 |
|
Prove that you don't need it. J
Bob Hope (1903-2002), American comedian
QAnswer these questions indivi partner.
dually. Then compare your answers with a
4 If you go for a meal with someone you don't know well, do you:
a) offer to pay the whole bill?
b) suggest dividing the bill into equal parts?
c) offer to pay the whole bill but expect them to pay next time?
d) try to avoid paying anything?
5 What do you think about people who do not pay the correct amount of tax? Is this:
a) a serious crime?
b) morally wrong but not a crime?
c) excellent business practice?
6 If you lend a colleague a small amount of money and they forget to pay it back, do you:
a) say nothing?
b) remind them that they owe you money?
c) arrange to go for a drink with them and say you've forgotten your wallet or purse?
^What do your answers to the questions in Exercise A say about your attitude to money? What do they say about your culture?
Useful language Saying numbers
nineteen eighty-four two thousand and six
Decimals
16.5 sixteen point five
17.38% seventeen point three eight percent
| Dealing with figures |
| Years 1984 2006 |
0.185 (nought / zeroj point one eight five
Currencies
£3.15 three pounds fifteen $7.80 seven dollars eighty € 2 5 0 two hundred and fifty euros
¥125 one hundred and twenty- five yen
Bigger numbers
3,560 three thousand five hundred ani\ s'fy
1 sixty (AmE)
598, 347 five hundred and thou™d' th™hundred and ^yseven (BrE)
| and two (BrE) two (AmE) |
ninety-eight thousand, three hundred forty-seven (AmE)
1,300,402 one million three hundred thousand, four hundred
1m one /a million (1,000,000)
3bn three billion (3,000,000,000) $7-5bn seven point five billion dollars
€4781x1 four hundred and seventy-eight million euros (BrE)
seventy-eight million euros (AmE)
фWork in pairs.
|
Student A:turn to page 144 and read the text aloud to Student B. Student B: listen to Student A while reading the article below. Correct any incorrect information.
BUSINESS IN BRIEF
| Vocabulary |
фMatch the definitions 1 to 6 with the financial terms a) to f).
1money owed by one person or organisation to another person or organisation
2a period of time when business activity decreases because the economy is doing badly
3difference between the selling price of a product and the cost of producing it
4a place where company shares are bought and sold
5money which people or organisations put into a business to make a profit
| a)gross margin b)recession c)shares d)debt e)stock market f)investment |
| Financial terms |
6equal parts into which the capital or ownership of a company is divided
0Match the sentence halves.
|
QComplete this report with the terms from Exercises A and B.
In our home markets it has been another excellent year. [12] are
up by £23 million, and the............................ [13] for the next quarter is equally good.
Profits from abroad are down because of a............................ [14] in Japan. However,
our performance overall has been good, and the............................. [15] have increased
to 26.4p and the.......................... [16] will be increased to 4.3P per share, which will
please our shareholders*.
We plan to issue new.......................... [17] in order to finance expansion in Asia.
We also plan to increase our.......................... [18] in plant and equipment before
entering the Chinese market. We are particularly pleased with our performance
in France and Germany where......................... [19] have increased. As a result of
using a new distributor, our costs fell giving us a............................. [20] of 40 percent on
our main product line. We will use any extra cash to reduce the level of our
Our performance in Italy should improve significantly following the
...................... 11 of our biggest competitor. However, we should not become too
satisfied with our share price as economic conditions remain uncertain and the
....................... 12 will continue to reflect this. Share prices will not rise in the
short term.
*Shaveholders: the people who own shares in a business
Q О 5.2 Hugh Campbell is the founder of GP Capital, a London-based finance firm which raises money for entrepreneurs. Listen to the first part of the interview and complete the chart.
| Type of business | Type of investor |
| Business set up by new entrepreneurs Business borrowing up to ... Business borrowing more than ... | |
0 5.3 Listen to the second part of the interview and answer these questions.
1According to Hugh, which three areas do venture capitalists look at when selecting companies to invest in?
2What type of market is good to invest in and why?
3What helps some businesses to win against other companies?
4What three questions would Hugh ask the management team?
О 5.4 Listen to the third part of the interview. What kind of company does Hugh describe? Why did he like this type of company?
0 5.5 Listen to the final part of the interview. Which of these statements are true? Correct the false ones.
1Hugh was offered the chance to buy fifty percent of an Internet business.
2He didn't invest because he thought the management team was weak.
3The business did very well for a couple of years.
| Read Reporting financial success |
4It was sold for twenty times its original value.
фBefore you read the articles decide which of these statements are true.
1Both Wal-Mart and Target Stores are based in the UK.
| Raising business capital GPCapital |
| О О |
2Wal-Mart is the world's largest retailer.
3Target is not a competitor of Wal-Mart.
Work in pairs. Student A read Article l below and Student В read Article 2 on page 42. Complete the parts of the chart on page 42 which relate to your article.
Article 1
Wal-Mart
WAL*MART
ALWAYS LOW PRICES.
By Lauren Foster
Wal-Mart yesterday really surprised investors when it sounded a strong note of optimism. This optimism is 5 a marked turnaround from three months ago when Wal-Mart warned about the
strength of the recovery in US consumer spending. 10 Lee Scott, the CEO, said: 'I am more optimistic about the year we have just started than I have been in several years. I am not 15 only optimistic about the economy and the continuing strength of the housing market but also encouraged about Wal- 20 Mart's position.'
Mr Scott was also encouraged by consumer spending, which he said was driven by higher tax 25 refunds and 'eventually improvements in the jobs picture'.
The world's largest retailer by revenues said 30 fourth-quarter profits rose 11 percent to $2.7bn, or 63 cents a share, compared with $2.5bn, or 56 cents a share over a year 35 ago. Revenues for the quarter increased 12.2 percent to $74.5bn.
For the full year, Wal- Mart's profits jumped 13.3 40 percent to $8.9bn or $2.03 a share, up from $7.8bn. Revenues increased 11.6 percent from $229.6bn to $256.3bn. International 45 sales were strong,
contributing about $7bn to the near $27bn gain in overall sales.
Mr Scott said Wal-Mart 50 had a good year but the international division had an excellent year.
He stressed that, while gross margin was better 55 than originally forecast, the improvement was thanks to the mix of merchandise, not higher prices. 'We are not raising 60 prices and have no intention of doing so,' Mr Scott said.
From the Financial Times FINANCIAL TIMES
World business newspaper.
Article 2
Target Stores
Ф88181
|
By Lauren Foster 20
Target yesterday beat Wall Street expectations when it delivered a 21.1 percent rise in quarterly earnings. 25
Gains in Target's credit card business, as well as both its Target Stores division and Marshall Field's stores, offset a small drop in pre-tax profit at the Mervyn's department store chain.
Target has cultivated a more upmarket and style- conscious image than other discount retailers. It is the third-largest general retailer in the US by revenues.
Target yesterday said it saw continued price pressure from rival Wal- Mart. For the fourth quarter, Target's profit rose to $832m, or 91 cents a
share, compared with $688m, or 75 cents a share, a year ago. Analysts had expected Target to earn 87 30 cents a share, according to Reuters Research.
Revenues for the quarter rose 10.7 percent to $15.57bn from $14.06bn, 35 while same-store sales - from stores open at least a year - rose 4.9 percent.
Target said pre-tax profit soared 18.5 percent at 40 Target Stores. At the department stores, which have been ailing, pre-tax profit jumped 15.6 percent at Marshall Field's but fell 45 0.3 percent at Mervyn's.
Credit card operations
added $168m to pre-tax profit in the recent quarter, up 11.7 percent from a year 50 ago.
For the full year, Target's profits were $1.84bn, or $2.01 a share, up 11.4 percent from $1.65bn, or 55 $1.81 a share, the year before. Revenues rose 9.7 percent to $48.16bn from $43.91bn, driven by new stores, a 2.9 60 percent rise in same-store sales and growth in credit revenues.
From the Financial Times FINANCIAL TIMES
World business newspaper.
| Wal-Mart 4th quarter | Target 4th quarter | Wal-Mart Full year | Target Full year | |
| Total profits | ||||
| % increase in profits / earnings | ||||
| Earnings per share | ||||
| Sales revenues |
фExchange information with a partner and complete the chart.
^Read both texts and answer the questions. Which company:
1feels confident about the future?
2has developed a more fashionable image?
3had particularly good results overseas in the last 12 months?
4is not planning to increase prices?
5did better than the American stock market forecast?
6feels its success is due to the variety of its goods?
| Match the words to | make word partnerships from the text. |
| 1 consumer | a) division |
| 2 tax | b) pressure |
| 3 international | c) refunds |
| 4 quarterly | d) spending |
| 5 price | e) earnings |
Read the articles again and check your answers.
Now match the word partnerships in Exercise E to their definitions.
1the money people spend on goods and services
2money given back at the end of the financial year
3company profits for a three-month period
4part of a company which deals with or is located overseas
5decreasing or freezing the price of goods or services in order to gain an advantage over competitors
We can describe trends in English in different ways. For example:
Verbs of change
Profits soared 18.5%.
Profits are falling.
Sales plummeted in January.
Prepositions
Profits rose 11 % to $2.7 billion.
Profits have gone up from 3 million to 4 million euros.
Our business grew by 10% last year.
There's been a decrease in annual sales of 1 million euros.
Last year profits stood at 2.5 million pounds.
Different verb forms
The figures show a positive trend, (present simple) We're watching the trends carefully, (present continuous) Last year we made a loss, (past simple)
In recent months our profits have risen dramatically, (present perfect) If sales drop further, we'll be in serious financial difficulty, (first conditional)
Page 152
What kind of movement do the verbs below describe? Match them to the symbols l to и. Then compare your answers with your partner. (Use some symbols more than once.)
| decline | gain | drop | increase | rocket | plummet |
| double | fall | halve | level off | triple | recover |
| decrease | fluctuate | improve | peak | rise | jump |
Which of the above verbs also have noun forms? What are they? For example,to increase - an increase.
Complete these sentences about the graphs below with appropriate prepositions.
1Sales have increased....................... €5171.................... €7m.
2Sales have increased...................... €2tn.
3There has been an increase....................... €гт in our sales.
4Sales now stand...................... €7 million.
5Sales reached a peak....................... €7 million in July.
6Sales reached a low point...................... €1 million in April.
3Write two more sentences about each of the graphs below.
|
Angel Investments
Background
Angel Investments (AI) is based in Warsaw, Poland. It is run by a group of rich people who invest money in companies. It is willing to take risks by buying stakes in start-up or small companies, but also puts money into larger companies which have good prospects for growth.
AI makes money by selling shares in companies when their share price is high, then re-investing the money in companies which it expects to do well in the future.
At present, it has €10 million to spend and it has chosen four companies as potential investments.
| TiCHNOPRINT |
Technoprint share price - last 18 months
Technoprint is a manufacturer of office
equipment, based in Frankfurt, Germany.
Its main products are inkjet and laser printers.
Present share price: €4.14
High (last year): €5.42
| ^___ s | |
| in | |
| о | |
| Ф, | |
| Ш | |
| и | |
| CL | |
| a> | |
| ГО | |
| -C | |
| СЛ | |
| О |
| I |
Low (last year ): €3.59
|
| Extract from business analyst's report ■ j-v nerformance has Techoopnnts P-rl fei(able industrial action. |
| Turnover | Pre-tax profit | Earnings per | Dividend per |
| (€ millions) | (€ millions) | share (cents) | share (cents) |
| Last year 90.8 | 10.9 | 5.7 | |
| 2 years ago 88.3 | 9.9 | 3.9 | |
| 3 years ago 69.4 | 4.8 | 0.6 | |
| Turnover for first 6 months of this year: €64.5 million |
brand
Unibrand j^^ybion retailer b^s^Uiv Amsterdam s|Hing a variety of internati< |rands.
Present share price: €5.72 ЩШ High (tast year): €8.58
Low (last year): € 3.88
Turnover Pre-tax profit Earnings per Dividend per
(€ millions) (€ millions) share (cents) share (cents)
Last year 370 52.7 19.5 2.2
2 years ago 308 30.1 12.9 1.8
| Unibrand share price - fast 18 months |
3 years ago 283 27.86 11.14 1.65 Turnover for first 6 months of this year:€204 million
On-line I Fashions '
Extract from business analyst's report
^findingit dffioAto meet
Ге demand for the, goodj
too fast or do they lack
| И | Turnover | Pre-tax profit | Earnings per | Dividend per |
| (€ millions) | (€ millions) | share (cents) | share (cents) | |
| 1 Last year | 19.3 | 2.1 | 0.38 | nil |
| 1 2 years ago | 9.1 | -2.561 | 3.8 | nil |
| 1 3 years ago | 4.9 | -2.862 | -5.6 | nil |
| ■ Turnover for first 6 months of this year:€l4.8 million |
management
OLF is based on its website www.OLF.com. Its target audience is fashion-conscious women aged between 30 and 45 who want to keep up with the latest trends in clothing and accessories. Present share price: €5.73 High (last year): €8.96
Low (last year): €2.71
On-line Fashions share price - last 18 months
^ 10 I 8
Ф 6
О
a- 4
<D
CD 2
|
| J F M A M J j ASOND) FMAM |
l/l
ZDJJ
jJTUJJ£2 Ш
Based in Milan, Italy, AV was founded two years ago. It is searching for diamonds in two areas (each about 2,000 hectares), near the Amazon river.
Present share price: High (last year): Low (last year):
л
|
| Amazon Ventures share price - last 18 months |
| 10 'w S8 Ф U о. 4 О) га 2 ■С 1/1 |
| FMAM) ) AS0NDJ FMAM |
| / £ Jr. |
| €7.84 €9.20 €1.80 |
| Dividend per share (cents) nil nil |
| brtract from business a"alysfs report Ar'interesting company but 'ncreased securitv r Г'000 for Problem. Unfavourable? 3 ma'or |
| Pre-tax profit (€ millions) 0.87 -1.4 |
| Turnover (€ millions) 1.03 0.38 |
Earnings per share (cents)
| Last year 2 years ago |
| news stories |
| have |
| appeared < |
0.38 nil
Turnover for first 6 months of this year: €0.57 million
Work in small groups. You are directors of Angel Investments. Read the reports and note down the key points concerning each company.
О 5.6 Listen to the CEOs' comments to investors for the four companies. Note down the key points concerning each company.
Discuss the advantages and disadvantages of investing in each company. Then decide what proportion ofthe€io million you will invest in each company. (You may decide not to invest in one or more of the companies - it is up to you.)
Compare your decisions with those of the other groups.
' area.
Writing
Write an e-mail to the CEO providing a list of your recommendations. Give reasons for your recommendations.
^^ Writing file page 133
Advertising
Half the money I spend on advertising is wasted. The trouble is I don't know which half.
| Fighting the fur trade RO. Box 509. Dunmow. Essex CM & iUH. |
| LYNX |
| ur coat with matching accessories. |
| Starting up |
| 46 I |
William Hesketh Lever (1851-1925), English industrialist
Discuss the advertisements above.
1Which do you like best? Why?
|
| ■N OVERVIEW? □ Discussion Good and bad advertisements I Vocabulary Advertising media and methods □ Reading Successful advertising Listening Planning advertising campaigns □ Language review Articles □ Skills Starting presentations Case study Focus Advertising |
2What kind of advertisement do you like?
| Discussion |
| Good and bad advertisements |
фWhat makes a good advertisement? Use some of the words below.
clever interesting funny inspiring eye-catching powerful humorous shocking informative sexy
фDo you think that the advertising practices described below are acceptable? Are any other types of advertisement offensive?
1 Using children in advertisements
2 Using nudity in advertisements
3 Promoting alcohol on TV
4 Comparing your products to your competitors' products
5 An image flashed onto a screen very quickly so that people are influenced without noticing it (subliminal advertising)
6 Exploiting people's fears and worries
QWhich of the following statements do you agree with?
1People remember advertisements not products.
2Advertising raises prices.
| Vocabulary Advertising media and methods |
3Advertising has a bad influence on children.
QNewspapers and TV are advertising media. Can you think of others?
фLook at the words in the box below. Label each item i for advertising media, 2 for methods of advertising or 3 for verbs to do with advertising.
| directories 2 | persuade | publicise | sponsorship |
| run | mailshots | promote | cinema |
| commercials | public transport | place | free samples |
| exhibition | billboards/ hoardings | launch | leaflets |
| point-of-sale | posters | word of mouth | radio |
| target | endorsement | research | sponsor |
| press | Internet | slogans | television |
QChoose the most suitable word from the words in brackets to complete these
sentences.
1 Viacom Outdoor is an advertising company that specialises in placing adverts on (billboards / public transport / television) such as buses.
2 Some perfume companies provide (leaflets / commercials / free samples) so that customers can try the perfume on their skin before they buy.
3 Advertising companies spend a lot of money on creating clever (slogans / directories / mailshots) that are short and memorable such as the message for the credit card, Access: 'Your flexible friend'.
4 Celebrity (exhibition / research / endorsement) is a technique that is very popular in advertising at the moment.
5 If news about a product comes to you by {word of mouth / press / Internet), someone tells you about it rather than you seeing an advert.
6If you have something to sell, you can (target / place / launch) an advert in the local newspaper.
фGive examples of:
1outdoor advertising on the buses or trains in your country.
2clever slogans that you remember from advertising campaigns.
фDiscuss with your partner.
1Which celebrities from your country are used in advertising?
2Which products or types of products do they advertise?
3Do you think this kind of advertising is effective?
| Reading Successful advertising |
фRead the article. Match the celebrities mentioned to their sport.
What makes Nike's advertising tick?
By Stefano Hatfield
Phil Knight, the co-founder and former Chief Executive of Nike, prefers to let his superstar athletes and 5 advertisements do his talking for him. Named Advertiser of the Year at the 50th Cannes International Advertising Festival, he is the first person Ю to win the award twice.
Knight has an absolutely clear and committed strategy to use celebrity athlete endorsement. He describes it is as one part of the 'three- legged stool' which lies behind Nike's phenomenal growth since the early 1980s, with the other two being 20 product design and advertising.
He has built Nike's expansion into sport after sport from its athletics roots 25 on the back of sporting masters: Carl Lewis on the track; tennis's Jimmy Connors and John McEnroe; Tiger Woods, who led Nike into 30 golf; Ronaldo and the Brazilian national football
team; and the basketball star, Michael Jordan, who famously rescued the 35 company.
From the beginning Nike has been prepared to take a gamble on sporting bad boys others would not touch: Andre 40 Agassi springs to mind. It was a strategy that began with Ilie Nastase, the original tennis bad boy. The Romanian had the quality that has come to 45 represent Nike and its advertising: attitude.
After extraordinary growth, Nike became number one trainer manufacturer in the so US. But Knight admits the company then lost its way as it failed to cope with its success. It experimented unsuccessfully with expansion 55 into non-athletic shoes, and lost its number one position to Reebok in 1986.
Knight bet the future of the company on a new feature: a 60 new air technology inside the trainer. He launched the product with a David Fincher- directed ad which used the Beatles track Revolution, and
65 then marketed the Air Jordan brand on the back of Michael Jordan. Sales took off and the rest is history.
This brings us to the subject 70 of globalisation and the question of how American the brand can be. Nike uses a mix of global ad campaigns such as 'good v evil' and local 75 advertising such as its famous poster campaigns in the UK.
During a 21-year partnership with the agency Wieden and Kennedy, Nike 80 has created some of the world's most attention- grabbing advertising: for example the Nike 'good v evil' campaign and two 85 advertisements both for World Cups and the ad 'tag', last year's Cannes grand prix winner. Other famous ads star Pete Sampras and Andre 90 Agassi playing in the streets of Manhattan; Tiger Woods playing 'keepy-uppy' with a golf ball; and Brazil's team playing soccer at the airport 95 terminal.
It is a remarkable body of work, both in its variety, daring and consistent originality. At Nike there is a loo streamlined decision-making process that gives marketing directors real power. They do not rely on market research pre-testing which often Ю5 reduces the impact of more experimental commercials. There is also the long relationship with one of the world's best ad agencies, and no what Wieden describes as 'an honesty about sport'. Things only happen in Nike ads that sportsmen and women can really do. us 'My number one advertising principle - if I have one - is to wake up the consumer,' concludes Knight, with an absolute conviction that is 120 unique among modern-day chief executives. 'We have a high-risk strategy on advertising. When it works, it is more interesting. There 125 really is no formula.'
From The Guardian
QNow answer these questions.
1According to Phil Knight, what are the three factors which have led to the huge success of Nike?
2Why did Nike lose market share in the mid 1980s?
3Which innovation saved the company?
4Which celebrity saved the company?
5What is Phil Knight's key idea about advertising?
0Which of these statements are true? Correct the false ones.
Nike has been Advertiser of the Year three times.
Nike uses only worldwide advertising.
Nike believes market research pre-testing is very important.
A lot of computer tricks are used in Nike ads.
0What are the advantages and disadvantages for a company of using celebrity endorsement in its advertising?
QThe article mentions an attention-grabbing advertisement. This type of phrase is common in advertising. Match the words 1 to 6 to the words a) to f) to make word partnerships.
1energy a) teasing
2eye b) saving
3thirst c) watering
4money d) catching
5mouth e) quenching
6brain f) saving
фWhich of the word partnerships in Exercise F would you use to describe these products?
1a soft drink 4 a low-power light bulb
2a fruit bar 5 a range of smart clothing
| Listening Planning advertising campaigns |
|
3a computer quiz game 6 a range of supermarket own-brand products
ф О 6.1 Jeremy Thorpe Woods, Head of Planning at Saatchi and Saatchi, a leading advertising agency based in London, talks about advertising campaigns. Listen to the first part of the interview and answer these questions.
1What does jeremy say is the most important thing about advertising nowadays?
2What are the key elements of a good advertising campaign, according to Jeremy?
ф ( ) 6.2 Listen to the second part of the interview and complete the flow chart.
Planning and launch stages of an advertising campaign
Stage 1 Discussion with............................................ 1
Talk about their.................................. [21] and................................ 3
Develop a........ 4
Stage 2 ..................................... [22] stage
Observe the target audience, get to know them through
Stage 3 Develop a.......................................... 7
Talk to your creative partners about.................................... 8
Discuss the communication idea with your ...9
Go back to your................................... 10
Stage 4 Make the.......................................... 11
Use................... " to track how it is working.
We use a or an before singular countable nouns.
He works for an advertising agency.
We use a or an to introduce new information.
I saw a humorous advert on the way to work this morning.
We often use a or an to refer to people's jobs. She's an architect.
We use a before consonants, a commercial
We use an before vowel sounds, an advert
| f a/an |
| Language review Articles |
| a an the |
We use the when we think our listener will know what we are talking about. The International Advertising Festival will be held at Cannes as usual. We use the when it is clear from the context what particular person, thing or place is meant because it has been mentioned before. Let's change the campaign.
|
'zero article' We do not use an article before:
• mass nouns used in general statements. Information is power.
• the names of many places and people. Japan, Phil Knight
«Jpage 152
| Starting presentations |
фDecide whether each expression in the Useful language box isformal or informal. Write F (formal) or I(informal). Underline the key words which helped you to decide. Then compare your answers.
Useful language |
Introducing yourself
• On behalf of myself and Focus Advertising, I'd like to welcome you. My name's Sven Larsen.
• Hi everyone, I'm Dominique Lagrange. Good to see you all.
Introducing the topic
• I'm going to tell you about the ideas we've come up with for the ad campaign.
• This morning, I'd like to outline the campaign concept we've developed for you.
Giving a plan of your talk
• I've divided my presentation into three parts. Firstly, I'll give you the background to the campaign.
Secondly, I'll discuss the media we plan to use. Finally, I'll talk you through the storyboard for the TV commercial.
• My talk is in three parts. I'll start with the background to the campaign, move on to the media we plan to use, and finish with the storyboard for the commercial.
Inviting questions
• If there's anything you're not clear about, go ahead and ask any questions you want.
• If you have any questions, please don't hesitate to interrupt me.
Focus Advertising
Background