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1. What are visible parts of marketing? What are brand managers and sales teams responsible for? 2. Who takes part in distribution channels? 3. Why do some companies make luxury products abroad rather than at home? Give examples.

U n i t 1.Brands .

1. Whatarevisiblepartsofmarketing?Whatarebrandmanagers andsalesteamsresponsible for?

2. Whotakespartindistributionchannels?

3. Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples.

4. SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples.

1.Whatarevisiblepartsofmarketing?Whatarebrandmanagersandsalesteamsresponsiblefor? AsthemarketingexpertPhilipKotlerhas said, 'Themost distinctiveskillofprofessionalmarketersistheir abilityto create,maintain, protect andenhancebrands.'Thereareanawfullotofmisunderstandingsabout

‘marketing’. Manypeopleseeit purelyasthevariousways in whichabusinessororganisationadvertises

and promotesitself-awebsite,abrochure,corporatehospitality,advertisementsandsalesliterature...But theseareonlythevisiblepartsofmarketing.

Professionalliteraturedefinesmarketingas'themanagementprocessresponsibleforidentifying,anticipating and satisfying customerrequirementsprofitably'.Inotherwords, it is not just about producinga pieceof

promotionalmaterialto support a salesactivity, it'sabouta systematicand carefulprocessofensuringthateverythingthatthe business developsand provides,whetheritbea productoraservice,is done withthe

customerinmind.

Thinkofthe processofmarketingratherlikeaniceberg.The topeighthisthe part thatisvisible-seven

eighthsareunseen!Whatgoesonbelowthesurfaceisawholerangeofactivitiesandprocessesdesignedto ensurethatanymarketingcommunicationsaredesignedanddeliveredinthebestwaytoachievethedesired results,usuallythat's profitable sales.

Themain brandmanager’sand salesteams’responsibilitiesinclude:

- Developingandmanagingbrandmarketingplan

- Understandingandexpressingbrand’spositioning,designingappropriatemarketingmixtools

- Brief&agreeannualmediaplan, superviseworkwithadvertisingagencies

- Generateandanalyzeconsumerinsights,integratefindings intobrandactivities

- Managepricing

- Enliststrongsalessupportforallbrandmarketingactivities

2 .Whotakespartindistributionchannels?

Distribution(orplacement)isoneofthefour aspectsofmarketing. A distributoristhemiddlemanbetween

the manufacturerandretailer. Afteraproduct ismanufactured it maybe warehousedorshippedto the next echeloninthesupplychain,typicallyeitheradistributor,retailerorconsumer.

Anumberofalternate'channels'ofdistributionmaybeavailable:

·Sellingdirect,suchasviamailorder,Internetandtelephonesales

·Agent,whotypicallysells directon behalfoftheproducer

·Distributor(alsocalledwholesaler),whosells toretailers

·Retailer(alsocalleddealerorreseller),whosellstoendcustomers

·Advertisementtypicallyusedforconsumergoods

Distribution channels canthushave anumberof levels.Kotlerdefinedthe simplestlevel,thatofdirectcontactwithnointermediariesinvolved,asthe'zero-level'channel.

Thenextlevel,the'one-level'channel,featuresjustoneintermediarybetweenproducerandcustomer-a retailer.Insmallmarkets(suchassmallcountries)itis practicaltoreachthewholemarketusingjust

one-andzero-levelchannels.

Inlargemarkets(suchaslargercountries)asecondlevel,awholesalerforexample,isnowmainlyused

toextenddistributiontothelargenumberofsmall,neighborhoodretailers.

3 .Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples.

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Somecompaniesprefertomakeluxuryproductsabroadratherthanathomebecausetheywanttolowerthefirmcosts.The processofsubcontracting toa third-partycompanyis named outsourcing.The reasons for outsourcingaremanyandvaried,suchascostsaving,costrestructuring,improvingquality,knowledge andmanyothers.Theclassicalexamplesofcompaniesmaking theirproductsabroadareCoach, theUS

leathergoods maker,whichoutsourcesallitsproductsto Asia,andBurberry,whichalsohasmanyAsian

licensingarrangements.

4.SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples.

Althoughoutsourcingisawidespreadpracticenowadaysconsumershavedualattitudetoit.Thereisa strongpublicopinionregardingoutsourcing(especiallywhencombinedwithoffshoring-thepracticeof

movingacompany'soperatingbasetoaforeigncountrywherelabourcostsarecheaper)thatoutsourcing damagesaproductqualitydramatically.Tobehonest,Isupportthispointofview.Forexample,about

tenyearsagoallproductsofBritishcosmeticscompanyAvonweremadeinEurope.Butnowabout70%

ofitsproductionis outsourcedin Russiaandnearabroad.Ofcourcethepriceof Avon cosmeticsbecame

muchcheaperbutit’snotasecretthatthequalitychangeddramaticallytoo.

U n it 2. Travel

1.Whattypes ofairlinesdoyouknow?

2.Howdoyouunderstandtheterm“code-sharing”?

3.Whatformsofcooperationbetweencompaniesarethere?

4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour?

1.Whattypesofairlinesdoyouknow?

Formerlyairlineswereclassifiedintolocal,regional,national andinternational.Todaytheyareclassified accordingtotheirannualturnover.Thebiggestcompanieshavetheturnoverfrom$100millionto$1

billion,thebigregional-$10-$100million,theaverage–lessthan$10million.

It’s very important to remember that there are two kinds ofairline operations-scheduled and

nonscheduled.Ascheduledairlineoperatesonfixedroutsatfixedtimesaccordingtoatimetablethatis availabletopublic.

Anonscheduledairlineoperateson routsatatimewhenthereis a demandfortheservice.The nonscheduledairlineisinotherwordsacharteroperationthatrentsanaircraft.

2.Howdoyouunderstandtheterm“code-sharing”?

Codesharingisabusinesstermwhichwasfirstoriginatedintheairlineindustryin1990whenthe

Australianairline,Qantas Airways andtheUS'sAmerican Airlinescombinedservicesbetweenanarray

ofUS domesticcitiesandAustraliancities.Thecodesharewaspartofa"cooperativeservices" agreementbetweenthetwocarriersbeforethevariousairlineallianceswereformed.Codesharingisa commercial agreementbetweentwoairlinesthatallows passengers to useaticketfromoneairlinetotravelon another.Mostmajorairlines todayhave code sharingpartnershipswith otherairlines,andcode sharingisakeyfeature ofthemajorairlinealliances.

Lotsofairlines,includingallthebiglegacylines,areinvolvedwithcodesharingarrangements.Those

arrangementspermityoutobuythroughtickets on routsthat nosingleairlinecanserve.Theymayalso provideopportunitiestocutthecostofyourairfare.

3.Whatformsofcooperationbetweencompaniesarethere?

Therearedifferenttypesofcooperationbetweenairlines:associations(likeInternationalAssociationof

AirTransport(IATA)whichdeals withtheairnavigation,thesecurityofairtransportandthe

coordinationofflightservices),particularglobalairlinealliancesandcodeshareagreementsthathave multiplied over the pastyears.

4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour?

The psychologyofairrageis anewareaofstudy,andthere are almostasmanyexplanations as

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examples.Mostanalystsofthephenomenon blamealcohol,butmanypeoplenowthinkthat theairlinesareatfault.Tocutcosts,theyarecramming evermorepassengersintotheiraircraft,whilereducing cabincrew,training andqualityofservice,allofwhichincreasepassengerfrustration.Inaddition,there

isincreasingconcernaboutanothercost-cutting exercise,which couldseriouslyharmpassengers’health:

cabinventilation.

U n i t3.Organisation.

1.Whattypesofcompaniesdoyouknow?

2.Speakaboutflexibilityanditstypes.

3.Whatismeantby"teleworking"?

4.WhatdoyouknowaboutSOL company?Whyisitunusual?

1.Whattypesofcompaniesdoyouknow?

Historicallytherewereonly soleproprietorships. Thencamepartnershipsandthencorporations.

Corporations areaseveralcenturiesoldphenomena. Partnershipswerearrangementsbetweentwoormoreindividualsinwhichtheypooledresources,andsplitexpenses andprofits. Atfirstcorporations werecharteredbymonarchies. Historicallycorporationsofferedlimitedliabilityandpartnershipsdid not. Inotherwords,iftheventurefailed,theorganizersandpromotersofacorporation retainedtheir personalassets,whiletheowners andorganizers ofapartnershipcouldlosetheirpersonal assets tothe creditors ofthe business venture.

Wecannowdefinesoleproprietorship as abusiness enterprise exclusivelyowned,managedand controlledbyasingleperson with allauthority,responsibilityandrisk.

Supposeyouwanttoopenarestaurantinyourlocality.Youwillneedtoorganizealotofthings.You mayfind thatitis notpossible toarrangethemoneyrequiredtostartandrunthebusiness alone. You

maythentalktoyourfriendsandallofyouagreeto runtherestaurantbycontributingacertainamount

ofmoneyandtheotherthingsrequired.Soallofyou jointobecometheowners andsharetheprofitsand

losses.Thisisanotherformofbusinessorganization–partnership .

Acompanyformof business organizationis knownasaJointStockCompany .Itis avoluntary

association ofpersons whogenerallycontributecapitaltocarryon a particulartypeofbusiness,whichis establishedby lawand canbedissolvedonly bylaw.Persons whocontribute capitalbecomemembersofthecompany.Thisformofbusinesshas alegalexistenceseparatefromitsmembers,whichmeanseven

ifitsmembersdie,thecompanyremainsinexistence.Thisformofbusinessorganizationsgenerally

requireshugecapitalinvestment,whichiscontributedbyitsmembers. Thetotalcapitalofajointstock companyis calledsharecapitalanditis dividedintoanumberofunitscalledshares.Thus,everymemberhassomesharesinthebusinessdependingupontheamountofcapitalcontributedbyhim. PrivateLimitedCompany .Thesecompanies canbeformedbyatleasttwoindividualshavingminimum fixedpaid–upcapital(theamountofmoneyisdeterminedbylegislationofthecountry).Thetotal membership ofthesecompaniescannotexceedacertainnumberofpeople(thisnumbercanbedifferent indifferentcountries).Thesharesallottedto itsmembers arealsonotfreelytransferablebetweenthem.

Thesecompaniesarenotallowedtoraisemoneyfromthepublicthroughopeninvitationandarerequired

touse“PrivateLimited”aftertheirnames.

PublicLimitedCompany. Aminimumofsevenmembersarerequiredtoformapubliclimitedcompany.

Itmusthaveminimum paid–up capital.Thereis norestriction onmaximum numberof members.The sharesallottedtothemembersarefreelytransferable.Thesecompaniescanraisefundsfromgeneral publicthroughopeninvitationsbysellingitssharesoracceptingfixeddeposits.Thesecompaniesare requiredtowriteeither‘publiclimited’or‘limited’aftertheirnames.These are themain,butnot the onlytypesofbusinessorganization.

2.Speakaboutflexibilityanditstypes.

Flexibilityisthecurrentbuzzwordtoday.Flexibilityisunderstoodastheabilitytochangeorbechanged

easilytosuitadifferentsituation.This hasanumberofrelatedmeanings.One typeofflexibilityhas

existedforsometimeintheformofflexitimeorflextime,wherepeoplecanchoosewhentheyworkwithincertain limits.Thenthereis theflexibleworking oftheBritishAirways officeinthemaincourse

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unit, with someofitsstaffhot-desking,particularlythosewhoarehomeworking,teleworkingortelecommuting andonlyneedtocomeintotheofficeoccasionally.Athirdtypeofflexibilityiswhere employeesarerecruitedon shortcontractsto workon specificprojects,maybepart-time.Perhaps the organisation onlyhasacorestaff,andoutsourcesorcontractsoutworkfromoutsideasandwhenrequired.Somemanagementexpertssaythat thisis thefuture,withself-employmentasthenorm,andportfolioworkerswhohaveanumber ofdifferentclients.

3.Whatismeantby"teleworking"?

Teleworking,alsoknownastelecommuting,meansusinginformationtechnologyand

telecommunications to replace work-relatedtravel. Simpleput, itmeans workingathomeorclosertohome. Withteleworking,employeesworkathomeorperhaps at alocalteleworkcenteroneormore daysperweek.Communicationisaccomplished byphone,fax,modem,andteleconferencing. Nationwide,morethan20millionworkersaregoingtoworksimplybypickingupthephoneorturning ontheir computers.

4.WhatdoyouknowaboutSOLcompany?Whyisitunusual?

SOL isaFinland'sCleaningServicecompanywhichcombinesradicalinnovationwithdisciplined

execution–awinningformulathatmopsupthecompetition.Locatedinarenovatedfilmstudiointhe heartofHelsinki,theofficeexplodeswithcolor,creativity,andchaos.Thewalls arebrightred,white,andyellow;theemployees wanderthehalls talking on portablephones(alsoyellow).Fewpeopledream

aboutbecomingacleaner.Butthatdoesn'tmeancleanerscan'tfindsatisfactionintheirwork.Thekeysto

satisfaction,Joronenbelieves,arefun andindividual freedom.SOL's cultureisbuiltrelentlessly--almost excessively--aroundoptimismandgoodcheer.Itscleanerswearred-and-yellowjumpsuitsthatreinforce thecompany'supbeatimage.SOL'slogo,ayellowhappyface,isplasteredoneverythingfromherblazer tothecompany'sstationerytoitsmostimportantbudgetreports.

Freedommeans abolishing alltherulesandregulations ofconventional corporatelife.TherearenotitlesorsecretariesatSOL,noindividualofficesorsetworkinghours.Thecompanyhaseliminatedallperks and status symbols.

U n i t4.Change.

1. Whatchangeshavetakenplaceinorganizationsrecently?

2. Explainthemeaning ofBPR.

3. Howdoyouunderstand theterm'companyculture'?Whatissuesshouldbeincludedinto it?

4. SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough.

1.Whatchangeshavetakenplaceinorganizationsrecently?

Recent yearshaveseenmassiverestructuring.Companiesdownsizedanddelayered, gettingridoflevels ofmiddle-managementinordertobecomeleaner,flatter,supposedlymoreefficientorganisations.Often thereasoningwasthatcomputernetworksallowtopmanagersinstantaccesstoinformationthatwas previouslygatheredandtransmittedupwardsbymiddlemanagers,whoseothermainfunctionwasto communicateexecutives'keymessagesdownwardstotheworkforceandinthistheywereaccusedof dilutingorconfusing themessages,orworse.Withfewerorganisational layers,topmanagers saytheycancommunicatemoredirectlywithfront-lineemployees,thepeoplewhoactuallyproducethegoods or

services,anddealwithcustomers.Withlessdirectsupervision,employeeshaveoftenbeenencouragedto makemoredecisionsforthemselvesinaprocessofempowerment.

Another trendwasre-engineering, theideathatanorganisationshouldnotchangeincrementally, butshouldstartagain fromscratchwithnopreconceptionsabouthowthings-shouldbedone,notjustin manufacturingbutinalltheprocessesthatcontribute to whatanorganization does,hencebusinessprocessre-engineering,orBPR.

The humansideofthis,again,wasthattherewouldprobablyberedundancies.Thepeople remainingwouldprobablyfeeldemoralized,wonderingwhenthenextwaveofchangewasgoingto

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comeandwhetheritwouldbetheirturntobethrownout.

2.ExplainthemeaningofBPR.

Businessprocessreengineering(BPR)isamanagementapproachaimingatimprovementsbymeansof

elevatingefficiencyandeffectivenessofthe processesthatexistwithinandacrossorganizations.BPRis arestructuringanorganizationby meansofaradicalreconsiderationofitscoreprocesses.ThekeybenefitsofBPRare:

·optimizationofbusinessprocesses:

·integration ofITsystems;

· structuringandguidingofreorganization;

·businesscontinuityplanning;

·managementknowledge.

3.Howdoyouunderstandtheterm'companyculture'?Whatissuesshouldbeincludedintoit?

Acultureis thevaluesandpracticessharedbythemembers ofthe group. CompanyCulture,therefore,is thesharedvaluesandpracticesofthecompany'semployees.

Companycultureisimportantbecauseitcanmake orbreakyourcompany.Companieswithanadaptive culturethatis alignedto theirbusiness goals routinelyoutperformtheircompetitors. Companycultures

evolveandtheychangeovertime.Asemployeeleavethecompanyandreplacementsarehired the companyculturewillchange.Ifitis astrong culture,itmaynotchangemuch.

Herearesomecharacteristicsofcompanyculturesthatothershaveusedsuccessfully.

·Missionclarity

·Employeecommitment

·Fullyempoweredemployees

·Highintegrity workplace

·Strongtrustrelationships

·Highly effectiveleadership

·Effectivesystemsandprocesses

·Performance-basedcompensationandrewardprograms

·Customer-focused

·Effective360-degreecommunications

·Emphasisonrecruitingandretainingoutstandingemployees

·Highdegreeofadaptability

·Highaccountabilitystandards

·Demonstratedsupportforinnovationanddevelopment

4 . SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough.

TheUS andUKdepartmentstores facedwith declineinpopularity.Itcanbeexplainedbyconsumers

demandingbettervalueandamoreinterestingandstimulatingexperiencewhileshopping.Department storesfacedstrongcompetitionfromspecialityretailers anddiscounters.Theirsteady lossofmarket sharemaybepartlybecausetheconceptwasborninadifferentera,atimewhen,forfamilies,atriptothestores combinedshoppingwithentertainment.Andnow,what is neededis anewapproach.Atypicalexample ofthis approachworkingis seenatSelfridges.This UKgrouphasrecastitselffroma sleepy

70s-styledepartmentstoreintoaretailinggood-structuredmoderndepartmentstore.

Oneofthemainchangesis thatmorefloorspaceis rentedtovendors,inwhatis sometimesreferredtoas theshowcasebusinessmodel:vendorsdesigntheirownboothsandareencouragedtobecreative.The problemisthatalldepartmentstoreslookthesame.

U n it 5. Money.

1. Howdoes moneywork?

2. Whatmoneyinstitutions can youmention?

3. Describedifferentkindsofsecuritiesanddifferentkindsofmarkets.

4. Whatcanyousayabouttheattitude to moneyinourculture?Hasitchangedinrecentyears?

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5. HowhaveWal-MartandTargetstoresperformedlately?

1.Howdoesmoneywork.

Moneymakestheworldgoround,theysay.Perhapsitiseventruerthattheworldmakesmoneygo

round,especiallyinaneraofglobalizationwhencapitalcanflowfreelytoandfromalmosteverywhere.Moneyisalways lookingforplaceswhereitwillbemostprofitableandearnthegreatestreturnon investment.

Asanindividual,youcanputyourmoneyondepositinabank,andaslongasthebankdoesn'tfailand

theeconomykeepsfunctioning,youwillgetinterest.Yourmoneyislentouttopeople,businessesand governmentswho need it to financetheirownprojects, andthebankwillmakeitsmoneyonthedifferencebetweenwhatitpays outininterest ondepositsand whatitgetsininterestfrom itsloans.

Ifyouwant tolivemoredangerouslyyoucouldbuysomebonds,andaslongastheorganizationor

countryyou'veinvestedinbylendingitmoneydoesn'tdefault,youwillgetyourinterestpayments,and lateryourbondswilleventuallyberepaid.Toliveevenmoredangerously,buysomesharesandsharein the profitabilityofyourchosencompany.Ingoodtimes,the dividendswillbemorethanwhatyouwould getfrombonds,andtheshares themselves willincreaseinvalue, givingyoua capitalgainifyousell them.Butifthecompanyrunsintotroubleandgoesbankrupt,youwillbeamongthelasttobepaidback, andyoumaygetonlypartofwhatyouputin,oryoumaylose allyourmoney.

2.Whatmoneyinstitutionscanyoumention?

Thisisforexamplebanks,insurancecompanies,mutual funds (unittrusts intheUK)andpensionfunds whomay, ofcourse,beinvesting themoney ofprivateindividualsindirectly.

Themarketsthey investininclude themoneyandcurrencymarkets,stockmarketsforshares(also

knownasequities),commoditiesmarketsforanythingfromgoldtoporkbellies(usedformakingbacon),

andproperty(buildingsandland). Let’s stopon several institutions.

Themostfamousmoneyinstitutionineverycountryisbank.Bank is afinancial institution thatactsas apaymentagentforcustomers,andborrows andlendsmoney.Banksborrowmoneybyacceptingfunds

depositedoncurrentaccount,acceptingtermdepositsandbyissuingdebtsecuritiessuchasbanknotes andbonds.Bankslendmoneybymakingadvancestocustomersoncurrentaccount, bymaking

installmentloans,andby investingin marketabledebtsecuritiesandotherforms oflending.

Amutualfund is aprofessionally-managedfirmofcollectiveinvestments thatpoolsmoneyfrommany

investorsandinvestsitin stocks,bonds,short-termmoneymarketinstruments,orothersecurities. Ina mutualfund,thefundmanager,tradesthefund'sunderlyingsecurities,realizingcapitalgainsorlosses, andcollectsthedividendorinterestincome.

3 .Describedifferentkindsofsecurities anddifferentkindsofmarkets.

Fromthepointofviewofinvestors,theworld'sfinancialmarketsexistinordertochannelmoneyto profitableinvestmentactivities and projects.Fromthepoint ofviewofborrowerssuchascompanies and governments,financial centresexistso thattheycanfind capitalon thebestterms.

Most investorsarenotprivateindividualsbutinstitutionslikebanks,insurancecompanies,mutualfunds andpensionfunds whomay,ofcourse,beinvestingthemoneyofprivateindividualsindirectly.The markets theyinvestinincludethemoneyandcurrencymarkets ,stockmarkets forshares(alsoknownasequities),commoditiesmarkets foranythingfromgoldto porkbellies(usedformakingbacon),and property(buildings andland).

Therearealsomarketsforfutures incurrencies,equities,bondsandcommodities:afutureisafixed- pricecontracttobuyacertainamountofsomethingfordeliveryatafixedfuturedate.

Therearemarketsforoptions incurrencies,equities,andbonds.Here,aninvestorbuystherightto buy orsellacertainamountofthesethingsatacertainpriceandparticulardateinthefuture.Thisisa formofbetting on howpriceswillmove.

Someofthesemarkets,likestockmarkets,arebasedinparticularbuildings,somewith tradingfloors,but

mosttradingisnowscreenand telephonebased. Others,likebond and currencymarkets,are'virtual',inthesensethatsellingandtradingtakesplacebyphoneandcomputerbetweenthepremisesofissuers, brokersandtraders.

Securities constitute theobjectswhichinvestmentsaremadeof.Therearevarious kinds ofsecurities.

Theyare tradedinmarkets,eachone withspecificrules.

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Stocks arethemostpopularsecurityforinvestment.Theyactuallyrepresentownershipinaspecific company.Themostcommonwaystocks appearinthemarketis byoperations calledinitialpublicofferings (IPO) .Thesehappenwhenacompanydecidestoissuestocks,butgivingawaypartofittothe public,inreturnformoneypaidbythenewshareholders.Thepublicgainsapartofthecompany,bythe costofpayingmoneyforit,whilethecompanyobtains amassiveamount ofmoney,bythecostofhavingtogiveawaypartofitsownership,aswellaspartofitsprofitsintheformofdividends.

OutsideIPO's,stockcanbeboughtandsoldinstockexchanges .Theseareplaces(physicalorvirtual)

wherestocks are assignedaselling priceandabuying price.Anyonecanbuyorsell stocks with the help ofbrokers.

Companies oftenneedmoneyforvarious ends,suchasimprovingitself, expanding,buyingother companies, andsoon.There aremanyforms ofdoing this.One ofitis using abond .Abondisacontract

betweenanissuingcompanyandabuyer.Inthiscontract,thebuyerlendsacertainamountofmoneyto the company,foracertainnumberof years.Inreturn,thecompanyis obligedtopayinteresttothebuyer,

periodically,ataspecifiedrate.

F u n ds becomeaninterestinginvestmenttoolforeveryonewhoisnotinterestedinwasting timewith

stockorbondpicking, trading,andsoon. Investmentcompaniesmanageoneormorefunds,where moneyfrommanyinvestorsismanagedbyprofessionals.Oneinvestmentfundusuallyholds aportfolio ofsecurities.Thedecisionstobuyorsellthosesecuritiesaretakenbytheinvestmentcompanybehind thefund.

4 .Whatcanyousayabouttheattitude tomoneyinourculture?Hasitchangedinrecentyears?

Moneycan beacurseorablessinginourlives.Ifwedealwithitaccordingtotheworld’sstandards,it canbeacurse.Moneyisthenumberonesourceofstressandtheprimarycausefordivorce.

People'sattitudestowardsmoneyvaryenormouslyandarelargelyinfluencedbythevaluestheywere

broughtupwithandhowmuchmoneytheyhavenow.

Assuming there's enough moneytokeepa roofoveryourheadandbuy basicfoodstuffs,whatyoudo

withtherestofyourmoneywilldependonyourparticularattitude.Thefollowingthreestatements broadlysumup themostcommonattitudestomoneyintoday'sculture:

1.Moneyisforenjoying -moneyisforspendingonthethings thatmakeyouhappy.Nooneknows whatthefuturemayholdorwhatcanhappentomorrow, soyoushouldenjoywhatyouhave whenyou

haveit.Money'snousewhenyou'redead,solivefortoday.

2.Moneyisforsecurity -moneyshouldbespentonmakinglifecomfortable.Onceyouhavethebasic

homecomforts,it'simportanttohavemoneyputasideforarainyday.Nooneknowswhatthefuture mayhold,soit'ssensibletobeprepared.

3.Moneyisforsharing -moneyshouldbe sharedgenerouslywiththoseyoulove andthoseless fortunatethanyourself.Buyingpresents,entertainingothersandgivingmoneytocharitycreatesfeelings

inyourselfandothers thatarepriceless.Nooneknows what thefuturemayhold,andsomedayyoumayneedthefavourreturned.

Soherearethemainattitudestomoneyinourculturetomymind andIdon’tthinkthatmyopinion differsfrommostpeople,so theattitudetomoneydoesn’tchangethroughyears.

5 .HowhaveWal-MartandTargetstoresperformedlately?

Wal-MartStores is anAmericanpubliccorporationthatruns achainoflarge,discountdepartment stores.Itistheworld'slargestpubliccorporationbyrevenue.Itisthelargestprivateemployerinthe

world and thefourth largestutilityorcommercial employer.Wal-Martis thelargestgroceryretailerin theUnitedStates.

OnSeptember12,2007,Wal-Martintroducednewadvertisingwiththeslogan,"Save MoneyLive

Bett er ," replacing the"Always LowPrices,Always "slogan,whichithadusedfortheprevious19years.

GlobalInsight,whichconductedtheresearchthatsupportedtheads,foundthatWal-Mart'spricelevel reductionresultedinsavingsforconsumers.

Savingpeoplemoneytohelp themlivebetteristhegoalofWal-Mart.It’sthefocusthatunderlieseverything atWal-Mart.Andfor themillionsofcustomerswhoshopinthese storesitmeans alot. By

offering thebestpossible priceson the productscustomersneed,Wal-Martcanhelpthemaffordsomethingalittleextra.

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TargetCorporation'smainretailingsubsidiary,TargetStores ,is aUnitedStatesdiscountretailchain consistingof1,591(morethan1500) stores.Ithasunitsinall statesexceptforAlaska,Hawaii,and Vermont,operatingundertheheadsofTarget,TargetGreatland,andSuperTarget.TargetCorporationhasaggressiveplanstohave2,000storesopenbytheyear2010,includingexpandingtoAlaskaand Hawaii.

Targetstorestendtoattractyoungerandmoreeducatedandaffluentcustomersthanitscompetitors. Targethascultivatedamoreupmarketandstyle-consciousimagethanotherdiscountretailers.Itis the third-largestgeneralretailerintheUSbyrevenues.

U n it 6. Advertising.

1. Whatformsofadvertisingdoyouknow?

2. Explainthemeaningof'directmarketing'.Whyisitconsideredtargetedmeansofadvertising?

3. Whatisthedifferencebetween'productplacement'and'productendorsement'?

4. WhatmakesMike'sadvertisingtick?

5. Howshouldyouplananadvertisingcampaign?

6. Giveexamplesofgoodandbadadvertisements.

1.Whatformsofadvertisingdoyouknow?

Themainformofadvertisingismedia. Itcanincludewallpaintings,billboards,streetfurniture

components,printedflyers,radio,cinemaandtelevisionads,webbanners,mobiletelephonescreens, magazines,newspapers,sides ofbusesorcars, andsoon.Anyplacean"identified" sponsorpays todelivertheirmessagethroughamedium is advertising.So youcanseealotofadvertisinginthestreets. Anotherfamoustypeofadvertisingnowadaysisproductplacement . Itis whenaproductorbrandis noticedinentertainmentandmedia.Forexample,inafilm,themain charactercanuseanitemor otherofadefinitebrand.Itisverypopularnowadaysforcars,watches,clothes.Forexample,product placementforFord,BMWand Aston-MartincarsarefeaturedinrecentJamesBondfilms,mostnotably CasinoRoyale .

TheTVcomm ercial isgenerallyconsideredthemosteffectivemass-marketadvertisingformat,asis reflected bythehigh pricesTVnetworks chargeforcommercial airtimeduringpopularTVevents.Forexample,football.

Increasingly,othermediaareovertakingtelevisionbecauseofmoreconsumer'susageoftheinternet.

AdvertisingontheWorldWideWeb isarecentphenomenon.Pricesof Web-basedadvertisingspaceare dependentonthe"relevance" ofthesurroundingwebcontentandthetrafficthatthewebsite receives.

E-mailadvertising isanotherrecentphenomenon.UnsolicitedbulkE-mail advertisingisknownas

"spam".Sothesearethe mostfamousforms ofadvertising nowadays tomymind.

2. Explain themeaningof'directmarketing'.Whyisitconsideredtargetedmeansofadvertising? Directmarketing is oneofthetypeofmarketing.Therearetwomaincharacteristicswhichdiffersit fromothertypes ofmarketingoradvertising.Thefirstis thatitattemptstosenditsmessages directlyto consumers,withouttheuseofothermedia.Thisinvolvesunsolicitedcommercialcommunication(spam, junkmail,etc.)with consumers orbusinesses.Thesecondcharacteristicis thatitisfocusedon drivingpurchases thatcanbeattributed toaspecific"call-to-action."Iftheadvertaskstheprospecttotakea specific action,forexample callafree phonenumberor visitawebsite, thenthe effortis consideredtobe directresponseadvertising.

Directmarketingisattractivetomanymarketers,becausein manycasesitspositiveeffect(butnot

negativeresults)canbemeasureddirectly.Forexample,ifamarketersendsoutonemillionsolicitations bymail,andtenthousandcustomerscanbetrackedashavingrespondedtothepromotion,themarketer cansaywith someconfidencethat thecampaignleddirectlyto theresponses.Thenumberofrecipientswhoareoffendedbythejunkmail/spam,however,isnoteasilymeasured.Bycontrast,measurementof othermediamustoftenbeindirect,asthereisnodirectresponsefromaconsumer.

3 .Whatis the difference between'product placement'and 'product endorsement'?

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P r oduc tplacement advertisementsarepromotionaladsplacedbymarketersusingrealcommercial productsandservicesinmedia,wherethepresenceofaparticularbrandistheresultofaneconomic exchange.Whenfeaturingaproductis notpartofaneconomic exchange,itis calledap roductplug . Productplacementappearsinplays,film,televisionseries,music videos,videogamesandbooks.

Productplacementislinkedwith theinclusion ofabrand'slogoin shot,orjustappearanceofa productin

shot. Thisis donewithoutanyspecial mention,itis donesothat itlookslikeanaturalpartofwork. Mostmoviestodaycontainproductplacements.Sothemostcommonform ismovieandtelevisionplacements andmorerecentlycomputerandvideogames.

Inpromotionandofadvertising,arecomendat i o n orendorsement consistsofawrittenorspoken

statement,sometimesfromapublicfigure,sometimesfromaprivatecitizen.Soproductendorsementit is whena well-knownperson sayshowgoodaproductisinadvertisements.Andpeople willbuy the productbecausetheylikeortrusttheperson.

Todayendorsementsappearmostlyintelevisionadvertising.Forexample,asmiling starmay

demonstrateanddescribethebenefitsthatshereceivesfromusing this orthatproduct.Inthecaseofcelebrityendorsements advertisers aimtousetherecognition-factortodrawonthehaloeffect.Intheory, thissourcetransfersfromthecelebritytotheadvertisedproduct,brand,andmanufacturer.Aproblem with usingcelebrityendorsementsinvolvesanynegativepublicitythatthecelebrity mightget:itwillalsotransferbacktotheproduct,therebyreducingbrandequity.

4 .Whatmakes Nike'sadvertisingtick?

PhilKnight,the co-founderandformerChiefExecutive ofNike,hasanabsolutelyclearandcommitted

strategytousecelebrityathleteendorsement.HehasbuiltNike’sexpansionintosport aftersportfromits athleticsrootsonthebackofsportingmasters.FromthebeginningNikehasbeenpreparedtotakea gambleonsportingbadboys others wouldnottouch.Itwasastrategythatbeganwith IlieNastase,the originaltennisbadboy.TheRomanianhad thequalitythathascometorepresentNikeandits

advertising:attitude.Afterextraordinarygrowth,Nikebecamenumberonetrainermanufacturerinthe US.Butthenitexperimented unsuccessfullywithexpansionintonon-athleticshoes,andlostitsnumberonepositiontoReebok.

Knightbet thefutureofthecompanyon anewfeature:a newairtechnologyinsidethetrainer.Salestook

offandthe restishistory.Thisbringstoglobalizationandthe question ofhowAmericanthebrandcanbe.Nikeusesamixofglobaladcampaigns suchas ‘good vevil’andlocaladvertising suchasitsfamouspostercampaignsintheUK.MarketingdirectorsatNikedonotrelyonmarketresearchpre-testing

whichoftenreducestheimpactofmoreexperimentalcommercials.Thereisalsothelongrelationship

with one ofthe world’sbestadagencies. ThingsonlyhappeninNikeads thatsportsmenandwomencan reallydo.

5.How shouldyouplanan advertisingcampaign?

Anadvertisingcampaign is aseriesofadvertisementmessagesthatsharea singleidea andthemewhichmakeupanintegratedmarketingcommunication(IMC).Advertisingcampaignsappearindifferent

mediaacrossaspecifictimeframe.

Thecriticalpartofmakinganadvertisingcampaignisdeterminingacampaigntheme ,asitsetsthetone

fortheindividualadvertisementsandotherformsofmarketingcommunicationsthatwillbeused.The campaignthemeisthecentralmessagethatwillbecommunicatedinthepromotionalactivities.

Takingonyourownadvertisingcampaignisnoeasytask.You cando itonyourownbutyoushouldbe readytorollupyoursleevesandget towork.

YourMarketingPlan

Nothingcanhelpyouidentifyyourgoalsmore thanyourmarketingplan.You learnalotabout your

company,yourcompetitorsandyourlong-termgoals bycreatingandfollowingyourmarketingplan. Thisiscrucialtoknowingwhattypeofadvertisingisbestforyou.

CreateaPlanofAction

Onceyouhaveyourmarketingplan,youmustcreateaplanofaction.Yourplanofaction also gives you

crucialinfoyoucanuseinexecutingyouradstrategy.

De f in eYourAdvertisingBudget

Howyouadvertisedependsonyouradbudget.Youneedtostrategicallyuseyouradvertisingmoney.If you'reonlyallowing asmallportion ofmoneytoadvertising,youwouldn'twanttothrowitallintothe

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production ofonecommercialthatruns at2a.m.Knowexactlyhowmuchyouwillspend onyour advertisingfirstsoyoucanmakewisedecisionsinthecreationandplacementofalladmediums. HuntforAffordableOpportunities

Runningyourownadcampaignmeansyouhavetobeyourownmediadirector.You'vegottofindthe bestadplacementandthemostaffordableopportunitiestofitintoyourbudget.Ifyou'relimitedtoavery

smallbudget,youcanfindmanywaystobypasshighadvertisingcosts.

K no wYourTargetAudience

You can'tadvertiseeffectivelyifyoudon'thityourtargetaudience.Knowwhotheyarebeforeyoustart creatingyourads.Ifyourcompanysellsscooterstoseniors,youdon'twanttoinvestincableadstorun

onMTV.

Adv e r tis einAppropriateMediums

Ofallthe differentadvertisingmediumsyoucanuse,youhave tobe able tousethesemediums toyourbenefit.Spending allofyourmoneyonadirectmailcampaignwhenyouraddollarswouldbebetter

spentonprintadsisgoingtolimithowmanycustomersyoucould'vegained.Takealookateach medium,thinkaboutyourtargetaudience,takealookatyourmarketingplanandyourplanofactionand

decide which medium(s)will bebestforyouraddollars.

Don' tBeAfraidtoHireFreelancers

Ifyoucan'tturnyouradvertisingovertoanagency,stillconsiderhiringafreelancecopywriterand/or graphicdesigner.Theseprofessionalsknowwhatmakesagoodadvertisement.

Manyfreelancershave workedinadvertising agenciessoyougetthebenefitoftheirexpertise. Plus,freelancerscangiveyouprofessionalcopyandmaterialsatanaffordable cost.

Co n sist e nc yisKey

Ifyou'rerunning TVandradiocommercials,printadsandadirectmailcampaign,keepthemconsistent.

Use thesame announcerandmusicforyourcommercials.Printmaterials shoulduse thesame colorsand fonts.Usethesametagline.Youwanttokeepeverythingconsistentsoyourpotentialcustomersstart identifyingyourtagline,yourcolors,yourfont,yourannouncer,jingle-everything-thatrelatestoyour company'sadcampaign.

Freque n cy

Buying spacefor oneradiocommercialthatairs onceat4:30 inthemorningisn'tgoingtogetmuchofa

response.Youwantcommercialstohavealargerfrequencysoyoucan increaseyourchancesofhittingthattargetaudience.Ifyou'rerunningadirectmailcampaign,decidethefrequencyofyourmaterialsup front.Onceyousendyourinitialmaterials out,howmanytimeswillyousendoutfollowupmaterials? Knowtheanswersbeforeyoubegintohelpmaximizeyourstrategy'ssuccess.

Books

Whenallelsefails andyoustillrunintoquestions,thereareplentyofbooksyoucanusetogiveyou

guidance.Alsobeonthelookoutfortitlesthathavejustbeenreleasedsoyoucankeepon topofcurrent advertisingtrends.

6.Giveexamplesofgoodandbadadvertisements.

Anadvertisingcampaign is aseriesofadvertisementmessagesthatsharea singleidea andthemewhichmakeupanintegratedmarketingcommunication(IMC).Advertisingcampaignsappearindifferent

mediaacrossaspecifictimeframe.

Thecriticalpartofmakinganadvertisingcampaignisdeterminingacampaigntheme ,asitsetsthetone

fortheindividualadvertisementsandotherformsofmarketingcommunicationsthatwillbeused.The campaignthemeisthecentralmessagethatwillbecommunicatedinthepromotionalactivities.

Good orbadwillbethis advertisementit’sanotherquestion.Itis difficulttoidentifywhich advertisementisgoodandwhichnot,becauseeveninthesurroundingsofpitchmentherearedisputes

aboutit.Onepeopleconsiderthemostimportantinadvertisementis thatitcouldselltheproduct,the othersmorecreativepersonsmake uselessfromthepointofsalesbutinterestingforpeople

advertisements.

From mypointofviewthegood examplesofadvertisementsit’sthe advertising ofalmostallperfumes.

Itis alwaysstylish,charming trailerwith goodselected music.ForexampletheadvertisementofChannel

№5withNicoleKidman.Itisshort,fascinated,low-pressuredadvertising.

Anothergoodexample ofadvertisementis classic advertising ofNewYearCoca-Cola. Itis good looking advertisement,funnywhichhelpsyoutofeelthe approachingofholiday.

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Asforbadexamples,tomymind eachadvertisementinitstrailershouldcontainthe shortmessage ofthe theme ofthis or that advertising.Butthismessageshouldbe on theme,itshouldcontaintherightsense

oftheadvertising subject.ForexamplethetrailerofVanish.Attheendofadvertisementthereis a

phrase:“Pinkcolor,trustitandtherewillbenospots”.Whomshouldwetrust?Thecolororthefeature inthepinkpot?It’snotcorrectmessageoftheproduct.

U n i t7.Cultures

1. Giveexamplesofcross-culturalissues.

2. Inwhatwayshouldculturalstereotypesbehandled?

3. Isthereadifferencebetweenculturesandsubcultures?

4. Explainthemeaning oftheterm‘culturalawareness’.Whyisitimportant?

5. Whatadvicewouldyougivetoa business visitorcoming to Italy,theUAE, toRussia?

1.Giveexamplesofcross-culturalissues.

Anindividual'sculturalbackgroundwillaffect thespecificwayinwhichheorsheseestheenvironment andalsohow theindividual mightshowhis orherfeelings,emotion,distress,orconflictinbehavior,

thoughtoraction.Therefore,culturewill influencetheexperienceof mentaldisorders andhowtheymightpresent.

Miscommunicationisthemostpopularexample ofcross-culturalissues.

Miscommunicationacrossculturallinesisusuallythemostimportantcauseofcross-culturalproblems.

Miscommunicationcanbecausedbyseveralproblems:

differencesinbodylanguageorgestures .Thesamegesturecan havedifferentmeaningsindifferent

partsoftheworld.Forexample,Bulgariansshaketheirheadsupanddowntomeanno.Inaddition,the waypeoplecountontheirfingersisnotuniversal:TheChinesecountfromonetotenononehand,and eightisdisplayedbyextendingthethumbandthefingernexttoit.Thesamegestureisinterpretedas meaning twoinFranceandas pointingaguninNorth America.

differentmeanings forthesameword .Likegestures,words canhavedifferentmeaningsorconnotationsindifferentpartsoftheworld.TheFrenchword"char"meansArmytankinFranceandcar inQuebec.Theword"exciting"hasdifferentconnotationsinBritishEnglishandinNorthAmerican English.WhileNorth American executives talkabout"exciting challenges"repeatedly,British

executivesusethiswordtodescribeonlychildren’sactivities(childrendoexcitingthingsinEngland,not executives).

differentassumptionsmadeinthesamesituation .Thesameeventcanbeinterpretedmanydifferent ways dependingonwhereonecomesfrom.Forexample,althoughthesightofablackcatis considereda

luckyeventinBritain,itis considered unluckyinmany othercountriesparticularlyinRussia. Soinextremecases,miscommunicationcanleadtocasualties.

2 .In what way should cultural stereotypesbehandled?

Weusestereotypesinpartbecauseit’ssohardtotakeinallofthecomplicatedinformationaboutotherpeopleintheworld.It’s difficulttospendtheamountoftimenecessarytounderstandwhyorinwhat

differentways peoplebehave. Soinstead,welearnearlyinourlivestoacceptstereotypesofgroups,orindividuals.Wedevelopstereotypesnotjustforlarge cultures,but smallerones.

Stereotypes eliminatethechallengesofunderstanding peoplewhoare differentfromourselves;they supposedlygiveusageneraloverviewofwholegroupsofpeoplesoweknowwhattoexpectandhowto

act.Unfortunately,somany stereotypesareinaccurate(неточный)andareusedasamethodof scapegoating(козел отпущения),ortoseparate"their"behaviorfrom"my"behavior.Wedon’talways

agree with,orlikethe wayanothercultures behavebecauseitis different,andwe thereforeperceiveitas wrong,anddevelopnegative/uglydescriptions (stereotypes).Whenwehaveproblems with someoneofa

differentgroup,wetendtoidentifytheproblemashavingtodowiththegroup,ratherthanourselvesor thespecificperson.Sostereotypesdogetinthewayofhowwethinkandfeel.Itmakesus very

judgmentalaboutothersandunfortunatelyoftenerroneouslyso.Stereotypespreventusfromidentifying thefeelings thatarereallygo on insideofus.Withstereotypes,thebeliefwillremainthatsomeonedid

somethingtous,ratherthantheproblem,fear,orrigidity/closedthinkingbeingwithinourselves.When

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we’restereotypingwegetcaughtupintheissueofthat’swhat"theydo",that’show"thosepeople"are,insteadofbeingintouchwithouractualfeelingsofhurt,confusion,beingslighted,left-out,anger,etc.

3 .Is thereadifference betweenculturesand subcultures?

Culturecanbedefinedasallthewaysoflifeincludingarts,beliefsandinstitutionsofapopulationthat arepasseddownfromgeneration togeneration.Culturehasbeencalled"the wayof lifeforanentire

society." Assuch,itincludes codesofmanners,dress,language,religion,rituals,norms ofbehaviorsuch aslawandmorality,and systems ofbeliefaswell astheart.

Variousdefinitionsofculturereflectdifferingtheoriesforunderstanding,orcriteriaforevaluating, humanactivity.

Asubculture is aset ofpeoplewith aset ofbehaviorsandbeliefs,culture,whichcouldbedistinctor hidden,thatdifferentiatethemfromthelargerculturetowhichtheybelong.Ifthesubcultureis

characterizedbyasystematic oppositiontothedominantculture,thenitmaybedescribedasa counterculture.

Subcultures canbedistinctivebecause ofthe age,race, ethnicity,class,and/orgenderofthemembers.The qualitiesthatdetermineasubcultureasdistinctmaybe aesthetic, religious,political,sexualora

combination offactors.Members ofasubcultureoftensignaltheirmembershipthroughadistinctiveand symbolicuseofstyle, whichincludesfashions,mannerisms, andargot.

Thestudyofsubcultures oftenconsistsofthestudyofsymbolismattachedtoclothing,musicandothervisible affectations by members ofsubcultures, andalsothe waysinwhichthesesame symbols are interpretedbymembersofthedominantculture.

Sosubcultureitis thestreaminsidethemaincultureandtheyareconnected with eachotherin soorthatway.

4 .Explainthemeaningoftheterm‘culturalawareness’.Whyisitimportant?

CulturalAwareness isdevelopingsensitivityandunderstandingofanotherethnicgroup.Awareness

extendstospecialfoods,manners ofdress,language,religious preferencesandobservances,and differencesincommunication styles.(Forexample,in someculturesitisimpolitetomakeeyecontact,especiallywith someoneyoudonot knowwell.)Toenhancethe qualityofthe visit,itishelpful tobe awareofculturaldifferencesandbesensitivetothosedifferences.

Culturalawarenessrecognisesthatweareallshapedbyourculturalbackground,whichinfluenceshow weinterprettheworldaroundus,perceiveourselves andrelateto otherpeople.Youdon’tneedtobean expertineverycultureorhavealltheanswerstobeculturallyaware; rather,culturalawarenesshelpsyoutoexploreculturalissueswithyour recipientsmoresensitively.

Informationaboutspecificculturalpracticeswillhelptoincreaseyourculturalknowledgebyproviding anoverviewofculturalcharacteristicsandissues.However,itisalwaysimportanttoidentifyindividual needsandpreferences andrememberthatnoindividualcanbereducedtoa setofcultural norms.

Withinanyculture,peoples’values,behaviourandbeliefs canvaryenormously.Differencesmayoccur due to time ofarrival inAustralia,length ofsettlement,socio-economicbackground,level ofeducation,

wayof life,identification withculturalandreligiousbackground,anddifferentlife experiences. KeyConsiderations

·Beawareofyourownculturalinfluences.

·Beawareofjudgingotherpeople'sbehaviourandbeliefsaccordingtothestandardsofyourown

culture.

·Beawareofmakingassumptionsaboutculturalinfluences andapplyinggeneralisationsto

individuals.

·Understandthat thebehaviourandbeliefs ofpeoplewithineachculturecanvaryconsiderably.

·Understandthat theextenttowhichpeopleadopt practicesoftheirnewcountryandretainthosefromtheirculturalbackgroundcan varywithincommunities,evenwithinfamilies.

·Understandthatnotallpeopleidentifywiththeirculturalorreligiousbackground.

·Increaseyourknowledgeaboutdifferentculturalpracticesandissues throughculturalbackground

informationsessionsand/orresourcesandculturalawarenesstraining.

·Understandtheimportanceofappropriatecommunication.

5 .Whatadvicewould yougive toabusinessvisitorcomingtoItaly,theUAE,toRussia?

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I t aly

LivelyconversationiscommoninItaly.WelcometopicsofconversationincludeItalianarchitecture,art

andfilms,sports(especiallyfootball),operaandpraisingthehospitalityofthe country.Itis besttoavoid

criticizing Italianculture,evenifyourItaliancounterpartsaredoingso.Don’tgiveabusiness giftuntilyoureceiveone. Yourgiftshouldbea wellknownbrandname. giftsofalcoholor craftsfrom your countryareoftengoodchoices.Otherpossiblegiftsarefinepens,aframedprintorpicture,silverkey ringsorcalculators.Avoidgiving gifts showingyourcompany’slogo.Hospitalityplays akeyrolein Italianbusiness culture.Regardlessofhowyoufeel,refusing aninvitation ofanykindmaygiveoffence.Thebusiness breakfastis almostunheard of.Rareexceptionsmaybefoundinthemajorcities.Business dinnersinvolveonlyasmall,exclusivegroup. Ifyou arethehost,checkwithyourItaliancontactbeforemaking anyinvitations.Lunchis stillthemainmealofthedayinmostareasofthecountry.Itis usually servedafter12:30p.m.andoftenhasmanycourses.

United A r ab Em i r ates

Thehostsusuallyset thesubjectofconversation.Theywillnormallybeginwithpoliteenquiries(Howareyou?Howareyouenjoyingyourvisit?etc.). Ifothers arrivedbeforeyou,yourhostswilloftentell

youthesubjectofthepreviousconversationandinviteyoutocontribute.GivinggiftsintheUAEismore complexthaninothercountries.Thisispartlybecause ofthemixture ofnationalities:eachnationality

has differenttastes andcustoms.Also,nearlyeverything canbepurchasedintheUAElessexpensively thanelsewhereintheworld.As agestureofrespect,yourhostislikelyto openandcarefullyexamine

yourgiftinyourpresence.Itisimportantthatyourgiftis thebestyoucanaffordtoavoid embarrassment.Sharingamealis consideredthebestwayforpeopletogettoknowoneanother.Locals

oftenentertainathomebut theywillacceptaforeigner'sinvitation toahotelorrestaurant.Hospitalityin theUAEisveryimportantbutshouldnotbeinterpretedasfuturecommercialsuccess. Therearelocal

customs tobeawareof,forexample,itis consideredbadmanners toeithereatoroffersomething withthelefthand.

Russia

Obtaining anappointmentcanbeatremendouschallenge,sopersistenceandpatienceareessential.Once

yourappointmentisscheduled,doeverythingyoucantoavoidcancellation.

Whenmaking appointments,besuretoschedulethem farinadvance.Itwillalsobeinyourbestinterests

toconfirmanyappointmentseveraltimes,asthescheduleddateapproaches.

TheRussiandaybeginsearly,butitcanbe difficulttoforeseewhenallotherdailyactivitieswillbegin

andend.Schedulesareconstantly subjecttochange,oftenat thelastminute.Any visitorshouldstrivetobepunctual,butatthesametimeflexible.

Alwaysbepunctual,butdonotbesurprisedifyourRussiancontactsarenot.Itisnotunusual fora

Russiantobeoneortwohourslateforanappointment.Generally,themoreimportantthemeetingisfor

yourRussiancounterparts,themorepunctualtheywillbe.Allowplentyoftimeforeachappointment. Notonlymayappointmentsstartlate,theymaylastfarlongerthanoriginallyplanned.

Business hours aregenerally from9:00 a.m.to5:00p.m.,MondaythroughFriday.

ThereisanoldRussianproverb --"theymeetyoudependingonhowyou'redressedandtheysaygood

byedependingonhowwiseyouseem."

Nowadays,Russianbusinesspeoplepayalotofattentiontohowtheyaredressed.Russianpeoplein

general probablyspendmoremoneyfromtheirfamilybudgetonclothing thenanyothernationin the world.

Thosewhocan'taffordtobuytopfashionbrandclothing(suchasVersace,Armani,Gucci,CalvinKlein orHugoBoss)prefertobedressedincheaperbutstillwellmadesuitsratherthanwearthefakeproducts

widelyavailableinnumerousmarketsacrossthecountry.

Ifyou'reaman,yourbestbetwillbetowearasuitandtie(make surenot towearthesameonesevery

day)forallyourmeetings,whetherit'sinanofficeor restaurant.Darkcolours andwhiteshirtsareonlyforspecialocasions.Otherwise,choosetonesinlightblue,gray,orbrown.

Visitorsshould trytospeakinacalm,moderate, toneofvoiceatalltimes.

Usually,yourRussiancolleagueswillbedelightedifyoumaketheefforttospeakevenafew sentences

oftheirlanguage.Nevertheless,ifyourRussian partyspeaksyourlanguge,yourdecisiontospeak

Russianmaycauseconfusion(e.g.--theymightthinkthattheirEnglishisnotgoodenough).

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Russiansaresometimesverycarefulaboutwhattheysay,andmayreverttospeakingmetaphorically,symbolically,andperhaps evencryptically.Consequently,thereis a great dealofrelianceon nonverbalcommunication.Atothertimes,however,theycan be extremelyfrank;italldependson the situation. WhenaRussiantouchesanotherperson duringconversation,itis usuallyasign ofconfidence.

YouwillsometimesfindtheRussianstobeenthusiasticaboutdiscussingpoliticsandthechallengesof

livinginRussia.Participatinginthiskind ofdiscussionandexpressingyourviews(eveniftheyare opposite)ismorewelcome thanjustbeingan activelistener.

BringingupthesubjectofRussiancultureandhistorycanbeanappreciatedgesture.Russiansare extremelyeducated--sodon'tbesurprisediftheystarttotalkaboutthehistory(morelikelythanculture)

ofyourowncountry.Beprepared.

Personalquestions arebestavoided,although youmaybesubjecttotheseinquiries.Maketheeffort to

answerthesequestions asbestasyouarewilling to allow,sinceyourRussiancompanionsmaypressyoufordetails.

Thereis tremendous affectionforchildreninthis culture;ifyouareaparent,showingphotographs of yourchildrencanbeaneffectivewayofbuilding good will.

Inconversation,itcanbepermissibleto discussyourfeelingsandhopesforthefuture.Sometimes,your

Russiancompanionswillbefarmoreinterestedinthepersonalsideofyourcharacterthanyourbusiness

agenda.

WelcomeTopicsofConversation thechangestakingplaceinRussiacurrentevents

WorldWarII

economicdifficulties

positivecontrastsandcomparisonsbetweenRussiaandyourcountry[letyourRussiancompanionsbring upthissubjectfirst]

books films

TopicstoAvoid complaintsaboutRussiatheHolocaust

theCzarandthemonarchy

ethnicminorities religion

comparing/contrastingRussiatootherdevelopingcountries comparing/contrastingMoscowandSaintPetersburg

Generallyspeaking ,Russianstakepleasureingivingandreceiving gifts.Besuretobringanassortment ofgifts,sothatyouwillalwayshavesomethingappropriatetogive.

Cheapergiftsdonothavetobewrapped,whilemoreexpensive onesshouldbe.

Giftsforchildrenareusuallyopenedinprivate,while giftsforadultsaregenerallyopenedinthe

presenceofothers.Ifyourgiftwas ahit,youwillhearmany'thank-yous.'

Russiansspendalot ofmoneyon gifts.Avoidgivinggiftssuchaspencils,pens,lighters(unless theyare

expensiveones),cheapwineorvodka,notebooks,etc.

WheninvitedtoaRussianhome,bring agiftofchocolates,dessertitems,goodwine,orotheralcohol

[trytoselectsomethingotherthanvodka,whichiswidelyavailable].

Bringingabouquetofflowers(nottooexpensivethough)forwomenyouarevisiting(doesn'treally matterhowmanyofthemareinthefamilyyou'revisiting)is agood idea.Makesureyouhaveanoddnumberof flowers.Evennumbers usuallyareforfunerals.

Ap p r ecia t e dGifts

wineorotheralcohol[trytoselectsomethingotherthanvodka]

finechocolates[wheninvitedtoahome]

afooditemthatisscarce towels

cameras watches

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perfume,cologne[asathank-youforanovernightstay]

clothing[asathank-youforanovernightstay]

U n i t 8. Employment

1. Howdopersonnelmanagersactintheircompanies?Whataretheirresponsibilities?

2. Whatis thewaytheprofessionalpeoplecanmakealivingiftheyweremaderedundant?

3. Howcanorganizationsretainhigh-performers?

4. Whatshouldyourememberaboutwhileattendingajobinterview?

1.Howdopersonnelmanagersactintheircompanies?Whataretheirresponsibilities?

Theyactmoreas facilitators forotherdepartments:theydeal withrecruitmentinconjunction with

departmentmanagers,theyadministerpaymentsystemsintandemwithaccounts.Theymaybe responsibleforprovidingtraining,inindustrialrelations theyareinvolvedincomplaints anddisputes procedures.Theyhavetobreakthenewswhenpeoplearedismissed.

Personnelmanagersmaybeinvolvedinactions toeliminateracialandsexualdiscriminationinhiring

andpromotionandtofightharassmentintheworkplace:bullyingandsexualharassment.Theycreate remunerationsystems(schemesofrewards)inordertoincreasemotivation.

2.Whatisthewaytheprofessionalpeoplecanmakealivingiftheyweremaderedundant? Peoplewhoaremaderedundantshouldtrytofindanotherjob.Organizationwhichmakesredundancy oftentrytohelptheirex-employeesandsometimesHRspecialistsofferoutplacementservices.Theyorganizemeetingsforjob-seekers withpotentialemployers.

Professionalpeoplewhoaremaderedundantcanmakealivingasfreelancers,orportfolioworkers,

workingforanumberofclients.

3.Howcanorganizationsretainhigh-performers?

Moneyremainsanimportantmotivatorbutinpracticehigh performers tendtothinkthatitgoeswithout

sayingthattheymustgetagoodfinancialpackage.

Empowermentis anotherimportantmotivatingforce.Ahigh performerwantstofeelthatheorshe

“owns”aproject.

High performers trytodevelop theirskills sothat’s whyworkneedsto bevariedandtimeshouldbe

availableforcreativethinkingand developingnewskills.

Above all,high performers –especially iftheyareyoung– wanttofeelthat organization theyworkfor

regardsthemasspecial.Iftheyfindthatcompanyisn’tinterestedinthemaspeoplebutonlyashigh- performingcommoditiestheywillleavetheirposition.

4.Whatshouldyourememberaboutwhileattendingajobinterview?

Interviewisagoodopportunityforyoutoevaluatethecompany.Goodpreparationforinterviewisakey to success.It’s veryimportanttobringextracopiesofyourCVandtypedlistofreferences.Tomymind

itis veryimportanttofindout asmuchasyoucanaboutyouremployers andthebusiness theyarein. Alsopreparingfortheinterviewthinkaboutyourarrivingatleast15minutesearly.Itisveryimportant

tothinkaboutyourappearanceanddressbeforeinterview.Ofcourseweprefertobehiredbecauseofour skills andabilities,notbecause ofourdress.Butlikeitornotappearanceisimportantanditcreates

image.Yourappearancecanexpressmotivationandprofessionalism.

Ithinkthatit’sveryimportantnottocriticizeyourpreviousemployers.It’spossibletoexplainyour

leavingsayingthatyoudidn’tthinkthatyoucoulduseallofyourabilitiesandskills.Duringthe interviewit’simportanttoexplainwhyyouwouldliketoworkforthiscompanyemphasizing allthe thingsinyourpreviousexperiencethatyouthinkwillbeusefulinthenewjob.It’s importanttorelaxandbeyourself,lookattheinterviewerwhenhe orsheasksyouquestionsandshowgreatinterestinthejob.

U n i t9. Trade

1. Whatarethelatesttrendsininternationaltrade?

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2. Whydomanycountriesargueforprotectionistmeasuresfortheirindustries?Howdotheydothat?

3. Whatisthemajorconcernininternationaltradeandhowtodealwithit?

4. Whatdoyouknowabout“fairtrade”?

1.Whatarethelatesttrendsininternationaltrade?

Industrialization,globalization,multinational corporations,andoutsourcingarethelatesttrendsin

internationaltrade.Globalizationistheprocessenablingfinancialandinvestmentmarketstooperate internationally,largelyasaresultofderegulationandimprovedcommunications.Itistheemergence sincethe1980sofasingleworldmarketdominatedby multinationalcompanies,leadingtoadiminishing capacityfornationalgovernments tocontroltheireconomies.Consequencesofglobalization: globalizationincreases competitionamongcompanies,globalizationimprovesinternational communicationandunderstanding,tradeliberalization-tradebarriersbecomelower,shippingcosts decrease(costsonsendingordeliverygoods),globalizationdamageslocalgoods,servicesandcultures, ecologicalproblems.

2.Whydomanycountriesargueforprotectionistmeasuresfortheirindustries?Howdotheydo that?

Protectionism isnolongertheorderoftheday inmostplaces;evenifsomedevelopingcountriesargue

that protectionistmeasures arethewaytogettheireconomiesgoing,theyavoidusing theterm.Tradenegotiationsarewell-knownfortheirepiceleventh-hournegotiatingsessions,whereindividualnations argueforwhat theyseeastheirspecificinterests.Countriesargueforprotection oftheirstrategic industries,onestheyconsidervitaltofutureprosperitysuchastheelectronicsindustryinthedeveloped world.Alessdevelopedcountry beginning carassemblymightwanttoprotectitasaninfantindustry. Europeanfarmersarguefortheirsubsidies,wheregovernmentsguaranteefarmersahigherpricethan theywouldnormallygel,makingithardfordevelopingnationstocompeteinagriculturalproducts.The Frenchargueforculturalprotection,pointingouttheuniquenessoftheirfilm industryandwinning restrictions,orquotas,onthenumberofHollywoodproductsthatEuropeimports.

3.Whatisthemajorconcernininternationaltradeandhowtodealwithit?

Onemajorconcern ininternationaltradebetweensmallercompaniesis payment.Theexporterwantsto

besureaboutgettingpaidandtheimporterwantstobesureofgettingthegoods.Acommonsolutionis theletterofcredit,whereabankguaranteespaymenttotheexporter'sbankonceitreceivestherelated shippingdocuments,includingthecleanbillsoflading,showingthegoodshavebeenshippedwithout damageorotherproblems.ShippingtermslikeCIF,orCarriageinsurancefreight,wheretheexporter paysforinsuranceofgoodswhiletheyarebeingtransported,arepartofthestandardincotermsdefined bytheInternationalChamberofCommerce.Theseterms areusedin standardcontractsthat formthe basis,with adaptations,formostinternational tradecontracts.

4.Whatdoyouknowabout“fairtrade”?

Fairtrade isanorganizedsocialmovementandmarket-basedapproachtoalleviatingglobalpovertyand

promotingsustainability.Themovementadvocatesthepaymentofafairpriceas wellas socialand environmentalstandardsinareasrelatedtotheproductionofawidevarietyofgoods.Itfocusesin particularonexportsfromdevelopingcountriestodevelopedcountries,mostnotablyhandicrafts,coffee, cocoa,sugar, tea, bananas,honey,cotton,wine,freshfruit,andso on.Fairtrade's strategicintentis to deliberatelyworkwithmarginalizedproducersandworkersinordertohelpthemmovefromapositionofvulnerabilitytosecurityandeconomicself-sufficiency.Italsoaims atempoweringthemtobecome stakeholdersintheirownorganizations andactivelyplaya widerroleinthe global arena toachieve greater equityininternationaltrade.

U n it 10.Quality

1. Whatis TQM?Whatdoesitinvolve?(kanban, justintimemanufacturing, kaizen)

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2. WhatisBPR?Whatisitsconcept?Whatisbenchmarking?

3. Whichfeaturesexpresstheideaofqualityinthebestway?Why?

4. Howcanmanufacturersguaranteeproductquality?

1.WhatisTQM?Whatdoesitinvolve?(kanban, justintimemanufacturing,kaizen)

TotalqualitymanagementorTQMwasawatchwordofthe1980s.Thisofteninvolvedemployee

participation,withqualitycirclesofworkersencouragedtosuggestwaysofmakingthingsinbetter ways,Itwas associatedwith aninflux ofotherJapaneseideas,suchasthe kanbansystemofjust-in-time manufacturingorleanmanufacturing,where partsare onlymade andsuppliedwhentheyareneeded,so thatinventories (stocks) ofparts and theneedto financeand storethemareeliminated.A relatedobjectiveisthatofzerodefects,wherethingsaremaderightfirsttime,eliminatingtheneedfor inspectionandreworking.Allthisispartofkaizen:strivingforcontinuousimprovement.

2.WhatisBPR?Whatisitsconcept?Whatisbenchmarking?

TQMgavewayinthe19905tobusinessprocessre-engineeringorBPR,whencompaniesweretoldby theirconsultantsnotjusttotinkerinapiecemealwaywithhowgoodsorservicesareproducedbutto

abolisheverything andtostartagainfromscratch.Theconcept ofleannesswas nowalsoappliedto reducingthenumberofmanagementlayers,andalotofmiddlemanagerslost theirjobs.

Itwasalsointheninetiesthatbenchmarking emerged:theideathatafirmshouldseewhichcompanyperformedaparticulartaskbest,andmodeltheirperformanceonthisbestpractice.

3.Whichfeaturesexpresstheideaofqualityinthebestway?Why?

Tomymindsuchfeaturesofproducts(orservices)asvalueformoney,reliability,durabilityexpressthe ideaofqualityinthebestway.It’sveryimportantforcustomertobesurethathepaysmoneynotonly forbrandbutforqualityofproduct(orservice).WhenIbuysomethingIpaymuchattentiontosuch featuresasafter-salesserviceandguarantee.Ifproducercanprovideitscustomers withlong-continued guaranteeandgoodafter-salesserviceitcanmakenodoubtthatithasa goodcompetitiveadvantage.

4.Howcanmanufacturersguaranteeproductquality?

TheyapplyforthecertificationoftheInternationalOrganizationforStandardizationinordertoreassure theircustomers.Theyprovidecustomerswithlong-continuedguaranteeinordertoreassurethemin product’sdurability.Andofcoursegoodcompanieswhichtakecareoftheircustomersprovidethem withgoodafter-salesservice.

U n i t11.Ethics

1. Whatisthepurposeofanybusiness?Isitjusttomakemoney?

2. Why iscorruptionmorecommon in somecountriesthan inothers?Whataretheconsequencesofit?

3. Whichareasofbusinessdonotgiveenoughinformationaboutsocialandenvironmental matters?

4. Howdocompanies dealwithdifferentethicalissues?

1.Whatisthepurposeofanybusiness?Isitjusttomakemoney?

Frommypointofview“moneymaking”isnottheonlyonepurposeofthecommercialcompanies.Any

business wouldliketo obtaintherecognition oftheircustomers andeventheircompetitors. So,themain functionofanyorganizationistomakelivesofitscustomerseasier.Inotherwords,organizationsshould clearlydefinedresponsibilitiestowardsits"clients".

Alltheissuesmentionedabovearecontainedinorganisation’smissionstatement.Sothatmission

statementis abriefstatementofthepurposeofthecompany.Companiessometimes usetheirmission statementasanadvertising slogan,but theintention ofamission statementis tokeepmembers andusers

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awareoftheorganization'spurpose.(Example-"Organizetheworld'sinformationandmakeituniversally accessibleanduseful."—Google)

2.Whyiscorruptionmorecommon insomecountriesthaninothers?Whataretheconsequences ofit?

Tomyminditdependsontwofactors:thegrowthofinternationaltradeandthebusinessandthe economicchangesthathave takenplaceinmanycountriesandespeciallyintheeconomiesintransition.

Thus,countries whereis highconcentrationofmoneyandopportunities arepronetodifferentformsofcorruption.Representativeexampleofsuchcountry canbeRussia.

Consequences:

-Reducingpublicsectorwages

-Dissatisfaction with standardofliving

-highlevelofbureaucracy

3 .Whichareasofbusinessdonotgiveenoughinformationaboutsocialandenvironmental matters?

Everyyearmoreandmorecompaniesareblamedforgivingalackofinformationaboutsocialand environmentalissues.Inotherwords,whenwetalkabouthowtomakeaprofit,onlyminoritythinking

aboutpollution,socialenvironment,ethicetc.Forexample,factories,producingmanufacturedgoods, don’tpayenoughattention toharmtheycausetoenvironmentandsavemoneyonfilters.Thefood

industryisblamedforobesity.Mobilephoneoperatorsarechallengedtoprotectteenagersfromonline pornography.Recordcompaniesareattackedwhentheysuemusic-loversforsharingillegalfileson the

Internet.Fortunately,nowmorecompaniestakeintoconsiderationenvironmentalandsocialissuesand takeactionastheyregularlyfacerealorpotentialthreattotheirreputation.Now100oftheFTSE250

coverenvironmental,socialandethicalissues.

4.Howdocompaniesdealwithdifferentethicalissues?

Allbusinessesincreasinglywanttobe perceivedasgood citizens.Differenttypes ofbusinessface

differentethicalissues:

•Financialinstitutionstrytopreventinsider tradingbyerectingnotionalbarrierscalledChinesewalls

betweendifferentdepartments(forexample,topreventsomeoneinsharetradingfromdiscoveringfrom themergersdepartmentthataparticularcompanyisinvolvedinmergertalksand thatitsshareprice willsoonrise).

•Companiessellingpersonalfinancepromisetoensurethatclientsaresoldappropriateproductsfortheir

needs,and thusavoidmisselling.

•Manufacturers claimthat theirproductsaregreenorenvironmentallyfriendlyinall stages oftheir

production,useanddisposal.

•Cosmeticscompaniessaythattheirproductsarenottestedonanimals.

•Clothingcompaniesclaimtotradefairlyandthattheirproductsarenotmadeinsweatshopspaying subsistencewagesandusingchildlabour.

U n i t 12.Leadership

1. Whydocompaniesincreasinglynurturetheirpotentialleaders?

2. Whatmakesagoodleader? Whatarethedifferencesbetweenmenandwomenleaders?

3. Whatisthe differencebetweenamanagerandaleader?

4. Aretheleadersbornoremade?

1.Whydocompaniesincreasinglynurturetheirpotentialleaders?

Companiesareincreasinglythinkingabouthow tonurturetheirleaders. Forexample,inUS corporate

governancehasbecomeakeyissuewithshareholders.Thehaverejected theprevious cosyarrangments,wheredirectorsappointedpeopletheyknew,to theboard, andnowdemandmuchgeaterscrutinyoverwhois chosenandhow.Itmeans thatleadershouldhave theempowermentandcharismatomotivateto

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othersinthe achievementofthegoals,but their qualitiescannotbeseeninisolation.Theremustbe the rightchemistrybetweentheleaderandothertoppeople,andtheymusthavetherightmixof complementaryskills. IfyourCEOleaves aftersixmonthsinthejob,perhaps,afterwhat the papersdescribesas“irreconcilabledifferences”,orasaboardroombattle,thecompanyandtheperceptionofit willsuffer,andso,probably,willitsshareprice.Bythetimeyoufindanotherone,twoorthreeyearsmayhavebeenlost,aneternityin strategicterms.That’s why nurturingleadersis anextremlysensitivetask.

2.Whatmakesagoodleader? Whatarethedifferencesbetweenmenandwomenleaders? a)Aneffectiveleaderisbynatureaself-confidentpersonwhohasthecouragetoovercomedoubts, uncertainties andfearswhilebeingupbeatevenbeyondofhim/herpersonallimitations,business constraints,oddappreciations andenvyofco-workers.Leadershouldbecharismatic,humble,decisive,motivating,opportunistic,sometimesunpredictable.

b)There arelotofstereotypesaboutdifferencesinhowmenandwomenwork.Mostpeople donotacceptwomenasbossesbecause theythink theyhaveaweakcharacter.Womenaremore relationshiporiented

atworkthanmen.Theyarealsousinganeasierandamorestraightforwardlanguage comparedwithmen.Thelanguage ofwomenis alsomoreemotional andflowery.So,whena womanis aheadofthe

companyit’smorelikelythatintheorganization there’llbethefeelingof“togetherness” andeven informalityand thelack of hierarchy.Itmakes theemployeesfeelprotected and work in

cosy/comfortableconditionswhichwillstimulatetheir efficiency.

Asfarasmenconcerned,theyare, asa rule, are physicallyandemotionallystrongerthanwomen.

Usuallyithelpstokeepsituation undercontrol.Mostofthetime,menarethebreadwinners.Theyworkreallyseriouslyand seethe world asitreally is-itis perfectleadership quality;therefore,menmakecorrectdecisionsquickly.

Butweshouldn’tforgetthatitisourpersonalitythatmakesuscompetent,notourgender.

3.Whatisthedifferencebetweenamanagerandaleader?

1) Firstofall,leadershipis apersonalitytraitwhereasmanageris ajob title.

2)Aleaderisaninspirational,passionateandproactiveprofessional whodueto his/hertalentis a

benchmarktootherco-workers, whowantsucceedlikethem andlearntobeinfluentialinthe enterprise’s framework.Aleaderhasthewillingnesstofeelhim/herencouragedandfaceproactivelyanykindof situationneverthelessoftheriskandcostinvolved.Additionally,atrueleaderhasnomatterhow challengingandtoughthesecouldbe.

Amanagerisanoperationaland/orfunctionaldrivenprofessionalwhosefocusisorientedtoensure operationalexcellenceinthoseoperationalissues,financialperformance,talentmanagementand marketingstrategiesrelevanttohis/hermanagerialfunction.

Managerstendtobereactive,blendinwiththeenvironment,keepthefuturethesameasthepresent,

maintainimage,keepwhattheyhave,andnotalwayscomfortablebeingaccountableforthe responsibilitiestheywield.

3) Some differences:

- Managers workinginthesystemandleadersworkingonthesystem;

-Managersreduceweaknessesandleadersamplifystrengths;

But, bothofthemworkingonprogress, on company’s prosperity. So,youneedboth.Botharerequired foreffectivecorporategrowth.

4.Aretheleadersbornoremade?

Ibelieve thatnothinginourlife comeseasily.Ifyou wanttoachieve smthsignificant,becomea

founderofanorganization,leadernotonlyofyourcompany,butofthepublicopinion,youshould make

great efforts.So,from mypointofview, leaders aremade ratherthanborn.But it’sundoubtfullythatleadershipis amatterofpersonality. To becomeleaderyoushould possess charisma andotherabove mentionedcharacteristics.

U n it 13. Innovation

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1. Whatis themain roleofR&D?

2. Whydodifferentindustrieshavedifferentlead-times?

3. Whatmaythelaunchofanewproductinvolve?

4. Howis Procter&Gamblerbetterthanitscompetitorsinterms ofinnovation?

1.WhatisthemainroleofR&D?

ThemainroleofResearchandDevelopmentdepartmentis provisionofresultsofscientific researchin

ordertodevelopnewproductsandimproveexistingones.Forexampletheinitialideaforacarwillbe

turnedintoaseriesofprototypesandtested.Insoftwaredevelopment,thefinal'prototype'isthebeta version,whichisbeta-tested.Pharmaceuticalgothroughaseriesoftrials.

2 .Whydodifferentindustrieshavedifferentlead-times?

Differentindustrieshavedifferentlead-times,thetimebetweenconceptionandproductlaunch;anew drugmighttake10or15yearstodevelop. Inconsumergoods,marketresearchwillbeakeypartofthe developmentprocess,withfocusgroups:smallgroupsrepresentingcross-sections ofconsumerstalking

abouttheirreactions toproposeddesigns,andconsumersurveys.Aftermarketresearchtherecanbetrialrun ofproducts. After that therecan be researches ofconsumer’s reactions onthis product, researches of sales.Soallresearchesrequiredifferentperiodoftimefordifferentproducts.

3.Whatmaythelaunchofanewproductinvolve?

Thelaunchofanewproductmightinvolveanational,internationalorglobal rollout.Awell-oiledpublic

relationsmachinewillhavepreparedthewayforthenewproductbygettingtherequiredmedia

coverage,wherethetermsleadingedgeandstateoftheartwillperhapsappear.Anyteethingproblems willhopefullybeironedoutduringdevelopmentratherthanafterthelaunch.Theultimatenightmareis whenacompanyhastorecallproductsbecauseofdesigndefects.Thecoveragethismightgetistheleast welcomeimaginable.

4.HowisProcter&Gamblerbetterthanitscompetitorsintermsofinnovation?

AccordingtoLafley,theCEOofP&G,organicgrowth strengthens acompany’sabilitytoinnovate.

Organicgrowth–meaninggrowthfromcorebusinesses.Lafleyhasamodelforinnovatinginabig company:

1.One-on-oneconsumerresearch–marketersmustspendlotsoftimewithconsumersintheirhomes,watchingthewaystheyweartheir clothesandaskingthemabouttheirhabitsandfrustration.

2.Getemployeestoexchangeideas– employeesfromninecountriespostproblemsonaninternal website.CEOevaluatestheideasofemployeesandpresentsthebestfindingseachyear.

3.Stoptestingsomuch–Onecannotbut agreewith factthat puttingouta productcan'tbewithouttest-marketing.Butit’snecessarytoreduceproductlaunchtimefromlaboratorytoroll-out.

4. Givedesignersmorepower–it’snecessarythatdesigners wouldbeinvolvedinallaspectsofproduct development.

5.Knowwhatnot to do– accordingtoLafley,it’simpossibletoofferfatbonusesforinnovation ortohirestarsfromoutside.Managerswhofailtoshareideas simplydonotgetpromoted.

U n it 14.Competition

1. Whatarethemostcommoncompetitionpractices?

2. Whatis MichaelPorter’smodelofcompetitors’types?

3. Whyis Nokianolongertheleaderinthemobile phonemarket?

4. Whyaresomeproductsunsuitableforforeignmarkets?

1.Whatarethemostcommoncompetitionpractices?

Competition betweencompaniescan betough,aggressive,evenferocious or cut-throat.Firmsmay

accuse eachotherofusingunfairmethods suchasdumping,wherea competitor(usuallyforeign)sells

productsforlessthanwhattheycosttoproduce,oratlessthanthepricechargedinthehomemarket. Firmsdumpinordertobuildmarketshareandrecouptheirlosseslaterwhen,havingestablished

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themselves tobenefitfromeconomiesofscale (producinginlargerquantitiessothatthe costofeachunit goesdown),theyareabletochargemarketpriceswithahealthyprofitmarginoneachunitsold.Competition canalsobegentlemanlyorevencosy,socosythatcompaniesmaybe accusedofforming a carteltoagreeonpricesinapricefixingarrangement.Theymaythenbeinvestigatedbyagovernment departmentthatlooksintounfairtradingpractices.

Competitorsmayalsoenterintootherperfectlylegitimateformsofcooperation,suchasjointventures forspecificprojects.Theymayeventalkaboutstrategic alliances.But likemergers,these cangoawryandleadtorecriminationbetweentheerstwhilepartners.

2.WhatisMichaelPorter’smodelofcompetitors’types?

MichaelPorter'smodelcontaining:

•cost-leaders,whoare low-costproducers with abroadscopeandcostadvantage,appealing tomany

industrysegments(manygroupsofbuyerswithdifferentneeds)

•differentiators,whoappealtobuyerswhoarelookingforparticularproductattributes

(characteristics)andpositionthemselvesasthemostabletomeetthoseneeds

•focussers,whoconcentrateononeparticularsegmentandtrytofindcompetitiveadvantageby

satisfying theneeds ofbuyersinthatsegmentbetterthananyone else.Focussers are,ineffect,nichers.These are the available choices,accordingtoPorter,that acommercialorganisationhasifitwantsto competeeffectively,andnotget'stuckinthemiddle'.

3.WhyisNokianolongertheleaderinthemobilephonemarket?

AlthoughNokia'sshareoftheglobalmarketformobilehandsetsismorethancompetitor’sshare,but

Samsunghasmomentum.Samsung's cameraphones,with twistingflip-upscreens thatallowuserstotake, sendanddisplayphotosquicklyandeasily,arehot;Nokia's arenot. Thehigh endofthemarket- phonesthatretailfor$300ormoreintheUS-isnolongerNokia's. Samsungmakestheexpensive cameraphonethatayoungconsumerwantstohave.Design shouldbeNokia's strength,sinceitovertook Motorolabyturninghandsetsintohandsomeanddesirableconsumergoods,ratherthantechnological objects.But initsrecentmodels,Nokiaforgotthefirstrule ofmodernistdesign -that formfollowsfunction.Instead,ithasplacedmostemphasis on makingitshandsetscolourful andzappy,with snap-oncovers.AndofcoursethemainNokia’s disadvantageis sizeofhandsets.Itis ratherbigincomparisonwithSamsung.

Samsunghasmainadvantage–itis thefactthatitis willingtopayhigh pricesfordevelopmentnew

electronicdevices.

4 .Whyaresomeproductsunsuitablefor foreignmarkets?

Nowadaysmanynewhightechproductsappearonworldmarket.Producersoftheseproductstryto

distributethemintodifferentcountriesinordertoincreaseprofitsbuttheydonottakeforeignconditions

andtraditionsintoaccount.ForexampleJapanese robot-toys.IntheRussianmarketsuchtoyshaven’t greatdemand.Maybebecauseofratherhighprice.ButalsomaybebecauseofRussianmentality,habits

–weliketocommunicatenotwithrobotpetsbutwithalivepets.

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