English for Business Studies 3rd Edition

English Professional

Englishd' Studies Business Studies A coursefor Business and Economicsstudents ThirdEdition

"g :

Student'sBook

G--

w $ ry

*E; s. Wtflfl{tlx'1st

;n

lanMacKenzie

cM-

T;;Eft8, il t$ i$ftu

nglishfor usinessStudies coursefor Business Studies nd Economicsstudents ird Edition

StudenttBook lanMacKenzie ffi Qp

C,q.MBRTDGE uxrvE Rs rryI RE S S

CAMBRIDGE

U NIVERSIT Y

PRESS

Cambridge,New york, Melbourne,Madrid, CapeTown, Singapore, SdoPaulo,Delhi, Dubai, Tokyo CambridgeUniversifypress The EdinburghBuilding, CambridgeCB2 gRU,

tIK www.cambridge.ory Information on this title: www.cambridge. org/ 97 g05217434Ig @CambridgeUniversitypress2010 This publicationis in copyright.Subjectto sratutoryexception and to the provisionsof relevantcoliective licensini ugr"J_"*r, no reproductionof anypartmay takeplace without tt. *Att"rr, permissionof CambridgeUniversitypress. First published 1997 SecondEdition 2002 Third Edition2010 Prinredin the United Kingdom at the Universifypress, Cambridge A catalogue recordforthispublicationis availableJrom theBritish Library ISBN 978-0-S2I-74341-9Srudenr,s Book ISBN 978-0-521-7 4342-6Teacher,s Book ISBN 978-0-521-74343_3 Audio CD Set Cambridge-universitypresshasno responsibility for the persistenceor accuracyof uRLs for external0r thiri-party internetwebsitesreferredto in this publication, and doesnot gsaranteethat anycontenton suchwebsitesis, or will remain' accvrateor appropriate.Information regardingprices,travel timetablesand other facttaTinformationgiven in this work is correctar the time of first printing but Cambridge liniversity pr"r, ao., ,roi-lu,urun* the accuracyof suchinformation theiafter.

Thanks q:roughonlyonenameappears on the coverofthisbook,I needto thanka great r:ry peoplefor theirhelpandhardwork,beginning withCambridge University Press : :rmissioning editorChrisCapper. Ashford, HelenBicknell, AnnaGlinska, JoyGodwin, Graham JonesandDominique 5r:chanie tlu[:cabies previous gavehelpfulfeedback on the edition. Theoutlineof thiseditionwas i,,mn':'ked outwithChrisCapper, WillCapelandChrisWillis. !,$dCapelwasthe development editor,whileChrisWillisalsomadesuggestions for thefirst =of the bookandloy Godwin for the second. AlisonSilveralsoprovided ideasthroughout, 'a prepared nr: expertly andgood-humouredly the manuscripts for production. Martin wastappedfor the unitson accounting andfinance. Allof the editors l":wdy'sexpertise ,nu'findsomeof theirideasin the book- thoughI probablyscoffedat themat firstbefore "r,=raging myselfthey'dbeenmy ideasallalong! to convince rilr Capelset up mostof the UKlnterviews, andPeteKyleexpertlyrecordedthem,withan er*:.aordinarily largemicrophone on the endof a pole.Oneotherrecording wasproduced n, .James Richardson. PeteKylealsoproduced andeditedthe CDs.My thanksgo to allthe n::rviewees, gaveustheirtimeandsharedtheirexpertise who graciously withus:John e,r:onakis, Richard Barker, MartinBeniston, OlgaBabakina, Charles Cotton,Carlode Stefanis, George, Melissa Glass, AlanGoodfellow, Anna-Kim Hyun-Seung, ieris Frucot, Janine Lakshmi lm,a, Michael Teresa LaThangue, AlisonMaitland, TonyRamos, Kitson, ChrisSmart,Krishna Thanksalsogo to the writerswhosetextsI have Saktiandi SupaatandRoryTaylor. 5,r'ivasan, ll.ed,andthe cartoonists whosework(mostlyfromTheNewYorkerlbrightensup the pages. nr=nks arealsodueto ChrisDoggett for dealing withpermissions, HilaryLuckcock for :r':ingthe photographs, LindaMatthewsat Cambridge Pressfor arranging University the (as who purses schedule, WildAppleDesign cananddo turnsows'earsintosilk nr:duction rl-esayingdoesn'tgo),and KevinDohertyfor porof'raeding. Prospective thanksgo out to all people. Press's andmarketrng Cambridge University sales "*n ',rededicated previous booksto my children, butthistimeI haveto revertto theequally paragraph: itl=:itional apology-to-partner sorry,Kirsten, for the surliness thatwentwith .mery monthsof writinga bookwhilealsoworkingfull-time andtakingon too manyother (Oddly, ,r;rrmitments. my assurances thatthiswillneverhappenagain!) shedoesn'tbelieve mrMacKenzie 2009 Sertember

Contents Thanks lntroductionto the learner. Map of the book

3 6 7

Management 1 2 3 4 5 6

Management Workandmotivation Company structure Managing across cultures Recruitment Womenin business

Economics 10 15 21 26 30 38

22 23 24 25 26 27 28

Government and taxation Thebusinesscycle Corparatesocialresponsibility Efficiency and employment Exchange rates International trade Economics and ecology

109

Rolecards Audio scripts Appendix1: How to givea good presentation

142

Itz +

119 124 128 132 t50

Production 7 8 9 10

Thedifferentsectorsof the econorny Production Logistics Quality

42 47 51 56

Marketing 11 Products 12 Marketing 13 Advertising

60 64 69

Appendix2: Writing emails,letters and reports Acknowledgements

156 181 185 194

Finance 14 Banking 15 Venturecapital 16 Bonds 17 Stocksand shares 18 Derivatives 19 Accountingandfinancialstatements 2O Marketstructureand competition 21 Takeovers

73 77 81 86 91 95 100

Contents 5

Introductionto the learner English for Business Studiesis a reading,listening, speaking andwritingcoursefor learners withat leastan upper-intermediate (Common levelof English European Framework for Languages level82)who needto understand andexpressthe keyconceptsof business and economics. lt coversthe mostimportant areasof management, production, marketing, financeandmacroeconomics. Thiscourseaimsto: ' . . '

present youwiththe language andconcepts of business andeconomics foundin books, journals, newspapers andmagazines, andon websites yourcomprehension develop of business andeconomics texts yourlistening develop skillsin thefieldsof business andeconomics provide youwithopportunities to express business concepts bothverbally andin writing, by reformulating themin yourownwordswhilesumma rizing,analysing, criticizing and discussing ideas.

Mostof the unitscontain fourcomponents: 1 An informative reading textgivingan overview of a particular topic,introducing keyconcepts, andincluding a lotof relevant plusa varietyof technical vocabulary, comprehension andvocabulary exercises anddiscussion activities. Someof thetexts comefromnewspapers andbooksaboutbusiness or economics. 2 Listening activities, mostlybasedon interviews people,economists withbusiness and otherexperts. Thelistening material includes British, American, Australian andSouth Africanvoices, butalsospeakers fromseveral European andAsiancountries. Listening to non-native speakers of English is important asmuchof the English youwillhearin your professional lifewillbe spokenby peoplewho don'thaveEnglish astheirfirstlanguage. 3 Speaking activities including discussions, casestudies, roleplaysandpresentations. 4 Writingactivities including summaries, emails, memosandreports. lf youareusingthisbookin a classwitha teacher, it willgiveyoulotsof opportunities to discuss ideasandissues (inpairsor smallgroups), withotherlearners andto develop and defendyourown pointof view. lf youareusingthiscourseon yourown,youwillstillbe ableto do the reading andlistening exercises. Youwillfindthe answers to the exercises in the English for Business Studies Teacher's Book. I hopeyouenjoyusingthisbook.

Introduction to the learner

Map of the book u*i

,.,-:

1

Management

2

Workand motivation

i3 i

4

5

6

,

' l ; aee*irte -,: Casestudy. Whatis management?MBAstudents: a Chief Whatmakesa good Selecting Officer Operating manager? TheoryX andTheory and Y;'Satisfiers' 'motivators'

MBAstudents: and Managers motivation

Writing Surirmary;email

Casestudy:A car manufacturer

Summary;email

Notesfor a presentation

Presentation: Big MBAstudents: andthe Wikinomics a futureof companies; andsmallcompanies Presenting company structure Company Roleplay: MBAstudents: across Managing Managing Welcoming authority, Managers, acrosscultures cultures andculturaldiversity American colleagues Roleplay:A job Job JohnAntonakis a vacancy, Recruitment Filling (management interview applications professor): Job interviews Roleplay:Dowe AlisonMaitland You'refired! Womenin (writerand needmorewomen ( lne LrUArAlAn) business journalist):Women in managers? - a strategic business tsSue

Company Structure

7

Thedifferent sectorsof the economy

8

Production

9

Logistics

Autobiographical text

vitae Curriculum or resume

Memoor email

Your news Discussion; Thebusiness Anothercupof tea placein the (David Lodge:/Vlce (radio) economy Manufacturing Work\', andservices (lT Roleplay.Choosing AlanGoodfellow and Capacity suppliers 'TheDell director):Purchasing inventory; andlow-cost Theoryof Conflict (Thomas manufacturing Prevention' TheWorld Friedman: ls Flatl Casestudy:Risk AlanGoodfellow: Pullandpush Kanban analysis Inventory, Supplystrategies; (Thomas andMRP;Leica's chaining TheWorld supplychain Friedman: ls FIat); Supplychain workflow

news Business item

E mai l

report Summary;

Map of the book

7

---

l

j

1 0 Quality

TotalQuality Management

11 Products

andbrands Products

12 Marketing

Theproductlife is cycle;Marketing everything (Regis McKenna: HarvardBusiness Review) andviral Advertising marketing

DenisFrucot(hotel Roleplay:A hotel Customer chainin trouble manager): qualitY in a careand hotel Casestudy: Glass Melissa a (juicebardirector): Researching productconcePt anda Smoothies juicebar CasestudY: Glass: Melissa a new juice Promoting bar a Promoting product

Email

Report

of Description distribution cnannels

radio Summaries; a radio Radiocommercials Scripting commercial commercial Minutesof a (HSBC): Roleplay: TonyRamos Banksandfinancial 14 Banking meeting banking; Microfinance Commercial The institutions; HyunAnna-Kim crisisand subprime (exPert on Seung the creditcrunch ethics): business Microfnance plan ChrisSmart(venture Roleplay:Investing SummarY 15 VenturecaPital A business Investing in start-uPs capitalist): in start-ups Report Bonds;HowtoProfit TeresaLaThangue Casestudy: 16 Bonds in funds Investing (Financial Services from bonds(fhe Bonds AuthoritY): GuardianandThe subprime and lndependent) mortgages Roleplay:Investing news A f nancial Stocksandshares; 17 Stocksand a client'smoneY (radio) Hedgefunds(Geraint report Snares Anderson.CitYboY) memo LaThangue: Roleplay:Financial Training (flmes Teresa Spread-betiing 18 Derivatives instruments Hedgefundsand Online) structuredProducts Roleplay: Barker GoogleInc.'sf nancial Richard 19 Accounting a Presenting (senior in lecturer statements andfinancial results company's Valuing accounting): statements assets

13 Advertising

Map of the book

Utit

lneaAmg

ristq$r-e

* rf t in g ; ' : Casestudy: Encouraging clusters

Briefing document

20 Market structureand competition

Marketstructure

Cotton Charles (lTconsultant): and Companies clusters

21 Takeovers

mergers Takeovers, andbuyouts

Summary Roleplay:lsthis RoryTaylor (Competition companyrestricting Market rnmneti ti onT Commission): investigations

22 Government andtaxation

Theroleof (Milton government andRoseFriedrhan: Freeto Choose)

MichaelKitson (senior lecturer in international macroeconomics): Government intervention

Presentation: Taxation and government spending

23 Thebusiness cycre

the Whatcauses

MichaelKitson: and Consumption cycle; the business Keynesianism

Discussion: Government intervention

HyunAnna-Kim Seung:Socially responsible investment; groups Stakeholder

Roleplay:Problems Report at a clothes manufacturer

h r r cinacc

e vr ' lo7'

and Keynesianism monetarism social Proftsandsocial 24 Corporate responsibility responsibility

and 25 Efficiency employment

the Reorganizing postalservice

rates rates Exchange 26 Exchange

Presentation or report

HyunRoleplay: Anna-Kim the Seung:Efficiency, Reorganizing postalservice the numberof employees, training productivity and

Report

MichaelKitson: flows Currency andthe TobinTax; Africa Developing

Summary

Casestudy: A currency tax transaction

I 27 Internationa traoe

and Education (HaJoon protection economist) Chang,

For MichaelKitson:Free Presentation. f ree tradeandexceptionsandagainst trade

Presentation or report

and 28 Economics ecology

Theeconomics of climatechange (Christian Gollier, economist)

Roleplay: MartinBeniston (professor an of climate Recommending cr ionr o\' C l i m z fa energypolicy policy

Summary

Rolecards Audioscripts Appendix1:Howto givea goodpresentation lettersandreports Appendix2: Writingemails,

',

J v r v Iv v r .

142 156 181 185 Map of the book

9

I Management Q Considerwhat the functions of management are Q Discusswhat makesa good manager

Iead-in . Towhatextent is effective management something youare bornwith,asopposed to a setoist