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978-0-521-12250-4 Cambridge Business English Dictionary Cover C M Y K MASCULL 978 0 521 12828 5 BUSINESS VOCABULARY IN USE INTERMEDIATE Without CD-ROM C M Y K BUSINESS VOCABULARY Self-study and classroom use Third Edition • • • • • with answers IN USE Intermediate Bill Mascull BUSINESS VOCABULARY Self-study and classroom use Third Edition IN USE Intermediate Bill Mascull University Printing House, Cambridge CB2 8BS, United Kingdom One Liberty Plaza, 20th Floor, New York, NY 10006, USA 477 Williamstown Road, Port Melbourne, VIC 3207, Australia 4843/24, 2nd Floor, Ansari Road, Daryaganj, Delhi – 110002, India 79 Anson Road, #06–04/06, Singapore 079906 Cambridge University Press is part of the University of Cambridge. It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning and research at the highest international levels of excellence. www.cambridge.org Information on this title: www.cambridge.org/9781316629987 © Cambridge University Press 2017 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2002 Second Edition 2010 Third Edition 2017 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Printed in Malaysia by Vivar Printing A catalogue record for this publication is available from the British Library ISBN 978-1-316-62998-7 Book with Answers ISBN 978-1-316-62997-0 Book with Answers and Ebook Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Information regarding prices, travel timetables, and other factual information given in this work is correct at the time of first printing but Cambridge University Press does not guarantee the accur; acy of such information thereafter. Contents INTRODUCTION 8 JOBS, PEOPLE AND ORGANIZATIONS 1 Work and jobs A Managers and executives: UK B Managers and executives: US 10 A What do you do? B Word combinations with ‘work’ C Types of job and types of work 2 Ways of working 12 A Working hours B Nice work if you can get it C Nature of work A Recruitment B Applying for a job C Selection procedures 16 A B C D 18 A B C D 20 A B C D 32 Self-employed people and partnerships Limited liability Mutuals Non-profit organizations 13 Manufacturing and services 34 A Manufacturing and services B Countries and their industries A Market research B Development and launch 15 Innovation and invention 22 Career paths Company structure In-house staff or freelancers? Leaving a company 8 Problems at work A Business and businesses B Commerce C Enterprise 14 The development process 36 Employees and management Management and administration Labour Personnel and HRM 7 Companies and careers 30 PRODUCTION A Wages, salary and benefits B Compensation 1 C Compensation 2 6 People and workplaces A Businesspeople and entrepreneurs B Leaders and leadership C Magnates, moguls and tycoons 12 Organizations 2 A Education and training B Skilled and unskilled C The right person 5 Pay and benefits 10 Businesspeople and business 28 leaders 11 Organizations 1 3 Recruitment and selection 14 4 Skills and qualifications 9 Managers, executives and 26 directors 38 A Innovation and invention B Research and technology C Patents and intellectual property 16 Products and services 40 A Products B Mass production C Capacity and output 24 A Discrimination B Bullying and harassment C Health and safety Business Vocabulary in Use Intermediate 3 17 Materials and suppliers 42 A Inputs B Suppliers and outsourcing C Just-in-time 18 Business philosophies A B C D 44 48 50 52 A Word combinations with ‘product’ B Goods C Brands and branding A B C D 54 Pricing Word combinations with ‘price’ Upmarket and downmarket Mass markets and niches 24 Place Business Vocabulary in Use Intermediate A Sales B Costs C Margins and mark-ups 28 Profitability and unprofitability 64 A Profitable and unprofitable products B Budgets and expenditure C Economies of scale and the learning curve 29 Getting paid 30 Assets, liabilities and the balance sheet A B C D 66 68 Assets Depreciation Liabilities Balance sheet 31 The bottom line 70 A Accounts B Results C Financial reporting 56 A Distribution: wholesalers, retailers and customers B Shops C Direct marketing 4 62 A Shipping and billing B Trade credit C Accounts A Marketing B The four Ps C The market orientation 23 Price B2C, B2B and B2G Web 2.0 E-commerce companies Word combinations with ‘online’ 27 Sales and costs 46 A Companies and markets B More word combinations with ‘market’ C Competitors and competition 22 Products and brands 60 MONEY A Customers and clients B Buyers, sellers and vendors C The market 21 Marketing and market orientation 26 E-commerce A B C D MARKETING 20 Markets and competitors 58 A Advertising B The sales force C Promotional activities Mass customization Wikinomics The long tail Benchmarking 19 Buyers, sellers and the market 25 Promotion 32 Share capital and debt A B C D E Capital Share capital Loan capital Security Leverage 72 33 Success and failure A B C D 74 Cash mountains Debt and debt problems Turnarounds and bailouts Bankruptcy 34 Mergers, takeovers and sell-offs 40 Wrongdoing and corruption 88 A Wrongdoing B Bribery and corruption C Fraud and embezzlement 76 A Stakes and joint ventures B Mergers and takeovers C Conglomerates 78 A Traditional banking B Internet banking C Personal investing 36 Financial centres A B C D 80 A B C D 82 A B C D 84 Finance and economics Inflation and unemployment Trade Growth and GDP 39 Indicators 2 Going up Going down Peaks and troughs Boom and bust A Professional behaviour B Social issues C Environmental issues 42 Time and time management 92 43 Stress and stress management 94 A When work is stimulating B When stimulation turns to stress C Downshifting A Market indexes B Market activity: good times … C … and bad 38 Indicators 1 90 A Timeframes and schedules B Projects and project management C Time tips Financial Centres Stock markets Other financial markets Derivatives 37 Trading 41 Business ethics PERSONAL SKILLS FINANCE AND THE ECONOMY 35 Personal finance DOING THE RIGHT THING 44 Leadership and management styles 96 A Leadership B Modern management styles C Empowerment CULTURE 45 Business across cultures 1 98 86 A Cultures and culture B Power and distance 46 Business across cultures 2 100 A Individualism B Time C Cross-cultural communication Business Vocabulary in Use Intermediate 5 TELEPHONING AND WRITING 47 Telephoning 1: phones and numbers A B C D 54 Interns, trainees and apprentices 102 Telephones and beyond ‘Phone’, ‘call’ and ‘ring’ Numbers Doing things over the phone 48 Telephoning 2: trying to get through A B C D 104 106 Getting through Giving and taking messages Spelling names Taking messages: checking information Phoning again Making arrangements Closing the conversation Changing arrangements A Business cards 1 B Business cards 2 C Staying in touch 52 Business communication 2: 112 email A Email B Email expressions C Beginnings and endings A CV tips B Parts of a CV C Cover letters and emails 6 Business Vocabulary in Use Intermediate 118 A Word combinations with ‘meeting’ B Types of meeting C How was the meeting? 120 A The role of the chair: before the meeting B The role of the chair: running the meeting C Follow-up 57 Meetings 3: points of view 122 A Opening the meeting B Asking for and expressing opinions 58 Meetings 4: agreement and disagreement 124 51 Business communication 1: staying in touch 110 53 CVs, cover letters and emails 55 Meetings 1: types of meeting 56 Meetings 2: the chair 50 Telephoning 4: arrangements and ending calls 108 A B C D A Interns B Experience or exploitation? C Trainees and apprentices BUSINESS SKILLS A Asking to speak to someone B Voicemail 1 C Voicemail 2 49 Telephoning 3: getting through 116 A Agreeing B Disagreeing 59 Meetings 5: discussion techniques 126 A Interrupting, referring back, checking understanding, avoiding confrontation B Agreement, consensus or compromise? C Concluding 60 Presentations 1: key ideas 128 A Types of presentation B What makes a good presentation? C Presentation tools and visual aids 114 61 Presentations 2: key steps 130 A Key steps: introduction B Key steps: main part C Key steps: closing 62 Presentations 3: audience 132 interaction A Closing and dealing with questions B Intercultural aspects 63 Negotiations 1: situations 134 and negotiators A Types of negotiation B Word combinations with ‘negotiations’ C Bargaining 64 Negotiations 2: preparing 136 A Preparing to negotiate B Opening the negotiation C Negotiating styles 65 Negotiations 3: win-win A B C D 138 Probing Positive positions Negative positions Concessions and trade-offs 66 Negotiations 4: reaching agreement 140 A Deadlock and mediators B Agreements and contracts C Checking the deal Answer key 142 Index 161 Also available 176 Business Vocabulary in Use Intermediate 7 Introduction Who is this book for? Business Vocabulary in Use Intermediate is designed to help intermediate and upper-intermediate learners of business English to improve their business vocabulary. It is for people studying English before they start work and for those already working who need English in their job. In addition to improving your business vocabulary, the book helps you to develop the language needed for important business communication skills. You can use the book on your own for self-study, with a teacher in the classroom, one-to-one or in groups. How is the book organized? The book has 66 two-page units. The first 46 of these are thematic and look at the vocabulary of business areas such as people, organizations, production, marketing and finance. The other 20 units focus on the language of skills you need in business, such as those for presentations, meetings, telephoning and negotiations. The left-hand page of each unit explains new words and expressions, and the right-hand page allows you to check and develop your understanding of the words and expressions, and how they are used through a series of exercises. There is cross-referencing between units to show connections between the same word or similar words used in different contexts. There is an Answer key at the back of the book. Most of the exercises have questions with only one correct answer. But some of the exercises, including the Over to you activities at the end of each unit (see below), are designed for writing and/or discussion about yourself and your own organization or one that you know. There is also an Index. This lists all the new words and phrases which are introduced in the book and gives the unit numbers where the words and phrases appear. The Index also tells you how the words and expressions are pronounced. The left-hand page This page introduces new vocabulary and expressions for each thematic or skills area. The presentation is divided into a number of sections indicated by letters: A, B, C, etc., with simple, clear titles. In Business Vocabulary in Use Intermediate, explicit reference is made to the business material in the Cambridge International Corpus (CIC) – business pages of newspapers, business textbooks, and business meetings and discussions. The texts are stored in a database, which is searchable in various ways to reveal the patterns of business usage. The database has been exploited to identify typical word combinations found in the data, and there are notes about their relative frequency. As well as explanations of vocabulary, there is information about typical word combinations and grammar associated with particular vocabulary, for example operative verbs – the verbs that are typically used with particular nouns. Again, the CIC has been a prime source of information about these. 8 Business Vocabulary in Use Intermediate There are notes about differences between British and American English. BrE: CV; AmE: résumé or resume The right-hand page The exercises on the right-hand page give practice in using the new vocabulary and expressions presented on the left-hand page. Some units contain diagrams to complete, or crosswords. ‘Over to you’ sections An important feature of Business Vocabulary in Use Intermediate is the Over to you section at the end of each unit. There are sometimes alternative Over to you sections for learners who are in work and for those who are studying pre-work. The Over to you sections give you the chance to put into practice the words and expressions in the unit in relation to your own professional situation, studies or opinions. Self-study learners can do the section as a written activity. In many Over to you sections, learners can use the internet to find more information. In the classroom, the Over to you sections can be used as the basis for discussion with the whole class, or in small groups with a spokesperson for each summarizing the discussion and its outcome for the class. The teacher can then get students to look again at exercises relating to points that have caused difficulty. Students can follow up by using the Over to you section as a written activity, for example as homework. The Answer key contains sample answers for the Over to you questions. How to use the book for self-study Find the topic you are looking for by using the Contents page or the Index. Read through the explanations on the left-hand page of the unit. Do the exercises on the right-hand page. Check your answers in the Answer key. If you have made some mistakes, go back and look at the explanations and the exercise again. Note down important words and expressions in your notebook. How to use the book in the classroom Teachers can choose units that relate to their students’ particular needs and interests, for example areas they have covered in coursebooks, or that have come up in other activities. Alternatively, lessons can contain a regular vocabulary slot, where students look systematically at the vocabulary of particular thematic or skills areas. Students can work on the units in pairs, with the teacher going round the class assisting and advising. Teachers should get students to think about the logical process of the exercises, pointing out why one answer is possible and the others are not (where this is the case). We hope you enjoy using Business Vocabulary in Use Intermediate. Business Vocabulary in Use Intermediate 9 1 A Work and jobs What do you do? To find out what someone’s job is, you ask ‘What do you do?’ Kerstin talks about her job: ‘I work for a large European car maker. I work on car design. In fact, I run the design department and I manage a team of designers: 20 people work under me. It’s very interesting. One of my main responsibilities is to make sure that new model designs are finished on time. I’m also in charge of design budgets. ‘I deal with a lot of different people in the company. I’m responsible for coordination between design and production: I work with managers at our manufacturing plants.’ Note in charge of + noun responsible for + verb + -ing responsibility + infinitive / -ing One of my responsibilities is to make sure that … One of my responsibilities is making sure that … You don’t say: ‘I’m a responsible.’ B Word combinations with ‘work’ If you work or have work, you have a job. But you don’t say that someone has ‘a work’. Work is also the place where you do your job. You don’t say for example, ‘at the work’ or ‘to the work’. Here are some phrases with ‘work’. The economy is growing fast and more people are in work – have a job – than ever before. The percentage of people out of work – without a job – has fallen to its lowest level for 30 years. Frank talks about his job: ‘I work in a bank in New York City. I leave for work at 7.30 every morning. I go to work by train and subway. I get to / arrive at work at about 9. I’m usually at work till 6. Luckily, I don’t get ill very much so I don’t often take time off work – away from work due to illness.’ C Types of job and types of work A full-time job is one for the whole of the normal working week; a part-time job is for less time than that. You say that someone works full-time or part-time. A permanent job does not finish after a fixed period; a temporary job finishes after a fixed period. You talk about temporary work and permanent work. 10 Business Vocabulary in Use Intermediate Exercises 1.1 Look at A opposite. Margaux is talking about her work. Correct the expressions in italics. ‘I work for a large French supermarket company. It is an international company and (1) I work about the development of new supermarkets abroad. (2) In fact, I running the development department and (3) I am manage for a team looking at the possibilities in different countries. It’s very interesting. (4) One of my main is to make sure that new supermarkets open on time. (5) I’m also charged with financial reporting. (6) I deal at a lot of different organizations in my work. (7) I’m responsible of planning projects from start to finish. (8) I work closely near our foreign partners, and so I travel a lot.’ 1.2 Complete each gap in the text with one of the prepositions from B opposite. Rebecca lives in London and works in public relations. She leaves home for work at 7.30 am. She drives (1) work. The traffic is often bad and she worries about getting (2) work late, but she usually arrives (3) work at around 9. She finishes work quite late, at about 8. ‘Luckily, I’m never ill,’ she says. ‘I could never take time (4) work.’ She loves what she does and is glad to be (5) they are (6) of work. 1.3 work. Some of her friends are not so lucky: What is being advertised in each of these job advertisements (1–6)? Use an expression from C opposite, including the words in brackets. The first one has been done for you. 1 Librarian required for public library, afternoons 2 till 6. (job) Apply now a part-time job 4 2 Teacher needed for summer course, 1 to 31 August. (job) Personal assistant needed for busy office, 9 am to 5.30 pm. (work) Apply now Apply now 5 3 Experienced barman wanted, 8 pm until midnight. (work) Apply now Salesman required for showroom – good prospects for right Apply now person. (work) 6 Lawyer wanted for law firm – long hours, 4 weeks holiday per year. (job) Apply now Over to you If you work, answer these questions. If you don’t work, answer these questions. • What do you do? What are you in charge of? What are your responsibilities? • What time do you leave for work? How long does it take you to get to work? What time do you arrive at work? Do you take a lot of time off work? • What sort of job would you like to do? • What sort of routine would you like to have? • Why do some people prefer to work part-time or to have temporary jobs? Business Vocabulary in Use Intermediate 11 2 A Ways of working Working hours You can also say clock in and clock out. Note Note ‘I’m an office worker in an insurance company. It’s a nine-to-five job with regular working hours. I need my swipe card to get into the office. The work isn’t very interesting, but I like to be able to go home at a reasonable time.’ BrE: flexitime AmE: flextime ‘I’m in computer programming. There’s a system of flexitime in my company, which means we can work when we want, within certain limits. We can start at any time till 11, and finish as early as 3 – as long as we do enough hours each month. It’s ideal for me as I have two young children.’ Swiping a card ‘I work in a car plant. I work in shifts and I have to clock on and clock off at the beginning and end of every shift. I may be on the day shift one week and the night shift the next week. It’s difficult changing from one shift to another. When I change shifts, I have problems changing to a new routine for sleeping and eating. When the company is selling lots of cars, they ask us to work overtime – more hours than usual for more money.’ ‘I’m a commercial artist in an advertising agency. Unlike most other people in my department who commute to work every day, I work from home and avoid the long journeys that some commuters experience every day. That’s the benefit of teleworking or telecommuting – working from home and using the computer and phone to communicate with other people.’ B Nice work if you can get it All these words are used in front of job and work. satisfying, stimulating, fascinating, exciting – the work is interesting and gives you positive feelings dull, boring, uninteresting, unstimulating – the work is not interesting repetitive, routine – the work involves doing the same things again and again tiring, tough, hard, demanding – the work is difficult and makes you tired C Nature of work My work involves I like / dislike / prefer / enjoy 12 Business Vocabulary in Use Intermediate + noun human contact long hours teamwork + -ing working with figures dealing with customers solving problems Exercises 2.1 Look at the six expressions (a–f) from A opposite. Which person (1–6) is most likely to do each of the things described? a work in shifts b work under a flexitime system c telecommute d commute to work e clock in and out at the same time every day f work overtime 2.2 1 A designer in a website design company. Has to be in the office, but can decide when she wants to start and finish work each day. 2 A manager in a department store in a large city. Lives in the country. 3 A construction worker on a building site where work goes on 24 hours a day. 4 A worker in a chocolate factory in the three months before Christmas. 5 A technical writer for a computer company. Lives in the country and visits the company offices once a month. 6 An office worker in a large, traditional manufacturing company. Look at the words and expressions in B and C opposite. Five people describe their jobs. Match the jobs (1–5) with the descriptions (a–e) and put the words in brackets into the correct grammatical forms. 1 accountant 2 postwoman 3 flight attendant 4 software developer 5 teacher a ‘Obviously, my work involves (travel) a lot. It can be quite physically (demand), but I enjoy (deal) with customers, except when they become tired and anxious about arriving. This doesn’t happen often, but it can be very frustrating for us and the other passengers.’ b ‘I love my job. It’s very (stimulate) and not at all (repeat): no two days are the same. The children are fine: you see them learn and develop. The parents can be more of a problem.’ c ‘I was good at maths at school and I like (work) with figures. But my job is much less (bore) and routine than people think. The work (involve) a lot of human contact and teamwork, working with other managers.’ d ‘You’ve got to think in a very logical way. There’s a lot of teamwork between the developers. The work can be mentally (tire), but it’s very satisfying to write a program that works.’ e ‘Of course, it involves getting up quite early in the morning. But I like (be) out in the open air. And you get a lot of exercise. I walk two or three miles every day.’ Over to you If you work, answer these questions. If you don’t work, answer these questions. • Do you have a nine-to-five job? Do you have to clock on and off? Is there a flexitime system in your organization? Are there people who do shiftwork in your company? • What sort of working hours would you like to have when you start working? • Could you do your job working from home? If so, would you like to? • What do you like most about your job? What do you like least? • Would you like to work from home? • What kind of job would you like? Complete this sentence in five ways to talk about yourself. I’d like a job that involves … Business Vocabulary in Use Intermediate 13 3 A Recruitment and selection Recruitment The process of finding people for particular jobs is recruitment or, especially in American English, hiring. Someone who has been recruited is a recruit, or in AmE, a hire. The company employs or hires them and they join the company. A company may recruit employees directly or use outside recruiters, recruitment agencies or employment agencies. Outside specialists called headhunters may be used to find people for very important jobs and to persuade them to leave the organizations they already work for. Key people recruited like this are headhunted in a process of headhunting. B Applying for a job Fred is an accountant, but he was fed up with his old job. He looked in the situations vacant pages of his local newspaper, where a local supermarket was advertising for a new accountant’s position. He applied for the job by completing an application form and sending it in. Harry is a building engineer. He’d been working for the same company for ten years, but he wanted a change. He looked at jobs with different engineering companies on a jobs website. He made an application, sending in his CV (curriculum vitae – a document describing your education, qualifications and previous jobs, that you send to a An application form prospective employer) and a covering letter explaining why he wanted the job and why he was the right person for it. Note Situation, post and position are formal words often used in job advertisements and applications. BrE: CV; AmE: résumé or resume BrE: covering letter; AmE: cover letter C Selection procedures Dagmar Schmidt is the head of recruitment at a German telecommunications company. She talks about the selection process, the methods that the company uses to recruit people. ‘We advertise in national newspapers and on the internet. We look at the backgrounds of applicants – their experience of different jobs and their educational qualifications. Note Internet is sometimes written with a capital letter when it is a noun. internet (noun): mostly BrE Internet (noun): mostly AmE A job interview ‘We invite the most interesting candidates to a group discussion. Then we have individual interviews with each candidate. The head of the department is also present. We also give the candidates written psychometric tests to assess their intelligence and personality. ‘After this, we shortlist three or four candidates. We check their references by writing to their referees – previous employers, teachers, and so on that candidates have named in their applications. If the references are OK, we ask the candidates to come back for more interviews. Finally we offer the job to someone, and if they turn it down we have to think again. (Some applicants may get other job offers at the same time as ours.) If they accept it, we hire them. We appoint someone only if we find the right person.’ 14 Business Vocabulary in Use Intermediate Exercises 3.1 Complete the crossword with the correct form of words from A, B and C opposite. 1 2 3 4 5 6 7 8 3.2 Across 5 I phoned to check on my application, but they said they’d already someone. (9) 6 This job is so important; I think we need to someone. (8) 8 The selection procedure has lasted three months, but we’re going to someone next week. (7) Down 1 and 2 I hope she the job, because if she it , we’ll have to start looking again. (7, 5, 4) 3 The last applicant was very strong, but I understand he’d had two other job already. (6) 4 They’ve finally a new receptionist. She starts work next week. (5) 7 Computer programmers wanted. Only those with UNIX experience should . (5) Now divide the words in 3.1 into two groups. 1 what a company personnel department does 2 what a person looking for work does 3.3 Replace the underlined phrases with correct forms of words and expressions from A, B and C opposite. Fred had already (1) refused two job offers when he went for (2) a discussion to see if he was suitable for the job. They looked at his accountancy degree and contacted (3) previous employers Fred had mentioned in his application. A few days later, the supermarket (4) asked him if he would like the job and Fred (5) said yes. Harry didn’t hear anything for six weeks, so he phoned the company. They told him that they had received a lot of (6) requests for the job. After looking at the (7) document describing his education, qualifications and previous jobs of the (8) people asking for the job and looking at (9) what exams they had passed during their education, the company had (10) chosen six people to interview and then given them (11) tests on their personality and intelligence. They had then given someone the job. Over to you If you work, answer these questions. If you’re a student, answer these questions. • Where did you see the jobs advertised? • When you applied for your course did you use an online application form or send an application in? • What did you send to apply for the job? • What was the selection procedure? • Did you need to provide referees? • Did you have an interview? Business Vocabulary in Use Intermediate 15 4 A Skills and qualifications Education and training Two company managers, Kasia Gutowska and Nils Olsen, are talking. B KG: The trouble with graduates – people who’ve just left university – is that their paper qualifications are good. They might have qualifications in interesting subjects, but they have no work experience. They just don’t know how business works. NO: I disagree. Education should teach people how to think, not train them for a particular job. One of last year’s recruits graduated from Oxford University with a degree in philosophy and she’s doing very well! KG: Philosophy’s an interesting subject, but for our company, it’s more useful to do training in a practical subject: it’s better for us if you train as a scientist, and qualify as a biologist or a doctor, for example. NO: Yes, but we don’t just need scientists. We also need good managers, which we can achieve through in-house training – courses within the company. You know we put a lot of money into management development, where managers regularly go on specialized courses in leadership (see Unit 10), finance (see Unit 38), etc. You need to acquire experience – get knowledge through doing things – for that. It’s not the sort of thing you can learn when you’re 20! Note Note In AmE, you can also say that someone graduates from high school – the school that people usually leave when they are 18. A master’s degree is a qualification you can get after one or two years of graduate study. A Master’s of Business Administration (MBA) is a master’s degree in advanced business studies. Skilled and unskilled A skill is a particular ability to do something well, especially because you have learned and practised it. Jobs, and the people who do them, can be described as: highly skilled, e.g. car designer skilled, e.g. car production manager semi-skilled, e.g. taxi driver unskilled, e.g. car cleaner You can say that someone is: skilled at or skilled in C + noun customer care electronics You can also say that someone is: + -ing communicating using Excel good with computers figures people The right person These words are often used in job advertisements. Companies look for people who are: methodical, systematic and organized – working in a planned, orderly way computer-literate – good with computers numerate – good with numbers motivated – very keen to do well in their job because they find it interesting talented – very good at what they do Self-starter and team player self-starters; they must be proactive, self-motivated, or are nouns. The other words in self-driven – good at working on their own bold are adjectives. g team players – people who work well with other people 16 Business Vocabulary in Use Intermediate Note a b c d e f Exercises 4.1 Look at A opposite. Complete each sentence with the correct word. 1 Ravi graduated Mumbai University a degree philosophy and politics. 2 He taught for a while, but didn’t like it. He wanted to get a qualification accountancy and decided to train an accountant at evening classes. 3 He qualified an accountant and joined a big accountancy firm in its Mumbai office. 4 After he had acquired some experience, he went a number of management courses to get training team-building and other skills. 4.2 Look at B opposite. Are these jobs generally considered to be highly skilled, skilled, semi-skilled or unskilled? Use each expression twice. 1 2 3 4 5 6 7 8 4.3 teacher software engineer car worker on a production line cleaner office cleaner airline pilot bus driver office manager Complete these extracts from job advertisements using words from C opposite. 1 You’ll be researching developments on the internet, so you have to be _ _ _ _ _ _ _ _-_ _ _ _ _ _ _ _ . You must be _ _ _ _ _ _ _ _ _ , able to work on your own initiative, and a _ _ _ _-_ _ _ _ _ _ _ . But as part of a team of researchers, you’ll need to be a good _ _ _ _-_ _ _ _ _ _ too. 2 3 You’ll need to be _ _ _ _ _ _ _ _ , as you’ll be working on financial budgets. 4 As part of our sales team, you’ll be working independently, so you have to be self-_ _ _ _ _ _ _ _ _ and self-_ _ _ _ _ _ . 5 We need _ _ _ _ _ _ _ _ journalists who are very good at their job and extremely _ _ _ _ _ _ _ _ _ – very keen to find out as much as they can about news stories. We’re looking for someone who can work on ten projects at once, without being told what to do. You must be a _ _ _ _-_ _ _ _ _ _ _ – __________, _ _ _ _ _ _ _ _ _ _ and _________. Over to you Write an extract from a job advertisement for your job or one you would like to have, using words from C opposite. Business Vocabulary in Use Intermediate 17 5 A Pay and benefits Wages, salary and benefits ‘My name’s Luigi and I’m a hotel manager in Venice. I get paid a salary every month. In summer, we’re very busy, so we do overtime – work a lot of extra hours. The pay for this is quite good. Working in a hotel, we also get some nice perks – for example, free meals!’ ‘I’m Ivan and I work as a waiter in Prague. I like my job even if I don’t earn very much: I get paid wages every week by the restaurant. We get the minimum wage – the lowest amount allowed by law. But we also get tips – money that customers leave in addition to the bill. Some tourists are very generous!’ ‘Hi, I’m Catherine, and I’m a saleswoman in luxury goods, based in Paris. I get a basic salary, plus commission – a percentage on everything I sell. If I sell more than a particular amount in a year, I also get a bonus, which is nice. There are some good fringe benefits with this job: I get a company car, a BMW; there’s a health plan to pay the costs of medical treatment if I get ill; and the company makes payments for my pension – money that I’ll get regularly after I stop working. So, with the bonuses, the car, the health plan and the pension, I’ve got a very nice benefits package. And the working conditions are good too: I have a nice office and I don’t have to travel too much.’ B Compensation 1 Catherine mentioned her pay and conditions. Remuneration and compensation are formal words used to talk about pay and conditions, especially those of senior managers. Remuneration package and compensation package are used especially in the US to talk about all the pay and benefits that employees receive. For a senior executive, this may include share options (BrE) or stock options (AmE), the right to buy the company’s shares (see Unit 36) at low prices. There may be performance (-related) bonuses if the manager reaches particular objectives for the company. C Compensation 2 Compensation is also used to talk about money and other benefits that someone receives if they are forced to leave the organization, perhaps after a disagreement with other managers in what newspapers call a boardroom row. This money is in the form of a compensation payment or severance payment. If someone also receives benefits with this, the payment and the benefits form a compensation package or severance package. In Britain, executives with very high pay and benefits may be referred to as fat cats, implying that they do not deserve this level of remuneration. 18 Business Vocabulary in Use Intermediate Exercises 5.1 Xavier and Yvonne are talking about Xavier’s new job as a photocopier salesman. Sometimes, they don’t use the exact names for things that they are talking about. Complete these expressions, using items from A opposite. 1 X: I get paid every month, rather than every week. Y: I see. You get a , not wages. 2 X: I usually have to work late: I don’t get paid for it, but I do get a percentage for every photocopier I sell. Y: So you don’t get , but you do get . That’s good. 3 X: And the people in production get a if they reach their targets. Y: Oh right. They get an extra payment if they produce more than a certain amount. 4 X: And the extras are great: the company pays for medical treatment if we get ill and the company restaurant is fantastic. Y: Wow! The company sound very nice. 5 X: And they’ve given me a to go and visit clients. Y: So you don’t have to buy a car then. 6 X: What’s more, there’s a very good scheme where the company pays in money for us to get when we don’t work any more. . Y: Yes, it’s important to get a good 7 X: The total is brilliant. Y: Yes, all those extras are really worth having. 5.2 Which expressions from B and C opposite could be used to complete each of these newspaper extracts? 1 2 KEVIN DAVIS QUITS AS MF GLOBAL CHIEF 3 When things get tough, senior executives should get a pay rise, right? Top executives at Kingfisher, which owns B&Q, and at Vodafone seem to think that directors should be entitled to large amounts of extra pay even when their companies are doing badly. PUBLIC ANGER AT BANKING EXECUTIVES’ PAY Anger at the 4 s (2 possibilities) of bank executives is high. Henry Waxman, the California Democrat, this week sent letters to nine of the biggest investment banks asking why they have set aside $108 billion for salaries and bonuses in a year when they have received $125 billion in government aid. Underachieved? Have a ! NEW THINKING Following the UK government’s rescue of the banks, voters will say, ‘If you could find the money to clear up the mess left by a few greedy , then you can find the money to fund this bus service / save this village school / renationalize the railways.’ Over to you In what order of attractiveness would you put these benefits in relation to your job or one that you would like to have? Give your reasons. salary share options company car commission pension health plan performance-related bonus Business Vocabulary in Use Intermediate 19 6 A People and workplaces Employees and management finance CEO management marketing white-collar workers white-collar workers labour manual/blue-collar workers supervisor manual/bluecollar workers shop floor Note The people who work for a company are on its payroll. They are its employees, personnel, staff, workers or workforce. These words can also refer just to the people carrying out the work of a company, rather than the management – Workforce, work-force and those leading and organizing the company. B work force are all possible. Management and administration C Labour You use labour to talk about everyone except the management who works for a company, especially a company that makes things. labour costs dispute leader relations shortage unrest Note A company’s activities may be spread over different sites in different places. A company’s most important managers usually work in its head office or headquarters (HQ). Some managers have their own individual offices, but often employees work in open-plan offices – large areas where many people work. Administration or, informally, admin – the ordinary work supporting a company’s activities – is often done in offices like these by administrative staff or support staff. For example, those giving technical help to buyers of the company’s products are in technical support. BrE: labour AmE: labor what companies have to pay for labour, rather than materials, etc. a disagreement between management and labour someone in charge of an organization that represents workers the relationship between management and employees in general a period when there are not enough people available to work a period of disagreement between management and employees Labor unions (AmE) and trade unions (BrE) defend the interests of workers. When workers are not happy with pay or conditions, they may take industrial action: a strike, stoppage or walk-out – workers stop working for a time a go-slow – workers continue to work, but more slowly than usual an overtime ban – workers refuse to work more than the normal number of hours D Personnel and HRM In larger organizations there is a human resources department (HRD) that deals with pay, recruitment, etc. This area is called human resources (HR) or human resource management (HRM). Another, older, name for this department is the personnel department. 20 Business Vocabulary in Use Intermediate Exercises 6.1 Complete the crossword with the correct form of words from A, B, C and D opposite. 1 3 4 2 5 6 7 8 9 10 12 11 13 14 15 Across 2 and 15 Office workers may be described this way. (5, 6) 5 all of the people working for a company (5) 6 workers who use their hands are of this type (6) 7 when people stop working to protest (6) 9 one of the people working for an organization (8) 10 occasions when workers stop working in order to protest: walk(4) 12 another name for the human resources department (9) 13 workers seen as a group (6) 6.2 Down 1 Everyone working for a company is on this. (7) 2 everyone, or everyone except top managers (9) 3 These are trade in the UK and labor in the US. (6) 4 and 15 across Manual workers are this, even if they don’t wear this. (4, 6) 5 A place in a factory where the production lines are. (9) 8 when people stop work to complain about something (8) 14 and 11 Workers do this when they intentionally produce less. (2, 4) Manuel Ortiz is the founder of a Spanish computer sales company. Use the words in B and D opposite to complete what he says about it. ‘I founded Computadoras Creativas 20 years ago. We started with a small (1) _ _ _ _ _ _ in Madrid. Our (2) _ _ _ _ _ _ _ _ _ _ , our (3) _ _ _ _ _ _ _ _ _ _ _ _ is still here, but now we have sites all over Spain, with about 500 employees. Many of the offices are (4) _ _ _ _-_ _ _ _ – everyone works together. This includes managers to (5) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ – secretaries and people who support the company’s activities, and people in technical (6) _ _ _ _ _ _ _ giving help to customers over the phone. Recruitment is taken care of in Madrid, by the (7) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ or (8) _ _ _ .’ Over to you Answer these questions about the company you work for or would like to work for. Look at the company website to help you. • Where is its head office? How many sites does the company have? How many employees? • Do people have their own offices or are there open-plan offices? Which do you or would you prefer to work in? Business Vocabulary in Use Intermediate 21 7 A Companies and careers Career paths Many people used to work for the same organization until they reached retirement, the age at which people retire – end their working life. Career paths were clear: you could work your way up the career ladder, getting promotion to jobs that were more senior – more important with greater responsibility. You would probably not be demoted – moved to a less senior job. B Company structure Like many other companies, Tel Italia has reorganized and restructured in order to become flatter – with fewer layers of management – and leaner – with fewer, more productive employees. The number of management levels in the company hierarchy has been reduced, and many managers have lost their jobs. In other words, to reduce costs and cut the payroll (see Unit 6), Tel Italia has downsized and delayered. The company said that downsizing and restructuring were necessary to reduce costs, increasing efficiency and profits. C Delayering In-house staff or freelancers? The way that an employee is doing their job is discussed at performance reviews – regular meetings with their manager. D Note Companies that downsize often outsource many jobs previously done by in-house personnel: outside companies clean the offices, transport goods, and collect money from customers. This allows the companies to concentrate on their main business activities. Downsized companies use more freelancers – independent people who work for several different companies – or they may ask contractors to work for short periods on temporary contracts. They often expect flexibility, with people moving to different jobs when necessary: but for many employees, this means job insecurity – the feeling that they may not be in their job for long. You can say freelancers or freelances. Leaving a company To leave a company, you can resign or hand in your notice. If you do something wrong and are forced to leave a company, you are: dismissed, terminated, fired or sacked / given the sack. If you’ve done nothing wrong, you are: laid off, made redundant or offered early retirement. Note You can also say that someone’s contract has been terminated. Fired, sacked and given the sack are informal expressions. Sacked and given the sack = BrE only. Employees who are made redundant may get outplacement – advice about how to find another job, retraining, etc. 22 Business Vocabulary in Use Intermediate Exercises 7.1 Complete the tables with words from A, B and C opposite. The first one has been done as an example. Noun Verb Noun retirement retire seniority demotion lay-off 7.2 freelance redundancy dismissal insecure termination flexible Match the sentence beginnings (1–5) with the correct endings (a–e). The sentences all contain words from A and B opposite. 1 Career paths aren’t what they used to be. Companies won’t 2 He worked his way up from 3 The new management have restructured and delayered the company, 4 We used to do printing in-house, 5 Employees are afraid their organizations will be downsized 7.3 Adjective a and that they will be replaced by temporary workers, or made redundant by technology. b take care of us for life any more. We have to take care of ourselves. c but now we outsource it. d factory worker to factory manager. e reducing the number of management levels in the company hierarchy from five to three. Carla used to work for an Italian magazine publishing company. She talks about how she lost her job. Choose the correct form of the word in each case. Edizione Fenice is a big magazine publishing company. I was director of a monthly magazine called Casa e Giardino. Then Fenice was bought by an international publishing group. We had to have regular (review / performance (1) reviews / reviewer) with one of the new managers. After a few months they started laying staff (2) (off / on / out). Our own journalists were put on temporary (3) (contracts / contractual / contracting) or replaced by (4) (freelancer / freelancers / freelanced). (6) (7) (flat / flatter / flatten) and (lean / leant / leaner). So I (redundant / was made (8) redundancies / redundancy). They offered to help me to find another job with (9) (outplacement / outplaced / outplacing) services, but I refused. (laid / Then they started (5) lying / laying) off more senior people like me. The new owners said they wanted to make the company Over to you If you work, answer these questions. If you study, answer these questions. • Do you think you will work for the same company until you retire? Why? / Why not? • What kind of structure does your company have? • Do you think you will look for a job in a company where you can work your way up the career ladder until you retire, or do you think you will work for a lot of different companies? • What kind of work does your company outsource? • Do you know any companies which have restructured or downsized? Business Vocabulary in Use Intermediate 23 8 A Problems at work Discrimination If people are treated differently from each other in an unfair way, they are discriminated against. If a woman is unfairly treated just because she is a woman, she is a victim of sex discrimination. In many organizations, women complain about the glass ceiling that prevents them from getting further than a particular level. If someone is treated unfairly because of their race, they are a victim of racial discrimination or racism. Offensive remarks about someone’s race are racist and the person making them is a racist. Equal opportunities, positive discrimination or affirmative action is when help is given in education and employment to groups who were previously discriminated against. Some companies have a dignity at work policy covering all the issues described in A and B. B Note BrE: equal opportunities BrE/AmE: positive discrimination AmE: affirmative action Bullying and harassment If someone such as a manager bullies an employee, they use their position of power to hurt or threaten the employee. Someone who does this is a bully. The bullying can often be verbal. Sexual harassment is when an employee behaves sexually towards another in a way that they find unwelcome and unacceptable. The related verb is harass. C Health and safety Health and safety issues for people at work contribute to a bad working environment. The government sends officials called health and safety inspectors to make sure that factories and offices are safe places to work. They check what companies are doing in areas like: a passive smoking b repetitive strain injury or RSI e fire hazards c dangerous machinery f heating and air-conditioning d hazardous substances g first aid Of course, dangerous machinery and hazardous substances can cause industrial accidents. Note Compensation (see Unit 5) can also be used to mean money or other benefits that someone receives after an injury caused by a work accident. 24 Business Vocabulary in Use Intermediate Exercises 8.1 Complete these headlines and articles with expressions from A and B opposite. Use one expression twice. 1 OFFICE MANAGER ACCUSED OF A court heard today how an office worker was almost driven to suicide by a bullying office manager. James Blenkinsop, 27, told how boss Nigel Kemp victimized him by shouting at him, criticizing his work in front of others, tearing up his work and telling him to do it again. 2 NATIONAL RESTAURANT CHAIN FACES CLAIMS Four waitresses claim they were repeatedly by male bosses in a branch of a well-known national restaurant chain. All four waitresses said they were subjected to sexist remarks at the restaurant. 3 JAPANESE WOMEN BREAK THROUGH Naomi Tanaka, 23, last year started working on the Tokyo Stock Exchange as a trader. and said she did She complained about traditional not want to be a ‘counter lady’ answering phones and serving tea at a Japanese bank. Instead she got a job as a trader at Paribas, a French firm. 4 SHOP MANAGERESS IN CASE A clothing shop’s half-Burmese manageress, 24-year-old Marion Brown, claims her boss remarks, and sacked her from her £110-a-week continually made job when she objected. She claims that the company that owns the shop has racially against her. 5 ABOLISHED AT TEXAS LAW SCHOOL Last year federal law court made affirmative action at the University of Texas law school have said that it was a illegal, and supporters of ‘disaster’. The University of Texas law school last year admitted a class that was 5.9 per cent black and 6.3 per cent Hispanic. This year the black percentage stands at just over 0.7 and the Hispanic at 2.3. 8.2 Match the employees’ complaints (1–7) with health and safety issues (a–g) in C opposite. 1 2 3 4 5 6 7 I do a lot of data entry, and recently I’ve started getting really bad pains in my wrists. My doctor says there’s something wrong with my lungs, but I’ve never smoked. It’s either too cold and we freeze, or too hot and we all fall asleep. There’s all this waste paper, but there no fire extinguishers in the building. The containers are leaking – one day someone is going to get acid burns. There are no safety guards on the machines – you could easily get your hand caught. There are all these problems, but no-one is trained to give medical assistance. Over to you Think about the industry you work in or would like to work in. Look at a health and safety website, for example the UK government site at www.hse.gov.uk, and identify key hazards in the industry. Business Vocabulary in Use Intermediate 25 9 A Managers, executives and directors Managers and executives: UK Management organigram FUN AND SUN H O L I D A Y S non-executive directors senior executives / top executives / executive directors middle managers chief financial director / finance director accounts department manager chairman / chairwoman chief executive / managing director marketing director sales manager human resources director IT director research director customer services manager line managers (in travel agency branches) All the directors together are the board. They meet in the boardroom. Non-executive directors are not managers of the company; they are outsiders, often directors of other companies with specialist knowledge of the industry or of particular areas. The marketing director is the head of marketing, the IT director is head of IT, etc. These people head or head up their departments. Informally, the head of an activity, a department or an organization is its boss. An executive, or informally, an exec, is usually a high-level manager, as in senior executive. Note Executive can be used in other contexts to suggest luxury – as in executive car and executive home. It can even be used for things that are not actually used by executives. B Managers and executives: US non-executive directors senior executives / top executives / executive directors president chief executive officer (CEO) chief operating officer (COO) chief financial officer (CFO) vice president (VP) marketing vice president (VP) human resources vice president (VP) research In the US, the top position may be that of chairman, chairwoman or president. This job is often combined with the position of chief executive officer (CEO). Some companies have a chief operating officer to take care of the day-to-day running of the company. The finance director may be called the chief financial officer (CFO). In a US company, the senior managers in charge of particular areas are often called vice presidents (VPs). 26 Business Vocabulary in Use Intermediate Exercises 9.1 Look at the executives and managers listed in A opposite. Match each task (1–6) with the particular person most likely to be responsible for doing it. 1 2 3 4 5 6 9.2 Meet with advertising agency to discuss new advertisements for the company’s holidays. Study possible new holiday destinations in detail. Analyse last year’s profits in relation to the previous year’s. Contact newspaper to advertise new jobs. Deal with complaints from customers. Discuss sales figures with sales team. Who’s who on this company board? Look at B opposite and complete the diagram. My name’s Maria Montebello, and I’m president and CEO. We have some excellent people on our board, including two who are not involved in day-to-day running of the company: George Gomi and Julia Jones. My name’s Stan Smith and it’s my job to look after the accounts. I work closely with Clarissa Chang and Richard Roberts, as they tell me what their departments need for marketing and research, and I allocate them an annual budget. My name’s Deirdre Dawes and I head up personnel, on the same level in the company as Clarissa Chang and Richard Roberts. 2 1 3 Non-executive director Maria Montebello 4 5 6 7 Deirdre Dawes Over to you If you work, draw an organigram of your organization and practise describing it to a new colleague. If you don’t work, think of a job you would like in an organization and write about why you would be good at the job. Business Vocabulary in Use Intermediate 27 10 A Businesspeople and business leaders Businesspeople and entrepreneurs A businessman, businesswoman or businessperson is someone who works in their own business or as a manager in an organization. An entrepreneur is someone who starts or founds or establishes their own company. Someone who starts a company is its founder. An entrepreneur may found a series of companies or start-ups. Entrepreneurial is used in a positive way to describe the risktaking people who do this, and their activities. Some entrepreneurs leave the companies they found, perhaps going on to found more companies. Others may stay to develop and grow their businesses. Note The plural of businessperson is businesspeople. Businessperson and businesspeople can be spelled as two words: business person, business people. Found is a regular verb: past tense and past participle are founded. Establishment is used to talk about the act of founding something as well as a particular organization, or part of one. Some English speakers believe it is not correct to use grow as a transitive verb in this context. Note Entrepreneur is used in combinations such as internet entrepreneur. B Leaders and leadership A large group of companies mainly owned by one person or family is a business empire. Successful businesspeople, especially heads of large organizations, are business leaders, or in slightly old-fashioned journalistic terms, captains of industry. There is a lot of discussion about whether people like this are born with leadership skills, or whether these can be taught. C Magnates, moguls and tycoons People in charge of big business empires may be referred to, especially by journalists, as magnates, moguls or tycoons. These words often occur in combinations such as these: media magnate property mogul software tycoon 28 Business Vocabulary in Use Intermediate Exercises 10.1 Use words from A and B opposite to complete the missing words. T he big place for people starting their own companies – for (1) _ _ _ _ _ _ _ _ _ _ _ _ _ – is, of course, the internet. Take Sergey Brin and Larry Page. They met while doing their doctorates at Stanford, where they were encouraged to develop their mathematical research on the world wide web. Brin and 10.2 Page are both very (2) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . They (3) _ _ _ _ _ _ _ Google together in 1998: some of the investment in the (4) _ _ _ _ _-_ _ came from Andy Bechtolsheim, one of the founders of Sun Microsystems. Now Brin and Page are both very rich, with their own Boeing 767. In 2006, Brin and Page appointed Eric Schmidt to develop and (5) _ _ _ _ the business. Like many entrepreneurs, they felt that they did not have the (6) _ _ _ _ _ _ _ _ _ _ skills to head up and inspire a large business (7) _ _ _ _ _ _ . Who are these famous businesspeople? Use the expressions below to describe them. electric car entrepreneur property tycoon e-commerce mogul retail entrepreneur social media website founder banking entrepreneur Güler Sabancı (b. 1955) Cath Kidston (b. 1958) Jack Ma (b. 1964) Elon Musk (b. 1971) Zhang Xin (b. 1965) Mark Zuckerberg (b. 1984) Over to you • Who is your country’s most famous entrepreneur? What is this person famous for? • In your opinion, are entrepreneurs born or made? Business Vocabulary in Use Intermediate 29 11 A Organizations 1 Business and businesses Business is the activity of producing, buying and selling goods and services. A business, company or firm, or more formally a concern, is an organization that sells goods or services. Large companies considered together are referred to as big business. You can talk about a company or a particular activity as an enterprise, especially to emphasize its risk-taking nature. Businesses vary in size, from the self-employed person working on their own, through the small or medium enterprise (SME) to the large multinational with activities in several countries. A large company, especially in the US, is a corporation. The adjective is corporate, used to talk about a big company – or big companies in general. Corporate is often used in these combinations: culture ladder headquarters logo image profits corporate B the way a company’s employees think and act the different levels of management in a company a company’s main office a symbol used by a company on its products, advertising, etc. all the ideas, opinions, etc. that people have about a company the money made by companies Commerce Commerce is used: to refer to business in relation to other fields: ‘literature, politics and commerce’. for government departments that deal with business: US Department of Commerce. in the names of organizations that exist to help business: chambers of commerce. to refer to business on the internet: electronic commerce or e-commerce. The adjective commercial describes money-making business activities: for example, commercial airline, commercial artist, commercial disaster. C Enterprise In 1970s Britain, there were state-owned or government-owned companies in many different industries, such as car manufacturing. Some industries, such as coal and electricity, had been nationalized – they were entirely state-owned. In the 1980s, the Thatcher government believed that nationalized companies were inefficient, so many of them were privatized by selling them to investors. Supporters of privatization believed that bureaucracy – the system for running government departments, with its rigid rules and slow decisions – was not good for business: state-run companies were too bureaucratic. Enterprise is used in a positive way to talk about business, emphasizing the use of money to invest in new activities with a certain amount of risk involved. Enterprise is often used in these combinations: free private enterprise culture enterprise economy zone 30 business activity owned by individuals rather than the state when people are encouraged to make money through their own activities and not rely on the government an economy where there is an enterprise culture part of a country where business is encouraged because there are less strict laws, lower taxes, etc. Business Vocabulary in Use Intermediate Exercises 11.1 Match the two parts of these sentences containing expressions from A opposite. 1 Managers who themselves often worked long hours in order to climb the corporate 2 Analysts forecast a slowing of economic growth because of lower corporate 3 3M continues to improve its corporate 4 Retailer Best Buy is allowing employees at its corporate 5 The only corporate 6 Listening to customers is part of the corporate 11.2 Someone is talking about words and expressions in B and C opposite. Which are they referring to each time? 1 2 3 4 5 6 7 8 11.3 a image by showing environmental leadership. b logo in view was the Haagen Dazs name on three table umbrellas. c profits, capital gains taxes and slow job growth. d ladder may demand the same thing from their employees. e culture at Lowe’s, and managers use a variety of methods to ensure that it’s happening. f headquarters to set their own hours and work outside the office. They’re not companies in which people can buy shares. (3 expressions) It carries passengers and goods in order to make a profit. It’s so slow and inefficient: no way to run a business! It’s going to be used for offices and factories, not houses. It’s owned and run by private companies, and the programmes are interrupted by advertising. We need to encourage this in order for the economy to grow and modernize. He does advertisements: you can’t find his work in art galleries. It was an artistic success, but unfortunately it lost a lot of money. Use expressions with ‘enterprise’ from C opposite to complete this text. or Margaret Thatcher often talked about the benefits of (1) (2) . She said that her achievement was to establish an (3) in Britain, an economy based on free enterprise. She wanted a society where people were encouraged to start their own companies and where it was acceptable to get rich through business: an (4) . In some areas, the government reduced the number of laws and regulations to encourage businesses to move there. Businesses were encouraged to set up in the Docklands of London, for example. The Docklands were an (5) . Over to you Write short reports about the issues below. Research them on the internet if necessary. • How big is the public sector in your country? Do people who work in it have good working conditions compared to those in the private sector? • In your country, which of these industries are in the public sector, and which are in the private sector? Which have been privatized? bus transport electricity supply postal services rail transport telephone services water supply Business Vocabulary in Use Intermediate 31 12 A Organizations 2 Self-employed people and partnerships Oscar is a freelance graphic designer – a freelancer. He likes the freedom of working for himself. To use the official term, he’s a sole trader. People such as designers and journalists are freelancers (see Unit 7), whereas builders and plumbers are normally referred to as being self-employed. Note Jane and Miranda are architects who have set up their own architecture partnership. A lot of professional people like lawyers, accountants, and so on work in partnerships. They are partners – there are no shareholders (see Unit 32) in the organization apart from the two of them. B Sole owner and sole proprietor are both used in BrE and AmE. Sole trader is not used in the US. Limited liability Jane and her partners have limited liability: if the partnership goes bankrupt – runs out of money – the people to whom the partnership owes money can take the company’s assets to pay the debts, but they can’t take personal assets such as the partners’ houses or cars. It’s a limited liability partnership (LLP). Jon Robertson is managing director and main shareholder of a small electronics company in Scotland called Advanced Components Ltd. ‘Ltd’ means limited company, with limited liability. Howard Schultz is president of Starbucks Inc. ‘Inc’ stands for Incorporated. This shows that it is a corporation – used especially in the US for companies with limited liability, and also used in the UK in the names of some big companies. Some British companies include PLC as part of their name. This means that the company is a public limited company, and its shares are bought and sold on the stock exchange (see Unit 36). C Mutuals Howard Schultz Some companies like certain life insurance companies are mutuals. People buying insurance with the company are its members and there are no shareholders. Profits are theoretically owned by the members. In Britain, there are mutuals called building societies, which lend money to people who want to buy a house. But a lot of building societies are changing into public limited companies with shareholders: many have demutualized in a process of demutualization (see Unit 35). D Non-profit organizations Organizations with ‘social’ aims such as helping those who are sick or poor, or encouraging artistic activity, are non-profit organizations (BrE) or not-for-profit organizations (AmE). They are also called charities and form the voluntary sector: they rely heavily on volunteers – unpaid workers. For example, a charity like Médecins sans Frontières is managed by paid professionals, and together they put a lot of effort into fundraising activities. These activities encourage people to give or donate money, clothes, food or time to help the organization. These donations are essential for the organization to do its work. 32 Business Vocabulary in Use Intermediate Exercises 12.1 Look at the words in A and B opposite. Which type of organization is each of these? 1 A group of engineers who work together to provide consultancy and design services. There are no outside shareholders. 2 A large British engineering company with 30,000 employees. Its shares are bought and sold on the stock market. 3 An American engineering company with outside shareholders. 4 An engineer who works by herself by providing consultancy. She works from home and visits clients in their offices. (3 possibilities) 5 An independent British engineering company with 20 employees. It was founded by three engineers, who are shareholders and directors of the company. There are five other shareholders who do not work for the company. 12.2 Complete this newspaper article with expressions from C opposite. NEWSONLINE Home News Wo r l d Business Food Te c h n o l o g y Science Angry scenes as members reject (1) There were angry scenes at the Suffolk ’s (2) annual meeting as the society’s rejected by two to one (3) a recommendation from its board that the . Members society be (4) had travelled from all over the country to attend the meeting in London. The Suffolk’s chief executive, Mr Andrew Davies, said, ‘This is a sad day for the Suffolk. We need to 12.3 to bring the society (5) forward into the 21st century. Our own resources are not enough and we need capital from outside shareholders.’ Gwen Armstrong, who has saved with the Suffolk for 32 years, said, ‘Keeping status is a great victory. (6) Profits should stay with us and not go to outside shareholders.’ Comment Like Match the sentence beginnings (1–5) with the correct endings (a–e). The sentences all contain expressions from D opposite. 1 British people donate around £4 a week each on average to charities 2 She organized fundraising 3 Voluntary sector employees earn five to ten per cent 4 Non-profit organizations are not to be confused 5 Research shows that volunteers give the best service a with loss-making companies! b and many volunteer to give their skills too. c parties for the charity. d when they are helping people in their own social class. e less than they would in the private sector. Over to you Which non-profit organizations are well-known in your country? What do they do? How do they raise money? Business Vocabulary in Use Intermediate 33 13 A Manufacturing and services Manufacturing and services Here are some of the manufacturing industries that make up the manufacturing sector. aerospace planes and space vehicles cars (BrE) automobiles (AmE) cars computer hardware Here are some of the services or service industries that make up the service sector. call centres (BrE) call centers (AmE) dealing with orders, complaints, etc. from customers by phone catering restaurants, bars, etc. computers, printers, etc. computer software instructions for computers construction buildings financial services defence (BrE) defense (AmE) weapons banking, insurance, etc. healthcare medical care electronics mobile phones, etc. leisure cinemas, sport, etc. food processing canned, frozen, etc. foods media books, newspapers, film, television household goods washing machines, refrigerators, etc. property (BrE) real estate (AmE) buying, selling and managing buildings pharmaceuticals medicines retail shops steel a strong metal used in the manufacturing of machinery and cars telecommunications phone, internet services tourism travel and holidays textiles cloth and clothes Note You use all these names in front of industry to talk about particular industries. You usually drop the s from cars, automobiles, pharmaceuticals and textiles: the automobile industry, etc. B Countries and their industries Industry (uncountable) is the production of materials and goods. An industry is a particular type of business activity. The related adjective is industrial. Here is how industry has developed in Brazil. 34 1950s and 60s 1970–2000 Today In 1950, Brazil was a relatively poor country, with most people living and working on the land. The government decided to industrialize, and one of the new emerging industries in the 60s was the building of aircraft. The Brazilian economy developed in many different areas: growth industries ranged from light industries such as textiles and telecommunications equipment to heavy industries like steel production. Brazil’s economy is diversified, with many different industries: the service sector makes up 70.8 per cent, industry 24 per cent and agriculture 5.2 per cent. Business Vocabulary in Use Intermediate Exercises 13.1 Look at A opposite. Which industry or service is each of these companies in? 1 Microsoft 2 Terra 13.2 5 Kia 6 Time Warner 7 Banco Santander 8 Gap A company will have to deal with problems that are specific to its industry. Match each problem (1–5) with one of the industries in A opposite. 1 2 3 4 5 13.3 3 Glaxo Smith Kline 4 Boeing buying a new building and being unable to find people to rent it holidaymakers arriving to find that their hotel is not finished lending to someone who cannot repay the loan selling weapons to governments that people do not approve of making drugs that poor countries cannot afford Complete the crossword with the correct form of words from A and B opposite. 1 2 3 4 5 6 7 8 9 10 11 12 13 Across 1 plane and rocket industry (9) 3 metal industry (5) 4 an industry that doesn’t sell goods (7) 6 making things (13) 8 television, music, the internet (5) 9 related to industry or industries (10) 11 describing a new industry (8) 12 describing an industry that is getting bigger (6) 13 making drugs (15) Down 1 making cars: the industry (10) 2 making weapons (7) 5 serving food and drink, rather than making them (8) 7 keeping people well: care (6) 10 making televisions rather than steel: industry (5) Over to you • What products are manufactured in your country, and where? • How diversified is your country’s economy? Business Vocabulary in Use Intermediate 35 14 A The development process Market research In designing products and services, market research – finding out what people really want – is very important. There are five ways of carrying out market research: Surveys are of four types: 1 In-person surveys can show an example or sample of a new product, but they are expensive. 2 Telephone surveys are less expensive, but people do not like to In-person survey be called up and asked questions. 3 Mail surveys have low response rates because few people send the surveys back; they are inexpensive, however. 4 Online surveys are simple and inexpensive, but usually unpredictable as there is no control over the pool or selection of people that take part in this kind of survey. Focus groups usually last 1–2 hours. A moderator uses specially prepared questions to ask a group. It takes at least three groups to get accurate results. Personal interviews usually last about an hour – they are normally Focus group recorded. As with focus groups, not doing enough interviews gives inaccurate results. Observations involve observing consumers in action by videoing them in stores, watching them at work, or observing how they use a product at home. Field trials involve placing a new product in selected stores to test customer response under real-life selling conditions. See Unit 15 for more on development and Unit 21 for more on marketing. B Development and launch When software developers (see Unit 15) have finished the beta version – first version – of a program, they release this on the internet and users are asked to try it out and to identify bugs or problems. Car designers use CAD/CAM (computer-assisted design / computer-assisted manufacturing) to help develop and test the first versions or prototypes of the new product. Researchers in laboratories may take years to develop new drugs, testing or trialling them in trials to show not only that they are effective, but also that they are safe. Drugs need to be made in large numbers on an industrial scale before they can be sold. Rollout is the process of making a product available, perhaps in particular places to test reaction. Product launch is the moment of truth when a product is officially made available for sale. If a design defect or design fault is found in a product after it has been launched, the company may have to recall it, asking those who have bought the product to return it, perhaps so that the defect can be corrected. Note Design defect, design fault and design flaw all mean the same thing, but the first of these is the most frequent. Testing and trialling (BrE) / trialing (AmE) are both used to talk about people trying new products and services. The noun trial is used especially to talk about testing the effectiveness of new drugs, for example in the expression clinical trial. 36 Business Vocabulary in Use Intermediate Exercises 14.1 Which expression in A opposite does the underlined word refer to in each item (1–6)? 1 It lasts up to two hours and has someone asking specific questions, but just one is not normally considered enough. focus group 2 These are useful because you can see how people actually use the product. 3 These can take different forms – some are more efficient than others at getting information about what people want. 4 He or she organizes the discussion in a focus group. 5 These cause problems for one type of survey, which mean that they might not be reliable. 6 With these, you can examine how people react when they see the product on the shelves. 14.2 Three people are talking about their work in product development. Correct the mistakes in the words in italics, using expressions from A and B opposite. 1 ‘(a) Market researches showed that there was a real need for this service on our webpage, but before offering it, we had to test it in a (b) beta copy with small groups of users over several months to eliminate all the bugs. Even so, after the (c) product lunch, some users said they could get into other people’s email accounts!’ 2 ‘Our (d) searchers have shown that our new diet drink can make you slimmer and the (e) focal groups said they liked the taste, but first we had to prove to the authorities that it was (f) secure. Another problem was making the drink on an (g) industrial level: at first we could only make it in small quantities in the laboratory, but making it in bigger quantities was impossible.’ 3 ‘At our research centre in Toulouse in France, the (h) designators develop the prototypes. People think that my job of flying new aircraft is dangerous, but there is so much (i) proving on computer first, that all the danger has been eliminated by the time I fly the plane. (j) CAM/CAD means that all the process of design and manufacture is much quicker than before.’ 14.3 Complete this talk by a marketing specialist using these words from A and B opposite. consumer design groups launch market recall surveys A few years ago a famous car company launched a completely new car. They’d done years of technical research and (1) research with focus (2) and (3) panels, and analysis of responses to questionnaires and (4) . Then came the (5) . Sales of the car were very good until a Swedish newspaper reported the results of its ‘elk test’. They found that the car had a tendency to tip over if you turned quickly to avoid an elk. This was due to a (6) fault in the car, so they had to (7) all the cars they’d sold in order to correct the fault. Over to you • What does a pharmaceutical company need to do before it can release a new drug? • What kind of surveys have you taken part in? • What will a company do if they find a problem in a product after the launch? And why might this be a big problem? Business Vocabulary in Use Intermediate 37 A B Innovation and invention Innovation and invention Verb Noun: concept (uncountable) Noun: thing (countable) Noun: person design – to make plans or drawings for how something is to be made develop – to make a new idea become successful, for example by making or improving a product innovate – to think of new ideas, methods, products, etc. invent – to design and make something for the first time design a design a designer development a development a developer innovation an innovation an innovator invention an invention an inventor Research and technology Google carries out research and development (R&D) at its research centre in Mountain View, California. Its laboratories are some of the most innovative in the computer industry. Note 15 BrE: research centre AmE: research center Google has made many new breakthroughs – innovations. Users can try out these products before they are released in their final version. The company is a leader in the technology of internet search. They are at the cutting edge or leading edge of this technology – none of their competitors has better products than them. Everything they do is state-of-the-art – using the most advanced techniques available. Of course, the hi-tech products of today become the low-tech products of tomorrow. Products that are no longer up-to-date because they use old technology are obsolete. Like all companies, Google never wants to get into that situation: they want to develop technology that is future-proof. Note Cutting edge is used about three times as much as leading edge. Both are often used as adjectives, e.g. cutting-edge products, leading-edge technology. C Patents and intellectual property Other companies may pay to use a design under licence in their own products. These payments may be referred to as royalties. Note Information or knowledge that belongs to an individual or company is proprietary. A product developed using such information may be protected in law by patents so that others cannot copy its design. BrE: AmE: Noun a licence a license Verb to license to license In publishing, if a text, picture, etc. is copyright, it cannot be used by others without permission: this is copyright infringement. An example of this is illegal downloading of music, films and software from the internet: this is piracy. Another form of piracy is when fake products, often luxury products such as Rolex or Chanel, are sold without the permission of the company that owns the brand name (see Unit 22) or trademark – a recognizable symbol used on the product. The area of law relating to patents, copyright and trademarks is intellectual property. 38 Business Vocabulary in Use Intermediate Exercises 15.1 Complete this webpage using these expressions from A and B opposite. cutting edge release develop state-of-the-art developed technologies development technology innovation NEWSONLINE Home News Wo r l d Business Imagine being able to work on products across all business groups of Microsoft. You can do it here at the Microsoft India Development Center in Hyderabad, a center for true (1) ! MSIDC is located in a 50-acre (2) campus. It is Microsoft’s largest product (3) center outside the headquarters in Redmond, and is recognized as an industry leader with teams working at the (4) , developing (5) and 15.2 Food Te c h n o l o g y Science products for millions of Microsoft customers worldwide. MSIDC has (6) many core products and technologies for the global market since its inception in 1998. Our teams have end-to-end responsibility for every product or (7) they (8) . They own the strategy, gather customer requirements from across the world, plan different versions, and then design, test and (9) the product for the market. Comment Like Match the expressions (1–10) containing words in C opposite with their meanings (a–j). 1 copyright infringement 2 intellectual property 3 patent application 4 proprietary information 5 royalty payment 6 licensing agreement 7 illegal download 8 piracy 9 trademark 10 brand name a a payment made to the owner of a design by someone else who uses it, or to an author by a publisher b an arrangement between the owner of a design and another organization, allowing its use in exchange for payment c a name or symbol used on a product d an occasion when an inventor asks the authorities to officially recognize an invention as their property e designs, ideas, etc. that belong to someone f a name used on a product g the whole activity of using designs, text, pictures or copying products without permission h an occasion when someone makes an illegal copy of music, etc. from an internet site i the law relating to designs, ideas, etc. that belong to someone j an occasion when someone uses another’s text, pictures, etc. without permission Over to you • Name a product that has become obsolete and suggest why that happened. • How do companies try to prevent illegal downloading of music and films? Will they ever succeed completely? Business Vocabulary in Use Intermediate 39 16 A Products and services Products A product can be: something natural, e.g. wood, oil, paper; something made to be sold, e.g. cars, computers, clothes; a service, e.g. broadcasting, insurance. Produce (uncountable) normally refers to agricultural products such as crops or fruit. B Noun: things Noun: company or country Verb Noun: activity (manufactured) products / goods (see Unit 17) (agricultural) produce / products services maker / manufacturer / producer producer make / manufacture / produce manufacture / manufacturing / production produce provider provide manufacture / manufacturing / production provision Mass production Car production started in workshops where each car was individually hand-made. Producing cars like this was a craft industry. It was very labour-intensive – it took a lot of work to produce each car. Then, in 1913, Henry Ford had the idea of an assembly line or production line at the Ford manufacturing plant in Detroit: a team of workers were responsible for each part of the manufacturing process, which meant that the plant could make cars in very large numbers – it could churn them out. Today, the same system is used in manufacturing, but with the addition of industrial robots. The machines are expensive but very cost-effective – they produce a lot in relation to what they cost. These robots are part of the CAD/CAM system of computer-assisted (or computeraided) design and manufacturing (see Unit 14). Note BrE: labour-intensive; AmE: labor-intensive A plant can also be referred to as a factory or a works, but works is a slightly old-fashioned word. C Capacity and output The number or type of things that a company, plant, industry or country produces is its output. Productivity is a measure of the number of things produced in relation to the number of employees. When there is high output per employee, productivity is high. The maximum amount that a particular company, plant or industry can produce is its capacity. If it is actually producing this amount, it is working at full capacity. Note There is overcapacity, excess capacity, spare capacity or surplus capacity if there is too much capacity in relation to what is required. The expressions are given in their order of frequency. These expressions are also used in service industries. If too many things are being produced by a particular industry in relation to the number of people who want to buy them, there is overproduction. If far too many things are produced, there is a surplus or glut of these things. If not enough goods are being produced, there is a shortage. 40 Business Vocabulary in Use Intermediate Exercises 16.1 Complete the sentences with grammatically correct forms of the words in the table in A opposite. (The number in brackets indicates the number of different possible answers.) 1 A lot of mobile phone (3 possibilities) takes place in China, but Nokia still (3 possibilities) them in Finland too, so Finland is a (3 possibilities) of mobile phones. 2 India is important for call centres, but it is also emerging as a of of all kinds, including accountancy. 3 Russia is a major oil and also important for the of gas. 4 The United Kingdom is a big of legal and financial services. 5 Brazil is still the world’s biggest coffee , but coffee is also in many other countries, including new ones such as Vietnam. 6 With the increase in medical tourism, Thailand is emerging as an important centre for the of healthcare services to people from other countries. 16.2 Look at B opposite. Rearrange these sections of a short presentation about manufacturing into a logical order. a b c d e f g h 16.3 work. Of course, we still have a large number of assemblyplant producing TVs in Singapore. We have two production My name’s George Chien, and I’m director of a manufacturing lines working 24 hours a day. CAD/ intensive. But with the help of computerline workers, so it’s quite labourCAM and robots do some of the assembly assisted design and automation, productivity is increasing. Match the headlines (1–4), containing words from C opposite, with extracts of the articles they relate to (a–d). 1 3 AIRLINE FOOD SHORTAGES HIT REPORTS BIG PRODUCTIVITY RISE EASTERN AFRICA 2 4 LOCAL PLANT AT TOO MUCH a FULL CAPACITY c Ryanair is running more flights with fewer pilots and staff. That was the message from Ryanair’s CEO Michael O’Leary to shareholders yesterday … Rainfall has been below average in this part of Africa for the past five years. Not enough food has been grown and now there are food … b d The plant has the capacity to produce 3,000 computers a week, and it’s producing 3,000. That’s the good news … There has been too much construction in the city centre, and now there is a lot of office space standing empty … Over to you Are hand-made products better than mass-produced products? Business Vocabulary in Use Intermediate 41 17 A Materials and suppliers Inputs Dyson makes vacuum cleaners. It takes raw materials like steel and plastic, and makes some of the components – or parts – used in its products. (Other components are made by other companies.) Here are some typical combinations: aerospace automotive car computer electronic components replacement spare parts Materials and parts are just some of the inputs. The others are labour – workers and managers – and capital – money. Knowledge is also important because Dyson is a leader in vacuum technology. Vacuum cleaners that are in the course of being made are work-in-progress. At any one time, Dyson has goods (see Unit 16) worth millions of dollars in its factories and warehouses; these are both the materials and components used to make its products, and its finished goods – the products that have been made. Quantities of raw materials, components, work-in-progress and finished goods in a particular place are stocks. Note BrE: work-in-progress; AmE: work-in-process BrE: stocks; AmE: inventories Goods is rarely used in the singular, except in specialized economics contexts. B Suppliers and outsourcing Dyson has its own manufacturing operation, but it works with its suppliers – companies that provide materials and components. Some companies refer to their suppliers as partners. Note The company uses subcontracting – which means using outside suppliers to provide components and services. In other words, it uses outsourcing rather than doing these activities in-house – within the company. C Outside is the most frequently occurring adjective in front of suppliers. Just-in-time It costs money to keep components and goods available for customers to buy in stock. Stocks have to be financed – paid for. They also have to be stored – kept in special buildings called warehouses – and handled – moved from one place to another. So Dyson is asking its suppliers to provide components just-intime – when they are needed. Note This is part of lean production or lean manufacturing, in which products are made in the most efficient way – doing things as quickly and cheaply as possible, without waste. 42 Lean production is about as frequent as lean manufacturing. Business Vocabulary in Use Intermediate A warehouse Exercises 17.1 Use words from A opposite to label the diagram. Inputs 1 9 2 3 4 5 6 8 10 7 17.2 Match the sentence beginnings (1–6) with the correct endings (a–f) containing expressions from B opposite. 1 The computer manufacturer is cutting back on in2 The poor standard of some subcontractors’ 3 Retail giants Sharks Ltd have decided to 4 Late deliveries from outside 5 Gruma has manufacturing 6 Lilly and its partners 17.3 a maintenance is worrying train operating companies. b spent $157 million on the Cymbalta advertising campaign. c house production work in a bid to reduce costs and increase efficiency. d outsource canteen and cleaning services, to focus better on its buying and selling activities. e suppliers are causing delays in production, the Azco group claims. f operations on five continents, and its products are sold in more than 50 countries. Replace the words in italics with the correct forms of words from C opposite. 1 Let’s get the materials only when we need them to keep costs down. 2 It’s diff icult to find the right special buildings to put our finished goods in. 3 You have to decide well in advance how to pay for all this. 4 It’s very important that we keep these components at the right temperature. 5 The company found that using couriers on bicycles was a very quick and eﬀective way to deliver documents in big cities. 6 They want to introduce a system of making things eﬀiciently without waste. Over to you What are the advantages and disadvantages of the following? • outsourcing • asking for components ‘just-in-time’ Business Vocabulary in Use Intermediate 43 18 A Business philosophies Mass customization Production lines (see Unit 16) are good for mass production – producing large numbers of similar products. Manufacturers try to make standard products, with few variations, that as many people as possible will want to buy. Standardization is the most important factor. Custom-built or tailor-made products, where each product is made to meet the specifications, requirements or needs (see Unit 21) of a particular customer, are more expensive to produce, of course. Custom-built bicycles The management thinker Joseph Pine and others talk about the possibilities of mass customization, where products are made in large quantities, but each one is made to the specifications of the buyer – the person or organization buying it. Dell Computers, where each computer is made for a particular buyer, is the best-known example of this. B Wikinomics Wikinomics: How Mass Collaboration Changes Everything is a book by Don Tapscott and Anthony D. Williams. In it, they explain that Wikinomics is a form of mass collaboration, where companies have large numbers of people working together on the internet to solve problems and develop products. This is totally unlike current business methods and the authors predict that it will be a key to business success in the future. It is like an extreme form of outsourcing (see Unit 17). They say that customers who contribute to the design and development of products should be called prosumers – they work together to make things in a process of peer collaboration and co-creation. C The long tail Another challenge to mass production is the long tail. In The Long Tail: Why the Future of Business is Selling Less of More, Chris Anderson says that the mass production model – way of doing things – does not apply to many products, such as selling books and music on the internet. In a large catalogue of items (see Unit 22), the cost of selling the least popular item is only slightly more than selling the most popular. Amazon has used this model to great advantage, profitably selling small numbers of specialized books, as well as large numbers of popular ones. Economies of scale and the learning curve (see Unit 28), where the cost of a product comes down in relation to the amount produced, do not apply. D Benchmarking Jim is production manager at an electricity power station in Australia. He says, ‘We use a system called benchmarking to compare our performance to performance levels in other power stations. We’ve recently been to the UK to see how the best power stations operate, to see the best practice in the industry, and to copy it. We’ve managed to halve the number of workers, and now our productivity is as good as the best power stations in the UK.’ Benchmarking can be seen as another form of collaboration – people and companies working together. Of course, a company will want to hold on to its industrial secrets – prevent competitors from obtaining information about its better performance in a particular area. 44 Business Vocabulary in Use Intermediate A power station Exercises 18.1 Look at A, B, C and D opposite. Which business philosophy is each of these things an example of? 1 A gold mining company makes information about its mines available on the internet. Anyone can analyse the information to suggest where the company may find gold. If gold is found in the place that they suggest, the person gets a prize. 2 A telephone company looks at other telephone companies to see which one issues the lowest number of bills to customers with mistakes in them. It then copies the methods of this company to reduce the number of mistakes in its own bills. 3 An internet site used to stop selling particular products if none were sold for a year. Now it makes all its products available indefinitely. 4 On its website, a bicycle manufacturer allows each buyer to specify exactly what sort of bicycle he or she wants. 18.2 Match the sentence beginnings (1–6) with the correct endings (a–f). The sentences all contain words and expressions from B opposite. 1 Wikinomics describes a scenario where the post-industrial age 2 Students are enthusiastic and positive about their many informal attempts 3 One goal of co-creation is to find a balance between the traditional emphasis on value extraction 4 Linux, Wikipedia, YouTube and Facebook are all examples of mass collaboration. 5 It would be a mistake to think of outsourcing as simply an economic transaction; 6 In the prosumer society we can deduce that all the consumers 18.3 a at peer collaboration as a way of coping with a new learning environment. b Specifically, thousands of programmers contribute to Linux and over 75,000 people are writing and editing articles on Wikipedia. c will naturally become the producers of the commodities which they want to produce. d from consumers and the new stress on value creation with consumers. e is being transformed by allowing more people to put their intellectual muscle to the wheel. f it is a universal tendency, like gravity, that exerts a pull on everything. Complete the sentences with expressions from C and D opposite. that’s ten years out-of-date. 1 Film distributors are working with a business 2 CEOs might look to unrelated industries for companies with outstanding practices and processes. For example, GE managers carried out by studying FedEx, which has exceptional customer service. 3 Some American executives fear that overseas companies seek help from their own governments in stealing US . 4 Netflix, the largest online film rental website, boasts an endless list of film titles, making millions from the . 5 The 64-page with price list, offers products from 19 manufacturers, and promises 72 hours’ delivery for most product lines. Over to you In what ways does your company or the place where you study try to improve efficiency? Business Vocabulary in Use Intermediate 45 19 A Buyers, sellers and the market Customers and clients People who buy IBM’s products and services are IBM’s customers or clients. Foster and Partners, a big architectural firm, has clients, rather than customers. Client often refers to people and organizations who buy the services of professionals such as accountants, lawyers, etc. People who buy a company’s or a professional’s products or services, especially expensive or exclusive ones, are its clientele. A Foster and Partners’ project Note IBM’s customers considered as a group make up its customer base. Foster and Partners’ clients considered as a group form a client base. These are slightly technical expressions, used for example in business journalism. Clientele is rarely used in the plural. You can also talk about the users of a product or service who may not be the organizations who actually buy it. The expression end-users refers especially to people who use products, particularly computer equipment and other technology. These expressions are often used in contrast to the producers and distributors (see Unit 24) of a product. For example, IBM sells products through various channels, but the end-users are the employees of the companies that buy its products. People who buy products or services for their own use are consumers, especially when considered as members of large groups of people buying things in advanced economies. B Buyers, sellers and vendors A person or organization that buys something is a buyer or purchaser. But these terms are also used to talk about someone in a company or shop responsible for buying goods that it uses or sells. These people are also buying managers or purchasing managers. An industrial buyer is an organization that buys things for use in producing its own goods or services. A person or organization that sells something is a seller. In some contexts, for example selling property, they are referred to as the vendor. (Business journalists and lawyers may also refer to people selling products, rather than services, as vendors.) People selling things in the street are street vendors. A vending machine is a machine from which you can buy coffee, cigarettes, etc. C The market The market, the free market and market economy are used to talk about an economic system where prices, jobs, wages, etc. depend on what people want to buy, how much they are willing to pay, etc., rather than being controlled by a government. In this sense, market is oft