU d'cts, with bold pro' nd few em loyees (emotiollal valu ).
be: exposed. Branded con uJtil'lg. ustaia le n.suttli. on IiIltants wllo Innoval.ive co Illtlllt 'hare !be tis
where the COlli u II t bave a ba\'c crea ive -de.a • t eugbtfut II d saln of ue e '5flll project'.
desencO reputatiOIl for i.mlllovalie mcori~ and research TOOts II.R: likely When con utt-allt adapt tlleir
'dean Pfiligmlie olution • w-11 :0be molt Ii to seeve and ur{ 'Ie. off. rin by lailorill,g. targeting and
on1inue to dd vaJuc: II c tents ~ 1bicd. ueee Cuicon taD need I1lC ru. the III C lCIlrl come to
SiC !'Uti 11 lse the val ue of such. services, 10 adapt and earn. CODSuifillg minDS In.! I '!.hat eonsu U n
, Con ult:ln who. offer angib mu t offe:r t ilored. lat'!!lCled and inlln:5rs in mind.
re uH Ih t the t could noL me u able olulion (0' client

e Pearson Edllcatio.n UlI1ited 20 1 P,HOTOCOP A8LIE

 TEXT 0 , K 1010 UNITS

I n what order does this inJormatlon otcur in 5 In paragraph" find ..•

Ihe artide? a) a noun ~eferrlr1g to 01'1.gln5.
Consultants .•• btl a ~lural noun mearling "fas.hions', atse used
a) must offer SIC meth ins: unique, adjectivally In Tts :sIngular ro:lim to mean
) need to pr,oducl!! tang,ilble results. ·fashionable".

c) need to adapt c) a "tufal ncun referrinG to peap e Who<preten to

have knowled~ and qLlalifkatioll.5 but do not.
d) need to be innovative.
d) a two-word @'XiPf'e5sion meaning 'n/obish'
e) lM!ed to' listen.
'(used by the writer but probably not found in
f) will ,mlv silirvive ifthe., are creative. ditlionariesj.
g) work En an activity with many COl'lt(8I:Hc.tions. e) all adjective meaning 'banal',
f) an adiedlve to describe Intelligent ideas.
2 I at, are the conlradictr,Dns outlined in g) an adje(.tLve to describe something that can be
paragraph I? maintained.

3 ChDose the best aEtematl:ve (at b or c) 6 (emp ,ete th 5 tab e'with contrasting fdeas
to'repl, ee eath expression ~nItDlit: fJom from paliclgraplls 5 and 6.
para,gn' z,. kHpin(gthe most similar
meaning. expressed
..p.r.q.~.t~ms:1
;~.~~~f;~.~l~.~.~
problems
1 These paradoxes reveal the realitIes and
tallolled projects. 1
opportunitie5 of (onSIJl~inK In current market
C(l Jlditions.
)
adopt sollul1ions
~ recommending and solving
a) hide b) ,onc:eal c:)show
lease-to-own ~
:2 WillIe low-cost. generic produc!s oftenpfevaU in a •••••••• I ~

thrifty economy. _.• knoWledge

iI) precede iii) succeed c) recede

1 ChoGSfl the best aEtemative (at b or c) to
3 ... consultants who offer generic Ideas and
su mm - dse the main pOirlllt of p ragraph 1.
iills,j,gn1s__
a) (lients value tailored and targeted conslJltancv
II} 'Stand rd b) genial c) spedallsed with rneasu rahle eutee rnes that aile pos "tive ror
• .•• _HI bE' E'.xpOsed. tlnee different (i'0IilP.S.
it) found up b) tioufld eut d tiol,lnd In b) (!lie~nswant consultants to bear all the risk in
50 Branded consulting, wl1ere tihe consultant's halle pro 'eU5. 'e5pedallv during recessions.
iI deserved reputation .•• d Consu.ltants ShDIIIld thmk first of all about the
a) merited ill)deserted
c) important o utcc me for the ir dients' Cl.Islome>l's.
6 _~for in nOllative ideas and pragmatic solutions •..,
a) tiOe.Qretical Ib) practical c) pOSitive Over fo you t
7 ... will COIll1ilnl!leto add value.as clients sCfi}rJnis~ What is the statu.s/ro e of consJu tants, in yom (QllntJry?
the value of such seNices. W,h' t reputation 40 they have?
a) seVW'E'lycriticise
b}casuatly lock. at
Over to you 2
Tihinllc of a m,1D"!ny or sehO()l that you kflOW' (perhaps
00
,I:) carefu IV e~mjni!
),our own) .• fyou could hire consultants to suggest
improv ments IIlI a pam IlIlara sa, wltat ould tlta arM
4 Campl- . th is tabl- with words from be? Exp' ilin your reasons,
pilfagTaphs J and" and re~atede.x(pressions.
noun
survive
transformatle n
.......... "
apply
e~perience
transfer
1

PHOTOCOPA U (l P,ear!lOnEdu:cation Limited 2011 149

UNIT 9 Strategy

THE GrOVERNMENT'S ROLE I N INDUSTRIAl.: ST!RATEGM

_ .•.r ; .-.....;It

B fore you read

Wh31 shoutd a g vemm@mtdotofoFllllutiitestl'iltegy felT~he Industries ofthe futlllle?

read'ng
Read tlilis article fto:m ~he Rmmcial Times by John Kavand do the e-xerclse5 that fo low.

LftU Of DifFICULTY •• 0

The job of Busine s Ministe ·8 to p t the

future :first
J- Kay

I If yo were II I) erm tnt

depanme 1 ponch:rin the wt'LlCt of
the COI1lp1.l er indu U)' in me 1970$.
you would ntt YMve uirne to
IBM for lit ugblfu I ex perts nd
~ntalilXls. You. woo d not h ve
00 5U]ledDiD Gales or Steve JQb.<;•
.•••.
bo were barely out of school, rOT l ,
MjclJad Dell who wu ~Iy in 'l.
Out IBM did not know the future rOf
the lodust:ry. If it had hOWlI, it
wou d have tried to prevenl it. The
interests of the indu try and O'f
COD8IImers we:re nlJit ooIy diCfe 01
from those oft!hedmlllinanl bU! in :
ihey were diamelrically opposed,
2 If, lIi decade ater, you bad
W!J:ndefOO what government could
dcnopl'Ol1KJle Britain'scivil avi . I!I ~
ilDdU!stry. you wou~di have &sited
British Ai.rways - a dr pe bill'
it.s main rival, Britisbi Cale.doni n.
The gO'Y!;mmenl tried to promote
competitilln through 1iberal policies
that parlicurlarly favoured
Gdonian. AU trrelevant, of eourse

no
 TEXJ K ~•• U IT9

1 Look at paragraph5 1 and 2~ hlch verb 5 Find ords and expres,slo s I pa 5

.struelu re is used in the fi rst. second and th -t me-a tJh- following •
foul1lh senlenc'es of paragrap'h 1~and t!he s) wilen two thinlS happen to etl1erwlth nf! aU",e
first and fourth sentenees of p ragJ ph 21 results
b) OCcCllsions hen one Ciampany buys anot er
2. DK.d whettl , thes - st- tem 'Ilts about c) eceastens when compani!!5 fain
words and expressions used in paragraphs 1
d) wherl companies announce their fin ncl I results
and 2 are true or fal$e.
eo) wheT) yGIIIthink a bout certain til ings to the tara I
If ,_.
xclus.10'l of others
a) you ponder some1hing. you think aoout II Mellv
and supelfiriaHy.
o senior rna nage s· pay

b) sem one is blJrely out of school, they have been 6 Choose tih . It en(Ung (a, b or ~)I'forthis
out af seheel far a long time.
sentence summarising the article as
t) II business
is domilNJnt in an rndustry, i is the 11'1 se ting ~t.s ndustrial stwategy. it gQvernment
mo5t powerful firm.
Sholl d ...
d) something is aiamel,;cully apposed tn somethrflg
I) try to choose future w nners and losers.
els@. it is cample: :eIVdifferent 'lfom it.
b) encGulrage in novalionl aM fadlitate new entra nts
ell something is Ittelevon,t. jt is rn anhlgful and
impOltan· c) he nour leaders of surcesslu l companies whHe
mc:a ura" ng new ones.
f) VClIl don·t ghle someone fhe tim~ of day. you
don't cOrlslder them lrnportent,
OVer to you 1
3 fh I: fa Ie cant ins word from paragraph Do some f,esearch on the Internet abolllt one of the
3. a'nd ret - t- d o~d$.Correct them where oompany fulJnlllers in the Alic:., and wriite a short repon
about him.
nee ssary.
verb nGUIl Overloy 2
confound (onlusion TJilllk a <I t a 'c.omp nvthat has e erged in the last
J)e1"Vil:de l)el\'ilsian 20 years tl'lat you re interes iii jn (rGf examp e,
tegify teg~5ratiOn "miliEUn l, 'GlHIgle '01' Fa.cebookl. hy was it 5u.xessful,
tabby lobbier (person lQbbyini) ilmi! not its (Dmpetihllfs.1

tl1re nire!! (persoll hired, es,p. Ama

assQciallse IassodatlQo

An.s:w r tit -S8 IqU sUons about pa ragra plh 41.

a) What j,s~he mail') Jes:ponsibility or a minister rOt
business?
b) Are.they evt.:!r {Jkelvto m et ltJe peop1 who
emerge as til found rs ofthe next sl.Ictessfi.d
busfllesses7 WhV? I Why not?
c) Should a busin 50 mInister prcmote R&O?

IP GTOCOP lAB <DPearson Education limited :;ZOrn 151

UNIT 9 Strat:egy

STRATEGilC LOCAT~ON 5

Before you read

'Think about the headqJl!anrers nd other sites ofa comparnythllt you iHe irrte 1!sted 11.

Wily are they located wllere 'hey ilfEi?'

Reading
RMd the article from the RnandalTimes by Pa,ul rvrreU and do the exercises that fol!low.

"('IEL Of DiffICULTY •• 0

The added va ue of a group

PaUl Tyn-e[J

I B be Mcd' a· a eorop n}' that imponant pan: of rt:giolliil delrclop- "cantribu'le to rart-u t:irm
oouId. i !:boon', beb~ 8IlywbeJe. D:IiC!JIland cOJponue 'tralcg,ie since SllJVl,,~".
It pro. the •••., indu:.1Jly 1990. When Michllel Parter of l for B:abel Mcdja, libo benefits of
wi~" Q ou «d service uch Hanan1 Bu i School p1:IblJshod being :part of ithl;Monnc:!d du>ster
loe Iisation and qualily .:u e. The Compeli"v~ M¥(Jfll(J'~ 8/ are Illlme:lOUs, says Ste'VeKin well,
MoS!t of its J,OOO taft' need only Nalions ,In 'the boot and U . II¢IIt 'hI! OOIllP d)"· Cbief Fin nclal
computers and J"eJiab e Internet research Pfofe fjCJI' Perter round that Officer. "It provide! an enhan.ced
eonnectlons to do rheir jobs, Yet they as more companie of dle s:ame t)pe pool SQ recruiting is easier,"
arc cencentrated in . It hmdful of cluster ~ogenh¢r in the same II ace, he sa)" • "'The col ege:!! and
places ""crldwide to lllIre acl"vant ge SO they denv,e mO!le benefiu firom univen;Hies here are enee Bedto
of speelfie local condition . their"oolloc.a 'on", offer courses "n the C'R3rive media
1 Tbe ~omp3li1y WI!S rOIlIll\J~ in , Conlpa:nie-~ t)av(:long recQgnri~ lind I.eChnq Q&Y,••nd reseaeeh 'n the
[999 in Brighton, on tile !!Outh coast that ifllg lhemselves near to rivals univer hies gets t 'lored 'to eur
of England, partly bec.au:se'the dry oonld make life easier for cu tomeI'S, indootry. Aloo,lhe companies in die
II» on of the 'highest coooentnltiCl'lS cu iU ppJy-chain CQ, ts, ami - mas I e 0 ter CIl.D lobby loge(ber fQ'
of young foreign wOl'ker:!! 8tod impo:rtant- make it easier to nlCJ'Uit ~ges inlhe locality."
student in the UK. Its latest . peejallsts, Hcwever Prof~o.l)r 6 The decision to open office in
productlon office WIlS opened In Pener i ndried otheT benefi~ , n1teaJ, h.owev.er, Will 1M ely
M nllieal, Omada - agaln, a OUTCe such ill iller-eased productivity, inti enced by generous inccntiv~
of young, multilingual talent but innovalio and brl,-up aeti ity, from the Queb c government.
aI 0, crilkall)r, home '0 one o( I n his late! t p per on the ubjecr Sot\wnre producers in IJIIltreal can,
Ibe world's fast<est-growing written with Mercedes elgado f(lr CJta11lpTe, claim 1iUt relief on up to
"business lustl:::rn' (or video-games and SCQU S~eJ1l. be finds that 30 per cent of the salaries of m ir
pmduction. stro:ng elu ter produc~ "'higher production staff. 01" up to )1'.5 pel'
] The COliC pt of the b usi e growth ~n:new b ·ne fiprmat"on cent if their wort is plIblished in
etas er hils become a.n 'nrreasi rlgl)' and stan-up empl,oymenr" and F~ncb,

152 CDPearson Education limIted 20n PflOlOCOP ••- ,

 TEXT BANK •••• UNI 9

t Look thr;oujh the wh:ole artrde to find Ihe b) Ma.ntreal rtaster f bIuer dlOlcl!' I poten ial
name(s) of ••• recruit (11 wonts) •

a) a video-games company.
Yes it provides us wid'! all elllhanced labour pool
to recruit from.
b) a town on the south coast of England where this
clJmjJany is based. e) universities here I offer oou£:s J [r,eatiVe I media
te(hnotogy (n wolds)
c) an ex~cutive at the Canadi~" bram:h of the Yes. 00 lieges and universities here are
compilirlY-
encouraged to offer courses Inthe cr>l!!ative m . la
d) the Canadian dty Where the com p.:t.nv has IIn and technology.
olfice_
d) research luniver!ti les I suit I needs' Indu.s ry
e) the pmvlnce wherE! this city 15 §.ituated_ (SI W'Onts)
f) II business-scheul professor. Yes, resean:ih in the un ~versltie5 gets tailorea to
g) twa co It!!igues of his. Our industry.
e) pres@oc@I indus .wy cluster I persuade , open I
1 find wordis and expressions in paragraphs 1 offic@ here (24 words)
No. it was largely infiluerll:ed bV gene~QU5
and 2 thai m eftl the fOllo-- Ili1g
iIlCt!hlivII!s from tile Quebec government.
a} translating' video games and otJlller software IJita
f) breaks I governm@nt/ offe;r (7WOrdS)1
tilL'll
other lanjluages, adapting I '10 dIFferent maT1tets.
etc. Software produ[!ers in Montreal can claim tax
relief on up to 30 per cent of th salaries of
1 II few
the,ir prOiluc:tion staff, or mare if til ir work is
c) lestil'lg p cducts to che k tha they work. correcUV pu bllstled in renth"
d) present In lal1e numb rs'n;& small area
e) 5~akilllg many Ian ua s 5 Choose tlb best summary (a. b or c) for the
f) places w',", re ma1'l)l businesses of the same type artide as a w'hGte.
are "resellt aJ Tax breaks can help clLlSfers to develop, and
g) tile way U!al tl1ings are in a pamcutar place Que'bec is@ncouragingavideo-games duster to
develop there, like the 'one in 8rilhton, England.
II) not br~aking down
b)1 Mitliael Perter's research shows. {he importance
ohlusters. iln Briglrton and Montreal are
3 Which of th - 5a ld as are nor menU O'ned In
eo.xcamp!es (If these ·11 relation to the vld 0 -game 5
p- --grap s:9 or:41
illdI.lSir)'.
Clus1el:5 ...
d ClusteJ50fvideo·8IIm 5 makers will no doubt
Ii) have been the subject of work by Mlth et Porter. crop 1.1, in other p!aces. given tke right tax
b) benefit the firms tlla! make them uI), thanks to IncentivE's.
their !b@lng near eath other.
c) benefit customers, OVe.r to yell
~ reduce costs. Thlnkilbout your own indus{". or one yQU would like
e) make it ea!lle-r to fe'Cruit peoll1e. to Join. Do the 1ii1l'm,s Ulat male up the Indll!Stry ten,d
f) allow lik.e~mlnded people to seclallse together.
to du r "n pal1!i(ular p aoes? If 50, wllere, and what
stra:tegic advantages do they gain worn being there'? If
g) jncrNse productivity.
l'1ot wby not?
5

1iI)1 e'rncourag(! new businesses to form.

ij ran provide SUPPl)rtto companie-s in dim ultv. Over to you 2
j) make it mOl'e likel., tllat new bus; aesses will 'Softwne producers 1'1 Montreal can, for &ample daTm
survive. tax (el~foll up to 30 per cent oftihe ,salal1es Qftilelr
p eduction staff, OJUP to 37.5 penen.1 if thel wan:
4 Look at paragraphs. 5 nd 6 'You are is p bllsh din kendl: Irna,! ne you are a taxpayer In
[nte:rvfewi ng Steve Kingsw ~l.
Use Ihe Que K. ou,ld YOUi appnwe of this use ,of government
promplS given to ask questtons contal Ding money? Why? I WIrIV not?
ttl 0 eran number of ords ;ndl· it· . !
CO"M pondl••! to the ns' rs that h gives.
The first one has been done for you.
1 Wilat f do (4 wards) Whot t:I 0 you dO?
I'm Chief Financial Officer at Babel Media In
Montreal.

IPHo:mcoJl AIIU Ii) Peal"son Education limited 2011