UNIT 4: GREAT IDEAS

TOPIC VOCABULARY

A company/firm A business or organization that makes

money by selling goods and services
A venture A commercial undertaking, such as the
launch of a new company, in which there
is a risk of loss as well as an opportunity
for profit
An enterprise A company or business, often a small
one
A cooperation A large business or company
Commerce The activities or procedures involving in
buying and selling things
Business An organization which produces and
sells goods, or which provides a service

Note: Business is work relating to the production, buying and selling of goods or
services. Business is also used when talking about how many products or services a
company is able to sell. If business is good, a lot of products or services are being
sold, and if business is bad, few of them are being sold. Business is also work or some
other activity that you do as part of your job and not for pleasure
Business innovation

Business innovation is when companies

implement new processes, ideas, services,
or products with the goal of boosting the
bottom line. It could mean launching new
and improved products or services (which
can lead to higher revenue), making an
existing process more efficient, or solving
a current business problem (both of which
cut down on costs and save time). The
key element of innovation is that it drives
revenue for the company. 

Types of business innovation

Product innovation Creating a completely new product

that’s adjacent to a business’s core
offering. Think of Dyson extending into
hand dryers or Apple launching the
smartphone.

Process innovation Designing a new way to be more

efficient in the core business. Examples
of this include Amazon using robots in
the warehouse, or Chase Bank
implementing mobile check deposit.

Business model innovation Introducing a new way of making or

saving money, such as Zipcar launching
car-sharing subscriptions, or Rent the
 Runway offering a subscription service
for clothing rental.

Delivery innovation Implementing a new way of interacting

with customers. This happens when a
company puts customer service first, or
Tesla makes it possible to buy cars
online.

These types of business innovation enable companies to become more efficient,

forward-thinking, and hopefully more profitable. The good news for companies is that
there are practical steps to jump-start innovation.
Why is business innovation important?

Innovation offers companies four main benefits: 

1. Getting ahead of potential disruption 

When done right, business innovation takes stock of where the market is going due
to potential disruptors or changing consumer demands. Businesses use that
information to make strategic changes and to entice internal employees to be
entrepreneurial. Those changes can include building a product or service similar to
what new startups are making, buying it from others in the industry, or partnering with
the upstarts (known as the “buy, build, partner” model).
2. Increased efficiency 

A lot of business innovation happens by making existing business processes less

costly, less time-consuming to complete, and more sustainable. Those changes save
time and make it easier for an organization to adapt to industry shifts with agility,
which cushions against volatility and risk. 

3. Talent attraction and retention

More than ever, employees—particularly millennials and Gen Z—want to work for
mission-driven, fast-moving companies that they believe have a bright future. 
4. Brand perception

Consumers are more willing to buy from companies they perceive to be innovative
and socially conscious. That could involve aspects like updating their office space, or
creating forward-thinking and collaborative innovation labs. Or it could be
implementing internal innovation programs to tap into the creative energy of their
employees, and surface and execute the best ideas. Learn more about how to drive
innovation in the workplace.

(Source: https://www.wework.com/ideas/professional-development/creativity-
culture/what-is-business-innovation)

Invention, innovation and innovator

Innovation means taking an invention

and developing it to make it a
commercially viable product. The
Walkman, for example, was invented by
Sony's chairman who wanted to be able
to play golf and listen to music of the
same time. Innovation is the process
which allowed Sony to mass produce the
Walkman and make it a huge
commercial success.

Product viability (n) The business potential of a specific product.

A minimum viable product (MVP) is a

version of a product with just enough
features to be usable by early customers
 who can then provide feedback for
future product development.

Prototype (n) a first, typical or preliminary model of

something, especially a machine, from
which other forms are developed or copied.

Entrepreneur (n) a person who organizes and operates a

business or businesses, taking on greater
than normal financial risks in order to do so.

Mass production (n) the production of large quantities of a

standardized article by an automated
mechanical process.
Trademark (n) a symbol, word, or words legally registered
or established by use as representing a
company or product.

Patent (n) a government authority or license conferring

a right or title for a set period, especially the
sole right to exclude others from making,
using, or selling an invention.
PRACTICE
A. Use the terms in the box to complete the sentences

Big business commerce small business corporations firm

1. A business, company or firm is an organization that sells goods or services.

2. Business is also referred to as commerce
3. The term corporations can refer to large business organizations or to any
business activity that makes a lot of money.
4. Large companies are referred to as big business
5. Small companies are referred to as small business or small firms.

B. Complete each sentence with the correct form of the words in the box

Company enterprise commerce

Firm business concern business venture
Business

1. Most governments try to create an economic environment that will help

___commerce_____ and trade.
2. Some firms_______ such as Coca-Cola and Nike are internationally famous
3. Many students study _business_______ at college.
4. In recent years some enterprise__business venture______ involved in new
technology have become very wealthy.
5. He likes to threaten to use the powers of his office to interfere with the business
concern__business concern______ of media companies he does not favor or to
punish their owners.

C. Circle the correct answer to each question. Use the information in the
table to help you.
 Number of employees Turnover

A small business 50 or fewer $2.8m or below

A medium firm Between 50 and 250 $11.2m or below

A large Usually over 250 Usually more than

firm/corporation $11.2m

1. Seaton Industries has a turnover of around £55m. In other words, it is a small

firm/corporation
2. Robbins Inc. employs around 300,000 people. In other words, it is a
small/medium/large firm.
3. In the UK, firms employing less than 20 staff make up 97% of all businesses.
They are small businesses/corporations.

D. Draw a line from each word on the left to a word on the right to make a
word pair. (There is one extra word that you don't have to use.) Then use
your word pairs to complete the sentences below. The first one is an
example.

continuous defects
quality improvement
mystery
practice
zero
control
spot
best performance

shoppers

checks

0. We regularly upgrade our products because we believe in continuous

improvement
1. To test customer service in our stores we send in mystery shoppers
2. We look around the industry for examples of best practice and then copy them.
3. I believe that quality control is all about checking that products match the
specs.
4. We can't afford any mistakes. Our target is to have zero defects
5. We make frequent spot checks throughout the manufacturing process.

E. Choose the best word to fill each gap from the alternatives given below.
Put a circle around the letter, A, B or C, of the answer you choose.

‘I’m Sue Carter, production manager at F1 Parts PLC. We make engine parts for
high performance cars. Here we believe in 1__total______ quality management.
The 2__dimensions______ of each part are given to one-hundredth of a
millimetre. At every stage we check that our products 3_conform_______ to the
specs. We try to get it right 4___first_____ time because, if there is a defect,
5_reworking_______ is very expensive. We are always looking for ways to
improve quality and so our motto is 6__kaizen______ which comes from
Japanese

F. Replace the words in italics in sentences 1-10 below with a word or

expression from this box

An early developer name of symbol

Sold permission to produce separate parts
An important development established
First models legal protection
Register and protect a businessperson ready to take risks

1. The components are acuembled in our factory in Ireland. Separate parts

2. The business was founded in 1953 by Sir John Miller established
3. One of the prototypes was made from parts of other appliances. First models
4. You should patent your invention before someone copies it. Register and protect
5. There has been a breakthrough in the search for a vaccine an important development
6. The copyright which writers have over their work is often ignored legal protection
7. Henry Ford was a pioneer of techniques of mass production. An early developer
8. We need an entrepreneur to develop the product. A businessperson ready to take risks
9. He licensed his invention for almost nothing. Sold permission to produce
10. When a trademark is patented, no one else can copy it. Name of symbol

G. Complete the sentences by underlining the correct alternative in italics.

1. Think of the publisher's patent / copyright the next time you photocopy from a
book.
2. The company was found / founded in Munich at the beginning of the century.
3. George Eastman was an early explorer / pioneer of colour photography.
4. She came across / found out the professor's notebook as she was reorganizing
the laboratory.
5. They came across / found out the new glue completely by accident.
6. Scientists are expecting to make an important breakthrough / breakdown in the
next few months.
7. We need to bring out / come up with some ideas for a new product fast.
8. She gave them a patent / license so they could produce her invention.
9. I'm not sure if this new design will catch on/ catch up; it's far too modern.
10. She had to keep her invention/innovation a secret until she got the patent for it.