Ответы по английскому языку

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

17


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

18


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

19


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

20


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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