FIVE READING LESSONS

LESSON 1: MARKETING
A holistic approach to marketing
This unit looks at a new approach to marketing.

BEFORE YOU READ

Discuss these questions.

1. What types of advertising do you like and dislike? What irritates and amuses you?
2. How do you avoid advertising you don’t want, e.g. TV ads, pop-ups, spam, etc.?
3. More people today have broadband and DVDs and use mobile phones. How do you think these developments are
affecting
- companies’ marketing strategies?
- the work of advertising agencies?

READING

A. Understanding the main points

Read the article and answer these questions.

1. After reading the article, can you summarise what ‘holistic marketing’ is? Compare your ideas with other students.
2. What two factors have made companies interested in this new approach to marketing?
3. Why isn’t traditional TV and Internet advertising as effective as before?
4. Marketers have reacted to this trend in two ways. What are they?
5. How has a more holistic way of looking at advertising changed the way advertising agencies work?
6. According to the writer, many companies will be slow to move to holistic marketing. Why is this?

Choose two explanations.

b) They see holistic marketing as a fashion that will pass.
c) There is a lack of accepted tools for measuring the effectiveness of new marketing activities.
d) Most advertising agencies don’t yet have the right skills and expertise.

B. Understanding details

Read the article again and answer these questions.

1. The writer gives an example of how consumers are avoiding advertising on the television. What is it?

2. The writer gives two examples of alternative places where advertisers can put advertisements. What are they?

3. What example does the writer use to illustrate how advertising agencies can give customers a better experience?

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4. According to the writer, holistic marketing will make allocating marketing budgets more difficult. What example

does he give to illustrate this point?

READING
The case for holistic marketing
by Gary Silverman

A. In big companies, marketing departments are adopting ‘holistic marketing’ – a term that expresses the growing
desire of companies to use a greater variety of marketing methods to communicate with their customers. The move
into holistic marketing reflects two developments. Companies are losing confidence in television commercials. They
are also growing more interested in the Internet and other alternative ways of advertising.

B. Technological advances are giving consumers the power to avoid advertising. For example, DVDs are making it
easier for people to record programmes and fast-forward past television commercials, while software helps them
block Internet pop-up advertisements and unwanted e-mails.

C. Marketers have responded in two ways. They are looking for new places to put advertisements, such as ads on
displays on bus shelters or on mobile phone screens. And they are beginning to see any contact with a consumer as a
marketing opportunity. The idea is to engage the customer wherever the customer happens to be – a holistic approach
to marketing, in other words.

D. As a result, advertising agencies are not just thinking about television commercials these days. They are trying to
figure out ways to give a better customer experience; for example, how staff should answer the telephone when
customers call to ask for information or make a complaint. They are also looking for ways to make the shopping
experience more interesting, and bring new excitement and innovation to product packaging and store display.

E. Although many marketers see the advantages of a holistic approach to their marketing, many may be slow to adopt
it because of practical complications.

F. Money for marketing comes from marketing budgets. But in the new world of holistic marketing, the lines between
marketing and other business activities are blurring. In addition to marketing, other departments in a company also
have a role, which makes allocating marketing budgets difficult. A website, for instance, could be seen as a form of
Internet advertising, but websites also function as virtual stores. So money for building a site could equally go to a
marketing or product development department.

G. To make the situation more complicated, companies are finding it difficult to compare the impact of new kinds of
marketing activity. In holistic marketing, advertisers are no longer interested in simply reaching customers, but in
engaging them. The challenge is how to measure the impact of marketing messages – how well customers are paying
attention to their marketing messages.

H. There are companies working with measurement tools that help with this task, but until there is general acceptance
of these tools, companies may find it difficult to justify any change in how they allocate marketing budgets. ‘With
some new media, it is much more difficult to put these budgets together.’ says Alan Rutherford, Global Media Director
at Unilever.

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VOCABULARY

A. Understanding expressions

Choose the best explanation for each phrase from the article.

1. ‘Companies are losing confidence in television commercials.’ (paragraph A)

a) They don’t think that TV adverts are as good as before.
b) They no longer believe that TV adverts produce good results.
2. ‘... engage the customer …’ (paragraph C)
a) get the interest of the customer and keep it
b) have more conversations with the customer
3. ‘... the lines between marketing and other business activities are blurring.’ (paragraph F)
a) The differences between marketing and other business activities are less clear.
b) There is a big difference between marketing and other business activities.

B. Word search

1. Find words or phrases in the article which fit these meanings.

a) starting to do something new (paragraph A)

b) thinking about the whole of something, not just dealing with particular aspects (paragraph A)
c) improvements (paragraph B)
d) try to prevent something from happening (paragraph B)
e) stop something happening completely (paragraph B)
f) possibility (paragraph C)
g) think about a problem until you have a solution (paragraph D)
h) plans showing the money available (paragraph F)
i) giving someone their share of the total amount (paragraph F)
j) give a good reason for something (paragraph H)

2. Find two other words in the article with the same meaning as advertisements.

C. Word partnerships

1. Match these words to make noun-noun partnerships from the article.

1. holistic a) commercials
2. television b) marketing
3. marketing c) advertising
4. customer d) activity
5. Internet e) agencies
6. advertising f) experience

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2. Find five other noun-noun partnerships starting with the word marketing (paragraphs A, C, F and G).

3. The writer illustrates some of his points with practical examples. Complete the three phrases he uses to
introduces them.

1. ……… ………, DVDs are making it easier to record programmes … (paragraph B)

2. They are looking for new places to put advertisements, ……… ……… ads on displays on bus shelters ... (paragraph
C)
3. A website, ……… ………, could be seen as a form of Internet advertising, … (paragraph F)

D. Sentence completion

Use the word partnerships from Exercises C1 and C2 to complete this extract.

(1) C……… e……… is central to a new approach to marketing, known as (2) h……… m……… Marketers and
(3) a……… a……… are looking for exciting new ways of engaging the customers, using a mix of new media and
(4) m……… m……… Even companies with small (5) m……… b……… can do a lot.

E. Prepositions
Use the prepositions below to complete these sentences.

in in of to with
1. There is growing interest …… … Internet advertising.
2. Companies have lost confidence … …… television advertising.
3. More and more companies see the advantage …… … a more holistic approach …… … marketing.
4. Marketers need to view any contact … …… customers as a marketing opportunity.

DISCUSSION
1. Do you agree with the writer’s view that a more holistic approach to marketing is the way forward for marketers
and advertising agencies?
2. Write a short report making the case for or against a more holistic approach to marketing in your company. Include
practical examples to support your points.
3. According to the writer, advertisers are ‘beginning to see any contact with a consumer as a marketing opportunity’.
Are there any risks in such an approach? How do you think customers and prospective customers will react?

Lesson 2: Human Resources

E-recruitment
This unit looks at the ways in which employers are using technology in the recruitment process.

BEFORE YOU READ

Discuss these questions.

1. When you are thinking about your future career, how can you find out about the different companies and
organisations you could work for?
2. What sort of process do you have to go through in order to get a job? Describe the various stages.
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READING

A. Understanding the main points

Read the article and answer these questions.

1. Which modern technological resource are companies now using to recruit the next generation of employees?
2. Besides their own website, which two other types of site are companies using to attract and recruit graduates?
3. At which stage in the recruitment process is online testing useful?
4. In which two main ways is this generally useful to both employers and graduates?
5. Why is it important for companies to give quick automated feedback?
6. Why is it not sufficient for companies simply to use their own website to attract young recruits?
7. What are companies trying to achieve by engaging with potential employees outside of the company’s own website
domain?
8. According to the article, are all employers proficient at using web resources to attract and recruit employees yet?

B. Understanding details

Read the article again and answer these questions.

1. Which well-known Internet site is playing a major role in Ernst and Young’s recruitment strategy?
2. What is the world’s largest online recruitment group?
3. Give a specific example of how online testing is useful, firstly to the company and secondly to the potential job
applicant.
4. Which virtual world are some companies using in order to meet potential recruits?
5. How can potential recruits use that resource to meet and talk to company employees?
6. Which other two Internet forums do employers use to meet young people?
7. Once employers have made contact with young people, how do they keep those young people interested in them?

READING 2
Online recruitment:
Shopping for talent in a virtual world
by Sarah Murray

A. Since 2007, Ernst & Young’s recruitment strategy has included a page on Facebook. On the site, job candidates
can meet students gaining work experience, participate in opinion polls and join discussion groups, whose topics
cover everything from psychometric testing to working in China.

B. However, the accounting firm’s move into social networking is only one example of the way companies can use
the web to attract top talent. Some companies have extended their use of the Internet in the recruitment process and
are using web tools very effectively. As well as making use of the services of companies such as Monster, the world’s
largest online recruitment group, they are using online technology to speed up the application process. This allows
candidates to find out details about the job they are applying for and complete the first stages of the application.

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C. One important part of this process is online testing. Taking a practice test on a corporate website means an
individual can measure themselves against the standards of the company in areas such as numeracy, for example. For
companies, these tests can weed out inappropriate candidates before they have even started the application process.
And for graduates, they save time and money. If they don’t measure up, they can withdraw from the process without
having to spend time on application forms or travelling to another city.

D. It is important for companies to follow up with automated feedback on the tests, however. Candidates who do well
in practice tests and receive instant feedback telling them that they’ve exceeded the standard requirements find that
very encouraging, and so tend to stick with the company and continue their application.

E. However, the web offers more than automated form filling, particularly when it comes to identifying the best talent
among the graduate community. Traditionally, companies thought about how to find the right candidate. Today,
however, they think about how the right candidate can find them – by ‘setting up shop’ in other parts of the Internet,
outside their own web domains. Tech-savvy, younger-generation individuals now entering the job market spend much
of their lives online and expect recruiters to be there, too.

F. For companies, this means engaging in the online social networking that plays such an important part in the way
young recruits interact with their peers. As well as social networking sites, virtual worlds such as Second Life also
provide opportunities to engage prospective candidates, whose ‘avatars’ (invented online characters) can interact with
those of the company’s employees.

G. Much of the real power of the Internet in recruitment exists in these external sites, where companies can build an
employer brand and tap into potential recruits by engaging in issues about which these individuals are passionate.
This means companies need to establish a presence in everything from chat rooms to blogs.

H. But while some forward-thinking companies are doing this, many recruiters have yet to tap into these audiences.
‘Organisations are a bit unsure at the moment of how to take advantage of this,’ says Emma Parry, Research Fellow
at Cranfield School of Management. ‘But it’s something they’ll have to do in the future because, for this generation
of recruits, that’s the way they communicate.’

C. Searching for information

1. Look at these reasons why employers participate in social networking sites. Tick (✓) the ones mentioned in
the article.
1. to attract top talent
2. to have fun playing on Second Life
3. to build an employer brand
4. to tap into potential recruits
5. to learn more about world issues

2. Look at these reasons why young people interact with companies on social networking sites. Tick (✓) the
ones mentioned in the article.

1. to develop ‘avatars’
2. to improve their computer skills
3. to join discussion groups
4. to meet interns
5. to participate in opinion polls
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VOCABULARY

A. Word search

Find three words in paragraphs A and B of the article which follow the word recruitment and match the
resulting phrases with their meanings.

1. recruitment s……… a) a set of companies whose job it is to help employers find new employees
2. recruitment p……… b) a plan for recruiting new employees
3. recruitment g……… c) a series of steps which results in the hiring of new employees

B. Word families
1. Complete the chart with words from the article.

verb noun (process) noun (individual) noun (company)

to recruit (1) ……… (2) ……… (3) ………
(4) ……… (5) ……… applicant

2. Complete the chart with the corresponding nouns.

verb noun
to attract (1) ………
to extend (2) ………
to withdraw from (3) ………
to follow up (4) ………
to receive (5) ………

C. Word partnerships

1. Match the verbs and verb phrases (1-8) with the noun phrases (a-h) to form word partnerships relating to
the use of online technology in the job application process.

1. to use a) inappropriate candidates

2. to complete b) web tools very effectively
3. to follow up with c) a practice test
4. to find out d) time and money
5. to weed out e) details about the job
6. to take f) the first stages of the application
7. to save g) against the standards of the company
8. to measure themselves h) automated feedback

2. Decide which actions in Exercise 1 belong to the candidate and which belong the company. One of them
applies to both.

D. Sentence completion

Use phrases from Exercises A-C to complete these sentences.

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1. We have just spent a month working out our ……… ……… for the coming year. We plan to take on 30 graduates
and will recruit them all online.
2. We are a very popular company to work for. In fact, we were voted one of the top-ten ……… last year.
3. Some companies are using online web tools to allow potential recruits to ……… the first stages of their job
application.
4. Practice tests enable potential applicants to ……… themselves against the standards of the company.
5. Online tests allow employers to weed out ……… ……… so that they don’t waste time or money visiting the
company for tests and interviews.
6. Social networking can be a great way to ……… top talent.
7. It is an important part of a company’s task of building an employer brand to appeal to potential young ………

E. Understanding expressions

Choose the best explanation for each word or phrase from the article.

1. ‘... whose topics cover everything from psychometric testing to ...’ (paragraph A)
a) mathematical tests
b) tests which measure personality and attitudes
2. ‘... in areas such as numeracy ...’ (paragraph C)
a) skill with numbers and mathematics
b) ability to read numbers accurately
3. ‘... can weed out inappropriate candidates ...’ (paragraph C)
a) select suitable candidates
b) eliminate unsuitable candidates
4. ‘If they don’t measure up, ...’ (paragraph C)
a) aren’t big enough
b) aren’t competent enough
5. ‘Tech-savvy, younger-generation individuals ...’ (paragraph E)
a) with specialist technical skills
b) knowledgeable about and able to use modern technology

DISCUSSION
1. Visit the websites mentioned and see if any companies you know of are using them to interact with potential
recruits. Describe the ways in which they are doing this.
2. Visit the websites of any companies you know of and find out if they provide online services for potential
applicants. Complete a practice test or two and see how you measure up.

LESSON 3: ACCOUNTANCY
Developing global professionals

This unit looks at the broad range of work skills that the modern accountant needs.

BEFORE YOU READ

Discuss these questions.
1. In your country, what process do you have to go through in order to be able to work as an accountant?
2. Briefly describe any national accountancy qualifications which exist in your country.
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READING

A. Understanding the main points

Read the article and say whether these statements are true (T) or false (F). Identify the part of the article that
gives this information. Correct the false ones.

1. Most accountants work for accountancy firms.

2. There are a number of different specialist areas in accounting.
3. Accountancy firms only operate in their domestic market.
4. Accountancy training is mainly organised locally.
5. With a recognised accountancy qualification, you are sufficiently trained for the rest of your working career.
6. IFAC does not expect accountants to get any further training once they have obtained their initial accountancy
qualification.
7. Giving its accountants business-skills training can have a serious impact on a firm’s success.

B. Understanding details

Read the article again and answer these questions.

1. Which phrase in paragraph F has the same meaning as the edge in the title?
2. What are the three main advantages of an employee who holds a recognised accountancy qualification?
3. Why do accountants generally train in their own country?
4. How does IFAC describe itself?
5. Which two broad sets of skills do large accountancy firms value as much as the purely technical accounting skills?
6. What does KPMG see as being the most important asset in its accountants?
7. Which major barrier to this does KPMG’s Senior Training Manager mention?
8. Which markets would currently benefit from having more accountants trained to a high level?
9. Which attributes do employers need their internationally mobile employees to share?
10. What sort of economic benefits would a stronger accountancy profession bring to developing countries, according
to ACCA’s Chief Executive?

READING 3:
Business skills give you the edge
by Rod Newing
A. Anybody can call themselves an accountant, but a recognised qualification generally guarantees proper training,
experience and professional standards. Most accountants work in-house for companies or organisations in the private,
public or voluntary sectors. Those employed by accountancy firms, on the other hand, usually specialise in very
specific areas, such as auditing, taxation, insolvency or forensic accounting. Naturally, each specialism has different
training requirements.

B. Despite the existence of global accounting practices serving global clients, the accountancy bodies that oversee
training are almost entirely domestic and serve the needs of their domestic market.
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C. Although the widespread adoption of international accounting standards is making training easier, taxation is a
national issue. Therefore, accountancy training naturally tends to occur at a national level. ‘We are not educating
accountants to work anywhere in the world, but to work in their own national environment,’ says Jim Sylph, Executive
Director of Professional Standards at the International Federation of Accountants (IFAC).

D. IFAC describes itself as ‘the global organisation for the accountancy profession’. It has 2.5 million members from
all areas of the profession, belonging to 157 member and affiliated bodies and accountancy associations, from all over
the world.

E. But accountancy training is not just about the initial qualification. The big challenge is keeping accountants up to
date in a changing world. To support its members, IFAC sets very broad standards for education programmes,
including continuing professional education and lifelong learning.

F. The current trend is to emphasise strategy and management over the purely technical subjects, because strategic
and managerial skills can give the big global practices a competitive advantage.

G. In this way, at PricewaterhouseCoopers (PwC), the concept of the ‘business adviser’ runs right through from newly
qualified accountants to partners. This includes skills such as managing teams, and coaching and appraising people.
Business and relationship skills have huge financial implications. Indeed, they often determine the length of time that
the business relationship between an accountancy firm and its customers exists.

H. Similarly, global training at KPMG concentrates on values, skills and behaviours. However, KPMG’s main
strategic focus is the mobility of its workforce, and it views the lack of portability of national qualifications as the
main barrier to this. ‘It presents challenges within the profession,’ says Michael Walby, Senior Training Manager at
KPMG. ‘We need to be able to get our resource to the opportunities, irrespective of geographical boundaries. The
profession needs to work together across the various institutes to take advantage of future opportunities.’

I. ‘If you get training right, it can make a significant difference to competitive advantage,’ says Ms Kilbride, Associate
Partner for Global Learning at Deloitte. This is especially the case in small or emerging markets that are growing
rapidly. They face challenges to consistency and quality because of a rapid influx of people.

J. According to Mr Blewitt, Chief Executive of the Association of Chartered Certified Accountants (ACCA),
increasingly employers want people who can move around the world with a common accounting language and set of
standards and ethics. He states, ‘There is an inexhaustible demand from developing nations. With a qualified
accountancy profession, these countries will continue to be able to attract inward investment and aid from agencies
such as the World Bank.’

VOCABULARY

A. Definitions

Paragraph A lists four accountancy specialisms. Match these words and phrases from the article (1-4) with
their meanings (a-d).

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 1. auditing a) when a company’s financial records are officially checked because illegal activity
is suspected
2. tax accounting b) an accountant working in this area acts for a person or company that is no longer
able to pay their debts or a company whose liabilities exceed its assets
3. insolvency c) preparing a person’s or company’s financial information in order to calculate the
proportion of their profit which they must pay to their government
4. forensic accounting d) checking an organisation’s activities or performance or examining a person’s or
organisation’s accounts to make sure that they are true and honest

B. Word search

Read paragraphs G and H again and match each of these nouns or noun phrases with either PwC or KPMG.

1. business adviser concept – PwC

2. mobility
3. values and behaviours
4. team-management skills
5. coaching
6. employee appraisal
7. relationship skills

C. Sentence completion

Use words and phrases from Exercises A and B to complete these sentences.

1. Due to a sharp drop in sales, the company was not able to pay its creditors and eventually entered into ………
2. Accountants need to deal with clients, so it is important for them to have ……… skills as well as technical ones.
3. It is important to have ………-……… skills if you are going to be responsible for groups of employees.
4. Accountants involved in ……… check that their clients’ financial statements present a true and honest picture of
the company.
5. The company was suspected of being dishonest in its financial reporting, so the ……… accountants were
called in to investigate its dealings.
6. Accountants need to develop ……… ……… skills in order to give appropriate feedback to the teams they manage.

D. Word partnerships

Match the sentence halves to make sentences similar to ones in the article.

1. Global accounting practices serve a) a wide range of education programmes.

2. A recognised qualification guarantees b) a significant difference to competitive advantage.
3. Accountancy bodies that oversee training serve c) global clients.
4. IFAC provides d) challenges to consistency and quality.
5. Good training can make e) proper training.
6. Emerging markets face f) the needs of their domestic market.

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E. Linking ideas

1. Find five words or phrases in the article which express contrast or similarity. Identify the sentences in which
they appear and state which idea they express.

EXAMPLE: Anybody can call themselves an accountant, but a recognised qualification generally guarantees proper
training experience and professional. (paragraph A)
‘But’ expresses contrast

2. Write five sentences of your own, using the linking words and phrases you found in Exercise 1.

F. Understanding expressions

Choose the best explanation for each phrase from the article.

1. ‘... not just about the initial qualification.’ (paragraph E)

a) occurring at the end
b) occurring at the beginning
2. ‘... have huge financial implications.’ (paragraph G)
a) consequences
b) difficulties
3. ‘There is an inexhaustible demand ...’ (paragraph J)
a) never-ending
b) enormous

DISCUSSION
1. Do an Internet search of the accountancy firms mentioned in the article. Which areas of professional training do
they provide, and which firm looks the most interesting to work for? Write a short report.
2. Vocabulary Exercise B lists several non-technical aspects of accountancy work. Explain what they might involve
and whether you think they make the job more interesting.
3. Which of the accountancy specialisms mentioned in the article do you think would be the most interesting to work
in? Explain your ideas in a short presentation.

Lesson 4: International Business

Overcoming cultural barriers

This unit considers the cultural issues which can arise when a company starts working internationally.

BEFORE YOU READ

Discuss these questions.

1. What are the main reasons for a company to start looking outside its domestic market?
2. What are some of the problems that might arise when marketing and advertising products in different countries?
3. What kind of cultural problems can arise when a company starts working internationally?

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READING

A. Understanding the main points

Read the article and say whether these statements are true (T), false (F) or there is not enough information
given (N). Identify the part of the article that gives this information.

1. Most companies only start working internationally when they have fully exploited their domestic market.
2. The best way to enter foreign markets is to set up subsidiaries in those countries.
3. Geert Hofstede was the first person to study the impact of culture on working internationally.
4. Geert Hofstede found that values and beliefs in different parts of IBM across the world were different.
5. The biggest problem when working internationally is getting the marketing right.
6. China is the most difficult foreign country for Western companies to do business in.
7. Cultural diversity can be a benefit as well as a problem.

B. Understanding details

Read the article again and answer these questions.

1. What is Geert Hofstede’s nationality?
2. When did Hofstede carry out his research at IBM?
3. Why was IBM a good company to choose for his research?
4. Why was ‘Nova’ a bad name for a car in Spanish-speaking markets?
5. Why was the Lexus luxury car less successful in Europe than in the US?
6. What can companies do to be more successful when marketing products internationally?
7. Why do Western companies have problems operating in China?
8. What are some of the benefits of working across cultures?

READING 4:
Barriers can give a competitive edge
by Morgan Witzel

A. Sooner or later, the growing company will reach market saturation in its domestic market, and there will be little
choice but to move into overseas markets.

B. Most companies, in fact, start dipping their toes into foreign waters long before they reach domestic saturation, to
exploit other profitable markets and give themselves experience of working abroad.

C. Whether the company is trading abroad or establishing foreign subsidiaries, the issue of national culture assumes
great importance. It had been known for years that working across cultures poses special problems, but the work of
Geert Hofstede, the Dutch management theorist, in the 1970s and 1980s showed just how diverse and various cultural
influences can be.

D. Working across a single global company – IBM, a business noted for the uniformity of its corporate culture –
Hofstede showed that a huge variety of beliefs and values were present in the workplace, not just between the US,
Europe and Asia, but within regions as well.

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E. Globalisation is said to be leading to cultural convergence but, as Hofstede and many later studies have shown,
full convergence is still some way away.

F. Companies moving into international markets will usually first feel the effects of culture on their marketing and
advertising. Every international marketer has their collection of mistakes, where the values of one culture fail to
translate into another. Sales of the Vauxhall Nova in Hispanic-speaking countries, for example, suffered because in
Spanish, no va means ‘won’t go’.

G. Other failures are more complex and based on deeper cultural divides. Toyota’s luxury car, the Lexus, was an
immediate hit in the US, where the luxury-car market had been the preserve of a few domestic companies, and the
Lexus offered something appreciably different. The Lexus has been much less successful in Europe, where there is a
stronger tradition of luxury car-making and strong loyalty to local brands on the part of their buyers.

H. Cultural barriers in marketing can be overcome by repositioning brands, changing advertising and product features
to suit local sensitivities and so on. Much more difficult to manage are the cultural differences that arise when
companies establish multinational subsidiaries and then expect members of different national cultures to work
together. This is especially the case with Western companies establishing subsidiaries in China.

I. Chinese workers often prefer strong, directive leadership to the more democratic model now common in the West.
They also rely much more on senior managers to sort out problems, including problems in the workers’ private lives.
Linguistic confusion is also compounded by quite different attitudes to issues such as ethics, reporting and control,
and workers’ rights and responsibilities.

J. What appears to be a barrier, however, can actually be a source of competitive advantage for those companies and
managers that learn to work with cultural differences and benefit from them.

K. In terms of managing local subsidiaries, some global companies have learnt to adopt best practices from foreign
companies and transfer these into the home market. This kind of cross-fertilisation has been taking place between
Japanese and Western car-makers for decades, and has led to powerful innovations on both sides.

VOCABULARY

A. Understanding expressions

Choose the best explanation for each phrase from the article.
1. ‘... will reach market saturation ...’ (paragraph A)
a) start to lose market share
b) stop expanding its market share
2. ‘... start dipping their toes into foreign waters ...’ (paragraph B)
a) making the first moves
b) carrying out test marketing
3. ‘... leading to cultural convergence ...’ (paragraph E)
a) where everything becomes similar
b) where everything changes
4. ‘… will usually first feel the effects of culture on …’ (paragraph F)
a) have cultural problems
b) be influenced by culture
5. ‘… based on deeper cultural divides.’ (paragraph G)
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a) differences
b) values
6. ‘... to suit local sensitivities ...’ (paragraph H)
a) adapt to different ways of doing things
b) try to change the local customs
7. ‘Linguistic confusion is also compounded by …’ (paragraph I)
a) made better
b) made worse
8. ‘... a source of competitive advantage ...’ (paragraph J)
a) a reason for problems with competitors
b) a chance to be better than competitors
9. ‘... to adopt best practices from …’ (paragraph K)
a) improve by constant practice
b) take good ideas from others

B. Word search; Find words or phrases in the article which fit these meanings.
1. markets in foreign countries (paragraph A)
2. to use fully so you get as much advantage as possible from it (paragraph B)
3. companies that are at least half owned and controlled by another company (paragraph C)
4. causes (a problem) (paragraph C)
5. ideas that you feel to be true (paragraph D)
6. the principles that influence the way of life of a particular group or community (paragraph D)
7. place reserved for one special group (paragraph G)
8. being faithful to a set of beliefs or a country (paragraph G)
9. things that prevent or limit what you can do (paragraph H)
10. changing the way of marketing and advertising a product or a brand so that people think about it in a different
way (paragraph H)
11. set up, create (paragraph H)
12. a style of management that shows you are clearly in charge (paragraph I)
13. to solve (paragraph I)
14. the mixing of the ideas of different groups of people, which often produces a better result (paragraph K)
C. Sentence completion

Use words and phrases from Exercise B in the correct form to complete these sentences.
1. Multinational companies usually have ……… in many parts of the world.
2. Some companies are more successful in ……… markets than in their domestic market.
3. Having a presence in a market is the best way to ……… it fully.
4. Sometimes it is necessary to ……… a product or brand in a foreign market in order to avoid offending or confusing
people.
5. To sell products successfully in foreign markets, it is usually necessary to ……… local sales companies.

DISCUSSION

1. What are the positive aspects of working across cultures?

2. What are the challenges or difficulties of working across cultures?
3. The words below are all associated with culture. How would you explain or define each of them?
artifacts assumptions attitudes behavior beliefs
dress food language norms traditions values
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4. A common image of culture is that of an iceberg. Why do you think that is?
5. Which of the words in question 3 associated with culture are above the surface of the iceberg of culture and are
clearly visible, and which are below the surface and invisible? For those below the surface, how far below the surface
do you think they are? Say why.
6. What are some of the core values in your culture?
7. Some examples are given in the article about brands and products that have not transferred well to overseas markets.
Can you think of others?

LESSON 5: LAW
Business and the law

Businesses cannot be run without taking into account the many laws and regulations, codes and standards that have
been developed over the years to regulate the way commerce operates throughout the world. This unit looks at the
way businesses are affected by legal issues.

BEFORE YOU READ

Discuss these questions.

1. In what ways will the law have an involvement in the different departments of an international manufacturing
company? For example, the HR department will be concerned with contracts of employment. What about the Sales
department? Or the Finance department? Come up with one or two ideas for each department.
2. What kinds of legal claim might be made against a company by employees, suppliers or competitors? And what
claims might the company make against them?

READING

A. Understanding the main points

Read the article and answer these questions.

1. Which four general areas of running a business are typically affected by the law?
2. How would you describe Elegance to someone who knew nothing about it, in about 10 words?

B. Understanding details
Read the article again and answer these questions.
1. What kind of products does Elegance sell which have more than simple cosmetic properties? Why is this important?
2. Which people are described as being affected by the law (both inside and outside the company)?
3. What is important from a legal point of view about the way a job is advertised?
4. What kind of responsibilities does a manufacturing company have towards consumers?
5. What is important from a legal point of view about how products are advertised?
6. Why is intellectual property law important for companies like Elegance?
7. Which laws are relevant for Elegance as regards the working environment in its offices and factories?
8. What can companies do to reduce the amount of tax they have to pay?

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READING 5:
How does the law affect the business world?
Introduction

A. An interesting way to understand the wide-ranging effect that laws, regulations and codes have on the day-to-day
operations of a business is to create a fictitious company, then consider how different aspects of that company come
into contact with the law.

B. Let’s say our company is an international cosmetics organisation, Elegance, based in Paris, with offices in Europe,
Asia, the Middle East and North America, and manufacturing plants in Europe, China, India and South America. The
company makes and sells a wide range of creams, soaps, perfumes and hair treatments, all available under several
famous brand names. It also produces medicated skincare products; these are manufactured in Central Europe, and
contain medicinal ingredients used under licence from a pharmaceutical company.

C. To get a broad picture of how the law can have an impact on a company like Elegance, we can divide the
organisation into four general areas: people, products, premises ... and profit.

People

D. Here, we think about employees, management, shareholders and customers. Elegance has employees in its factories
and offices, so they will require contracts of employment. Before anybody can be recruited for a job, the position is
advertised – the HR department will be aware of strict laws relating to discrimination, diversity and equal
opportunities. If an employee is guilty of misconduct, then employment law disciplinary procedures must be observed,
followed sometimes by dismissal.

E. The company is run by the directors and management; they are obliged to fulfil certain duties and to perform in a
responsible way on behalf of the shareholders, the ultimate owners of the company. The directors must keep proper
records of the financial status of the company; the company’s legal status will govern what information is made
available to the public.

F. The people who buy and use Elegance products expect them to be safe and reliable. These customers have rights
under consumer protection laws.
Products

G. Poor quality control may result in a serious product liability claim against Elegance, perhaps involving a substantial
award for damages. In addition to quality control, the company must consider advertising, packaging and
labelling requirements. Elegance must closely monitor what it says about its products, and how it is said.
Pharmaceutical products will need to comply with strict medicines legislation. Elegance factories will have contracts
for the supply of raw materials; breach of contract may lead to litigation. The company must carefully protect its
intellectual property rights – it wants to avoid infringement of patents, trademarks and copyright.

Premises
H. Consider Elegance’s premises – its land and buildings. Is Elegance owner of the real estate, or does it rent offices
or factories? As an employer, Elegance must observe health and safety legislation in the factories and in the offices.
It has a duty to provide employees with a safe working environment.

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Profit

I. A principal aim of an organisation such as as Elegance is to make money every year. Corporation tax is payable on
profits – tax lawyers can arrange schemes for legal tax avoidance, but not tax evasion. That is a criminal offence.

Conclusion

J. This rapid tour round the fictional cosmetics company Elegance should demonstrate that very few aspects of
running a typical commercial enterprise escape the influence of the law. It is essential for every company to keep
itself fully informed of all relevant laws and regulations.

VOCABULARY

A. Word search

Find words or phrases in the article which fit these meanings.

1. rules of conduct or correct business practice which don’t have the force of law (paragraph A)
2. with permission of (another company) (paragraph B)
3. agreements between employers and employees (paragraph D)
4. employed, hired (paragraph D)
5. unfairly choosing one person in favour of another (paragraph D)
6. being fired (paragraph D)
7. the people who own a company (paragraph E)
8. the legal standing of a company (paragraph E)
9. a legal challenge resulting from a product that causes harm (paragraph G)
10. compensation ordered by a court to be paid to someone who has suffered loss or injury (paragraph G)
11. written laws (paragraph G)
12. when a contract is broken (paragraph G)
13. going to court (paragraph G)
14. copying someone’s registered invention (paragraph G)
15. a word describing a building and the land it stands on (paragraph H)
16. property (offices, houses, etc.) (BrE) (paragraph H)
17. not to pay tax, but in an illegal manner (paragraph I)

B. Word partnerships

Match the adjectives (1-5) with the nouns (a-e) to form word partnerships from the article.

1. equal a) protection

2. disciplinary b) estate

3. consumer c) offence

4. real d) procedure

5. criminal e) opportunities

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C. Sentence completion

Use the word partnerships from Exercise B to complete these sentences.

1. The women in the office felt they hadn’t been offered ……… ……… when compared with their male colleagues.
2. Saying your competitors make bad-quality products may be commercially unwise, but is it a ……… ………?
3. We deal in offices, factories and other kinds of ……… ………
4. He was late again! We will now have to follow the company ……… ……… and give him a written warning.
5. ……… ……… legislation has grown over the last 50 years. The buying public is now in a much stronger position.

D. Legal terminology

1. Complete the names of these different areas of law.

1. the law relating to hiring and firing
e……… law
2. the law that protects the buying public
c……… law
3. the law regulating the manufacture and sale of pharmaceuticals
m……… law
4. the law relating to a share of profits paid to the state
t……… law
5. the law concerning the well-being of employees
h……… and s……… law

2. Complete these legal expressions using the correct prepositions. Check your answers with the article.
1. Their products are made ……… licence.
2. One of our employees was guilty ……… serious misconduct.
3. A member of the public made a claim ……… the company.
4. All manufacturers must comply ……… the new safety regulations.
5. The suppliers did not deliver the goods on the agreed date. It was a clear breach ……… contract.

DISCUSSION
1. Think of a well-known manufacturing company in your country. Give a five-minute presentation explaining the
general areas of your country’s law that the company needs to observe.
2. Discuss with a colleague what you think the legal differences are between managing a large manufacturing
company, such as Elegance, and a small company, such as a consultancy, with about 10 staff, providing service only
to local people from one office.

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