BEST COMMERCIAL PRACTICE

Contents BUSINESS in THEORY BUSINESS in PRACTICEMODULES Production Commerce and Trade Business Communication • The production process • Commerce • Methods of communication The World of • Needs and wants • Trade • Written communication • Factors of production • The supply chain • Oral communication1 Business • Sectors of production • The distribution chain • Visual communication p. 9 • E-commerce • Green economy Business Types of Economic • Types of company Job Applications Getting a Job Systems integration • Looking for a job • Job interviews2 Organisations • Planned economy • Recruitment ads • Personal branding p. 49 • Free market economy • Multinationals • Working practices Marketing and • Mixed economy • Micro-multinationals Curriculum Vitae • Organisation chart • How to write a 3 Advertising Private Sector p. 81 • Sole traders Public Sector Curriculum Vitae International • Partnerships • Public enterprises • How to write a covering • Limited liability 4 Trade letter p. 113 companies • Cooperatives • Franchises Marketing Advertising Studying the Market Analysing Adverts • Internet marketing • Features of an advert • The role of marketing • The purpose of • Radio and TV • Market segmentation advertising questionnaires • The marketing mix • Effective advertising • Focus groups commercials • The extended marketing • Advertising media mix • Product placement and Unsolicited Offers • Market research sponsorship • Unsolicited letters, • Internet marketing • Trade fairs emails and phone calls • Mobile marketing • Unsolicited offers • SWOT analysis • Product life cycle Importing & Exporting Trading Procedures Enquiries • Written enquiries • What is international • Trading within the same • Telephone enquiries trade? trading bloc • Economic indicators • Trading outside a trading Replies to Enquiries • Trading blocs • Written and oral replies • International trade bloc • Sales contract terms organisations • Incoterms • Customs • Protectionism Transport and Types of Transport Invoices Placing an Order Sending Goods • Transport by land • The invoice • Written orders • Contacting a freight 5 Insurance • Transport by water • The pro-forma invoice • Order forms and online p. 145 • Container ports forwarder • Transport by air Insurance orders • Shipping advice • Freight forwarding • What is insurance? • Phone orders • Means of transport • Business insurance • Packing • Marine insurance Replying to Orders • The environmental • Focus on Lloyd’s • Accepting or refusing impact of freight traffic an order Transport Documents Modification and • The road/rail Cancellation • Changing an order consignment notes • Cancelling an order • The bill of lading • Counteroffers • The air waybill

BUSINESS LANGUAGE BUSINESS NEWS MOVE to the NET ONLINE WORKSHEETSVocabulary – Grammar Crowdsourcing Web Conferencing • Deindustrialisation Functions • Present simple • Information technology • Word • Zero • Netiquette formation (1) • Snail mail versus email conditional • VoIP – Voice over IP • Phone calls • What/Which • Present simple passiveVocabulary – Grammar Entrepreneurial Spirit Online Profiles • The rise of state capitalismFunctions • Present • NGOs, non-profit organisations and • Word formation (2) continuous charities • The future • Can multinationals be ethical?• Talking about • First conditional • First-class business schools in the UK roles at work • First-class business schools in the US• Phone callsVocabulary – Grammar The Power of Advertising Social Awareness • History of advertising Functions • Modal verbs Advertising • Brands • Word • Comparatives • Working in advertising formation (3) • Superlatives • Ethnic advertising • Intensifiers • Circular letters • Verbs for • Foreign remittance • Bretton Woods and the gold ex- marketing and advertising change standard • The European Monetary System• Marketing • The ‘Chunnel’ strategies • Acts of God insurance • Cancellation clausesVocabulary – Grammar Made in China The Silk RoadPhraseology • Past simple vs The Panama Canal• Verb patterns: past continuous verb + • Past simple prepositions• Collocations passive with trade • Present perfect • Enquiries and simple repliesVocabulary – Grammar Insurance TrendsPhraseology • Time • Word formation (4) expressions • Verb patterns: used with the present perfect verb + -ing or to • Present perfect • too/enough simple vs present perfect • Correspondence continuous for orders • for and since

MODULES BUSINESS in THEORY BUSINESS in PRACTICE Banking Banking Systems Payment Methods Payment Issues6 and Finance • Credit references p. 187 • Types of bank • Open account • Sending a statement of account • Microcredit • Payment in advance • Requesting new payment conditions • Ethical banking in the UK • Bank transfer • Extension of credit • Bill of exchange Central Banks • Documentary collection Payment Reminders and Replies • The Bank of England • Documentary letter of credit • Written reminders • The Federal Reserve System • Written replies • The European Central Bank Finance • Phone reminders and replies • Stock Exchanges and Banking Services Commodities Exchanges • Business banking • E-banking • London and New York Stock • Cash machines and cards Exchanges • Fraud • Securities fraud and speculation Globalisation Introduction to Economic Globalisation Complaints and Replies • Economic globalisation • Making a complaint7 p. 229 Globalisation • Outsourcing, backsourcing • Responding to complaints • The evolution of • Phone complaints and replies and insourcing globalisation • Aspects of globalisation Global Sustainability • Advantages and • De-growth versus disadvantages of sustainable development globalisationPractice Round Up: Stages of a business transaction p. 257Cultural BackgroundDOSSIERS UK vs USA • Geography of the USA ESW Geography • Climate in the UK • The UK – quick facts • Climate in the USA • Australia and New Zealand1 p. 262 • Geography of the UK • The USA – quick facts History • A brief history of the UK • A brief history of the USA • Colonisation in Africa • The Industrial Revolution • Mass production2 p. 278 • The British Empire and the • The great depression • Key moments in the 20th century Society and Victorian period • The UK and the US in the 21st century • Key moments in the 20th century3 Identity p. 298 • UK population and identity • Newspapers • Pidgins and Creoles Economy • US population and identity • TV & Internet • Religion in the UK and US • Origins and development of the 4 p. 318 • Education in the UK • Education in the USA English Language • UK economy • John Keynes • The Asian Tigers and Developing • Adam Smith • US economy India Institutions • The UK political system • The US political system • Current Commonwealth Nations: • UK general elections • US elections Canada5 p. 338 • The European UnionPhraseology p. 360Abbreviations p. 373Business Word Bank p. 374Irregular Verbs p. 382Phrasal Verbs p. 383

BUSINESS LANGUAGE BUSINESS NEWS MOVE to the NET ONLINE WORKSHEETSVocabulary – Grammar Changes in Banking Culture Bank on Dave • Credit unions Phraseology • Past perfect simple • Time banking • Linkers • Past perfect • Financial transaction taxes• Collocations • Bank correspondence continuous with payment • Second conditional • Third conditional• Payment issuesVocabulary – Grammar One World, One Culture? E-waste • Global peace and NATO Functions • Relative clauses • Anti-globalisation movement • Phrasal verbs • Indirect speech • De-growth: ‘In praise of leisure’ • Collocations with • Modal verbs with • Glocalisation • Consumer rights and complaint past infinitives associations • Phone calls: complaints and repliesGOING DEEPER LIT CORNER ONLINE WORKSHEETSGlobal Warming Wordsworth’s Romantic Nature • Livingstone the explorer MOVE to the NET • UK industrial and financial centresGender Equality The Lake District • US megalopolises • Hurricanes and tornadoes The Troubles Virginia Woolf and Feminism • Whitman and the American ‘romantic’ nature MOVE to the NET • The Victorian compromise US Banking Crisis Equals • The slave trade • The Marshall PlanThe United Nations Multicultural Britain? • King and Malcolm X MOVE to the NET • The Cold War and McCarthyism Multicultural Britain • Education system in the UK/US • Music genres Arthur Miller and the American Dream • The birth of the Internet MOVE to the NET • British English vs American English The American Dream • Wilde and Joyce: Catholic Ireland • Britain’s industrial north in the 1980s Big Brother Is Watching You • Mountaintop mining MOVE to the NET • Reasearch centres of excellence in the USA Big Brother Cab • ‘Occupy Wall Street’ • Local governmental structures • EU common policies • EU youth exchange programmes • Famous political speeches • The cost of US elections

Welcome toBest Commercial Practice is a business English course that helps learners to develop the necessarycommunication skills for today’s international business environment.Here is a quick guide to the main features of the book.There are 7 modules dealing with the world of business and 5 dossiers covering the cultural background of the UK and theUS, organised as follows: Business in Theory – Business in Practice Each module is divided into two main parts, theory and practice. • Business in Theory covers the world of business with theoretical texts, in-depth analysis and authentic articles, as well as multi-media material (videos and internet links). • Business in Practice illustrates and explains all the stages of a business transaction, with particular emphasis on practical exercises, gradually moving from guided practice through to free production. Each module includes exam preparation activities for Cambridge English: Business (BEC) Preliminary in the first modules and Vantage in later ones. UK vs USA – ESW • The comprehensive culture section provides a comparison between the geography, history, society and identity, economy and institutions of the United Kingdom and the United States. Each dossier also contains an insight into the English-speaking world, covering areas like South Africa, Australia and the Caribbean. • Each dossier includes exam preparation activities for Cambridge English: Preliminary (PET) in the first dossiers and First (FCE) in later dossiers. The Business Language section is divided into two parts: • Vocabulary – Functions – Phraseology to develop and consolidate the specific lexis of the module and to practise the necessary phraseology for oral and written business communication; • Grammar to practise, after a brief presentation, some of the most important grammatical areas. BEC exam preparation activities for Cambridge English: Business Preliminary and Vantage (BEC) PET exam preparation activities for Cambridge English: Preliminary (PET) FCE exam preparation activities for Cambridge English: First (FCE) online ReSoURCeS Extra material, MP3 audio files and the FliP BooK can be downloaded free of charge from www.elionline.com

The sections Business News(in the modules) and GoingDeeper (in the dossiers)include articles from theEnglish-speaking press andprovide the opportunity todevelop reading, listening,speaking and writing skills. Each module ends with a page called Move to the Net with authentic videos and internet links. The page is divided into four parts: • LOG IN!, a warm up activity to introduce the topic; • PASSWORDS, a list of lexical items from the video, with one or two exercises to help consolidate the language; • ON THE NET!, the video and a comprehension exercise. All the videos for this section are included in the FLIP BOOK; • LOG OUT!, an opportunity to discuss and debate the themes introduced in the video and the module.Practice Round Up offers a summary of the business Lit Corner, the final section of the five culture dossiers,transaction, from the initial enquiry, negotiation presents a selection of British and American authorsand sales contract to payment and the resolution of and genres, together with a video linked to one of thecomplaints, with written or oral exercises for each topics within the dossier.stage. It can be used as supplementary materialthroughout the course or as final revision material.The Phraseology section contains a list of the functions The Business Word Bank has the definitions of the keyand expressions necessary for effective written and concepts and terms for business English.oral communication, useful as a reference section whilecarrying out the various exercises within the modules.

The FLIP BOOK is the interactive digital version of the Coursebook and is full ofresources and tools to be used with an Interactive Whiteboard (IWB), helping theteacher to involve the students and make the lesson more interesting and effective.The FLIP BOOK contains all the contents of the The toolbar, on the right of the FLIP BOOK,Coursebook in multimedia format and groups makes working on the IWB easier as ittogether all the course components in one place: contains all the functions such as paint,the interactive exercises with autocorrect, the zoom, notes and print making it possible toaudio files and videos from the modules and the move between the pages of the FLIP BOOKvideos from the Move to the Net pages. and use them in the best possible way.The FLIP BOOK contains a complete User Guide which explains all the resources and tools available.

1ModuleThe World of BusinessBUSINESS in THEORY BUSINESS LANGUAGE• Production • Vocabulary – Functions• Commerce and Trade • GrammarBUSINESS in PRACTICE BUSINESS NEWS• Business • Crowdsourcing Communication MOVE to the NET • Web Conferencing 9

1Modulewarm up BUSINESS in THEORY1 Match these words production to the definitions. The production process 1 marketplace 2 goods The production process is the way in which a business develops products which are then 3 tangible offered on the marketplace, where they can be purchased to satisfy a need or want. 4 shelf life The term ‘product’ – or output – refers to both services and goods. 5 output Services are intangible and consequently cannot be possessed. A service is a benefit or 6 to purchase assistance provided to the customer. Types of services include professional experience such as lawyers or doctors, computer server access, or movement of goods like the postal a wares service delivering mail. b time before Goods, also known as wares, come at the end of the manufacturing process. They are tangible items that can be seen and touched and are either durable or deterioration non-durable. Non-durable goods deteriorate in time (e.g. food or medicine). c to buy This is known as having a shelf life. Instead, durable goods such as electronic devices d production have a much longer shelf life. e the place of The diagram below illustrates the three main parts of the production process. commercial activities INPUTS f can be touched or seenLand Machinery Raw materials LabourTRANSFORMATION PROCESS OUTPUTS Finished goods Services 10

The World of Business | Module 1 Inputs are necessary Inputs are the for the transformation resources required for process to produce industrial production outputs. For example a (i.e. people, raw jeans manufacturer must materials, information, have a factory where finance) to obtain a the jeans are made, as desired output. well as the machinery and workers who make the jeans. He also needs to design and purchase the material and parts to transform them intothe finished jeans to be sold. The productive efficiency of a firm is determined byhow well this process is organised. Using the minimum number of inputs to producea maximum number of outputs is the objective of most manufacturers. This ratio willreduce the cost per unit of production and allow the company to sell the goods at alower price. Some manufacturers, for example those in the luxury goods market, are stillinterested in production costs but are able to sell their products at much higher prices.Ideally, the goal of the production process is to provide products and services to meetthe needs and wants of customers in the shortest possible time at a competitive price.reading comprehension 4 Productive efficiency is a result of… Activities2 BEC Read the text and choose the correct option. A a well-organised transformation process. B the use of the maximum number of 1 What is the production process? resources. A The way in which a company operates on the C the number of finished products sold. marketplace. B The way a business is organised. 5 According to the text, a manufacturer should C The method a company uses to develop its ideally try to… products. A have the lowest prices on the market. B produce a high number of outputs. 2 Services and goods are also known as… C offer its services or goods at competitive A inputs. prices. B outputs. C needs and wants. 3 What does the term ‘shelf life’ mean? A The time it takes to manufacture particular goods. B The time certain goods can be kept and still used. C The time it takes to sell specific products.3 Goods or services? Write G or S.1 trousers ___ 4 tablet PC ___ 7 taxi company ___ 5 advertising ___2 refuse collection ___ 6 motorbike ___ 8 police ___3 teaching ___ 9 transport ___speaking4 In pairs, explain these terms and give examples. • goods • services • inputs • productive efficiency 11

Module 1 | BUSINESS in THEORYwarm up Needs and wants1 Answer these All economic activity is founded on the questions and then discuss your needs and wants of consumers. answers with your classmates. A need is defined as a necessity for 1 What goods the survival of a person, animal, or services do you consider organisation, etc. The concept is widely essential? used in social sciences, with special 2 What goods or services do attention being paid to so-called human you consider unnecessary? needs. Basic human needs are food, shelter, clean water, protection from heat or cold and disease. Needs vary according to a person’s geographical location, age, job, health and many other factors. Needs are frequently contrasted with wants or desires: needs referring to things that are necessary, wants referring to things which are desired. A scene from the film Breakfast at Tiffany’s They are not essential for our survival but can make our lives easier. Things which in the past were considered wants, are now seen as needs in modern life, like a car, mobile phone or other electronic gadgets. Wants are important for improvements. Most people work towards better conditions for themselves, their family and sometimes even for their community, their nation and the world at large. People want not only better living conditions and a cleaner environment but faster computers, stylish clothes and much more. People’s wants are infinite.Activities reading comprehension 2 Read the text and answer these questions. 1 What is the difference between needs and wants? 2 Why are consumers’ needs and wants at the basis of economic activity? 3 Needs or wants? Write N or W. 1 games ___ 3 water ___ 5 meat ___ 7 designer shoes ___ 9 smartphone ___ 2 handbag ___ 4 shelter ___ 6 clothing ___ 8 health ___ 10 car ___ vocabulary ________________ 4 Read the text again and find the equivalent expressions. ________________ ________________ 1 described ________________ 2 to a great extent ________________ 3 the study of society and the way people live ________________ 4 a place that provides protection ________________ 5 set in opposition ________________ 6 devices 7 the external surroundings where human beings, animals and plants live 8 without end speaking 5 In pairs, think of 3 objects that teenagers in your country need and 3 objects that they want. Calculate their importance in percentages and draw a pie chart (see page 42). Compare your ideas with the rest of the class. 12

The World of Business | Module 1 Factors of production Patents protect the methods andThe factors of production are the resources of land, labour, capital and enterprise processes that makeused to produce goods and services. things work, for example what makesLAND CAPITAL a wheel turn or the chemical formula ofLand includes not only the production As well as the supplies and materials necessary in your favourite fizzysite but the natural resources above the manufacturing process, other assets (material drink.or below the surface, i.e. air, sunlight, wealth) are needed to build a business, such as A trademark is a signtrees, soil, minerals, oil, etc. money, machinery and equipment. which can distinguish There are various kinds of capital depending your goods andLABOUR on the type of business. For instance, in a services from those of manufacturing business, production capital is your competitors. ItLabour is the human input in the used. This includes the machinery used to make can be words, logos orproduction process. A company’s the products and heavy equipment like forklifts a combination of both.output can be dependent on the and trucks, which are used to move and transportnumber of labourers it has in the the goods. The building that houses the operationfactory. and stores the goods is also included. Resource capital is defined by natural resourcesHuman capital such as water, as well as the physical space a company occupies. Increases in the level of capitalNo company is fully automated; are called investment.humans are involved in everybusiness whether it is product or Intellectual capitalservice based. The human capital ofa company is the men and women Successful businesses rely upon non tangiblesworking for the company with such as creativity, experience, entrepreneurialcertain competences and skills that spirit, and know-how. These components areare learned mostly through higher collectively called ‘intellectual capital’. Patentseducation and training. One way to and trademarks are also considered intellectualevaluate the success of a business capital whose value is indeterminable. It is almostis to see how well human capital is impossible for competitors to duplicate intellectualmanaged. capital, making it one of the most desired and useful assets a business can own.ENTREPRISEEntrepreneurs come up with original ideas often risking their own resources in business ventures.They also often organise the other three factors of production.reading comprehension Activities1 BEC Read the text and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). TF DS 1 There are four factors of production. 2 Natural resources are included under the definition ‘land’. 3 Human capital is only important for service companies. 4 Material wealth has the same meaning as company assets. 5 Machinery and equipment come under the definition ‘resource capital’. 6 It is possible to calculate the exact value of intellectual capital. 7 Entrepreneurs always invest large amounts of money in a business venture.writing2 Write a short definition for each of the four factors of production. Compare your definitions with a classmate. 13

Module 1 | BUSINESS in THEORYwarm up Sectors of production1 In which sectors Production is the creation of value or wealth. It includes manufacturing of goods or do most people provision of services. work in your Production includes: • a change in the form of resources, e.g. from wheat to flour, flour to bread; town/country? • a change in location, e.g. from warehouse to retail outlets; • the provision of services, e.g. personal services, financial services and social services.M ore about... The three major sectors of production are: The chain of production consists of the various stages involved in the production of a particular product, all of 1 Primary production which add value to the end product. For example, the production of bread includes these steps: cultivation and The primary sector refers to the extraction and harvesting of wheat; grinding of wheat into flour; making production of raw materials from nature without and cooking the dough; end product. any processing. • Mining: extracting coal, ores etc. from the earth. • Forestry: cutting down and removing trees from the forest. • Farming: growing and harvesting crops. • Fishing: catching or farming fish from the sea or fish ponds. • Husbandry: breeding and raising livestock. 2 Secondary production The secondary sector refers to the transformation of raw materials into finished or semi-finished products. This includes the manufacturing of goods such as dry goods or soft goods (textiles, clothing, etc.), building and construction, the generation of power (electricity) or the production of petrol. 3 Tertiary production The tertiary sector of production refers to the provision of services and it is the sector which makes up the largest part of the economy in developed countries. Examples of tertiary production include: • Personal services, such as medical services; • Commercial services, such as transport, financial and insurance services; • Social services, such as social welfare, education, the police. The quaternary sector is often included as part of the tertiary sector as they are both service sectors. The quaternary sector refers to intellectual activities, such as ICT (information and communication technologies), consultancy and R and D (research and development). 14

The World of Business | Module 1reading comprehension Activities2 Read the text on page 14 and complete these sentences with the words from the box. tertiary • selling • cultivation • primary • finished • goods • primary • shops • insurance1 ________________ production includes production resulting directly from the ________________ of land, the maintenance of animals or poultry for the purpose of ________________ them or their produce.2 The secondary sector generally takes the output of the ________________ sector and manufactures ________________ goods.3 ________________ production means the selling of the finished ________________ in ________________, as well as other services involved in helping business: banking, ________________, transport, etc.3 Write P (primary production), S (secondary production) or T (tertiary production) next to each word.1 mining ___ 6 distribution ___ 11 banking ___ 7 refinery industry ___ 12 manufacturing of toys ___2 clothes production ___ 8 cattle breeding ___ 13 insurance ___ 9 transport services ___ 14 fish breeding ___3 police ___ 10 forestry ___ 15 education ___4 advertising ___5 farming ___listening 4 Deforestation causes…4 1.02 BEC Which production sector is forestry A the death of 70% of the species living in the forest. B the extinction of 70% of the world’s plants and part of? Listen to this interview with Professor animals. Warner, an ecologist, who is talking about C an increase in global warming. deforestation. Choose the correct option. 5 Professor Warner says that… 1 What percentage of the world is covered A deforestation can be stopped completely. by forests? B deforestation has decreased over the last few years. A 13% C there is a quick solution to ending deforestation. B 30% C 40% 2 Most of the reasons for deforestation are connected to… A money. B agriculture. C paper production. 3 Why do small farmers cut down and burn trees? A to have more space for their families B to sell the land to bigger farmers C to grow food for their familiesspeaking5 Which areas of the world are affected by deforestation? Does it affect your country? Where? What could be done to help solve the problem?writing6 What have you learnt about production? Write a short essay about it following these guidelines. • What is meant by the production process? • What types of product does the production process create? How? • What is at the basis of economic activity? Give a full explanation. • What is meant by factors of production? Describe them. • What is meant by sectors of production? How many are there? Describe them. 15

Module 1 | BUSINESS in THEORYwarm up commerce and trade1 Where do you Commerce buy the products you need? Commerce is a general term for the sale, Do you normally purchase and distribution of goods and buy things services. It encompasses all the activities in shops, which are involved in this process of superstores or moving goods from a production centre to online? the point of purchase. The main branches of commerce are: Warehousing A warehouse is the place where goods are stored. A warehouse is needed to store the goods during the time gap between production and consumption of products: some goods are produced only in a particular season but in demand all year. Other products are produced throughout the year but in demand only during a particular season or for a specific festivity. TransporT Goods produced by the manufacturer often need to be transported to the consumer, usually from a place of low demand to another place where demand is greater. The growth of commerce depends largely on using the proper mode of transport; road, rail, sea or air. LogisTics The flow of goods, information and other resources, including energy and personnel, is managed by the logistics department.Activities reading comprehension 2 Read the text on these pages. Which branches of commerce correspond to these definitions? 1 ________________ The activity of attracting public attention to a product or business, using paid commercials in the press, on TV and electronic media. 2 ________________ The administrative and physical functions associated with the storage of goods and materials. 3 ________________ The process of moving a product from its manufacturing source to its customers. 4 ________________ The activity of accepting and safeguarding money owned by other individuals and entities, and then lending it out in order to make a profit. 16

The World of Business | Module 1DisTribuTionDistribution is the process of supplying goods, especially to retailers. It maybe impossible for producers to reach the consumers directly so a number ofmiddlemen are necessary to complete the process. Amongst others, wholesalers,retailers and brokers are all involved in the distribution process. insurance A great deal of risk is involved in every aspect of commerce. The main risks are fire and theft. Insurance ‘covers’ these risks and compensates for possible losses or damage.bankingBanks hold money for businesses. They play a vital role in mitigating the need forfunds. They offer a number of financial services such as loans and credit lines. MarkeTing anD aDverTising The sale of products and services is possible only if the consumer knows of their existence, is aware of their availability and is interested in them. Marketing involves raising consumer interest through research, promoting, selling, and distributing products or services. Advertising is used to raise consumer awareness through print, broadcast or digital media.reading comprehension Activities3 BEC Read the text on these pages again and choose the correct option.1 Commerce includes… 4 The distribution process usually finishes A the exchange of goods and services. at the… B the production of goods and services. A brokers. C the production and exchange of goods. B middlemen. C the final customer.2 The point of purchase is the place where a product is… A manufactured. 5 Companies take out insurance policies B sold to the end customer. to cover… C warehoused. A damage to goods. B the sale of goods.3 The logistics department is important for… C both A and B. A understanding consumer demand. B the efficient internal organisation of a company. C the promotion of a company’s image.vocabulary4 Find out what the people engaged in each branch of commerce are called. Use a dictionary to help you.1 trade trader 5 advertising ________________2 transport ________________ 6 banking ________________3 distribution ________________ 7 warehousing ________________4 insurance ________________ 8 market research ________________speaking5 Prepare a short presentation of commerce (3-5 minutes). Use these questions to help you. • What is commerce? • What are the branches of commerce? • What role do they play in commerce? 17

Module 1 | BUSINESS in THEORYwarm up Trade1 Are the clothes Trade is the act of buying and selling you are wearing goods and services either for domestic or the things in markets (wholesale and retail) or your bag made in international markets (import and your country? Or export ). have they been imported from DoMesTic or hoMe TraDe is the exchange, or another country? buying and selling, of goods for money within a country from a producer to a An export is a product consumer usually through wholesalers that is sold from its and retailers. Wholesalers buy goods at country of origin on cost price from producers and sell them the global market. to retailers (i.e. supermarkets, department An import is a product stores or specialised shops), who then that is bought into resell the goods to consumers at a higher a country from the price. The price of the goods global market. increases at every point of trade. foreign or inTernaTionaL TraDe consists of the exportation and importation of goods and services between different countries. This can be done directly between a company and the final customer, or through the use of intermediaries such as wholesalers. Commodities can also be exchanged between different countries. A commodity is a physical substance, usually in bulk, such as food, grains, metals, petroleum, gasoline, heating oil and natural gas, which can be traded on a commodity exchange. The price of a commodity may fluctuate according to supply and demand, i.e. the amount of the product that is available and the needs of consumers.Activities reading comprehension 2 Read the text and match the two halves of the sentences. 1 Trade a sells products to end consumers. 2 A wholesaler b increases at each stage. 3 A retailer c buys products at retail price. 4 An end consumer d buys products at cost price. 5 The price of products e is the act of buying and selling goods. 3 Read the text again and answer these questions. 4 What is wholesale trade? 5 Who is the retail trade customer? 1 What is home trade? 2 How is it different from foreign trade? 3 Give an example of foreign trade. speaking 4 In pairs, talk together and spices • natural gas • fresh fruit • pharmaceutical products • designer clothes • petroleum • grain • cars • furniture • TVs • shoes decide if your country generally imports or exports these products. I think that we export a lot of … because … 18

The World of Business | Module 1 The supply chain warm up 1 Reorder the stepsA supply chain involves all thecompanies, information, resources and which bring coffeeactivities that are used in the movement from the producerof a product or service from a supplier to the consumer.to a customer. It links all the companies coffee factoryin the various stages of this process coffee growerstogether. Information has to be efficiently consumershared up and down the supply chain distributionbetween the different suppliers andclients and all their activities need to be companyintegrated and coordinated in order to shipping agentsensure that everyone involved can meet retailertheir needs. Successful supply chain management brings many benefits to a company:• keeping inventory at a minimum; JIT, which stands• reducing costs; for ‘Just in time’,• optimisation of the time needed from production to market; is an inventory• improved flexibility; strategy used by• quicker reaction to changes in demand. some companies toElements of the supply chain are: increase efficiency and decrease waste.pLanning Customer demand sets off the chain. The sales orders from various customers The idea is that goodsare combined and the planning department creates a production plan. are received only as they are needed in thepurchasing The purchasing department receives the list of raw materials, components or production processservices needed and is in charge of ordering them from suppliers to be delivered to the so they do not needcompany on a required date. to be stored for long periods of time. ThisinvenTory Supplies and materials are received and checked for quality and accuracy. reduces inventoryThey can be either moved into the warehouse to be kept until needed or transferred costs but means thatimmediately to production, in a process known as ‘JIT’ . producers must be able to accuratelyproDucTion Based on the production plan, the production process is completed and the forecast demand.goods are ready for storage or delivery. ConsumerTransporT The goods are delivered to the customers by the most efficient means andwithin the date indicated on the customers’ sales order. Raw Component Manufacturer RetailerMaterialreading comprehension Activities2 Read the text and decide if these sentences are true (T) or false (F). Correct the false ones.1 A supply chain only links departments and activities within the same company. TF2 It is important that information is exchanged among all the links of the supply chain. 3 Correct management of the supply chain can be advantageous for a company. 4 An efficient supply chain means a company is less flexible. 5 The starting element of the supply chain is the company. 6 The planning department is crucial for the creation of the production plan. 7 Supplies and materials are always stored in the warehouse before being used. 8 Finished products are immediately sent to the customers. 19

Module 1 | BUSINESS in THEORYwarm up The distribution chain1 Think of five How the output or final goods and services are moved from manufacturer to consumer products or is called the distribution chain (or channel). It links the point of production to the services that you customer. A direct distribution channel is when a company sells its goods directly to buy regularly. the consumer, for example through sales agents or the Internet. Indirect distribution Do they come to is when a company uses various intermediaries (middlemen) such as wholesalers, you directly from distributors, agents, brokers and retailers. the manufacturer/ Wholesalers buy goods in bulk at a lower (cost) price from producers, store them in producer or warehouses and sell them in smaller quantities at a slightly higher (wholesale) price to indirectly? What retailers. The retailer in turn takes the items, marks up the price (retail) to cover the is the difference costs and adds a profit, then displays them in their shops for the customers. Therefore between direct the final price of the goods depends on the number of links involved and the difference and indirect between cost price and final price can be substantial. distribution? In the past, the indirect distribution channel was the most common. Due to their lack of storage space which restricted quantities,M ore about... retailers were much more dependent on wholesalers for holding and distributing Distribution channels goods. Today, traditional wholesalers are are not restricted to disappearing as many retail shops are either physical products part of a multiple chain or buy goods directly alone. They are just as from the manufacturer at a lower price. Small important for moving a retailers, also referred to as ‘corner shops’, are service from producer now in steep decline because of supermarkets, to consumer. Take, for department stores and hypermarkets, example, hotels that which sell a wide variety of products at can sell their rooms more competitive prices. The increase in either directly to the e-commerce and factory outlets – where consumer or through manufacturers directly sell their products middlemen such as to consumers – also means that direct travel agents, tour distribution is becoming more widespread. operators, tourist boards and centralised reservation systems.Activities reading comprehension A typical corner shop 2 Read the text and answer these questions. 4 What are the wholesaler’s and retailer’s roles? 1 What is the distribution chain? 5 How have they changed over time? 2 Who are the intermediaries along the distribution chain? 6 Why has direct distribution become more 3 What happens to the price of goods along the widespread? distribution chain? speaking 3 In pairs, choose one of the statements below to support: noItnoitsithismacvpoeorterotbaiunnsvtiefnosetrsisanomoframnwauonfraurcfytauacrbteuorruitntogdcigosotnrocibdenus ttaironantde. Manufacturers should use direct distribution in order to keep profit margins high and to better understand their customers. Develop ideas and examples to strengthen your point of view and then have a discussion with another pair of students with opposing views. Use these ideas to help you: • the size and location of the company; • the type of customer and location. • the type and quantity of products or services; 20

The World of Business | Module 1Greek ‘Potato Revolution’[March 2012] In Greece, incomes said they are delighted with thehave fallen dramatically and retail scheme, as they receive more moneyprices and unemployment have risen that they would in supplying largeover the past year; nearly one in five retailers, are able to interact with theGreeks is currently unemployed and community they supply and receivethe government has recently raised their payment immediately. One oftaxes as a means to ease its debt. them said, ‘For us, what satisfiesIn response to this, farmers and us most with this system is that weactivists from Northern Greece have have regained our power over thegrouped together to provide a solution to the depressing middlemen, who have been squeezing us and profitingeconomic situation which benefits both producers and unfairly from everyone now for years.’customers. Activists in the town of Katerini started a Following on from the success of the Katerini sales,‘potato revolution’ by setting up a website to link up agricultural students in Thessaloniki launched a similarfarmers and townspeople, allowing direct potato orders. programme and now other produce is being distributed inBy shortening the supply chain and avoiding retailers, the same way, including onions and olives. Locals have tothe consumers get their potatoes for around a third of the sign up to a website to arrange what they want to buy. Thesupermarket price, whilst farmers receive higher returns students then contact local farmers to arrange supply of thefor their produce. Previously farmers in Katerini were required amount and then they organise a place and time.receiving 0.12€ per kilo for their potatoes, which was This system of direct selling has definitely proven to be abelow the cost of production. Now, by selling direct, they winner with the Greeks, who have seen their incomes fallare receiving 0.25€/kg. whilst supermarket prices have remained the same, andThe first Katerini market saw 24 tonnes of potatoes sell the model has spread across the country.out within four days; 534 families pre-ordered and turnedout to collect their potatoes. The farmers involved have Source: www.farming.co.ukreading comprehension Activities4 BEC Read the article and choose the correct option.1 Which sentence best describes the economic 4 According to one farmer, … situation in Greece at the time of this article? A middlemen were useful to the supply chain. A A lot of people without work and low B middlemen treated farmers fairly. government taxes. C middlemen had too much power. B High employment rate and high prices in shops. 5 What do consumers think? C Low wages and low employment rate. A They are enthusiastic about this method of selling.2 What could be said to be the main reason B They are unhappy about the limited selection of behind this revolution? products available. A Supermarkets did not sell enough potatoes. C They prefer shopping in supermarkets. B Customers wanted to save money. C Farmers wanted to increase online sales. 6 What could be an alternative title to this article? A Potato farmers revolt against high prices in3 By cutting out retailers, farmers are receiving… supermarkets. A more money than before. B Greeks start buying direct from the farmer. B less money than before. C Greeks cannot afford potatoes due C the same amount of money as before. to government increase in taxes.speaking5 Do you know any examples of short food chains in your area? What are their advantages? 21

Module 1 | BUSINESS in THEORYwarm up E-commerce1 Have you ever Electronic commerce or e-commerce is business conducted electronically, i.e. over bought or sold the Internet. The various channels of e-commerce include internet shopping, online anything online? transactions, the selling and downloading of software, documents, graphics, music What websites and so on. Internet makes doing business faster and more accurate. Customers have did you use? controlled access to vendors and can better serve themselves. A bot is a computer E-commerce started in the early program that 1990s when the Internet became automatically searches available for commercial use. the Internet for Today, electronic trade is booming. particular products, An ever increasing number of compares their prices, products from books to car parts to and often gives cars themselves are being marketed customers’ opinions of and sold online. Electronic their quality. commerce has opened new markets for vendors, large and small, including those from developing countries. Websites such as Amazon, eBay, or iTunes are e-commerce giants with customers all over the world. With the advent of e-commerce, customers can check out the options anywhere in the world and shop for the best price using comparison sites or bots , and buy from anyone at any time of the day or night. ADVANTAGES DISADVANTAGES • Electronic purchase orders and sales orders are • Shipping takes time and more economical to place, track and manage. may cost more. • Buying and selling can go on 24 hours a day, • There are many 7 days a week, 365 days a year from any competitors on the Internet, which can make choosing location. a product confusing and • It takes far less time to complete the entire buy/ more time-consuming. sell process, which means that payment is faster. • Risk of identity and credit • Businesses can find supplies anywhere in the card fraud (if the website is not secure). world, in any time or currency zone. • Low-cost entry, as there is no need for setting up • Risk of viruses, malware or hacking into your a retail outlet or printing a glossy catalogue. computer. • It generates instant notification to identify, avoid or quickly resolve potential problems.Activities reading comprehension 2 Read the text and answer these questions. 1 How long has e-commerce existed? 2 How is it changing trade? 3 What are the main advantages of e-commerce for a business? And for a customer? 4 What risks should a customer be aware of before buying something online? 22

The World of Business | Module 1vocabulary Activities3 Fill in the gaps using the words from the box. networks • visit • trade • browse • technology • accessible • apply • downloaded These days, if a customer wishes to buy a book, he/she can (1) ____________ an online bookshop, (2) ____________ through the shop’s collection, choose a title and pay for the book online. The book can be delivered physically or, be (3) ____________ onto the customer’s computer or portable device. These new ways of buying books (4) ____________ to other goods and services too. However, since shopping online is also international, many challenging issues are raised regarding existing trade rules and copyright laws. E-commerce – the production, advertising, sale and distribution of products via telecommunications (5) ____________ – is dependent on (6) ____________ and is transforming the way trade is conducted. And these transformations make (7) ____________ cheaper and more widely (8) ____________.4 Match these headings to the paragraphs below. Can you think of any examples of websites for each category?1 B2C (Business-to-Consumer) 3 C2C (Consumer-to-Consumer)2 B2B (Business-to-Business) 4 C2B (Consumer-to-Business)There are four main categories of e-commerce:This category is made up of companies doing business with each other. For example, a supplier sellingparts to a car manufacturer or a wholesaler selling goods to a retailer.This is the caantdegsoerryvimceossttoptehoeplgeehnaervaelipnumbliincd. Twhheewnetbhseiytetshtinypkicaabloluytues-ecoomnlmineerccea.taItloigsuwehs earnedasbhuospipniensgssells goodscart software.Oibnuvdyeirvaitndhdueaslleasls.ltTofnhelewirneyeea. arOernsm,litnaheneypreasyihtmeassenwbtehesincyhsrtaoepfmfiedsr,gflrrikeoeewcPthlaayisnsPiatfihle,idshaacavdtese,mgaoueracytniwtonhthsicaahtnsidteeifsosretuarmasynssasanocdtiinosdanifsveibdfeoutrwapleseeocnpalneto send and receive money online.CEtcroolamannnsmscuaeimcsitsseiioroansnn.ofBefofxrleoaragmnpspryaolnbejeudocsftfisoan,reuwpsmrseo,bsdas,uirwtceethsawenorhoreitcsthhehererbvraeiciuxneatsghmstoopcrolahen.acsosummapleiarnnskya,bnwadchkciocthmo cpaaannnoitenhsleitnnoegdbeetuchisdeineretfsoosrpatahnyidsforkreicntehdievomefs. aspeaking5 If you have bought something online, describe your experience. Why did you choose to shop online? Why do some people prefer e-commerce to regular commerce? 23

Module 1 | BUSINESS in THEORYwarm up Green economy1 Do you recognise The United Nation’s Environment Programme defines green economy ‘as one that the Fairtrade results in improved human well-being and social equity, while significantly reducing mark? Are environmental risks and ecological scarcities’. This means that a reduction in carbon Fairtrade emissions and pollution, efficient use of energy and resources and the prevention of loss products of biodiversity must accompany economic growth. available in your area? Do you or Fair trade your family buy them? Not all trade is fair. The people at the beginning of the food production chain – the farm workers in developing countries – do not usually get a fair share of the profits or other benefits of trade. The international fair trade movement is seeking to balance out this inequality by ensuring that workers and producers in developing countries get a fair deal. Fair trade’s objective is to negotiate a decent price for goods that will cover the cost of production and guarantee a living income, as well as establishing long term contracts which offer security. M ore about... Another important aspect of fair trade is The to provide the necessary support and FAIRTRADE education so that producers and workers Certification have the skills to develop their business and Mark is a protect their environment for the future. registered The fair trade movement also campaigns trademark to change the regulations of conventional which is used international business and works towards on consumer building consumer awareness of the issues retail products that meet the concerning trade in developing countries. Fairtrade Standards. There Over the last few years, consumers have are general and product become more aware of the treatment of specific standards which small-scale farmers and producers in poor producers and traders have countries and the demand for fair trade to meet. products has increased. Thanks to this • €5 billion were spent on consumer demand, the number of retailers which sell fair trade goods, and the selection Fairtrade products in 2011. of products available, continue to grow, • There are 827 Fairtrade benefiting more and more communities. certified producer reading comprehension organisations in 58 countries, with 1.2 million farmers and workers. • An estimated 6 million people directly benefit from Fairtrade.Activities 2 Read the text and complete these sentences. www.fairtrade.net 1 The fair trade movement wants to get a fair deal for… 2 If producers receive a fair price for their goods, it means… 3 Support and education are important for producers and workers because… 4 Fair trade campaigns are aimed at… 5 The fair trade movement wants consumers to be more aware of… 6 Due to the increase in consumer demand, now there are… internet research 3 Go to www.fairtrade.net, choose a product and find out this information for that product: • the problems the producers are facing; • the country/countries involved. • how fair trade is helping the producers/workers; Then prepare a short oral presentation to give to the class. 24

The World of Business | Module 1Sustainable trade M ore about...A new kind of trade system is emerging in the business world. Sustainable trade is a type BioTrade, closelyof trade that harms neither the social nor the ecological environment. It ensures that tied to sustainabletrade contributes positively to economic, social and environmental development. It can trade, is thebe applied to agricultural products as well as manufactured goods like handicrafts and collection, production,textiles. transformation andIn developed countries, the markets for certified products have grown significantly in selling of goods (e.g.recent years. As a result, a growing number of socially-driven companies have become medicinal plants,a medium to support sustainable agriculture and eco-friendly production activities in tropical fruit, coffee,underdeveloped parts of the world. tea etc.) from nativeNatural products are purchased directly from rural cooperatives growing organic lands to othercoffee, cocoa, tea, fruit and spices. Buyers from these socially-aware companies are countries worldwide.able to increase the incomes of small producers and enhance local productivity andcompetitiveness by offering steady markets, price protection, financial and technicalassistance. Similarly, it is possible to purchase products which have been manufacturedaccording to processes that cause minimal negative environmental impact, with respectfor natural resources, workers and communities.reading comprehension Activities4 Read the text and match the two halves of the sentences.1 Sustainable trade is a type of trade that a has increased in developed countries.2 It includes b natural and manufactured products.3 The market for certified products c farmers can compete on an international level.4 The organic agricultural produce market d does not damage the social or the ecological environment. means thatlistening BEC Listen to this short description of an initiative called ‘Aid For Trade’. Complete the notes5 1.03 below.AID FOR TRADEAim: to improve trade and economic growth in developing countries which have no basic (1) ____________ and cannot compete in regional and (2) ____________.Start date: (3) ____________.Facts: US$137 billion, most of which is destined for (4) ____________ infrastructure projects.Projects: improvement to road networks; simplification of business rules; (5) ____________ for farmers and women.Recent report: (6) ____________, ____________ and finance sectors increased. The (7) ____________ (e.g. commodity prices) affects Aid for Trade and its growth rate. For more information, visit www.oecd.org and www.wto.orgwriting6 What have you learnt about commerce and trade? Write a short essay about it following these guidelines. • What is commerce and what are its branches? • What is the difference between domestic trade and international trade? • What is the green economy and how is it changing trade? • What is the difference between the supply chain and the distribution chain? How do they work? 25

1Modulewarm up BUSINESS in PRACTICE1 Decide if these business communication sentences are correct or not. Methods of communication 1 Business Business communication is similar to standard communication and also includes communication the promotion of products, services or organisations. It is also used to transmit only includes information within the business and manage legal issues. Moreover, it is the means of letters, faxes communicating along the supply chain. Business communication can be broken down and emails. into two areas: 2 All companies eXTernaL (outside the company) today use Examples include branding, marketing, advertising, customer, media and government the services relations and business to business negotiations. of a public relations inTernaL (within the company) company. This includes propagating the corporate vision, strategies, and plans. Internal communication is also important to motivate employees, which improves productivity. 3 Virtual The communication director is responsible for internal communications. communication has increased Business communication, like all communication, is conducted in a variety of ways. over recent years. • Telephones and emails are the most common since they are the fastest way to communicate.M ore about... • Business letters sent by post, although slower, are still used, in particular when The need to convey the sending original documents and contracts which require a signature. right message to the public has evolved into • Business letters and other correspondence can also be sent quickly by fax or its own industry, and electronic fax. now many companies turn to outside • Presentations are held on a regular basis in every sector of business. Presentation public relations software programs have facilitated the audio-visual aspect of this important way of firms to handle communicating new strategies and introducing new products. communications with the public. • Web-based or video conferencing is a very popular means of holding meetings. It is an efficient way for companies with operations and personnel all over the globe, like multinational corporations, to convene with huge savings in costs and time. • Face-to-face communication, although often replaced by virtual communication, is still an important aspect of business whether for internal meetings, appointments with clients, conferences or trade shows.Activities reading comprehension 3 Who is responsible for internal communication in a business? 2 Read the text and answer these questions. 4 Why are presentations held? 5 What are the advantages of web-based or video 1 What is business communication and what is its purpose? conferencing? 2 Why is external communication important? speaking 3 In small groups, discuss which methods of communication would be most suitable in these situations. • booking a hotel room • asking for a price list • applying for a job • confirming an order • launching a new product • an international sales meeting 26

The World of Business | Module 1 Written communication warm up 1 Which of theseWhen deciding which method of written communication to use, it is not only importantto evaluate which is the most suitable for your purpose but it is also essential to decide adjectives bestwhether you need to use a formal or informal tone. Emails and memos are usually describe aninformal, while business letters, faxes and e-faxes are normally more formal. email? Why?Emails long • short • fast • slow •Email (electronic mail) is a system of sending and receiving text messages digitally detailed •over a computer network and between personal computers or similar devices. It isfast, convenient and eco-friendly, as long as you do not print out masses of emails cheap •unnecessarily. Emails are so direct and instant they have changed not only the way expensive •businesses communicate but the structure of the office as well. friendly •In the past all correspondence, from internal memos to formal business letters, was accurate •typed on paper using typewriters. Copies were made using carbon paper, hence the term‘carbon copy’ still used toady in emails. A large staff of typists were necessary to carry out vague •all of this work. Typewriters are practically obsolete, replaced by keyboards and monitors, concise •and now most employees are responsible for their own correspondence. This fact, courteous •together with the ease and frequency of email communication, may have contributed to informalthe decrease in the degree of formality in a lot of business correspondence.The format of an email is as follows:FRoM: This is the name To: This is the name CC: It stands forand email address of the and email address ‘Carbon Copy’. Heresender of the email. or addresses of the you can specify the recipient(s) of the email. address/addresses of those you want to share the contents of the message with. The CC recipient’s name is visible to all recipients. SuBJECT: A short title for the DATE: This is the BCC: It stands mail which should refer to its date and time the for Blind Carbon contents. message was sent Copy, the address/ from the sender’s addresses which will computer. also receive a copy of the message, butATTAChMEnTS: whose names are notYou can attach one visible to the otheror more pictures, recipients. The BCCdocuments or links recipients can see theto your email. To and CC addresses. BoDY: The message. 27

Module 1 | BUSINESS in PRACTICE Petra Stewart <[email protected]> Maurice Mitchell <[email protected]> Kathy Harrison <[email protected]> Jack Fletcher <[email protected]> 10 August 20.. 11.26 a.m. Yoga/Pilates Gear Dear Mr Mitchell, We were given your name by Ms Kathy Harrison of Yoga Apparel Ltd. We are in the Yoga and Pilates clothing and equipment business and would like to widen our range of products. We are looking for a supplier of yoga and Pilates mats, bands and balls and would appreciate it if you could send us your latest catalogue, as well as a detailed price list and sales conditions. We have more than 35 shops in the UK and Europe. We expect to place substantial orders if the quality and prices of your products are satisfactory. We look forward to your reply. Yours sincerely, Petra Stewart Stewart & Fletcher Ltd.Activities reading comprehension 5 What kind of business is Stewart & Fletcher Ltd.? 2 Read the email and answer these questions. 6 Why is the sender writing this email? 7 What does Ms Stewart want to receive from 1 Who is the sender? 2 Who is the recipient? Mr Mitchell? 3 Who is receiving a copy of the email? 4 Who is receiving a blind copy? 3 This is Mr Mitchell’s reply to the above enquiry. Put the sentences in the correct order. Maurice Mitchell <[email protected]> Petra Stewart <[email protected]> 11 August 20.. 9.45 a.m. wellnesscatalogue.pdf Your enquiry Please do not hesitate to contact me for You can find our complete range of products in the attached any further information. catalogue and price list. Thank you for your email. Dear Ms Stewart, Our company was established in 1975 and Best regards, we specialise in top quality wellness gear. I look forward to hearing from you. Maurice Mitchell I would be pleased to discuss special conditions for your first order with us. writing 4 BEC Write an email (60-80 words) to Maurice Mitchell at Wellness Ltd. In your email, you should include: • how you heard of Wellness Ltd.; • what sector your company operates in; • why you are contacting the company; • a request for their catalogue and price list. 5 Swap emails with a partner. Write a reply to his/her letter of enquiry. 28

Memos The World of Business | Module 1A memo (or memorandum – plural: If the memo is tomemorandums/memoranda) is a a specific person,short note informally conveying include his or herminimal information from one job title.person, department or office to The subject shouldanother. Memos can be on paper be brief and specific,or electronic. They are used to relating to thetell employees about changes in purpose of the memo.procedures, rules or policy, or else Memos do not usuallyfor a specific purpose like a request contain greetings orto attend a meeting. closing salutations. Ms Whitman of Hampton Gadgets wants to discuss a matter with the company’s Purchase Manager. She writes him a memo to arrange a meeting.The text should be clear and to thepoint. Avoid long complex sentenceswith a lot of clauses. Short sentencesmake your message less confusing. State the most important points first and then move on to the details. Use contractions and abbreviations. Imperatives can often be used.reading comprehension Activities1 Read the text and the memo and answer these questions.1 What is a memo? 4 Why is Ms Whitman writing a memo to Mr Marks?2 Why should you write short sentences? 5 What is Mr Marks’ position at Hampton Gadgets Ltd.?3 What formalities do memos generally not 6 What should Mr Marks do before the meeting with contain? Ms Whitman?writing2 BEC You want to plan a trip to China to visit a new supplier. Write a memo (30-40 words) to your assistant: • saying which airport you need to fly to; • telling him the dates you would prefer to travel; • asking him to look online for a good hotel. 29

Module 1 | BUSINESS in PRACTICE Forms You will probably have to fill in a form if you apply for a job or a passport, join a club, subscribe to a newsletter, request information from a company or shop online. Business and commercial documents are often forms, such as order, booking and application forms, income tax return and VAT forms, bank transfer forms and legal forms. A form, whether it is printed or online, is made up of fields which need to be filled in with specific information. It is important to follow the instructions carefully. For example, many printed forms require you to write in block capitals or to use only black ink. Online forms, on the other hand, often have required fields – normally marked with an asterisk – which must be filled in otherwise the form is not valid and cannot be submitted.Activities vocabulary 1 Find the synonyms of these expressions on the form below. 1 fill out ________________ 3 family name ________________ 5 sex ________________ 4 ZIP Code ________________ 6 mark ________________ 2 given name ________________ listening 2 1.04 BEC Now listen and complete the form with the missing details. Notes M ore about... Informal notes can be taken during meetings, presentations and telephone calls Post-its have become for later personal use, to serve as a reminder of things that need to be done, to be an indispensable part of passed on to colleagues or to be written up more completely, for example as minutes office life. These useful or a report. Notes are normally written in a condensed and abbreviated form. sticky pieces of paper can be found stuck toActivities listening For (1) _____________, telephones, monitors, 1 1.05 BEC Give figures by (2) _____________ documents and letters, to CFO. serving as a reminder of Mr Berkley, something important. Chief Financial Sent him (3) _____________ They were invented by Officer, calls Zoe documents Art Fry, an employee at in the accounts 3M, using an adhesive department. No payroll meeting next which had been invented Listen and (4) _____________ in the same company complete her note many years earlier. The to her colleague. Zoe first Post-its which went on sale in 1980 were pale yellow, but now they are available in many colours and sizes. 30

The World of Business | Module 1Business lettersA business letter is a formal means of communication between two people. Its purposeis to inform or convince the reader about something. It can either go top down (froma superior to a subordinate: i.e. a corporate head to shareholders or employees), orbottom up (from a subordinate to a superior: i.e. employee to employer, a jobapplicant to a potential employer). A formal business letter can also be lateral,that is business to business or customer/client to owners. Business letters differfrom personal letters because they follow strict rules of composition.When you write a business letter, make sure it is clear, correct, courteous,convincing and complete.Before writing a business letter you alwaysneed to know exactly what type of letter youare writing, why you are writing and whatyou want to achieve. Consider what theletter is for: acknowledgement, adjustment,complaint, enquiry, sales,order.You also need tothink about whether itis in response toanother letter. Thiswill help organisewhat you intend tosay. Ideally yourletter should notbe too long, inorder to respectthe limitedamount of timethe recipientmight haveavailable.reading comprehension 4 How does a business letter differ from a personal letter? Activities1 Read the text and answer these questions. 5 Why should you know exactly what kind of letter you 1 What is a business letter? are writing? 2 What are the different types of business 6 Why should a business letter be short? letters? 3 What are the 5 Cs of business writing?speaking2 In pairs, talk about the characteristics of these different forms of business communication and complete this table.Emails Memos Business lettersquick, _____________________ short, _____________________ ______________________________________________________ ___________________________ ___________________________ 31

Module 1 | BUSINESS in PRACTICE The elements of a business letter Letterhead Sloane & Millford Ltd. or heading 85 Melrose Terrace Milton Keynes, MK9 2EL Tel: 01908 689584 Fax: 01908 689588 Email: [email protected] References Your Ref.: AG/jw – 18th October 20.. Our Ref.: PB/ck Date of writing 21st October 20.. Inside address or The Wallpaper Shop receiver’s address 52 Banbury Road Stratford-upon-Avon Attention line Warwickshire CV35 0RWopening salutation Att: Ms Anna Gallagher Dear Ms Gallagher, Subject line Your enquiry of 18th October We were pleased to receive your enquiry about the wall stickers we manufacture, and are sending you a price list and catalogue showing our full range of products. Body We are also enclosing a few samples of our best-selling collections, and would like to point out that all our wall stickers are safe and non-toxic. We have adequate stock of most of the stickers featured in our catalogue and we can supply them within five working days of receiving an order. We know you will be absolutely delighted with the quality of our products. Closing salutation We look forward to doing business with you. Yours sincerely, Sloane & Millford Ltd. Signature Patrick Barnes Ms is now the mostPosition in company common title for Sales Manager women, although Enclosures Encl. (2) Mrs can be used for a married woman andActivities reading comprehension Miss for an unmarried 1 Read the business letter and answer these questions. woman. 1 Who is the sender of the letter? 4 Who is the recipient of the letter? 2 What company does he work for? 5 What company does she work for? 3 What kind of company is it? 6 What is the purpose of the letter? 32

The World of Business | Module 1Letterhead or heading Subject lineThis normally contains: the company logo; the company’s This indicates the subject or purpose of the letter.full name and address, email address, telephone and fax Bodynumbers; website. This contains the text of your message.References Closing salutationYour Ref./Our Ref. are often the initials of the person in This depends on the opening salutation used and how wellcharge (capital letters) and those of the person writing the you know the person you are writing to.letter (lower case letters). They are optional.Date of writing uK uSA if the letter beginsThis should always be written in full format; do not use Yours faithfully, Truly yours, with Dear Sir/Madamfigures. There are different formats: Yours truly, Very truly yours,uK uSA Yours sincerely, Sincerely, if the letterDay Month Year Month Day Year Sincerely yours, begins with the(21st June 20..) (June 21, 20..) Yours cordially, receiver’s name Cordially,Inside address Regards, with any salutationThis is the name and address of the company that receives Best regards,the letter. When addressing the letter to a specific person, Kind regards,the name and position in the company should be includedhere. Best wishes, if you know All the best, the person wellAttention line (Attn.: …; Attention: …; For the attention of…) SignatureThis directs the letter to a particular person. The attention Every letter must be signed by hand by the author. Theline can be omitted if the name of the person is specified in author’s name is typed under it and is generally followed bythe inside address. the official position in the company in the line underneath. If the person signing the letter is not the author, youopening salutation may find the abbreviations per pro/p.p./per p. (i.e. per• If you do not know the receiver’s name: procurationem) before the author’s name or the company’suK uSA name. They mean ‘for’ and ‘on behalf of’.Dear Sir/Madam, Gentlemen: (if you are writing Enclosures to a company) When the letter contains other documents, these areDear Sirs, To whom it may concern: mentioned by Encl. or Encls., followed by the type and number, at the bottom of the letter.• If you know the receiver’s name: In a formal letter these should be followed by the surname only: Dear Mr Ruthford, / Dear Ms Smith,In an informal letter: Dear Jennifer, / Dear Jack,vocabulary a Yours faithfully Activities2 Match the opening and closing salutations. b Truly yours c Sincerely 1 Dear Ms Jefferson (USA) d Best regards 2 Dear Sirs (UK) e Yours sincerely 3 Dear Sandra 4 Dear Mr Sparrow (UK) 4 4/17/2012 (USA) __________________________ 5 Dear Sir/Madam (USA) 5 18.03.2013 (UK) __________________________ 6 21.8.2011 (UK) __________________________3 Write these dates in full. 1 11/12/2010 (USA) __________________________ 2 28.2.2009 (UK) __________________________ 3 9/11/2001 (USA) __________________________ 33

Module 1 | BUSINESS in PRACTICE Dear Sirs, The body of the letter We have found your company on the Internet. We are one of the leading opening paragraph sunglasses manufacturers in China and we would like to propose our The first paragraph states the purpose of services to your company. the letter. It also refers to any previous correspondence or dealings. Our company is export-oriented and we have enjoyed an excellent reputation for over 17 years. We also have all the necessary Middle paragraph certifications to meet EU requirements. The middle paragraph or paragraphs are the main points of the letter, for example Please browse our website www.guangzhoulenses.com at your giving information about a company, convenience. If you find anything of interest, please advise us of the specific details of a request or an item numbers and quantities and we will quote you our best prices. We explanation for a problem. Each point or are also pleased to offer a personalised service, where we manufacture theme should be in a new paragraph. samples according to your specifications and drawings and submit them for your approval. Hoping to start a long-term business cooperation with you, we look forward to hearing from you. Yours faithfully, Ken Liu Closing paragraph M ore about... This suggests a course of action and tells the reader what response is required. The most common way to separate paragraphs is to leave a line between them. It is also possible to indent the first line of each new paragraph. Phraseology p. 360Activities reading comprehension 1 Read the text and look at the sentences below. Do they come from the opening paragraph, the middle paragraph or the closing paragraph? Write OP or MP or CP. 1 Once again, I apologise for any inconvenience. ___ 2 With reference to your letter Writer’s address: ___________________________ Our Ref.: AG/jw dated 13th October 20... ___ 18th October 20.. Receiver’s address: ___________________________ 3 As you can see, our prices are For the attention of the Sales Manager Dear Sir, extremely competitive. ___ Enquiry 4 We refer to previous We have seen _____________ in the magazine House & Garden. correspondence with regards We are currently _____________ a new supplier of wall stickers and _____________ grateful if you could to your complaint. ___ send us the _____________ and _____________ regarding the _____________ you manufacture. 5 Enclosed you will find our best We _____________ to your kind _____________. Yours _____________, quotation for 50 units. ___ For The Wallpaper Shop ___________________________ 6 I am writing to enquire about the sports equipment you manufacture. ___ 7 If you have any questions, please do not hesitate to contact me. ___ 8 I received your address from the London Chamber of Commerce. ___ writing 2 Look again at the letter on page 32 and complete the letter of enquiry (on the right) that Ms Gallagher wrote to Sloane & Millford. 34

The World of Business | Module 1Faxes and electronic faxes Electronic or digital signaturesA fax (short for ‘facsimile’) is an easy way of transmitting documents or pictures using are the signaturestelephone lines and a fax machine. It is therefore useful for sending documents to that replace aplaces which do not have a computer or an internet connection. However, as the cost of handwritten signaturesending a fax depends on the time the phone line is connected, it can be an expensive on documents sentoption to send long, multiple electronically. Digitalfaxes to distant locations. signatures offerAn alternative to the traditional more security withfax is the e-fax which is sent regards to the validitydirectly through a computer and authenticityand Internet. The advantages of the signature,of this system are that there is and therefore theno additional cost – just the documents they areexisting internet connection attached to, due tofee – and it is not necessary the cryptographicto print out the document. technology they use.E-faxes can also be sent fromsmartphones and tablets.A traditional fax is normallysigned by hand, whereas e-faxescan be sent using electronic ordigital signatures .Fax messages are normallywritten on company templatefiles or pre-printed forms whichcontain the following elements:• the sender’s name, position, company name and fax number;• the receiver’s name, position, company name and fax number;• the date;• the subject;• the number of pages;• space for the message.reading comprehension Activities1 Read the text and the fax and answer these questions.1 Who is the sender of the fax? 4 What is the purpose of the fax?2 Who is the recipient of the fax? 5 What is the second page of the fax?3 Have they been in contact before?writing2 BEC Write a short fax reply (60-80 words) from Sally Burns to Clive Crisp. Include these points: • thank him for the amended order; • inform him that the delivery will now be on December 11th; • give a reason for this change; • make a reference to future business together. 35

Module 1 | BUSINESS in PRACTICE Oral communication Oral communication whether face-to-face, on the phone or via web conference is a vital part of business today. Therefore good oral communication skills – in both your mother tongue and in English – are essential to help you make a good impression, express your ideas clearly and get ahead in the business world. Telephone calls Making and receiving telephone calls in a foreign language is one of the hardest things to do in the workplace. Because we are unable to see the person we are speaking to, we cannot use the usual non-verbal clues. Eye contact, facial expressions and body language are all unvoiced ways of communicating and help us understand our interlocutor. Fortunately, phone calls follow certain standard phrases. Learning to pronounce them well will help you go a long way in mastering telephone skills and reduce the anxiety that is so common at first attempts.Receptionist Raul niserClive Suarez Phraseology pp. 360-361Activities functions 1 Read the phone call and find the equivalent expressions. 1 My name is Sam. This is Sam. 4 Would you like to leave a message? _______________ 2 Can I speak to…? _______________ 5 Clive Suarez speaking. _______________ 3 She isn’t here. _______________ 6 Could I have…? _______________ 36

The World of Business | Module 1 Activitieslistening2 1.06 Listen to this phone call and write the missing words/expressions. Mr Jack O’Neill of Pens & Pencils receives a phone call from Peter Greene of Wonderland Shop, who would like to add some items to an order. Telephonist Hello, Pens & Pencils, this is Judy. How can I (1) ___________ you? Peter Greene Hello, (2) ___________ I speak to Mr O’Neill, please? (3) ___________ Peter Greene from Wonderland Shop. Telephonist Yes, Mr Greene, I’ll (4) ___________. Jack o’neill Sales Department, Jack O’Neill (5) ___________. Peter Greene Good morning, Jack, (6) ___________ Peter Green from Wonderland Shop. Jack o’neill Hello, Peter. How are you? Peter Greene Fine, thank you. (7) ___________ you about the order I emailed you last Friday. Jack o’neill What can I do for you? Peter Greene (8) ___________ to add 50 Tinkerbell Character Pens and 25 Taz Character Pens to our order. Jack o’neill OK, Peter. (9) ___________ send me a fax confirming these new quantities? Peter Greene Yes, of course. (10) ___________ make sure that these changes won’t delay delivery. Jack o’neill No problem. We can deliver everything next Monday as scheduled. Peter Greene Thank you, Jack. Goodbye now. Jack o’neill Goodbye.3 1.07 Reorder this phone call, then listen and check.Mr Sam Crawford from Greystone Ltd. calls Mr Dawson of King Industries to make an appointment.Mr Dawson How about Tuesday morning?Mr Crawford Hello, Mr Dawson, this is Sam Crawford from Greystone Ltd. We met at the trade fair in London last June.Mr Dawson Well, Mr Crawford, see you next Tuesday. Goodbye.Mr Crawford That would be fine.Receptionist Hold on, please, I’ll put you through to Mr Dawson.Mr Dawson Mr Dawson speaking.Mr Crawford We are interested in your capsule coffee machines. Next week I’ll be in Brighton and I’d like to make an appointment to see you. What day would suit you?Mr Dawson Of course, I remember.Mr Crawford No, 9.30 is fine with me.Receptionist Good morning, King Industries. Can I help you?Mr Crawford Good morning, this is Sam Crawford from Greystone Ltd. I’d like to speak to your Sales Manager, Mr Dawson, please.Mr Dawson Well, shall we say 9.30? Or is that too early for you?Mr Crawford Goodbye. 37

Module 1 | BUSINESS in PRACTICEActivities listening & functions 4 1.08 Listen to a phone conversation and answer these questions. 1 What is the purpose of the phone call? 2 Who will pay for the hotel room? 3 How much does the room cost? 4 How will James confirm the booking? 5 1.08 Listen to the phone call again and write down the expressions for these functions. Then complete the table with other expressions from the previous phone calls. Answering the phone Introducing yourself Asking to speak to Saying why you are someone calling ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ speaking 6 Work with a partner. Read the instructions and practise the phone conversation. AB You work for Coleman Brothers. Call Franks Ltd. You work for Franks Ltd. Answer the phone. Ask to speak to Ms Pearson. Say Ms Pearson is not in the office. Ask if the caller wants to leave a message. Leave a message asking her to call you back urgently. Tell the caller you will give Ms Pearson the message. Thank the person. Close the conversation. Close the conversation. 7 Now practise mini-telephone calls with a partner for these situations. Remember to swap roles. CALLER RECEIVER 1 You want to speak to the Sales Manager of 1 You work for Cunnings Enterprise. The Sales Cunnings Enterprise but he/she is out. Ask Manager is away at a conference and will when you should call back. return to the office on Friday. 2 You call Mr Evans at Clarkson Cars to arrange 2 You are Mr Evans at Clarkson Cars. You are a meeting for Tuesday. You are not available free on Tuesday and would prefer a meeting in the morning. in the morning. 3 You call Jefferson Ltd. to ask for a copy of 3 You work for Jefferson Ltd. Your new their new catalogue. You need it urgently. catalogue is at the printers but you can send a copy by email. 38

The World of Business | Module 1Voice mail ActivitiesVoice mail, or answerphones, are useful tools for both landlines and mobile phones. They allow a company to leavean automatic message regarding opening hours, holidaysor alternative contact numbers, while individuals canleave a personal message for when they are unavailable.With voice mail, callers can leave a message directly forthe person they are trying to contact without the riskthat a colleague forgets to pass on a message. It is easy toremotely access voice mail messages which is convenientwhen you are out of the office for long periods of time.Many companies now use an automated informationsystem for answering phone calls instead of the traditionalfigure of a switchboard operator or receptionist. Thesesystems have a recorded message and a menu, listing thevarious services or departments available and the relevantnumber to press. This saves time and money for thecompany, but can be exasperating for the caller when themenus are excessively complicated or time-consuming.listening1 1.09 Listen to three voice mail messages and tick which of these points the callers include in their messages.When leaving a voice mail message, remember to: Caller 1 Caller 2 Caller 3 3 • say your name/position/company • state your reason for calling • leave your contact details • give your availability • end the message2 1.10 Listen to this automated information system and match the number to press with the correct option. There are two extra options you do not need. A special deals E change your numberB payment enquiries F talk to an operator C existing contractsD new business G technical assistance 39

Module 1 | BUSINESS in PRACTICEActivities Face-to-face communication In spite of all the hi-tech ways of communicating, face-to-face communication remains one of the most important forms of communication in the world of business. Within a company, face-to-face conversations are common between colleagues to discuss daily schedules, problems and solutions, as well as for meetings or presentations. It is also essential when dealing with people external to the company, whether they are suppliers, potential clients, customers or members of the public. Face-to-face communication is not only fundamental for formal situations, but also for informal occasions such as a quick chat by the coffee machine or socialising during a conference or an exhibition. Naturally, the tone and content of what you say will depend on the context and how well you know your interlocutor, but it is always best to pay attention to body language and personal space. When travelling abroad and doing business with people of different nationalities, you also need to be aware of any particular local customs and sensitive issues which are best avoided. reading comprehension 1 Read the text and answer these questions. 1 In what circumstances is face-to-face communication used in the business world? 2 Why do you think face-to-face communication is so important? 3 Why should you be careful of body language and personal space when talking to someone? 4 Why should you try to observe local customs when doing business internationally? Cultural Faux Pas Can Doom International Business Deals Business travel is growing into a series of 20 apps, one each which is a rude gesture that is across the globe, especially for countries such as China, Japan, likely to offend most Brazilians. with the booming economies in India, Brazil and Turkey. - When giving a gift in East Asia, China, Brazil and Australia. But Among the tips offered by Foster’s the app says to wrap it in red an innocent hand gesture can ruin apps: or gold, colors that symbolize what otherwise would be a very - In any country where chopsticks wealth and happiness. profitable trip across international - When giving gifts in Arab borders. are used, the app suggests that countries, it suggests using green To help make sure business trips you never stick your chopsticks wrapping paper, the symbolic go smoothly, Dean Foster, an standing up in a rice bowl. This color of Islam. American cultural etiquette expert, symbolizes death. has put his 25 years of expertise - In Brazil, it says never to make Adapted from Los Angeles Times the-thumb-to-forefinger-OK sign, 2 Read the article and answer these questions. 1 Who is Dean Foster and what has he made? 2 Why has he done this? 3 Why could a hand gesture spoil a business relationship? In which country could it happen? 4 Why is the colour of wrapping paper important in East Asia and Arab countries? 5 Are there any customs that people should observe when doing business in your country? What are they? 6 Are there any topics of conversation that would offend people in your country? What are they? internet research 3 Think of a country you would like to travel to. Do some research on the Internet to find out about local customs and etiquette for doing business and socialising. Then prepare a short report to illustrate your findings. 40

The World of Business | Module 1Video conferencing ActivitiesVideo conferencing is an integrated audio and visual communicationstechnology that can connect users anywhere in the world. With thistechnology, users can see and hear each other in real time, allowing natural‘face-to-face’ communication and the use of visual aids. There are manydifferent packages and software available which allow multiple users toalso share files, edit documents and chat. It is also possible to set differentsecurity levels and issue access codes in order to protect the content of aweb meeting or conference.This technology is of great benefit to businesses as it allows participants totake part in meetings and conferences without everyone having to travel tothe same location, thus saving time and money. Video conferencing is alsobeneficial in other fields, such as education and medicine.speaking1 Read the text and then, in pairs, decide which of these things are essential for a web conference. What other things could be useful in order to have a successful web conference? computer • internet connection • browser • webcam • web conference service/software • microphone • whiteboard • telephone • video clips • PowerPoint presentation • comfortable chairs • meeting room • desk • coffee and biscuitsPresentationsPresentations are used by companies to present projects and plans to employeesand also for external uses such as the launch of a new product or service. They canbe given by one or more people and are often followed by a question and answersession. It is normal practice to use some kind of visual aids (such as PowerPointslides) in order to illustrate what is being said and to maintain interest throughoutthe presentation. It can be nerve-wracking to stand in front of a room full of people,therefore many companies send their employees on training courses to improvetheir oral communication and presentation skills, and to increase their confidence.vocabulary audience • conclusion • eye contact • Activities1 Complete these tips using the expressions from the box. gesticulate • introduction • key points • Top tips for giving a presentation practise • purpose • slides • speak• When you prepare, consider who the (1) is and what the (2) of your presentation is.• Have a logical order, with an (3) , the main part and a (4) .• Keep your (5) clean and simple, without lots of text.• (6) . It might not make you perfect but it will help.• (7) clearly and not too quickly. Short silences will help underline (8) .• Stand up straight, smile and make (9) .• Move around and (10) , but don’t overdo it. 41

Module 1 | BUSINESS in PRACTICE A Visual communicationbar chart Both oral and written communication can be enhanced by visual communication. Sales figures will be much clearer and easier to read with the data presented in a graph. A newspaper article about the Stock Exchange’s daily performance would be almost impossible to understand without charts and graphs. A brochure presenting a company’s services would be extremely dull without photographs, as would a product presentation without slides. Therefore it is essential to incorporate visual aids – such as photographs, drawings, maps, tables, diagrams and charts – in order to illustrate, compare, simplify or summarise facts, data and statistics. However, if these visual aids are not created and used correctly, they can distract and detract from the purpose of the written or oral communication. Take, for example, a presentation where slides are changed before you have a chance to read all the information or a user manual with unclear diagrams or illustrations. Examples of the most common diagrams and charts Visitors in January C E pictogram Venn diagram B D F pie chart line graph flow chartActivities reading comprehension 1 Read the text and list the advantages and disadvantages of visual communication. ADVANTAGES: ___________________________________________________________________ DISADVANTAGES: ___________________________________________________________________ 2 Match these descriptions to the diagrams and charts. 1 This is used to show parts of a whole. It does not show changes over time. 2 This is useful for showing trends or changes over a period of time, particularly when the changes are small. 3 This is used to compare things between different groups. It can also be used to follow changes over a period of time, especially when the changes are large. 4 This is used to show similarities or differences between sets of data. 5 This is useful to show a process clearly, using both symbols and text. 6 This represents data with a picture. A key is usually necessary. 42

The World of Business | Module 1reading comprehension Phraseology p. 361 Activities3 Now match these sentences to the most suitable diagrams and charts on page 42.1 This next slide shows how our online 4 Our turnover has shown a steady increase for the last six years.registration process works. ___ ___ 5 This simple diagram clearly illustrates our ___2 Last month, the number of male visitors to target audience, here in the centre. ___the exhibition was double that of female 6 Sales in Europe dropped dramatically half way through the year, while those invisitors. ___ the USA increased.3 Our market share is just over 45%, making usthe market leader ahead of our rival with 29%. ___vocabulary4 Look at the sentences in the first column and make their opposites choosing from the expressions from the box.has changed • rose • decrease • lowest ever rate • fell dramatically • have been lowered1 Sales grew rapidly in the first quarter. Sales ___________ in the first three months of the year.2 Holiday prices reached a peak in July. July saw holiday prices at their ___________.3 Oil prices have remained constant. The price of oil ___________.4 There has been a 1% rise in interest rates. Interest rates ___________ by 1%.5 Output has increased sharply this month. There has been a significant __________ in output this month.6 The price of mobile phones dropped by 9%. Mobile phone prices ___________ by 9%.speaking5 Look at this line graph and describe it. You can use the expressions in exercises 3 and 4 to help you. overheads profits dInec trheae sfeidrs ts lqiguhatrlyte.r, overheads 6 What have you learnt about business communication? Prepare a short presentation (3-5 minutes) following these guidelines. • What is business communication and what is its purpose? • What are the most common ways of communicating for a business? How are they changing the way business is being done? • Why is using the phone so intimidating in a foreign language and how can it be made easier? • How do visual aids help oral and written communication? • How might business communication change in the future? 43

1ModuleBUSINESS LANGUAGEVOCABULARy – FUNCTIONS Word formation (1) It is often possible to form a noun by adding a suffix to a verb or an adjective. Spelling changes may be necessary. The suffixes -sion, -tion, -ment can be added to a verb, while -ence, -ance can be added to a verb or an adjective.1 Change these verbs and adjectives into their noun form and write them under the correct column. You may need to change the spelling. accept • assist • create • decide • develop • divide • employ • govern • important • include • independent • inform • intelligent • organise • pay • prefer • produce -sion -tion -ment -ence -ance________________ ________________ ________________ ________________ ________________________________ ________________ ________________ ________________ ________________________________ ________________ ________________ ________________ ________________ ________________ ________________2 Transform the words in brackets into the appropriate form (adjective, noun or verb) in order to fit the meaning of the text.Nations with their own natural resources can (1) ___________ (exploitation) them byspecialising in the (2) ___________ (extract) and (3) ___________ (produce) of theseresources. For example, the (4) ___________ (develop) of North Sea Oil and Gas.A need is a necessity for the survival of a person, animal or (5) ___________ (organise).Basic human needs are things like food and (6) ___________ (protect) from the weather.Wants are things which are desired and they are (7) ___________ (importance) for(8) ___________ (improve).3 Complete these sentences with the expressions from the box.a message • could I • help you • I’m calling about • tell him • This is1 Good afternoon. Simpsons Ltd. Can I ___________? 4 ___________ our meeting next week.2 ___________ Mr Steele from Chicago. 5 Can you give her ___________?3 ___________ speak to the manager please? 6 Could you ___________ I called?4 In pairs, practise these phone calls. Remember to swap roles.Caller Receiver1 You want to speak with Mr Frankson. 1 You are Mr Frankson’s assistant. He is not in the office Leave a message if he is not in the office. today. Ask if the caller wants to leave a message.2 You want to speak with Mrs Midler to know 2 You are Mrs Midler. You have not received any fax, if she has received your fax. The line is very bad so check that the caller has your correct fax number: so you need to ask her to repeat her fax number. 0171 896 3211.44

The World of Business | Module 1GRAMMAR 1 Complete these sentences with the present simple form of the Present simple verbs in brackets. We use the present simple to talk 1 A How often ________ you ________ web conferences? (have) about: B Twice a month. We _____________ them every week. (not hold) • permanent situations 2 A How many people ________ the company ________? (employ) What does Joe do? He’s a B It _____________ 1,650 employees. (have) manager. He works for a retail company. 3 A What ________ your company ________? (produce) • habits and regular actions B It _____________ computer parts. (make) Do you often give presentations? 4 A ________ you ________ your products? (export) No, I don’t. B Yes, we do. We _____________ all over the world. (ship) • timetables (e.g. public transport, cinema) for the future 5 A ________ fair trade ________ poor countries? (help) What time does your plane B Yes, it does, but it ________ enough. (not be) leave tomorrow? It leaves at 3.30 p.m. 6 A What time ________ the conference ________ on Friday? (start) B Sorry, I ________. (not know)2 Match the two halves of the sentences. Zero conditional1 The price of a commodity a when a manufacturer We use the zero conditional to talk fluctuates b uses direct distribution. about things that are generally or c when you use a system always true.2 If goods are not needed d like PayPal. The sale of products and services is immediately, e they are stored in a possible if consumers are aware of warehouse. them.3 It is safe to send and receive if there is a change in It is also possible to use when. money online supply and demand. When you fill in a form, it is you need to be aware of important to follow the instructions4 If you travel abroad, local business customs. carefully.5 Profit margins are usually higherWhat/Which 3 Complete these sentences with what or which.We use Which…? when we are asking about 1 ___________ of the two products should we order?one or some of a limited set. 2 ___________ do you want to do about postponing theWhich goods or services could you livewithout? meeting?We use What…? when there is an unlimited 3 ___________ is intellectual capital?number of answers. 4 ___________ sector of production concerns the provisionWhat is the importance of labour? of services? 5 ___________ risks are likely to occur during production?4 Rewrite these sentences in the passive form. Present simple passive 1 People often contrast needs with wants. We use the passive when the focus is Needs ______________________________________________. on what happens and not who does the action. 2 The manufacturer transports the goods to places of higher Advertising is used to help consumers be demand. aware of products. The goods __________________________________________. The goods are transported from the place of low demand to the place of greater 3 Companies use marketing to increase consumer interest in demand. their products. We can use by + agent to say who or Marketing ___________________________________________. what does the action. The world economy is affected by global 4 Banks play a vital role in providing funds to firms. events. A vital role __________________________________________. 45 5 Wholesalers buy goods at cost price from manufacturers. Goods ______________________________________________.

1Module The term ‘crowdsourcing’ derives from the words ‘crowd’ and ‘outsourcing’, thatBUSINESS NLAENWGSUAGE is contracting a job to a third party or another company. With crowdsourcing,crowdsourcing the idea is to offer a particular task or project to many people through theAll Together Now – Internet in order to reach the highest level of ideas and the best possible quality byThe Advantages of Crowdsourcing combining their skills and knowledge.NEWYORK CITYwas once the capital of manufacturing in America, with more than 1 million people workingin the sector in 1950. Today that number is only 80,000, andthey are employed largely by specialist producers in areassuch as furnishing, food processing and clothing. However,thanks to the city’s entrepreneurial spirit, a new industry,crowdsourcing , is emerging. It might be called socialmanufacturing. One of the firms involved is Quirky, which is as trendyas its name suggests. Its new design studio is in a convertedwarehouse near the Hudson river and includes a smallfactory complete with a couple of 3D printers, a laser cutter,milling machines, a spray-painting booth and other piecesof equipment. This prototyping shop is central to Quirky’sbusiness of transforming other people’s ideas into products. It works like this: a user submits an idea and if enough peoplelike it (just like on Facebook), Quirky’s product-developmentteam makes a prototype. Users review this prototype onlineand can contribute towards its final design, packaging andmarketing. They also help fix a price for it. Quirky then looksfor suitable manufacturers. The product is sold on the Quirkywebsite and, if demand grows, also by retail chains. Quirkyalso manages the applications for patents and any necessaryauthorizations. It gives a 30% share of the revenue from directsales to the inventors and others who have helped. By using the comments and opinions of its large onlinecommunity, Quirky can quickly establish if there is a marketfor a product and set the right price before committing itselfto making it. Its most successful product so far is calledPivot Power. It is a $29.99 electrical extension lead withadjustable sockets, which makes it easier to plug in differentchargers. Jake Zien of Milwaukee came up with the ideawhen he was at high school. He submitted it to Quirky andwas helped by 709 people to bring it to market. By earlyApril 2012, with over 200,000 of the gadgets sold, Mr Zienhad made $124,000 from his invention. Adapted from The Economist 46

The World of Business | Module 1reading comprehension1 BEC Read the article and decide if these sentences are true (T) or false (F). If there is not enough information, choose ‘doesn’t say’ (DS). TF DS 1 Quirky is one of the trendiest companies in New York. 2 Quirky does not invent its own products. 3 The opinion of a small team is decisive for a product’s design and price. 4 Quirky products are only available online. 5 It is the inventor’s responsibility to apply for a patent. 6 If you are involved in the realisation of a product, you have a part of the profits. 7 Quirky’s most successful products have all cost under $30.listening2 1.11 BEC Listen to an expert talking about the use of crowdsourcing in recent years and complete the notes below.CROWDSOURCING: uasneddtotoleaacrqnuwirehante(w2)(1_)__________________t_hiindkeasUsed by:Domino’s Pizza to aredidnvaenntewthe(3b)r_a_n_d_a_n_d__c_r_eatotet(h4e)ir_m__e_n_u_i_n_A__ustralia toWalmart in the USA the best products to have in theirStarbucks to understand (5) __________ ideas and customer comments as a source for newAdvantages for crowdsourcers: a lot of solutions at a (6) __________ for contributors: (7) __________ reward or recognitionspeaking3 Discuss these questions in small groups. 1 How is crowdsourcing a good way for a company to improve its products? 2 How can it help a company to be closer to its customers? 3 Is crowdsourcing suitable for all kinds of companies? 4 What drawbacks could there be for some companies? 5 Do you think crowdsourcing and social manufacturing will increase in the future? Why/Why not?writing4 Write a short essay discussing the advantages and disadvantages of crowdsourcing for a manufacturingcompany. Follow these guidelines: http://dailycrowdsource.com www.crowdsourcing.org• define crowdsourcing; www.zooppa.com• state the principal advantages and give a concrete example; www.bootb.com/it• state the principal disadvantages and give a concrete example;• draw your own conclusions. 47

1Module The World of BusinessMOVE to the NETweb conferencing Log in! 1 1.12 Have you heard these terms before? Do you know what they mean? In pairs, try to find out how they are formed and write a definition for each one. Then listen and check. webinar • webcast2 Replace the expressions in bold with synonyms from the box ‘passwords’. P asswords It is fairly simple to (1) get a room ready for a web conference, once you have set up a room all the necessary technical equipment. In order (2) not to waste time during the share video content meeting, it is best to (3) hook up all the cables and test the equipment in advance. connect cables However, you may still (4) encounter technical hitches which can be embarrassing push a button if you (5) are in charge of the meeting. run a meeting make a presentation on THe neT! review a document save/waste time3 Have a look at this video about tips for cut costs have technical problems successful video conferencing and answer these questions. 1 What should the background be like? 2 What kind of lighting is best? 3 Why is it important to think about where to put a whiteboard? 4 Where should the microphone be positioned? Why? 5 What should you do with any equipment before a meeting? Why? 6 Why is it important to focus on the camera when you are speaking?Log ouT!4 Discuss these questions in class. 1 How could video conferencing change the way these organisations or people do business? multinational • lawyer • clothes shop • mining company • doctor • car manufacturer 2 How could it help during the different stages of the supply chain or distribution chain? 3 What about the other branches of commerce? 4 Are there any disadvantages?48