Examiners Report and Model Answers for

English for Business

THIRD LEVEL
Series 1 (Code 3041) 2001

LCCI Examinations Board

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English for Business Third Level

Series 1 2001

How to use this booklet Examiners Reports and Model Answers have been developed by LCCIEB to offer additional information and guidance to Centres, teachers and candidates as they prepare for LCCIEB examinations. The contents of this booklet are divided into 5 elements: (1) General Comments assessment of overall candidate performance in this examination, providing general guidance where it applies across the examination as a whole reproduced from the printed examination paper summary of the main points that the Chief Examiner expected to see in the answers to each question in the examination paper constructive analysis of candidate error, areas of weakness and other comments that apply to each question in the examination paper where appropriate, additional guidance relating to individual questions or to examination technique

(2) (3)

Questions Model Answers

(4)

Examiners Report

(5)

Helpful Hints

Teachers and candidates should find this booklet an invaluable teaching tool and an aid to success. The London Chamber of Commerce and Industry Examinations Board provides Model Answers to help candidates gain a general understanding of the standard required. The Board accepts that candidates may offer other answers that could be equally valid.

Note LCCIEB reserves the right not to produce an Examiners Report, either for an examination paper as a whole or for individual questions, if too few candidates were involved to make an Examiners Report meaningful.

LCCI CET 2001 All rights reserved; no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the Publisher. The book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover, other than that in which it is published, without the prior consent of the Publisher. Typeset, printed and bound by the London Chamber of Commerce and Industry Examinations Board. 1

English for Business Third Level

Series 1 2001
GENERAL COMMENTS The Examiners reported that the overall standard of performance was very encouraging. Only a very small number of candidates failed to complete the paper and the vast majority of candidates were aware of the convention of layout of business documents. Most candidates realised that good responses in business documents are concise and only a small number of candidates produced text that was too long and verbose. The standard of English was generally very good. There were still errors in grammar, particularly in the person and tense of verbs, but the concise style that was usually adopted meant that it was rare that an over-ambitious and over-elaborate sentence construction was used. Candidates still have some difficulties with non-countable nouns and the fact that such nouns as staff and information do not take a final s as no plural form exists. It was pleasing to see that many candidates produced first versions of answers before producing a version to be marked. However, all rough work must be crossed out so it is clear which answers should be marked.

English for Business Third Level

Series 1 2001
QUESTION 1 Situation You work for Ascot plc, a producer of china and pottery products in the United Kingdom. The company exports a wide range of its products to countries in all parts of the world. Ascot plc prides itself on its high quality products and the excellent service it provides for customers. One of your jobs is to respond to complaints from customers. This morning, the Sales Manager, Mr Alan Ferguson shows you the following letter:

BOZENA STORES Majuakov Skeho 9 85132 Bratislava Slovakia 7 March 2001 Dear Sir or Madam We are new customers of Ascot plc but I regret to say that we now do not wish to continue to trade with you. We have been extremely disappointed with the service we have received from your representative in Slovakia. This gentleman recently cancelled 2 appointments to visit us at short notice, and when he did visit us on 30 January he appeared to be in such a hurry that he did not have time to describe the full range of your products. We learned later that you have produced a new range of fine quality tableware that would have interested us. The price list that he left with us was out of date and the representative made a number of errors in the order we gave him. We have tried to contact this gentleman by telephone but despite the fact that we have left several messages on his answerphone he has not responded. We have since been visited by a representative of another British company, Toptable plc, who dealt with our queries in a highly professional manner. We have decided to trade with this company in future and therefore we do not wish to have any further contact with Ascot plc. Yours faithfully

Valeria Tyrolova
Valeria Tyrolova (Ms) (Sales Manager)

Mr Ferguson is very angry and says to you: "I hoped we had heard the last of the problems that this representative brought about in Eastern Europe. You might remember that he caused no end of trouble and we sacked him eventually. In fact, the visit to Bozena Stores was one of the last he made for us.

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QUESTION 1 CONTINUED Please write to Ms Tyrolova. There's no excuse for what happened but explain to her what we have done since then. We have appointed a new representative, Pavel Klos, who is based in Prague. Pavel will represent us in Slovakia and the Czech Republic and I know that everyone will find him to be very efficient and courteous. Mention that they will have heard of him - he played in goal for the Czechoslovakian national football team for many years, and for the club side Slovan Bratislava. I hope his reputation will do us a bit of good. You can send her a copy of our latest catalogue and maybe offer a discount on the next order. I'll leave it to you." Task Write an appropriate letter to Ms Tyrolova. notepaper is used. You can assume your company's headed (25 marks)

Model Answer to Question 1

Headed Paper

13 March 2001 Ms Valeria Tyrolova Sales Manager Bozena Stores Majuakov Skeho 9 85132 Bratislava Slovakia

Dear Ms Tyrolova New Sales Representative in Slovakia Thank you for your letter of 7 March. I am extremely sorry about the service you received from our representative. There is not excuse for his behaviour and I must apologise for this. I can tell you, however, that this person is no longer working for us and the problems you faced will never reoccur. Our new representative, Pavel Klos, is very experienced and I am sure you will find him to be particularly courteous and efficient should you wish to trade with us again. You will almost certainly have heard of Pavel, as he was a highly regarded goalkeeper for Slovan Bratislava and the national football team for many years. Pavel is always willing to spend some time talking about his career to our customers. I hope you will reconsider your decision and continue to trade with us. We have just introduced our new range of products, including our fine tableware. We have had a very favourable reaction to this and I enclose a fully up-to-date catalogue. I do realise that our service has been less than satisfactory and so I would like to offer a 10% discount on your next order. Please do not hesitate to contact me if I can be of further assistance. Yours sincerely

5C7;*;
A Candidate (Customer Relations Department)

Examiners Report on Question 1 There were very few errors in letter layout and conventions. A small number of candidates used salutations and closes that did not agree; as Ms Tyrolovas name was known, it was appropriate to open with Dear Ms Tyrolova, (Dear Valeria was almost certainly too familiar in this context) so the close has to be Yours sincerely. Most candidates adopted a suitably apologetic tone and attempted to persuade Ms Tyrolova to reconsider her decision to end the trade relationship. Some candidates made little attempt to paraphrase Mr Fergusons conversation with you. Some of this clearly was meant for your benefit and should not have been quoted, particularly the phrase I hope his reputation will do us a bit of good.

HELPFUL HINTS Do not waste time devising letterheads. You can assume you are using headed paper. Check that your opening and close are in agreement. Use your own words to paraphrase instructions in an appropriate style.

QUESTION 2 Situation You work for a small company, Kidcraft, in your area. Kidcraft produces and sells high quality children's toys. It has sold some toys worldwide by means of mail order but most of its business is done through its shop in your town. The company is traditional in its outlook and has not yet made use of the Internet or e-commerce when advertising or selling its products. The Sales Director, Mr Manuel Martinez, has taken the view that the company is not large enough to benefit from a website on the Internet, and can see little value in e-commerce. However, he has learned recently that many other small businesses in your area have become connected to the World Wide Web and he does not wish to disadvantage Kidcraft by remaining outside of it. Mr Martinez does not know what the Internet can offer to the small business, and he has asked you to investigate if Kidcraft could benefit from being connected to the Web. You have carried out some investigations in order to produce a report and your findings appear below. From recent Business Magazine E-commerce Trading by means of the Internet is becoming big business. In the USA, the world leader, about 60% of the population now purchase by this means at least once every year and figures similar to this are likely to be achieved in many other parts of the world during the next decade. Whether a company is large or small makes little difference to the e-commerce potential but what is known as the 'feelie factor' has a large effect. Products which customers have to feel, touch, or try on, will never be sold very easily through the Internet, but most products can be sold by means of a picture and/or text.

From an interview with comparable businesses "We created a website to promote our products, but we have not yet started trading through e-commerce. This has raised our profile enormously." (Veena plc) "Since we started our e-commerce business, our sales have increased by 33% each year." (ML Toys) "Our initial investment in creating a site was recouped in a month." (Toyco) "You need to know what you are doing, and you must get expert help." (Puk Lo Toy Company) "We did not know how successful our site was until we installed a 'hit counter' which measured the number of visitors to the site. We were amazed how many people visited us." (Kharma Toys)

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QUESTION 2 CONTINUED

From Advertisement for Massive Multiactive Why not use Massive Multiactive to create your own website? We provide you with a CD Rom that offers you over 500 templates to allow you to establish your own website with as many features as you require. We supply an easy-to-follow program which provides prompts for all your information. You enter your company details, choose your colour scheme and company image, select your web address and all the work is done for you. We charge 500 US dollars or the equivalent in any currency.

From your local business advisory service "Our office can provide a range of services for those wishing to set up a website, but you must answer a simple question first. Do you want to promote your company on the Internet or do you wish to trade through your site? If promotion is all you require you can easily set up pages of information, price lists and all you then need to do is update this regularly. However, if you wish to trade through the Internet you must set up a catalogue and ordering system to accept orders and enquiries. You need to consider how to deal with international currencies and the various tax systems of different countries. This need not be very complicated but you do need to take professional advice. You should also make sure your site is connected to what are called search engines. You choose a key word and this goes into a massive index that visitors can access, to enable them to find your site."

Task

Write the report for Mr Martinez and make any appropriate recommendations. (25 marks)

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Model Answer to Question 2 To: From: Date: Subject: Mr Manuel Martinez, Sales Director A Candidate 13 March 2001 SETTING UP A WEBSITE FOR KIDCRAFT

Introduction I was asked to carry out investigations in order to produce a report on whether Kidcraft should establish a site on the World Wide Web. I considered published information, I spoke to businesses similar to our own but with web experience, I acquired some information from a company which creates web sites and I took advice from the local business advisory service. Findings There are two types of web site: 1 Promotional Web Sites: These sites are used to promote the products of a company. They are simple to create and only require regular updates. Experience indicates that they raise the profile of companies. E-commerce sites: These provide sites which potential customers can access to order products. The are particularly appropriate for selling goods that can be sold by means of picture and/or text (our products fall within this category) and although such sites are more complex to set-up and maintain, experience indicates that well created sites can improve sales dramatically and quickly cover any initial investment.

Recommendations 1 I suggest that Kidcraft should set up an e-commerce web site. This form of trading is growing enormously world wide. The site can best be created from the Massive Multiactive CD Rom package that is available for the local equivalent of 500 US dollars. This package gives easy-to-follow instructions on how to set up the site and a range of templates to create a professional end product. The company should take advice from the local business advisory service on how to deal with the financial aspects of world wide e-commerce. The company should link the site to search engines to help to attract visitors. The company should install a hit-counter to maintain a check on the number of visitors.

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Examiners Report on Question 2 Once again, most candidates used a sensible and appropriate layout and format. Recommendations were specifically requested but there was no right or wrong answer; any recommendations that were consistent with what was stated in report were acceptable. Some candidates produced a basic summary of the information given. More successful reports grouped ideas and information from all four paragraphs and were selective on what was included. If this correct approach is adopted then it would be impossible to produce a report without making extensive notes.

HELPFUL HINTS Remember there is no standard format for a report, as long as information is grouped into sections and extensive use is made of headings and sub-headings. A report is not a summary. Gather the information from all the information given and group this before producing the report. Be selective. Not all information given is relevant to the task.

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QUESTION 3 Situation You work for a very successful business, Brush Off, in your area. Brush Off provides a range of specialist paints and finishes for industrial and domestic use and has grown by an average of 25% in each of the last three years. The company is now considering how it might expand and spread to other countries. Your Managing Director has heard that a system called franchising is becoming very popular and has asked you to investigate this system. You have gathered some information on this topic in order to answer a number of questions that Brush Off's directors have asked. These questions follow the information you have gathered.

From World Wide Federation of Franchises website Franchising involves a company licensing out its name and range of products to individuals who then trade under that company's name in a particular area. Usually franchises are limited to give the individual sole rights in one particular locality. Franchisers, the companies hiring out their name, gain the chance to expand their enterprises much more rapidly than if they used only their own sources of capital and franchisees, those who take up the licences, gain the opportunity to develop their own business using an already successful product or formula. Both parties are decreasing the risks associated with business ventures. The relationship between franchiser and franchisee will vary depending on the product. The parent company might charge a start-up fee or take a proportion of the franchisee's profits. Most franchisers offer advice and guidance and often insist that the franchisee buys a proportion of its raw materials from the parent company. This ensures the consistent quality of the final product as well as boosting the profits of the franchiser.

Notes from the International Franchise Year Book Franchise - American idea - in USA one-third of all retail sales made through franchised firms. Franchising now increasing all over the world. Sales of franchised goods rose by 6% in Europe in 1999 - number of franchises doubled in Japan since 1993. Internationally - 5% of franchises fail in first year of trading - 33% of businesses as a whole fail in first year. Best known examples so far - McDonalds (fast food chain), Body Shop (cosmetics and health products), Chronopost (subsidiary of French post office), Prontaprint (printing/copying).

Interview with Managing Director of Tubeclear, a plumbing business in your area that expanded through offering franchising. "I have no regrets about using franchising to grow. Basically, we have expanded using other people's money, although all of our franchisees have benefited from our research and start-up costs. We have changed our policy, however. We started by charging very little for a licence and asking for a high proportion of profits. Although many of our franchisees were, and still are, successful, too many did not have the experience or the expertise to make a success of the business and we found that our reputation was being damaged by the high level of failure of franchisees. We now charge a much higher start-up fee and scrutinise all applications very carefully. We also provide much more support in the first year. We then demand a lower on-going fee but we find that most of our franchisees survive and prosper, so everyone benefits in the long run."

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QUESTION 3 CONTINUED Task Answer the following questions, in your own words as far as possible, to show understanding of the information given: (4 marks) (2) What are the advantages of franchising to the franchiser? (3 marks) (3) What are the advantages to the franchisee? (3 marks) (4) Where did the franchising idea originate? (1 mark) (5) What evidence is there to indicate that franchising is growing worldwide? (2 marks) (6) How many franchisees fail in comparison with new business as a whole? (2 marks) (7) Why should a franchiser demand that the franchisee buys its raw materials from the parent company? (2 marks) (8) Why did Tubeclear change its franchising policy? (3 marks) (9) If Brush Off, your company, is to offer franchises, should it demand a high start-up fee and low profit shares, or a low start-up fee and high profit shares? (Give reasons for your answer.) (5 marks) (Total 25 marks)

(1) What is meant by franchising?

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Model Answer to Question 3 Suitable answers would be: 1 Franchising involves an established company hiring out its name and range of products to people who then run their own business under the parent company name in a particular locality. A company can expand rapidly without using its own source of finance, and without risking losing its capital. A franchisee can develop his/her own business but with a well known name and product. His/her risks are then lower. U.S.A. Sales of franchised goods rose by 6% in Europe in 1999. Number of franchisees has doubled in Japan since 1993. Only 5% of franchisees fail in their first year of trading compared with 33% of all new businesses which fail in their first year. This can ensure that the product sold is of suitable quality and it also boosts the profits of the parent company. Tubeclear changed from demanding a low start-up fee and high share of profit, because it was attracting the wrong type of franchisee. Franchisees who did not have to find a large initial investment were often insufficiently experienced or knowledgeable. I believe that Brush Off should offer a franchise package with a relatively high start-up fee but then demand a low share of the profit. This will deter all but the most dedicated and well prepared franchisees but will enable the company to offer a high level of support to its newly established franchises.

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Examiners Report on Question 3 This question usually discriminates between these with a stronger and a weaker command of English as it demands a high level of understanding and a concise response. On this occasion, most candidates displayed a good understanding of the issues raised and were able to produce sensible responses. Some of the regular errors were still displayed. A small number of candidates simply lifted sections of the original material whereas some selection and interpretation is always required. Also a small number of candidates continue to ignore the mark allocation for each question and produced lengthy answers to questions with few marks and brief answers to highly rewarded questions. Part 9 posed some problems. Some candidates listed the policy which should be adopted but either gave no reason for this or gave a vague non-specific answer such as because this would be best. This question carried 5 marks so clearly a more developed answer was required.

HELPFUL HINTS Pay attention to the mark allocation to each question as a guide to the length and depth of your response. Use your own words in answering questions, unless this is impractical (eg for proper nouns or figures).

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QUESTION 4 Situation You work in the Sales Department of a large organisation. You supervise the work of a team of staff who visit companies all over your country, and sometimes overseas, to sell your organisation's products. The Sales Staff have recently been issued with updated laptop computers. Two days after these were issued, a member of staff gave you the following theft report:

Report of loss of laptop computer To From Date Supervisor, Sales Department Edwin Fang 8 March 2001

At 1400 yesterday I left my car in the large car park in the shopping precinct in Main Street, Bridgetown in order to visit CP Stores. I have often used this car park when I visit Bridgetown and I have never encountered any problems. When I returned to the car park at 1500 I noticed that the rear window had been broken and the laptop computer I had left on the back seat had been stolen. I asked the car park attendant if he had seen anyone near the car but he had not. I reported the theft to the Bridgetown police and took the car to a local garage for repairs.

This morning the following newspaper article attracted your attention:

LAPTOP LUNACY Did you know why the United States Military Command had to change its strategic plan at great cost? Why did a television producer have to rewrite the ending of a serial? Why did a prison governor have to revise the prison's whole security plans? All of these involved confidential information held on laptop computers which were stolen. Police all over the world report that laptop theft is now very common. Thieves are probably attracted by the machines themselves; they are small, easily carried and can fetch a good price. However, stolen laptops often contain information that is personal, confidential, sensitive or even top secret. Also, laptop users might not know that if they lose such information, they could even be breaking the law, as people who store information that should not be made public must take 'reasonable precautions' to protect it. Leaving it on a laptop that can be stolen is often not seen as reasonable."

You contact the Head of Security who tells you the following:

"Yes, laptops are a target for thieves. All I can recommend is that everyone takes care. You should keep yours with you all the time. If you have to leave one in a car (you should avoid this if you can, of course) lock it in the boot. If you use it in public, don't leave it unattended. We do offer a new service called encryption now. We can encrypt your laptop hard disk which means it is impossible for anyone to make sense of the information without a special software decryption key. It doesn't make the equipment safe from theft, but it does protect the information held on it. It's not expensive and my department will be happy to do this for anyone."

Task

Draft a memo to all sales staff about possible laptop theft and what they should do about it. (25 marks)

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Model Answer to Question 4

MEMORANDUM To: All staff From: A Candidate Date: 13 March 2001 Security of Laptop Computers I hope you are finding that the latest laptop computers that were issued to you are assisting you in your work. They are the most up-to-date models available but I should point out that this increases the risks involved with security of the equipment. It has been brought to my attention that laptops are now a particular target for thieves. They are small, portable and there is a big market for stolen laptops. A colleague has already found this out as a machine was stolen from his car which was parked in a shopping precinct. I would ask you to be vigilant, not only because the machines are expensive but because of the sensitive or confidential material that could be on the hard drives. The law is quite clear, that you have a duty of care of such information and you could be in legal trouble if you do not take reasonable steps to protect the information on the hard drive. There have been a number of prominent cases of highly confidential commercial or military information contained on a hard drive being stolen with the machine, which then forced elaborate changes to be made to original plans. I suggest that you are particularly careful with your laptops and take sensible precautions. If you have to leave your machine in your car, make sure it is locked in the boot. You can also protect any information on your hard drive by taking advantage of the encryption service now offered by our Security Department. Access can be restricted to those with a special key. The Security Department will be happy to arrange this service for you. It will not prevent the machine being stolen but it will ensure that no-one else can make sense of the material on the hard drive.

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Examiners Report on Question 4 Among some generally strong scripts, there were some disappointing answers to this question. Perhaps as this was the last question, some candidates left insufficient time. Many candidates did not stress that there are two dangers to laptop theft, the loss of valuable equipment and the loss of sensitive information held on the hard disk. Some failed to mention encryption or the reason for it. Some candidates again produced a summary of all the material in the order given. This is a reformulation question which requires the selection and reorganisation of material.

HELPFUL HINTS Remember this is a reformulation question. Select material carefully, put it in order and convert it to a consistent and suitable style. Keep in mind that this question carries 25 marks. Leave sufficient time to be able to devote sufficient time to it.

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