1

BUSINESS ENGLISH
IN USE
2

CONTENTS


Introduction.....3

1 Financial crises: lessons from history.......5

2 European junk bonds growth is sign of health....10

3 No tax please, we're rich!....................................................................................................15

4 Student loans a life sentence19

5 Getting it right on the money..25

6 Tourism an Economic and Social Phenomenon..29

7 The environmental impact of tourism.33

8 Environment health and growth..38

9 Oil inferno...43

10 Microsoft and AOL time Warner....49

11 Loyalty marketing. Boring or booming......54

12 Nike and Apple join up for runs......60

13 The Strategy Hierarchy...65

14 Strategic Planning...71

15 Why Your Boss may Start Sweating The Small Stuff?......................................................75

16 Get Goals For Your Employees..80


3

INTRODUCTION


General description

This book is a course in Business English which is intended for higher intermediate/advanced
students wishing to increase their knowledge of business theory and practice.

The course consists of sixteen units. The contents of these units are planning, motivation,
appraisal and leadership, each which is illustrated by real examples from the world of
business. Thematically linked to the topic of each unit are a wide variety of language
activities, designed to focus on business lexis and difficult points of grammar as well as
developing reading, writing, listening and speaking skills. The main emphasis of this book,
however, is to develop the students' oral fluency and their ability to communicate effectively
in a wide range of business situations. It can be used either as a main course book or as
supplementary material. It is also suitable for shorts courses; as such unit is entirely self-
contented, allowing teachers to select material appropriate to the particular needs of their
students.




Aims of the course

1. The business aims are:
a) to introduce students to the basic concepts of business
b) to stimulate students' interest in the subject and to encourage them to learn more about
business
c) to present a range of business situations in the form of case studies, role-plays and
discussions which familiarize students with the problems faced by managers and provide
them with the opportunity to develop effective communication skills

2. The language aims are:
a) to develop students' reading, writing, listening and speaking skills but, in particular, their
ability to express themselves accurately and effectively in business situations
b) to focus on language functions and structures which are particularly useful for managers
c) to increase the students' knowledge of commercial vocabulary, specialist business terms
and provide business idiom
d) to give students practice in writing business communications such as short reports,
memoranda, advertisement and letters








4

Organizations of the units

DISCUSSION

This section as an introduction to the topic(s) of each unit and usually takes the form of a
short reading passage, mini case study or dialogue, followed by a number of questions
intended to generate discussion. Discussion gives the students the opportunity to bring their
own knowledge and imaginations to the topics and related areas. They may wish to discuss all
of the questions in their small groups or to select one on which to report back to the class.



READING

They deal with key to business ideas or practice and should therefore be of interest to business
executives wishing to learn more about the theories of business.

Understanding the main points
The reading passage is followed by a variety of comprehension-checking devices to ensure
that students have understood the most important ideas contained in the text. These include
open-taking, grid completion and identifying the order to the main ideas.

Vocabulary focus
Having demonstrated that they have grasped the main arguments put forward in the passage,
students are then asked to work through intensive reading exercises which are similar in
meaning to the synonyms or definitions given in the exercise, or using the context of the
passage to help them to guess the meaning of vocabulary items taken from the text.


GRAMMAR

Grammar focuses on aspects of the language suggested by the reading passage itself. The
emphasis is on practice and reinforcement rather than teaching, while indirectly building on
the comprehension phase.

VOCABULARY

The vocabulary exercise is designed to help students become more self-reliant by encouraging
them to work out meaning from context. As suggested previously, this section can be done
during the reading phase or afterwards or both. As in all exercise types is used.









5
LESSON 1




The current market jitters are centred on
disturbances in the world's credit markets. Worries
about the viability of sub-prime mortgage lending
have spread around the financial system, and the 5
central banks have been forced to pump in billions
of dollars to oil the wheels of lending. But what
happened in previous financial crises, and what are
the lessons for today?
There have been a growing number of financial 10
crises in the world, according to the International
Monetary Fund (IMF). Among the key lessons of
previous major financial crises are: globalisation
has increased the frequency and spread of financial
crises, but not necessarily their severity; early 15
intervention by central banks is more effective in
limiting their spread than later moves; it is difficult
to tell at the time whether a financial crisis will
have broader economic consequences; regulators
often cannot keep up with the pace of financial 20
innovation that may trigger a crisis.
THE DOT.COM CRASH, 2000
During the late 1990s, stock markets became
beguiled by the rise of internet companies such as
Amazon and AOL, which seemed to be ushering in 25
a new era for the economy. Their shares soared
when they listed on the Nasdaq stock market,
despite that fact that few of the firms actually made
a profit. The boom peaked when internet service
provider AOL bought traditional media company 30
Time Warner for nearly $200bn in January 2000.
But in March 2000, the bubble burst, and the
technology-weighted Nasdaq index fell by 78% by
October 2002. The crash had wider repercussions,
with business investment falling and the US 35
economy slowing in the following year, a process
exacerbated by the 9/11 attacks, which led to the
temporary closure of the financial markets. But the
Federal Reserve, the US central bank, cut interest
rates throughout 2001, gradually lowering rates 40
from 6.25% to 1% to stimulate economic growth.

When AOL's Steve Case took over Time Warner, the
dot.com boom peaked
LONG-TERM CAPITAL MANAGEMENT, 1998 45
The collapse of hedge fund Long-Term Capital
Market (LTCM) occurred during the final stage of
the world financial crisis that began in Asia in 1997
and spread to Russia and Brazil in 1998.
LTCM was a hedge fund set up by Nobel Prize 50
winners Myron Scholes and Robert Merton to trade
bonds. The professors believed that in the long run,
the interest rates on different government bonds
would converge, and the hedge fund traded on the
small differences in the rates. But when Russia 55
defaulted on its government bonds in August 1998,
investors fled from other government paper to the
safe haven of US Treasury bonds, and interest rate
differences between bonds increased sharply.
LTCM, which had borrowed a lot of money from 60
other companies, stood to lose billions of dollars -
and in order to liquidate its positions it would have
to sell Treasury bonds, plunging the US credit
markets into turmoil and forcing up interest rates.
So the Fed decided that a rescue was needed. It 65
called together the leading US banks, many of
whom had invested in LTCM, and persuaded them
to put in $3.65bn to save the firm from imminent
collapse. The Fed itself made an emergency rate cut
in October 1998 and markets soon returned to 70
stability. LTCM itself was liquidated in 2000.
6
THE CRASH OF 1987

Program trading on the New York stock market worsened 75
the crisis
US stock markets suffered their largest peacetime
one-day fall yet on 19 October 1987, when the Dow
Jones Industrial Average index of shares in leading
US companies dropped 22% and European and 80
Japanese markets followed suit. The losses were
triggered by the widespread belief that insider
trading and company takeovers on borrowed money
were dominating the markets, while the US
economy was entering into an economic slowdown. 85
There were also worries about the value of the US
dollar, which had been declining on international
markets. These fears grew when Germany raised a
key interest rate, boosting the value of its currency.
Newly-introduced computerised trading systems 90
exacerbated the stock market declines, as sell
orders were executed automatically. Concerns that
major banks might go bust led the Fed and other
major central banks to lower interest rates sharply.
"Circuit-breakers" were also introduced to limit 95
program trading and allow the authorities to
suspend all trades for short periods. The crash
seemed to have little direct economic effect and
stock markets soon recovered. But the lower
interest rates, especially in the UK, may have 100
contributed to the housing market bubble of 1988-
89 and to the pressures on the pound sterling which
led to the devaluation of 1992. The crash also
showed that global stock markets were now closely
linked, and changes in economic policy in one 105
country could affect markets around the world.
Laws on insider trading were also tightened up in
the US and UK.
THE CRASH OF 1929
The Wall Street crash of 1929, "Black Thursday", 110
was an event that sent the US and indeed the global
economy into a tailspin, contributing to the Great
Depression of the 1930s. After a huge speculative
rise in the late 1920s, based partly on the rise of
new industries such as radio broadcasting and car 115
making, shares fell by 13% on Thursday, 24
October. Despite efforts by the stock market
authorities to stabilise the market, stocks fell by
another 11% the following Tuesday, 29 October.
By the time the market had reached bottom in 1932, 120
90% had been wiped off the value of shares. It took
25 years before the Dow Jones industrial average
recovered to its 1929 level.
The effect on the real economy was severe, as
widespread share ownership meant that the losses 125
were felt by many middle-class consumers. They
cut their purchases of big consumer goods such as
cars and homes, while businesses postponed
investment and closed factories. By 1932, the US
economy had declined by half, and one-third of the 130
workforce was unemployed.

Franklin Roosevelt became US President after the crash
The whole US financial system also went into
meltdown, with a shutdown of the entire banking 135
system in March 1933 by the time the new
President, Franklin Roosevelt took office and
launched the New Deal. Many economists on both
left and right have criticised the response of the
authorities as inadequate. The US central bank 140
actually raised interest rates to protect the value of
the dollar and preserve the gold standard, while the
US government raised tariffs and ran a budget
surplus. New Deal measures alleviated some of the
worst problems of the Depression, but the US 145
economy did not fully recover until World War II,
when massive military spending eliminated
unemployment and boosted growth. The New Deal
also introduced extensive regulation of financial
markets and the banking system through the 150
creation of the Securities and Exchange
Commission (SEC) and the Federal Deposit
Insurance Corporation (FDIC), and the separation
of commercial and retail banking through the
Glass-Steagall Act. 155
www.bbc.c
7

I. VOCABULARY

1. Decide whether the following statements are true (T) or false
(F)

1. Early intervention by central banks is more effective in limiting their spread than later
moves. T F
2. Franklin Roosevelt became US President before the crash. T F
3. LTCM was a hedge fund set up by Nobel Prize winners Myron Scholes and Robert Merton
to trade bonds. T F
4. There have been a small number of financial crises in the world. T F




2. Match the words on the left with the definitions on the right.
1. financial crises A integration of national economies into the
international economy through trade, foreign direct
investment, capital flows, migration, and spread of
technology
2. central bank B a private or public market for the trading of
company stock and derivatives of company stock at
an agreed price
3. stock market C is the entity responsible for the monetary policy of
a country or of a group of member states
4. stock exchange D situation when money demand quickly rises
relative to money supply

8


5. economic globalization E corporation or mutual organization which provides
facilities for stock brokers and traders, to trade
company stocks and other securities


II. EXERCISES

1. Phrasal verbs

Match the verbs with their correct definitions:

1. look after A a chance to do something or to succees
2. look forward to B to improve
3. look in C to care for or be in a charge of
4. look up D to watch what is happening and be careful
5. look out E to feel pleasure that something is going to
happen






9


2. Put each of the following colloquial pair-phrases in its correct place in the
sentences below.

safe and sound ups and downs odds and ends
up and about sick and tired to nod fro ins and outs
down and out pros and cons spick and span

1. Im ________ of his continual bad behavior.
2. Shes very house-proud. Her kitchen is always ________.
3. I just keep various _________ in the drawer, nothing special.
4. Like everyone else, she has her _________ of course, but on the whole shes quite satisfied
with life.
5. He lost everything, family, job, money, homeNow hes _______ and sleeping in the
park.
6. You should consider the ________ carefully before you make a decision.
7. Shes ill in bed, but shell be _______ in a couple of days.
8. The parents were beginning to worry but finally the children arrived home _______.
9. This ferry-boat operates between England and France. It just goes ________ all the time.
10. Hes the right man for the job. Hes experienced. He knows the ________ of the business.






3. Discussion

1. What can we learn from financial crises in the past?
2. How did central bank react on the crush of DOT.COM and LTCM?
3. What is New Deal?






10

LESSON 2






The European junk bond market grew
dramatically in the first quarter of this year in a
powerful sign that the world economy is in robust
health. Only two months after stock markets fell
sharply round the globe, the big jump in high- 5
yield bonds suggests the economy rode the storm,
according to the European High Yield
Association.
It said new issuance in the first quarter of this
year jumped 78.9 per cent, compared with the 10
same period last year, on the back of mergers and
acquisitions, private equity-led leveraged buy-
outs and strong economic fundamentals. Gilbey
Strub, executive director of the EHYA, said:
The European macro- economic environment 15
continues to be favorable due to very low interest
rates while issuance levels are being driven by
mergers and acquisitions and leveraged buy-out
transactions. New issuance in the European junk-
grade market in the first quarter stood at 12.7bn 20
($17.28bn) compared with 7.1bn in the same
period last year, the EHYA said.
This suggests that fears the market had peaked
after the sell-off at the end of February, as
investors switched out of relatively risky asset 25
classes such as high-yield bonds to safer havens
of government debt and high-grade investment
paper, were unfounded. A number of high-yield
bond issues were delayed or scrapped in Europe
at the time because of the volatility although the 30
US high-yield debt markets proved more
resilient. Diane Vazza, head of global fixed
income research at Standard & Poors, said: If
February brought on a sneeze, March did not
result in a cold. The US high-yield bond market 35
steadied its balance after an ungainly month.
Having begun March with a lurch, she added,
volatility subsided into April in spite of concerns
over problems in the sub-prime mortgage
industry. 40
Default rates and credit rating downgrades
remained low as equity markets rebounded. In the
US, new issuance levels in both high-yield and
leveraged loan markets were buoyant in the first
quarter, also largely driven by M&A activity and 45
other shareholder-friendly corporate actions. A
record total of $224bn in high-yield debt was
brought to market in the first quarter, 80 per cent
of which was leveraged loans, according to S&P.
50
11
"Risk appetite reappeared, with the credit markets
continuing to offer cheap funds for myriad uses,
including leveraged acquisitions and dividend
recapitalizations strategies that may be
ultimately unhelpful for its own health," said Ms 55
Vazza. Ms Strub said M&A activity and private
equity were big factors behind growth in the
high-yield and leveraged loan space. Globally,
M&A activity topped $1,000bn in the first
quarter, making it the busiest, most lucrative first 60
quarter on record a boom driven by record
private equity deals, according to data provider
Dealogic.
The Financial Times












12
EXERCISES
1. Match the words on the left with the definitions on the
right:
1. merger A the extra money that you pay to a bank,
company, etc. which has lent you money
2. interest B when someone buys or sells something,
or when money is exchanged
3. transaction C money that you borrow to buy a home
4. debt D when you owe money to someone
5. income E when two or more companies or
organizations join together
6. mortgage F money that you earn by working,
investing or producing goods









13
2. Find the synonyms for the following:

1. merger
2. promissory note
3. due
4. equity
5. stock market













3. Decide whether the following statements are true (T) or false
(F):

1. The European junk bond market grew dramatically in the first quarter of this year.
T F
2. The European junk bonds growth sign that the world economy isn't health.
T F
3. Ms Strub said M&A activity and private equity werent important factors behind growth in
the high-yield and leveraged loan space. T F
4. Default rates and credit rating downgrades remained low as equity markets rebounded.
T F



14

high
4. Fill the gaps in these sentences with words from the list
below:



1. The European junk bond market ___________ dramatically in the first quarter of this year.
2. The big jump in ___________ suggests the economy rode the storm.
3. New issuance in the European junk-grade market in the first quarter __________ at
12.7bn.
4. A record total of $224bn in high-yield debt ____________ to market in the first quarter of
this year.






5. Discussion

1. What happened in the European junk bond
market in the first quarter of this year?
2. Why a number of high- yield bond issues
were delayed?
3. Which big factors were behind growth it the
high yield and leveraged loan space?








high yield bonds stood was brought grew
15
LESSON 3


Some of Britain's richest people pay
remarkably little tax. A Money Programme special
investigates how they do it. Billionaire retailer Philip
Green manages it because his family moved to
Monaco. Arsenal football stars have done it with 5
offshore trusts in Jersey. Top City traders did it by
being paid in gold or wine. Others do it by taking
loans instead of income. And it is all completely
legal. We have met tax advisers who claim to be
able to make National Insurance, income tax - and 10
even inheritance tax - vanish.
And we can reveal some of the
extraordinary devices top tax professionals have
used to slash tax bills for their clients - and
themselves. Some leading accountants even manage 15
to get themselves up to 40% tax relief on their own
home loans - while the modest 10% tax relief
available for the rest of us was abolished years ago.
Since taxes were first imposed, people have
tried to pay as little as they legally can. But a 20
modern wave of tax avoidance got under way during
the boom of the late 1980s. Many leading financial
institutions avoided employers' National Insurance
contributions by paying employees' bonuses in gold,
rather than cash. On a 1m bonus, this could save 25
them 100,000 - which could then be shared with
the lucky employee. When the Revenue clamped
down on this wheeze, City employers began to pay
in a variety of other goods - diamonds, antiques,
carpets, fine wines, and even hay and animal skins. 30
All had the same purpose: to avoid tax.


Accountant Adrian Walker, whose firm
Jefferson Wells refuses to get involved in tax 35
avoidance schemes, told the Money Programme
that despite the exotic means of payment, it was
all very simple for the recipients. "You get a piece
of paper saying that sitting in a bank somewhere
is your little stash of gold," says Mr Walker. "You 40
can then take your paper to a bank or a trader, and
get it cashed in." Later, clever accountants came
up with other schemes which could save their
clients income tax. One popular device was the
"employee benefit trust". Instead of paying 45
bonuses or big salaries directly - which would
incur income tax bills - the money would instead
be paid through a trust, often offshore. The trust
would then forward the cash in the form of very
long term, often interest-free loans. And with 50
loans, there's no tax to pay. These schemes were
called "lend and forget".
16
The lawyer who claims to have come up
with this device, Paul Baxendale-Walker, is proud
of the service he offers clients. "I'm actually helping 55
to cure people of various ills, various cancers," says
MR Baxendale-Walker. "Because tax is a cancer that
will kill your business if it's not treated. So I see
myself as a doctor too.
60
For HM Revenue and Customs, the latest
wave of tax avoidance schemes was the last straw.
Often fiendishly complex, they nevertheless have a
simple idea behind them. Accountancy firms sell
"losses", to set against clients' incomes. So with 65
income apparently wiped out, there's no income tax
to pay. But here's the really clever part: the losses
are purely artificial - so the clients keep all their
income, yet have still avoided income tax bills.
These "loss creation" schemes have cost 70
Revenue and Customs - and the country - 2.5bn in
avoided taxes. Britain's tax authorities are trying to
crack down. Dave Hartnett, Revenue and
Custom's top tax enforcer, says he aims to make
tax avoidance "not worthwhile by 2008". He has 75
new powers to help him. A new anti-avoidance
unit has been set up by Revenue and Customs,
and schemes have steadily been closed down.
Most significantly, though, accountants now have
to disclose their tax-cutting ploys as soon as they 80
have been offered to clients. Mr Hartnett has a
stern warning for those who choose not to
disclose new avoidance schemes: "If people are
behaving dishonestly here, then an issue can
easily slip across from being a matter of legal 85
avoidance, into one of dishonesty and evasion -
and could become a criminal case for us." But
Paul Baxendale-Walker says Revenue and
Custom's crackdown could be self-defeating. If
the taxman gets too demanding, wealthy 90
individuals and companies will simply relocate
abroad. "The more they squeeze the pips, then the
more that the fruit is simply going to leave the
tree."
Roger Munns, who runs a property 95
consultancy, says for people keen on avoiding
taxes it will not take long to move to places like
Monaco: "The wealth creators, the entrepreneurs,
are quick on their feet. They are quick-thinking
and they know what to do. 100
BBC Money Programme

17
I. VOCABULARY

The following phrases are associated with particular situations. Identify each phrase by
describing briefly who would say it and in what circumstances.

E.g. Please fasten your safety-belts.
Air-stewardess to passengers before take-off or landing.

1. Mind the doors!
2. To eat here or take away?
3. Many happy returns.
4. How do you plead?
5. Just a trim, please.
6. Have you anything to declare?
7. Heel!
8. Take this prescription and come back and see me in week.
9. Im putting you through.
10. A paint of bitter, please.


II. EXERCISES

1. Phrasal verbs

Match the following verbs with the correct definitions:

1. turn up A do something in an agreed order
2. turn down B the amount of sales in a certain period of time
3. turn over C do business or sell goods worth a certain amount
4. turn round D make a business profitable again after it has had
5. turn out losses
6. turn against E produce
7. take turns F refuse, reject
8. turnover G change one's attitude and become hostile
H arrive, appear
18
2.Grammar
Complete these sentences with the right preposition:
1. Everybody laughed ____________ the joke.
2. We were very pleased ____________ the hotel.
3. She says she is found a solution ____________ the problem.
4. It took her a long time to recover _____________ the accident.
5. Do you believe _____________ life after death?
6. I apologized __________ Sam ___________ breaking the chair.
7. She is very proud ____________ her new motor bike.
8. The house is quite close ____________ the shops.

3. Reading

Read the text again and answer the questions:

1. What percent of tax relief some leading accountants manage to get themselves?
2. When did the modern wave of tax avoidance start?
3. In which goods did employers begin to pay?
4. What is the name of the device which clever accountants came up with, which
could save their clients income tax?


4. Discussion:

1. What do you think about some of the devices which tax professionals use to cut
the tax bills for their clients?
2. Would you use that kind of service?
3. Would you move to Monaco to avoid paying the tax if you were rich?
19
LESSON 4






NEW YORK (CNNMoney.com) - Mayrose
Wegmann, 25, should have been starting on
her dream career as a political consultant by
now. And saving toward her first home.
Instead, Wegmann, who graduated with a 5
degree in political science and journalism
from the University of Iowa in 2004 and
moved to Washington, D.C., is working at a
non-profit because it pays significantly more
than entry-level politics work. And she won't 10
even consider buying a home for several
more years. In fact, she won't consider much
except how to meet the $300 a month she
owes on her $34,000 student loan balance.
"The school debt makes you decide [about 15
your career] based on the money factor. Not
based on what you want to do," said
Wegmann.
The Class of 2006, set to graduate this
month, will soon be in the same boat. 20
Approximately two-thirds of all students use
loans to pay for their higher education,
according to the Center for Economic and
Policy Research. The average debt is
$15,500 for public schools and $24,600 for 25
private many students rack up even more
on their credit cards.
Call it a reverse dowry: college debt diverts
careers and delays or impedes graduates'
plans to get married, buy a home or even to 30
start a family. The effects can last years.
A 22-year old student graduating this year
who consolidates their $40,000 loan at 6.125
percent will need to pay $243 a month...until
they're 52. By that time, they will have paid 35
$47,494 in interest alone.

A reverse dowry
"My student loan debt is my biggest source
of stress in my life at the moment," said 40
Steve Desroches, a 2002 graduate from
Columbia University's Graduate School of
Journalism. "I live paycheck to paycheck."
20
The degree left Desroches, who works for a
newspaper on Cape Cod, $50,000 in debt 45
with no savings. He's unable to buy a
needed car or to even think about entering
Massachusetts's "out of control" real estate
market.
The repayments were so financially 50
restrictive he briefly considered declaring
bankruptcy, until he learned it wouldn't affect
his student loans because they're federally
guaranteed.
"My feelings about my degree now? My 55
graduate education was invaluable [to my
career], but it wasn't worth $50,000, or more
accurately, it isn't worth the debt. My options
are definitely limited."
Christine Moellenberndt of Sacramento, 60
California has given up on the idea of owning
a home, at least anytime in the next 10-15
years. She graduated last June from the
University of California, Santa Cruz with a
degree in anthropology, and moved back in 65
with her mother when she realized not doing
so would mean living paycheck to paycheck
with no chance of paying down her debts.
"That $675 I could be spending in rent could
also be a good chunk of a credit card 70
payment, or a huge payment for my student
loans. I see that as a bit of a better
investment than living on my own and
struggling paycheck to paycheck."
Moellenberndt says at least half her monthly 75
income working at a state regulatory agency
goes to pay off her $18k in federal student
loans. And although the debt is daunting, her
plans to become a community college
professor call for an advanced 80
degree...hiking her debt in the future.
A growing issue for the economy and
society
The cumulative effect of such student debt
on graduates is unclear, although few would 85
argue that its impact will be positive for the
graduates, the economy or society.
"We've never done this to a generation of
young people before," said Dr. Heather
Boushey, Senior Economist at the 90
progressive Center for Economic and Policy
Research. "We've never put a generation in
their 20s in debt they can't get out of before
they started their work life."
"The normal approach in any healthy society 95
is to help young married couples get started
in life through marital gifts, dowries, and the
like," Allan Carlson of the socially-
conservative Howard Center for Family,
Religion, and Society said. 100
"We now burden many young adults with
student debt, sometimes massive in nature;
the price being paid includes marriages
delayed or foregone and fewer children. This
is foolish public policy." 105

www.CNNMoney.com

21
I. VOCABULARY

Match up these terms with the definitions bellow:


student loan school debt rack up

repay savings



1. Gradually increase in number or amount.
2. Sum of money which is borrowed by a student, often from a bank, and has to be paid
back.
3. Amount of money prevented from being wasted or spent.
4. Sum of money that needs to be paid to school or university.
5. To pay back.


II. EXERCISES

1. Complete the following sentences with appropriate words from
the box:


monthly income school debt rack up student loan

savings repayments paycheck to paycheck



1. The degree left Desroches, who works for a newspaper on Cape Cod, $50,000 in debt
with no ___________________.
2. In fact, she won't consider much except how to meet the $300 a month she owes on her
$34,000 _____________________balance.
3. Moellenberndt says at least half her ______________________working at a state
regulatory agency goes to pay off her $18k in federal student loans.


22
4. The _________________were so financially restrictive he briefly considered
declaring bankruptcy, until he learned it wouldn't affect his student loans because they're
federally guaranteed.
5. I see that as a bit of better investment than living on my own and struggling ___________.
6. The average debt is $15,500 for public schools and $24,600 for private many students
_________________even more on their credit cards.
7. The _______________makes you decide [about your career] based on the money factor.


2. Phrasal verbs
Match the verbs with their correct definitions.

1. give away A to stop
2. give in B to agree that you have been defeated
3. give on to C to stop doing or having (something)
4. give out D to open in the direction
5. give over E to tell people (something secret)
6. give up F to finish or to not work any longer




Complete the following passages with phrasal verbs from the list above.

1. She was determined not to __________ until she received compensation for the accident.
2. She wouldnt __________ any details of the plan.
3. Its time you _________ pretending you were still a teenager.
4. The patio doors ________ a small courtyard.
5. After her death he ________ grief.
6. Were going to ________ our sports club membership after this year.



23
3. People often react to certain situations by using sounds rather
than real words, and people from different countries often use
different sounds.
Answer the questions below with sounds from the following list.

giddy up! mm! eh? (rhymes with say) wow!(rhymes with how)
whoah! sh! Boo! (rhymes with too) there, there whoops! well?



What do you say if you.
1. want someone to be quiet?
2. dont catch what a friend says?
3. want a horse to start or go faster?
4. comfort a child in a pain and crying?
5. jump out from behind a tree to surprise someone?
6. suddenly lose you balance, or drop something?
7. are waiting for someone to answer your question?
8. are suddenly impressed by something?
9. want a horse to slow down or stop?
10. ..express spontaneous delight?



24
4. Reading

Read the text again and answer the following questions:

1. Why is Mayrose Wegmann working at a non-profit?
2. How many students use loans to pay for their higher education according to the Center for
Economic and Policy Research?
3. Why did Christine Moellenberndt move back in with her mother?
4. What happens with young adults with student debt according to Allan Carlson?





5. Discussion

1. Is there possibility of getting student loans in Croatia?
2. Would a student loan have a great effect on your life in future?





25
LESSON 5


EVERYBODY wants it. Nobody understands it.
Money is the great taboo. People just won't talk 5
about it. And that is what leads you to subprime.
Take the greed and the financial misrepresentation
out of it, and the root of this crisis is massive levels
of financial illiteracy.
Fools and their money 10
(1)___________________________a substantial
proportion of the general public in the English-
speaking world is ignorant of finance, writes Niall
Ferguson, an historian at Harvard University, in his
forthcoming book about the history of finance, 15
The Ascent of Money. He produces a long list of
evidence to support this conclusion.
(2)______________________________________,
four in ten American credit-card holders do not pay
the full amount due every month on the credit card 20
they use most often, despite the punitive interest
rates charged by credit-card companies. Nearly
one-third said they had no idea what the interest
rate on their credit card was.
Financial illiteracy is not limited to subprime 25
mortgage borrowers, then; it is pervasive in all age
groups, income brackets and countries. Subprime
is a mere symptom, says Mr. Ferguson, noting that
many of the students he has taught in the best
universities in the world, including MBA 30
programmers, don't even know the difference
between the nominal and real interest
rate.(3)__________________________________
______________________, because governments
35



and businesses have pushed more of the
responsibility for financial well-being onto 40
individuals, whether by encouraging
homeownership or by promoting personally-
managed retirement accounts rather than defined-
benefit pensions.
If you can make it there 45
One of the most interesting attempts to combine
teaching and superior products is taking place in
New York, championed by a mayor, Michael
Bloomberg, who made his fortune selling financial
information.(4)_____________________________ 50
_____________, which is trying to use the powers
of government to promote both financial education
and better design of financial products.
(5)_______________________________________
_________, which often fail to provide the products 55
that poor consumers most want. That, at least,
seems to be the conclusion of a recent survey in two
of New York's poorer neighborhoods. Many people
were using fringe financial products such as pay-
day loans or money orders rather than the services 60
of mainstream banks.
The mainstream financial providers are missing
genuine markets, says Mr. Mintz. One of the open
secrets in this industry is that when people are
engaged in behaviour that seems irrational, often it 65
has a rational basis. Which only goes to show that
consumers are sometimes only as literate as the
products the financial-services industry chooses to
sell them. ( Economist, 2008.)
26
I.READING
Read the text and complete the paragraphs using the sentences
below.

a) Indeed, one of the biggest problems may be the illiteracy of financial-service firms,
b) It is a well-established fact that
c) He has created an Office of Financial Empowerment,
d) This problem is more pressing than ever, he adds,
e) According to one survey last year,


II. VOCABULARY

Match the words from the text with their corresponding
definitions.

1. pervasive
2. survey
3. taboo
4. mainstream
5. fringe



A meant not to do sth or talk about sth
B the act of examining and recording the measurements; a
general study
C existing in all parts of a place or thing
D the outer edge of an area or a group
E the ideas and opinions that are thought to be normal because
they are shared by most people


27
III. EXERCISES
1. Put each of the following words or phrases in its correct place
in the sentences below.

broke quid mortgage
hire purchase chickenfeed make ends meet installment

1. Im afraid I have no money at all. Im completely ____________.
2. She finds London very expensive. She says she cant ____________ on less than 100 a
week.
3. To a multi-millionaire 100 is ___________.
4. Can you lend me a couple of ___________?
5. I managed to get a ___________ to buy a house. Ill be paying it back for the next 20
years.
6. He lent me the money but he didnt trust me completely and asked me to give him an
__________.
7. I couldnt really afford the car so I got it on __________ and paid monthly until it was
finally mine.



28
2. Put the verbs in correct form.

1. Once this room is finished, we ____________(paint) six of seven rooms in the house.
Not bad for two days work.
2. By the time we reached Frankfurt I ____________(already/be) very tired of driving.
3. There was a terrible atmosphere in the room. But once I ____________(bring) the
matter out in the open, everyone seemed much more relaxed.
4. Who knows what _____________(may/happen) if you had accepted the job in South
America last year.
5. How long _____________(you/live) there before coming here?
6. She ____________(live) in this house for years.
7. My friend is a teacher . Really? How long _____________(she teach).


3. Discussion
1. Have we become too materialistic?
2. What role will money play in the world in the future?
3. How important are materialistic possessions in your life?
4. What kinds of things in life do you think bring true happiness?
5. What does the way we spend our money show about us?




29
LESSON 6


Over the decades, tourism has experienced
continued growth and deepening diversification to
become one of the fastest growing economic
sectors in the world. Modern tourism is closely
linked to development and encompasses a growing
number of new destinations. These dynamics have
turned tourism into a key driver for socio- economic
progress.
Today, the business volume of tourism equals
or even surpasses that of oil exports, food products
or automobiles. Tourism has become one of the
major players in international commerce, and
represents at the same time one of the main income
sources for many developing countries. This
growth goes hand in hand with an increasing
diversification and competition among
destinations.
This global spread of tourism in
industrialised and developed states has produced
economic and employment benefits in many related
sectors - from construction to agriculture or
telecommunications.
The contribution of tourism to economic
well-being depends on the quality and the revenues
of the tourism offer. NWTO assists destinations
in their sustainable positioning in ever more
complex national and international markets. As the
N agency dedicated to tourism, NWTO points
out that particularly developing countries stand to
benefit from sustainable tourism and acts to help
make this a reality.

ey numbers:
From 1950 to 2005, international tourism
arrivals expanded at an annual rate of
6.5, growing from 25 million to 806
million travelers.
The income generated by these arrivals
grew at an even stronger rate reaching
11.2 during the same period,
outgrowing the world economy, reaching
around S$ 680 billion in 2005.
While in 1950 the top 15 destinations
absorbed 88 of international arrivals, in
1970 the proportion was 75 and
decreased to 57 in 2005, reflecting the
emergence of new destinations, many of
them in developing countries.
Current developments & forecasts:
Worldwide arrivals reached 842 million in
2006, representing a 4.6 year on year
growth.
By 2020 international arrivals are
expected to surpass 1.5 billion people.

www.unwto.org
30
I. EXERCISES

1. Complete the summaries using the phrases given.

furthermore besides while also moreover both as well as


Tourists help the economies of the places they visit, (1) .......... by directly providing
jobs in the tourism industry and by spending money on other local goods and services. (2)
.........., in some cases, income from tourism is spent on conserving the local environment. (3)
.......... spending money, the presence of tourists can (4) .......... help make peoples daily lives
more varied and interesting.

The local community can benefit from the interest created by having different people
pass through, (5) .......... the environment can improve if money from tourism is invested in
conservation. (6) .........., (7) .......... providing employment for lots of local people in hotels
and other tourist facilities, the economy can benefit from increased spending on shopping and
souvenirs.

2. Read the two correct summaries again and answer the
questions.

1. How does the organization of information differ in the two summaries?
2. Is there a logical structure to the way that the information is presented?
3. Which words and phrases are used to indicate that the sentence is making a new
point?


31

3.Expressions with run, look and catch


Match the phrases with run, look and catch.


a business
somebody red-handed
on the bright side
run out of
look short of
catch down your nose at
for it
like a drowned rat
someones eye
a gift horse in the mouth


II.GRAMMAR

1. Describing trends and change. Correct the mistake in each
sentence.

1. The price of home computers has reduced dramatically.
2. More and more people buy air tickets on line nowadays.
3. In the past six months, the rate of inflation doubled.
4. I am having less and less free time these days.
5. There has been a steady increase of the number of car thefts.
6. Its getting more and more easy to find a job.
7. The divorce rate has increased strongly over the last ten years.
8. These days, people are working increasingly longer hours.
32
2. Put the verbs in brackets into a correct form.


1. We ___________ TV when it started to rain. (to watch)
2. I _________ to visit you yesterday, but you ___________not at home. (to watch, to be)
3. Look! It__________, so we can't __________to the beach. (to rain, to go)
4.There are a lot of clouds! It ____________soon. (to rain)
5. The sun __________ in the East. (to rise)
6. Since 2003 they __________ their son every year. (to visit)
7. While the doctor _________ Mr. Jones, his son _________ outside this morning. (to
examine, to wait)
8. I _________ for my girlfriend for two hours. (to wait)
9. After Larry _________ the film on TV, he decided to buy the book



33
LESSON 7





Tourism is ever more frequently praised as an
important instrument of nature conservation.
Income of tourism can help to finance protected
areas and to safeguard ecologically sensitive
regions against more environmentally damaging 5
alternative uses. Nature-based tourism can
contribute to promoting the environmental
education of both tourists and the local
population. However, tourism is not the white
industry that it likes to call itself. 10
Tourism is responsible for a
considerable proportion of burgeoning global
transport volumes and associated
environmentally damaging pollutant emissions.
The arrival in a holiday destination is generally 15
by car, bus, aircraft or railway. Tourists consume
about 90 percent of the primary energy required
during a holiday for transportation during their
arrival and return journey. The emissions
generated by this are one of the main 20
environmental problems of tourism Particularly
the pollution caused by air transport which is
largely for tourism - is continuously rising, with
an annual growth rate around 5 percent. Air
traffic is expected to double over the next 15 25
years. Worldwide civilian air transport already
consumed 176 million tons of kerosene in 1990,
releasing 550 million tons of carbon dioxide and
more than 3 million tons of nitrogen oxides.
While it has been possible to halve energy 30
consumption per aircraft over the past 20 years,
the rapid growth in global air traffic has meant
that absolute energy consumption has
nonetheless risen by 50%. As do other sectors,
tourism consumes resources and generates 35
wastes. It is frequently in conflict with other
forms of resource use, sometimes it is
complementary. An intact balance of nature is
one of the essential foundations of the tourism
sector. However, the environmental damage 40
caused by tourism can go so far that the region
loses its attractivity as a destination and is no
longer visited by tourists as has already
happened in certain Mediterranean regions.
The high water demand of tourists is a 45
major problem, particularly in areas where water
resources are scarce, as here the tourists are often
supplied at the cost of the local population. In
most tourism regions in developing countries,
wastewater and solid waste disposal are not 50
properly managed. Tourism centre with greatly
increased solid waste and wastewater risings are
already sources of serious ecological damage and
health risks. The land requirement of tourism is
enormous, as it often develops separately from 55
autochthonous infrastructure and land use. Thus
34
the construction of land-intensive hotels and
camps, camping sites, golf courses and sports
facilities or of tourism-oriented transport
infrastructure (access roads, parking lots, 60
funiculars and airports) only indirectly has a
positive effect for the local population, while
leading to massive environmental damage:
Coastal areas are dammed in, wetlands are
drained, dry areas are irrigated, forests are cut 65
down and coral reefs are blasted. The great
demand for building materials in the tourist
centers leads to construction sand being
extracted in large quantities from the beaches,
limestone from the coral reefs and construction 70
timber from the coastal mangrove forests,
whereby the ecosystems involved suffer massive
damage. Where tourists or dealers collect corals
and shells, this impairs coral reefs and the
species composition of ecosystems. The trade in 75
products of endangered animal and plant species
is frequently in violation of species conservation
laws.
Many tourism activities such as skiing,
skin diving, boating, mountain hiking and 6 80
trekking stress natural areas and their animal and
plant life. In many cases it is precisely nature-
based tourism, which opens up previously
undeveloped natural areas to tourism activities,
that causes or exacerbates ecological 85
degradation. Thus for instance trekking tourism
creates environmental stress in mountain regions
through wastes and logging.
The European
90




95

35

EXERCISES

1. Explain in your own words the meaning of the following
sentences and discuss them:

1. Nature-based tourism can contribute to promoting the environmental education of both
tourists and the local population.
2. An intact balance of nature is one of the essential foundations of the tourism sector.
3. In most tourism regions in developing countries, wastewater and solid waste disposal are
not properly managed.



2. Complete the following sentences using the words: species,
"white industry", violation, damage, arrival and region:

1. The branch known as tourism is not quite a _______________ that it likes to call itself.
2. The ___________ in a place where you are about to spend your holiday is generally by
car, bus, plane or train.
3. The ______________ to the environment caused by tourists can even go so far that the
____________ in the future could lose it's attractively as a destination.
4. In situations where tourists collect corals and shells, this damages coral reefs and the
_______________ composition of entire ecosystems.
5. Trading with products of endangered animal and plant species is often in _____________
of species conservation laws.

36

3. Read the sentences and decide whether the following
statements are true(T) or false(F):

1. Tourism is not responsible for environmental damaging. T F
2. Tourism likes to call itself the "white industry". T F
3. A major problem of tourists is the high water demand. T F
4. Many tourism activities stress natural areas. T F
5. Income of tourism can't help to finance protected areas. T F
6. Tourism consumes resources and generates waste. T F



4. Find words in the text which are synonyms for the words or
expressions below:

1. preservation or restoration of the natural environment and wildlife (paragraph 1)
2. the action of emitting something, especially heat, light, gas, or radiation (paragraph 2)
3. the action or process of consuming (paragraph 2)
4. relates to the whole world (paragraph 2)


5. Match the phrasal verbs on the left with the definitions on
the right:

1. running through A examine
2. run eye over B show someone how to do it
from beginning to the end
3. in the short run C leave before it is finished
4. to walk out on (someone) D moving along within
5. walk (someone) through E in the near future
6. walk out (of something) F end the relationship with someone
37
6. Put each of the following phrases in its correct place in the
sentences below.


out of the blue in the red a black sheep
once in a blue moon red tape green with envy
to have green fingers in black and white to catch someone red-handed



1. The offer of a job sounded very good on the phone but I shant believe it till I have it
__________.
2. I must remind you that this is a non-smoking office. I suspect that some of you have been
smoking. If it happen _________, Im afraid it will mean dismissal.
3. To import firearms into Britain youll have to fill in a lot of forms. Theres a lot of
_________.
4. If you want to be a successful gardener, of course youve got __________.
5. The rest of the family were respectable, honest people but he was always in trouble. Im
afraid he was __________.
6. When I saw him in a new sports car, I was __________.
7. Tourists often go to the Louvre but most Parisians only go _________.
8. The firm is ________. It owes a lot of money.
9. I had lost touch with Jack, and then one night he arrived at my flat right _________. What
a surprise.



38
LESSON 8







Close to one-fifth of the burden of disease in
developing countries can be attributed to
environmental risks. Much of this falls on our
children, as about two-fifths of infant mortality
is associated with environmental factors. 5
Looking closer at the major environmental
risks, about 1.7 million premature deaths are
attributable to unsafe water, poor sanitation,
and poor hygiene. As many as one-third of
these occur in Africa. Urban air pollution is 10
estimated to result in about 800,000 premature
deaths annually, and many developing
countries are rapidly urbanizing. But most
poor people still live in rural areas, where
traditional fuels from biomass and coal are the 15
main sources of energy.
Indoor air pollution from solid fuels is
estimated to inflict an even greater burden of
disease than outdoor air pollution does.
Against this backdrop, Environment Matters 20
focuses this year on the strong links between
environment and health.
There is also a direct connection to economic
growth: without a healthy, productive labor
force, we will not have the economic growth 25
that is necessary to ensure a pathway out of
poverty.
There is emerging evidence that climate
change is also contributing to the burden of
disease in poor countries: more frequent and 30
intense droughts and floods; extension of
habitats for disease vectors (spreading malaria
and dengue fever, for example); expanding
areas where plants and livestock are impacted
by pests and pathogens; lower yields of some 35
agricultural crops (in turn impacting nutrition);
Stalinization of coastal areas , including
freshwater supplies resulting from sea level
rise; and so on.
40



39
In 2000, more than 150,000 premature deaths
were attributed to various climate change 45
impacts, according to the World Health
Organization. Behind the statistics are scores
of human tragedies. Young lives are cut short,
and productive lives are hampered by frequent
and often painful disease. These are daunting 50
challenges, but
Environment Matters provides many inspiring
examples of ways we can successfully meet
them.
Achieving substantive progress in delivering 55
clean water, improved sanitation, cleaner air,
and a safer environment to millions of poor
people will be the result of concerted efforts
involving governments, communities, civil
society organizations, the private sector, and 60
donors.
It is time for action. The Worlds political
leaders have reaffirmed their collective
commitment to achieving the Millennium
Development Goals. Further, the July2005 65
Summit of the G-8 countries heightened the
industrialized countries support to
environmentally sustainable development for
the benefit of the Worlds poor. The
Millennium Ecosystem Assessment has 70
contributed to raise international awareness
and to strengthen the global commitment to
foster a healthy environment for this and future
generations.
www.krepublishers.com 75



40
EXERCISES

1. Match each word on the left with word on the right side. The
text will help you. Then use each expression in sentences below:

1. environmental A deaths
2. premature B short
3. strong C development
4. cut D factors
5. sustainable E links


1. About two-fifths of deaths in infants is connected with _______________.
2. Almost 2 million _________________are a consequence of unsafe water or bad sanitation.
3. Environment Matters has its eye sight set this year on the ______________between
environment and health.
4. Many young lives are ____________, and productive lives are hampered by frequent and
often painful disease.
5. The July2005 Summit of the G-8 countries heightened the industrialized countries support to
environmentally ________________ for the benefit of the Worlds poor.


2. Answer the following questions:

1. In which countries close to one-fifth of the burden of disease can be attributed to
environmental risks?
2. What can we attribute about 1.7 million premature deaths to?
3. Where do the poorest people live and what are their main sources of energy?
4. What can we consider as a pathway out of poverty?
5. What has the Millennium Ecosystem Assessment contributed to?

41
3. Complete the following sentences by putting the verbs in
brackets in the correct form:

1. A great deal of this burden___________ ( to fall ) on the next generation.
2. Air pollution in cities______________ ( to estimate ) to cause about 800,000 premature
deaths.
3. Evidence is popping up that climate change _____________ ( to contribute ) to the burden of
disease in the Third world countries.
4. According to data in the year 2000., more than 150,000 premature deaths _______________
( to attribute ) to various climate change impacts.
5. The political leaders of the developed countries___________________ ( to reaffirm ) their
collective goal of achieving the Millennium Development Goals.




4. Match the verbs with their correct definitions:

1. stop by A to return to somewhere that you have visited earlier
2. stop up B to remain somewhere at the end of an invent after other
people have left
3. stop back C to make a short visit to somebody /somewhere
4. stop out D to stay at home rather than go out
5. stop behind E to not go to bed until later than usual
6. stop in F to stay out late at night or all night instead of going
home


42
5. Put each of following words or phrases in its correct place
below.

sewage enlightened pesticides sustainable
organic acid rain ecological deforestation
disposal herbicides extinction animal rights


When industrialisation began, little thought was given to its (a) ________ effects. Raw, untreated
(b) _________ was allowed to pollute our seas and rivers. Animals were killed for profit to the
point of (c) ________. The loss of trees through uncontrolled (d) ________ caused erosion and
unstable climate. (e) _______ was caused by the poisonous gases man sent into the atmosphere.
Chemicals in (f) ________ killed animal life. (g) ________ destroyed plants. The balance of
nature was disturbed.
It is only now that we are waking up to the problem. More natural, (h) __________ farming is
advocated. Legislation controls the (i) ________ of waste products into our air and water.
Wildlife organizations are becoming more militant in their fight for (j) ________. Replanting
policies in some parts of the world mean that our forests should in the future be (k) _________.
We can only hope that growing public awareness and (l) _________ legislation will produce a
world which is safe for us and will provide a good quality of life for future generations.



6. Discussion:

1. Can environmental factors influence our health?
2. What do you think about the environment that we are living in?
3. What are the results of people being careless to the environment?
4. What can we do to make things better?
43
LESSON 9







When a series of explosions tore through an oil
depot in Hertfordshire, flames reaching into
the sky were seen from miles away.
Hertfordshire's Chief Fire Officer Roy Wilsher
said:"The damage a fire of this intensity will 5
cause may, or may not, leave clues for the fire
investigation team."
"This is possibly the largest incident of its kind
in peacetime Europe."
Samples of smoke are being taken to 10
determine the long-term effects of exposure, if
any, according to Dr Jane Halpin, director of
Hertfordshire Public Health. People with
existing chest complaints are most at risk,
along with those who breathed in large 15
quantities of smoke. About 2,000 people living
near the site were evacuated, but some have
been able to move back in. Others have been
advised to keep their windows and doors shut.
One person admitted to Watford General 20
Hospital in intensive care with respiratory
problems has been stabilised. Another person
in Hemel Hempstead Hospital was being kept
under observation. Most of the other people
treated suffered minor injuries and were 25
discharged. A security worker at the depot,
Troy Woodland, said: "I sat down and all of a
sudden there was a huge orange light and a
massive explosion which blew the doors
through and knocked me off my chair, and the 30
ceiling fell in." Police officers including anti-
terrorist detectives are investigating, but say
there is "nothing to suggest" the fire was
anything other than an accident. Deputy Prime
Minister John Prescott visited the scene of the 35
blasts as survivors told of their escape.
Tanker driver Paul Turner said he ran for his
life after the explosion lifted him off his feet.
"I just saw this great big ball of fire come up
from behind the building. It was about 50 40
meters wide," he told the BBC. "Then there
was the loudest explosion I have ever heard in
my life. I got up, turned around and ran to my
car and sped out of there as fast as I could."
Many houses have been damaged, with some 45
reporting feeling effects from the explosion as
far away as Oxfordshire- while the initial bang
was heard as far away as the Netherlands.
The Buncefield depot is a major distribution
terminal operated by Total and part-owned by 50
44
Texaco, storing oil, petrol as well as kerosene
which supplies airports across the region,
including Heathrow and Luton.
Around 50 families had asked the council for
overnight accommodation and are being put up 55
in bed and breakfasts.
Two of the residents now in the leisure centre
are Dominic and Sheila Gizzie, who live only
a quarter of a mile from the blast site."We got
woken up this morning with a huge 60
explosion", said Mr. Gizzie. "We have a lot of
damage, our fireplace was blown out, several
doors came off and the garage door has
broken. The flames were 100ft into the air, I
have never seen anything so big." 65
Helen Glass, from Leverstock Green, was
sheltering at Jarmans Park with her two
children Megan, nine, and William, six. "There
was just a massive explosion and a long
rumbling sound at first I thought it was a gas 70
explosion or that a plane had crashed," said the
26- year-old.
French-owned Total is the world's fourth
largest oil company. Texaco is part of US
group Chevron, the fifth biggest. 75
"We are doing everything we can to support
the emergency services and to bring the
situation under control," said a Total
spokesman.
Firefighters worked to contain the fire, using a 80
"curtain of water" between the flames and the
remaining unexploded fuel tanks. Seven out of
more than 20 tanks remained intact. Each was
said to hold three million gallons of fuel.
Marketing News 85



45
EXERCISES

1. Complete the following sentences with appropriate words:





1. They ________out of town on their motorbikes.
2. Law enforcement officers are still searching for _______ in their search for the cause of
that accident.
3. Only a short __________ to radiation is very dangerous.
4. Patients were ___________ from hospital because the beds were needed by other people.
5. A _________________ is a building containing a swimming pool and a large room or
other places where you can play sports.
6. A chimney above the _________ allows smoke to escape through the roof.
7. People went to the doctor complaining of _________ pains.
8. It's isnt easy to come back from such a scandal with your reputation still __________.


2. Match the verbs with their correct definitions:

1. knock up A To cost someone a large amount of money
2. knock out B To destroy and remove
3. knock back C To stop working or doing something
4. knock off D To hit (someone) so that they become unconscious,
or (of a drug) to cause (someone) to go to sleep
5. knock down E To wake (someone) up, by knocking on the door of their
house or bedroom

discharged leisure centre clues tore

fireplace exposure intact chest


46
3. Put the verbs in correct form:

1. First ____________ ( to open ) in the 60s, Total-Texaco facility __________ (employ)
16 workers and is the fifth largest such depot in Great Britain.
2. It __________ ( to handle ) some 2,37 million metric tones of petrol and other oil products
a year, __________ ( fill ) 400 tanker lorries per day.
3. The pipeline from the Lindsey Oil Refinery on Humberside _____________( to complete
in 1990.
4. A further pipeline then ___________ ( to continue ) directly from Buncefield carrying
aviation fuel to Heathrow.
5. Evidences that could explain how the explosions __________ ( to happen ) may
___________ ( be ) destroyed by the fire.
6. A special kind of crane ___________ ( be ) brought in to help with the operation.





4. Answer the following questions:

1. What happened when a series of explosions tore through an oil depot in Hertfordshire?
2. What happened with people living near the site?
3. How did a security worker describe the situation?
4. What some people said about the damage?









47
5. Put each of following adjectives in its correct place in the
sentences

blunt scratched smeared shabby
torn shop-soiled filthy soiled
rusty stained smudged faded


1. He was very angry when he saw that his new car was _______. Another car must have run
along the side of it.
2. The curtains were bright red when we bought them, but theyve become _________ in the
strong sunlight
3. That jacket needs cleaning and its rather old. I think its too _______ to wear.
4. If you need a banknote which is ________ in two, take it to a bank and exchange it for a
new one.
5. Buy our new design Travelbag. The different compartments will enable the traveller to
keep clean and _______ garments separate.
6. When she was two years old, she used to experiment with her mothers lipstick. Her face
was always _______ with it.
7. See those red-brown bits? Thats where machine is beginning to go _______ because its
unprotected from the rain.
8. You can see the ceiling is ______ where the rain came through.
9. This radio is a bit _______ after being in the shop for nine months, so Ill knock 10 off
the price.
10. Let the ink dry before you put another piece of paper on top of it. Otherwise itll be
_______.
11. The knife isnt sharp, its _______. Give me another one.
This shirt isnt just dirty, Bobby. Its absolutely ________!
12.






48
6. Using the words from the list at the top of the exercise
above, say what kind of damage or wear the following items can
suffer.

a photograph a book a car in an accident
a coat a razor-blade a car after long use
a television set a piece of furniture




7. Discussion:

1. What do you think are the long-term consequences of this disaster?
2. What should governments do in order to prevent that something like this happen?










49
LESSON 10






A settlement between two old rivals may have great significance

SOMETIMES a seemingly modest business deal
can change the course of an industry. This is
particularly true in high tech. In 1980, IBM
licensed an obscure piece of software known as
DOS from an unknown start-up called Microsoft 5
thus creating the conditions for Bill Gates to build
the world
/
s largest software firm. Will a settlement
announced on May 29th between Microsoft and
AOL Time Warner, a huge media conglomerate,
one day be seen as the birth of another 10
Microsoft killer application: the platform for
delivering music, video and other digital content?


Given recent shifts in strategy by both firms, it 15
is no surprise that the old rivals have buried the
hatchet. Gone are AOL
/
s bubbly ambitions to be a
force in technology. Its online service is hurting, and
most of AOL
/
s former executives have stepped aside.
Netscape, an Internet pioneer which AOL bought in 20
1998, may be scrapped altogether. Microsoft, for its
part, is focusing more on the software business after
many loss making forays into the media world.
50
AOL will collect $750m to settle a private
antitrust suit it had brought against Microsoft for 25
abusing its Windows monopoly in its fight with
Netscape. This is much less than AOL Time
Warner
/
s lawyers had expected when they filed suit
in January 2002, but nothing to sneeze at for a firm
that is struggling to pay down debt of over $25 30
billion. Also, Microsoft will give AOL a royalty
free licence to its Explorer web browser for seven
years, early access to new versions of Windows,
and help in distributing software for AOL
/
s online
service (which has been losing subscribers lately). 35
Yet the long run winner may well be
Microsoft. AOL has pledged to explore ways to
allow its instant messaging (IM) services to operate
with Microsoft
/
s own IM offering probably
solving a long term dispute between the firms. 40
Moreover, Microsoft has rid itself cheaply of a
legal headache and can now focus on the two
important outstanding antitrust cases against it. Sun
Microsystems, Microsoft
/
s other rich rival, has also
filed a private antitrust suit, which will most likely 45
take more than cash to settle. And European
trustbusters have yet to issue a ruling in their
investigation of the software giant.
But the settlement
/
s most important aspects
are not about Microsoft
/
s past efforts to control the 50
web browser market, but rather its future plans in
digital media. The deal turns AOL into a
potentially powerful ally for spreading Microsoft
software for distributing music and video. AOL
will get a long term licence to use this 55
technology. It will also work with Microsoft to
solve a huge digital dilemma: how to deliver
content online in a way that makes piracy hard, but
does not put off consumers.
60
Given their technical expertise and market clout,
both firms could indeed develop such solutions and
deploy them widely, thus giving consumers more
ways to obtain high quality content legally. But
there is also a danger: that the co operation with 65
AOL puts Microsoft on course to control the software
infrastructure for delivery of digital content. Because
of strong network effects, this market (just like PC
operating system) is likely in the end to be dominated
by a single vendor. 70

To be sure, Microsoft now lags behind
competitors in digital media technology, notably
RealNetworks and Apple, which recently launched,
with its iTunes Music Store, the first online music 75
service that appears to satisfy both content providers
and consumers. The firm has sold 3m songs for 99
cents each since it launched the service on April 29th.
Also, AOL says that its licence from Microsoft is non
exclusive and that it will still use rival technologies 80
(although many investors have doubts shares in
RealNetworks fell by over 10% after the settlement
was announced).
The impact on the agreement will indeed
depend on which digital media technologies AOL 85
decides to use. Unfortunately, the details of the
settlement are being kept confidential. Microsoft
/
s
competitors can only hope that AOL has thought that
all eventualities as IBM did not with DOS.
90
The Econ
51
EXERCISES

1. After reading the text answer these questions:

1. On what is Microsoft focusing?
2. Did AOL Time Warner expect to collect $750m?
3. What are the settlement
/
s most important aspects?
4. What is the danger in co operation with AOL?
5. In what does Microsoft now lag behind?




2. Decide whether the following statements are true (T) or false
(F):

1. In 1980, IBM licensed an obscure piece of hardware. T F
2. Netscape may be scrapped altogether. T F
3. Microsoft won
/
t give AOL a royalty free licence to
its Explorer web browser. T F
4. Sun Microsystems is not Microsoft
/
s rich rival. T F
5. The impact on the agreement will depend on which
digital media technologies AOL decides to use. T F


3. Fill the gaps with the words from the text:

1. AOL will collect $750m to ____________ a private antitrust suit it had ______________
against Microsoft for abusing its Windows monopoly in its fight with Netscape.
2. This is much less than AOL Time Warner
/
s lawyers had _____________ when they filed
suit in January 2002, but nothing to sneeze at for a firm that is struggling to pay down
debt of over $25 billion. Sun Microsystems, Microsoft
/
s other rich rival, has also filed a
private ______________ , which will most likely take more than cash to settle.
52
3. And European ______________ have yet to issue a ruling in their investigation of
the_______________.
4. Given their technical expertise and market clout, both firms could indeed _____________
such solutions and deploy them widely, thus giving consumers more ways to
_____________ high quality content legally.
5. The firm has sold 3m songs for 99 cents each since it ________________the service on
April 29th.



4. What are the benefits that the co operation between AOL
and Microsoft would bring?



5. Phrasal verbs and nouns with turn
turn into (line 74)
A) Match the following verbs and nouns with the correct definitions

1. turn up A do something in a agreed order
2. turn down B the amount of sales in a certain period of time
3. turn over C do business or sell goods worth a certain amount
4. turn round D make a business profitable again after it has had losses
5. turn out E a point in time when an important change takes place
6. turn against F the number of workers employed to replace those who
have left
7. take turns G produce
8. turning point H refuse, reject
9. turnover I change ones attitude and become hostile
10. turnover J arrive, appear




53
B) Complete the following passages with words from the list above.
1 I work for a kitchen appliance manufacturer . Were a fairly large organisation. Our
.. (1) is over 20m annually, and Id say we (2) roughly 2,000
units a month. Were profitable now but we had a difficult time in the early 1980s. We almost
went bankrupt. The .. (3) was when we got a new Chief Executive. Within two
years, he completely (4) the company. Now were doing well. Our only
problem is that our labour (5) is rather high well above average for the
industry.
2 Im meant to start work at 8.30 a.m. but I often (1) late. On Fridays,
someone in the office has to work until 10 p.m. We usually . (2) its fairer that
way. I quite like my job and I dont want any more responsibility. In fact, Ive already
.. (3) two offers of promotion, much to my bosss annoyance. I hope he doesnt
(4) me because Ive refused opportunities for promotion. By the way, my firm
(5) about 200,000 a month.



6. Put each of the following words or phrases in its correct place in the
sentences below.


numismatist standing order currency expenditure
counterfoil counterfeit statement bounce
legal tender
1. You can change your ________ at my bank.
2. She held the note up to the light to make sure it wasnt ________.
3. She collects coins and banknotes. Hes a ________.
4. I always fill in the ________ when I write out cheque. Otherwise I would lose track of my
_______.
5. I dont trust him. Im sure his cheque will ________.
6. I pay my rent by ________. It saves me having to write a cheque every month.
7. The bank sends me a detailed ________ every month.
8. Dont worry. Scottish banknotes are ________ in England too.
54
LESSON 11




It is probably the case that of everyone
who reads this review the vast majority will have at
some time or another signed up to a loyalty-
marketing program. Be it air miles, credit card
reward points, money-off vouchers or luxury gifts, 5
most of us are collecting for something whenever
we shop. In the UK, for example, thousands of us
think nothing of handing over our Nectar card when
we shop at Sainsbury`s.
But as customers, how often do we 10
actually cash this points in? How often do we feel
really excited by what is on offer? Most
importantly, how often do we feel our loyalties to
these stores increases? Does not everyone offer a
card these days? Are we not, in fact just bored of 15
them?
When the first loyalty cards hit the
market, uptake was huge and rewards for
marketers very
high. Not only 20
could a company
help ensure a
customer came
back to them
over their 25
competition, but
with the
increased spend came a series of valuable data
which refined their knowledge of who they were
trying to sell to. 30
Consumers are evermore difficult to
please, and uptake on offers is reducing. In the US
the rate of membership growth slowed from 30
percent in 2000 to 4 percent in 2003, and on
average only a quarter of members redeems their 35
promotional currency.
Watching this downward trend, marketers
fear the loyalty-card is on its way out.
One repeated suggestion is that customer
uptake is diminishing because the technology 40
involved is becoming too complicated. Although
advanced means of collecting data can be highly
useful from the company`s point of view, if this
technology becomes central to the added value
offered to the customers than it is unlikely they will 45
respond well.
Yet in "Loyalty-marketing for the twenty-
first century" Capizzi and Ferguson argue that this
loyalty-marketing that takes advantage of current
technology still has a lot to offer if only marketers 50
thought a little harder about how they put the
program into practice. Customers are now well-
versed in what these schemes are about, and there is
a lot of market for them to choose from. However,
loyalty-cards will continue to work well, provided 55
that the value proposition is attractive enough.
This is the crux of Capizzi and Ferguson`s
argument. Their belief is that imagination is now
central to the ongoing success of this strategy. As
consumers we are tiring of offers that ask us to 60
collect points in exchange for money off vouchers,
standard gift tokens and uninspiring "toaster" - style
presents. This is no doubt that this is one of the
reasons why the rate of uptake of these programs
55
has slowed so much - customers are simply failing 65
to see the added benefit as enticing enough to keep
them going back to the same store.
What is lacking is what Capizzi and
Ferguson label the Wow! Factor, which in most
cases means the offer of a reward with more soft 70
benefits. This could be an otherwise unobtainable
experience, such as Harrods of Londons day with a
top jewelry designer. For the wealthier customer,
whose disposable income is any firms main target,
these rewards are far more likely to attract than 75
money off schemes and low-value household
goods.
The obvious downside to all this, of course
is that it costs money. Marketing departmens should
be very careful to calculate their potential ROI to 80
make this kind of deluxe loyalty scheme work.
Often the simplest answer is coalition.
All over the world companies are now
seeing the benefits of sharing set-up, processing and
redemption spend of loyalty-schemes by partnering 85
with firms who offer complementary products.
The trend is to focus on one group of
society and bring together a band of services and
products that most suit them. So ClubMom, inc. in
90
the US, for example, offers mothers the change to
collate points earned at partners Farmer Jack
supermarkets, JCPenney, Payless Shoe Source,
Nine West Stores, Pier 1 Imports and Radio Shack.
Covering technology, food, household goods and 95
clothing, this proves an attractive offer to many
women, and in return they get spa visit,
housecleaning services, romantic dinners and other
such gifts chosen with the harassed mom in mind.
The potential to set-up similar coalitions 100
to target students, those in retirement, the gay
community and so on is huge. The trick with such a
program is to be the first to market, to offer real
value and not to overlook the weight of
amalgamated everyday spend. 105
Loyalty-marketing still offers that list of benefits
that first attracted firms over a decade ago. Yet in
a changed climate with a weary consumer
marketers cannot afford to be lazy in the way they
think about this tried and tested formula. With their 110
tips as a starting point, Capizzi and Fergusons
simple advice is "lead, follow or get out of the
way".
Strategic direction


56
I. VOCABULARY

Find words or expressions in the text which correspond to the
following definitions:
1. to be slow or fast at learning or understanding things (line 19)
2. a union of separate political parties or people for a special purpose (line 91)
3. saved from evil (line 94)
4. the main or most important part of a problem, question, argument etc. (line 66)
5. the quality of being loyal to a particular person, set of beliefs, or country (line 3)
6. a kind of ticket that can be used for a particular purpose instead of money (line 70)
7. the people or groups that are competing against you, especially in business (line 34)
8. to join to form a bigger organization (line 113)
9. a system that you use to organize something (line 90)


















57
II. EXERCISES

1. Reading
Read the text again and decide if the following statements are true (T) or
false (F):

1. Consumers are evermore difficult to please. T F
2. ROI (return on investment) is not important for marketing
department. T F
3. Consumers are pleased with offers that ask them to collect points in
exchange for money off vouchers. T F
4. The trend is to focus on one group of society and bring together a
band of services and
products that most suit them. T F
5. Loyalty-marketing still offers that list of benefits that first attacked firms over a decade
ago. T F
6. Customers are failing to see the added benefit as enticing enough to keep them going back
to the same store. T F


2. Phrasal verbs: to lead, to follow and to get
Match the following verbs with the correct definitions.
a) to lead:
1. to lead off something

2. to lead something on
3. to lead to something

4. to lead up to something

A to make something happen or exist
as a result of something else
B to begin an event by doing something
C to make someone believe something
that is not true
D to come before something and be a
cause of it

58
USAGE NOTE: lead, guide, and direct
To lead means to show the way by going first: He led us down the mountain. To guide
means to show the way and explain things: She guides tourists
around the White House. To direct means to explain to
someone how to get somewhere: Could you direct me to the
station?


b) to follow:
1. to follow something around A to find out more about something
2. to follow something through B to keep following someone
everywhere s/he goes
3. to follow something up C to do what needs to be done to
complete something or make it
successful


c) to get:
1. to get something across A to not do something you have
promised to do or are supposed to do
2. to get around to something B to be able to make someone
understand an idea or piece of
information
3. to get in on something C to do something you have been
intending to do for a long time
4. to get out of something D to be able to make someone
understand something difficult

5. to get through to something E to become involved in something that
other people are doing

59
3. Read the text and answer these questions:

1. What happened when the first
loyalty card hit the market?
2. According to the text, why are
consumers so difficult to please?
3. Explain the Wow factor!
4. Which trend is present on the
market, according to the text?
5. What do Capizzi and Ferguson
advise to marketers?



4. Use the words in the box once to complete the sentences
below.





1. The subject of the study is the level of usage of _____________ razors in the Third World.
2. ______________is the amount of money you have after paying all your
bills, taxes etc., that you can spend on things you want.
3. How did the killer _______________ his victims bodies?
4. I dont feel ______________ interfere in this argument, I have better things to do, said
Jenny to her parents.
5. The countries seem _____________ a conference at the EU headquarters in Luxemburg.



dispose of disposable favorably disposed to

disposable income disposed to

60
LESSON 12


Sporting goods firm Nike and computer
company Apple, two of the world's best-known 5
brands, have decided to join forces and make
equipment for runners.
The firms will release a system that links
Nike running shoes to Apple's iPod nano digital
music players. 10
As well as listening to music, users would
be able to see how far and how fast they have run,
and the amount of calories they have burnt.
Analysts questioned whether it would
appeal to Nike's core youth market. "Is it going to 15
move the needle in terms of them selling more
footwear? Probably not", said John Shanley, an
analyst at Susquehanna Financial Group.

Nike also launched a range of clothing 20
designed specifically for iPods.
Comfortable fit?
An earlier attempt by Nike to link up with
an electronics producer - Philips of the Netherlands
- was not a success. 25
Apple came to Nike after it separated from
Philips, the sports firm's chief executive Mark
Parker said. Nike and Apple said they were a better
fit. "We know that these two brands work really
well together", said Trevor Edwards, Nike's vice 30
president of global brand management. "We share
the same types of consumers", he explained.
Nike's Air+ Zoom Moire shoe will be the
first to incorporate the Nike+iPod Sports Kit. The
kit, which is expected to sell for about $29 (15) 35
and is due for release in the next two months, will
include a small transmitter that fits inside the
running shoe and a receiver that will attach to the
iPod. Users could then either view information on
the iPod's screen or have it delivered audibly 40
through their headphones. Once the run was
finished, the data could be uploaded to an online
diary at www.nikeplus.com.

www.nike.com 45
61
I. VOCABULARY

Match up the words on the left with the definitions on the right:

1. to join/combine forces A the central or most important
part of something
2. to release B to be expected to happen or
arrive at a particular time
3. to appeal to somebody C to work together to do
something
4. core D to include something as part
of a group, system etc.
5. range E to seem attractive or
interesting to someone
6. attempt F to allow goods to be placed
on sale
7. to link up G an act of trying to do
something
8. to incorporate H a set of similar products
made by a particular company
or available in a particular
store
9. to be due F to join







USAGE NOTE force, power, and strength
Force is the natural power that something has: The force of the wind knocked the
fence down. Power is the ability and authority that you have to do something, or the
energy that is used in order to make something work: Congress has the power to make
laws. | Their home is heated by solar power. Strength is the physical quality that
makes you strong: I dont have the strength to lift this.



II. EXERCISES
1. Phrasal verbs
Match the verbs with the correct definitions:

1. To stand in A To be better than somebody
2. To stand for B To take someone's place
3. To stand up for C To represent
4. To stand down D To resign or withdraw
5. To stand out E To defend













63
2. Read the text and answer the following
questions:

1. Which two companies decided to join forces and why?
2. Describe the new running shoe.
3. Who is Trevor Edwards?
4. What kind of information does the new product provide?


3. Word building
Complete the following sentences with the correct form of the word
in italics from the box below:

a) Consumer


1. Americans in general ___________ a lot of beef.
2. We received many calls from ____________ saying they liked the old smell better.
3. _______________ is the idea or belief that buying and selling things is the most
important activity a person or society can do.
4. Trying to be a _____________ politician is like trying to be a person without
weaknesses.
5. Her happiness was ______________ when her father took her to Paris.
6. The ________________ of alcohol is not permitted on these premises.





consummated consumption consummate
consume consumerism consumer

64
b) Market






1. Check the envelopes that are ___________ urgent first.
2. All items in the store have been __________________ for one week only.
3. We could _________ the prices ___ a little and still be competitive.
4. There has been a ____________ increase in crime in the last year.
5. We buy all our vegetables from the farmers ____________.
6. _____________ is the activity of deciding how to advertise a product, what price
to charge for it etc., or the type of job in which you do this.





4. Discussion

1. Would you buy this product? Why?
2. Why are innovations important for
companies?
3. How would you promote the new
product (the running shoe)?
4. Think about the new possibilities that IT
offers to producers. Do you have an idea
for a new product?
marked to mark up to mark

marketing to mark down market




65
LESSON 13







In most (large) corporations there are several levels
of strategy. Strategic management is the highest in
the sense that is the broadest, applying to all parts 5
of the firm. It gives direction to corporate values,
corporate goals and corporate missions.
Under this broad corporate strategy there are often
functional or business unit strategies.
Functional strategies include marketing 10
strategies, new product development strategies,
human resource strategies, financial strategies, legal
strategies, and information technology management
strategies. The emphasis is on short and medium
term plans and is limited to the domain of each 15
department's functional responsibility. Each
functional department attempts to do its part in


meeting overall extent their strategies are derived 20
from broader corporate strategies.
Many companies feel that a functional
organizational structure is not an efficient way to
organize activities so they have reengineered
according to processes or strategic business units 25
(called SBUs). A strategic business unit is a semi-
autonomous unit within an organization. It is
usually responsible for its own budgeting, new
product decisions, hiring decisions, and price
setting. An SBU is treated as an internal profit 30
centre by corporate headquarters. Each SBU is
responsible for developing its business strategies,
strategies that must be in tune with broader
corporate strategies.
The "lowest" level of strategy is operational 35
strategy. It is very narrow in focus and deals with
50
55
66
day-to-day operational activities such as scheduling
criteria. It must operate within a budget but is not at
liberty to adjust or create that budget. Operational
level strategies were encouraged by Peter Drucker 40
in his theory of management by objectives (MBO).
Operational level strategies are informed by
business level strategies which, in turn, are
informed by corporate level strategies. Business
strategy, which refers to the aggregated operational 45
strategies of single business firm or that of an SBU
in a diversified corporation, refers to the way in
which a firm competes in its chosen arenas.
Corporate strategy, then, refers to the
overarching strategy of the diversified firm. Such 50
corporate strategy answers the questions of "in
which businesses we compete?" and "how does
being in one business add to the competitive
advantage of another portfolio firm, as well as the
competitive advantage of the corporation as a 55
whole?"
Since the turn of the millennium, there has been
a tendency in some firms to revert to a simpler
strategic structure. This is being driven by
information technology. It is felt that knowledge 60
management systems should be used to share
information and create common goals. Strategic
divisions are though to hamper this process. Most
recently, this notion of strategy has been captured
under the rubric of dynamic strategy, popularized 65
by the strategic management textbook authored
by Carpenter and Sanders. This work builds on
that of Brown and Eisenhart as well as
Christensen and portrays firm strategy, both
business and corporate, as necessarily embracing 70
ongoing strategic change, and the seamless
integration of strategy formulation and
implementation. Such change and
implementation are usually built into the strategy
through the staging and pacing facets. 75

www.wikipedia.com
67
EXERCISES

1. According to the text, are the following sentences true (T) or
false (F)?

1. Many companies feel that a functional organizational structure is not an efficient way to
organize activities. T F
2. SBU is usually responsible for its own budgeting and deals with activities such as
scheduling criteria. T F
3. There is a tendency in some firms to revert to a wide strategic structure. T F
3. Each functional department attempts to do its part in meeting overall extent, their strategies
are derived from broader corporate strategies. T F
4. Operational level strategies were encouraged by Peter Drucker in his theory of management
by objectives. T F


















68
2. Find words in the text which mean the following:

1. bridge between policy or high-order goal on the one hand and tactics or concrete
actions on the other (line 2)
2. to prevent the free movement, action, or progress of.(line 71)
3. a segment of a business for which cost, revenues, and profits are separately calculated
(line 32)
4. an itemized summary of estimated or intended expenditures for a given period
along with proposals for financing them (line 41)
5. movement or prevailing moment in a given direction (line 65)
6. the coordination of multiple related actions/tasks into a single time sequence (line 40)
7. a relative position or rank on a scale (line 37)
8. to strive against another or others to attain a goal, such as advantage or a victory
(line 53)
9. the purpose toward which an endeavour is directed; an objective (line 6)


3. Answer the questions:

1. Which level is the highest in most corporations and why?
2. Which corporate strategies are most common, and give me your opinion for each one?
3. To which questions the corporate strategy gives answers?
4. What did the Carpenter and Sanders wrote and on what it builds?







69
4. Put each of following phrases in its correct place in the
sentences.

at the time for the time being in the time
at one time at times on the time

1. ________ the streets of the city were lit by gas, but that was at least a hundred years ago.
2. Soon after they met, they decide to get married. _______ it seemed an ideal match. Within
a few years, their different personalities began to cause friction.
3. Shes quite happy in Portugal on the whole, but of course she misses Brazil ________.
4. Were painting our sons bedroom, so _______ hes sleeping in our room.
5. The trains are very punctual. They always leave ___________.
6. When she heard her father was dying, she immediately went to the hospital and arrived just
_________.


5. Phrasal Verbs
Put each of the following phrasal verbs in its correct place in the sentences
below.

run down bear out make up let down
rule out put forward put off leave out

1. Im depending on you to pay me back the money on Monday. Please dont _______ me
______.
2. To cover his absence he decide to _______ a completely false story about being involved in
a car accident.
3. If you think Im wrong, check in the encyclopaedia. Im sure it will _______ me _______.
4. Because of pressure of work, he had to _______ his summer holiday until October.
5. We want to give younger players a chance in the team. Thats why weve decided to
________ you _______ of next Saturdays match.
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6. Theyre very two-faced. Theyre very nice to her when shes there, but they ______ her
_______ behind her back.
7. Id like to ______ a proposal. I suggest we start production in May.
8. The government intend to take very serious measures against this interference in their
countrys affairs. They do not ______ the possibility of military action.



6. Discussion:
1. What kind of organization is the best your opinion?
2. Do you think that companies need someone wholl be the authority?






71
LESSON 14



Simply put, strategic planning determines
where an organization is going over the next year or
more, how it's going to get there and how it'll know 5
if it got there or not. The focus of a strategic plan is
usually on the entire organization, while the focus
of a business plan is usually on a particular product,
service or program.
There are a variety of perspectives, models 10
and approaches used in strategic planning. The way
that a strategic plan is developed depends on the
nature of the organization's leadership, culture of
the organization, complexity of the organization's
environment, size of the organization, expertise of 15
planners, etc. For example, there are a variety of
strategic planning models, including goals-based,
issues-based, organic, scenario (some would assert
that scenario planning is more a technique than
model), etc. Goals-based planning is probably the 20
most common and starts with focus on the
organization's mission (and vision and/or values),


25

goals to work toward the mission, strategies to
achieve the goals, and action planning (who will do
what and by when). Issues-based strategic planning
often starts by examining issues facing the 30
organization, strategies to address those issues, and
action plans. Organic strategic planning might start
by articulating the organization's vision and values
and then action plans to achieve the vision while
adhering to those values. Some planners prefer a 35
particular approach to planning, eg, appreciative
inquiry. Some plans are scoped to one year, many
to three years, and some to five to ten years into the
future. Some plans include only top-level
information and no action plans. Some plans are 40
five to eight pages long, while others can be
considerably longer.
Quite often, an organization's strategic
planners already know much of what will go into a
strategic plan (this is true for business planning, 45
too). However, development of the strategic plan
greatly helps to clarify the organization's plans and
ensure that key leaders are all "on the same script".
Far more important than the strategic plan
document, is the strategic planning process itself. 50



Field Guide to Nonprofit Strategic Planning and Facilitation

72
I. READING

a) Read the text and decide if the following statements are true
(T) or false (F).


1. Strategic plan usually considers taking some kind of action in the
part of an organization.
2. Developing a strategic plan depends on the nature of organizations
Leadership.
3. Scoping plans takes from three, up to ten years.
4. Planning starts with mission or vision.
5. Strategic plan document is more important than the strategic
planning process itself.

b) For questions 1-6, read the text below and decide which
answer ( A, B, C or D) best fits each gap.

If you perform a service or (1) ...... a commodity for others, you should be (2) ....... for your
pains. So much is only fair and right. If you do it well, you deserve to (3) ...... from it. There is
nothing in itself (4) ...... with wealth, nor with any individual or company growing rich. Profit
is an enabler because it takes people and peoples beyond subsistence levels to the amenities
of life, to comfort and culture, to new knowledge and new possibilities. But the picture
changes when profits are (5) ...... out of others loss or suffering. Defenders of high-flying
business people point out that they have responsible jobs, producing wealth which, indirectly
through taxation helps pay nurses wages. But is the chairman of a business (6) ...... 50
nurses?

1. A compose B fabricate C produce D originate
2. A gratified B fulfilled C benefited D rewarded
3. A improve B gain C increase D grow
4. A wrong B bad C inaccurate D mistaken
5. A accomplished B made C composed D constituted
6. A equivalent B valued C worth D estimated
73
II. EXERCISES
1. Phrasal Verbs
Put each of the following phrasal verbs in its correct place in the
sentences below.

break up look up turn in go off
come out turn up break out fall through

1. Its past midnight and Im tired. I think Ill ___________.
2. I waited nearly an hour for them, but they didnt __________.
3. After all the trouble youve taken, I hope your plans dont __________.
4. There is a very real fear that war may _________ soon.
5. Weve had some hard times recently, but I think things are beginning to __________.
6. The emergency services thought that the bomb might ___________ at any moment.
7. The schools ___________ next week. Its almost holiday time.
8. Her new book is due to __________ next month. I wonder what the critics will think
of it.


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2. Business Expressions
Complete the expressions with the correct words from the list
around bankrupt bulk even
stock good creed

1. something worth buying a ___________ buy
2. compare goods or services before buying to shop ____________
3. make neither a profit or a loss to break _____________
4. buy large quantities at a cheap price to buy in ___________
5. not available at the moment out of ____________
6. when a business fails it goes ____________
7. to delay payment of goods by agreement to buy on ___________

3. Expressions connected with time
Rewrite the sentences using the KEY word.
1. I had to get up very early in the morning. CRACK
2. Production at the factory has been temporarily suspended. TIME
3. Dinner will be served at 8.30 precisely. DOT
4. We made a sudden decision to have a party. SPUR
5. You really should look for a job immediately. TIME
6. The ambulance arrived just before it was too late. TIME
7. Its ages since I have been to a circus. DONKEYS
8. There used to be a staff canteen, but that was before I started here. TIME
75
LESSON 15


(Why The Boss May Treat You Right)


New sensitivity training at the office focuses on all
the little ways a tone-deaf manager can demoralize
a staff.
Ever had a boss tell you to keep talking while she
checked her e-mail? How about a team leader who 5
pronounces your name wrong? Such slights may
not mean much individually, but added up they can
lead-at least in terms of employee retention - to
death by a thousand paper cuts.
As corporate America struggles to promote more 10
women and minorities up the ladder, a new
workplace buzzword is moving from executive
suite to lowly cubicle. Part pop psychology, part
human-resources jargon, the term microinequities
puts a name on all the indirect offenses that can eat 15
don't so much teach office etiquette as hold up a
mirror showing how such minor, often nonverbal
unpleasantries affect everyone.
This growing awareness is due largely to the efforts
of globetrotting consultant Stephen Young, a 20
former chief diversity officer at JPMorgan Chase
who has addressed audiences as varied as rocket
scientists at Raytheon and readers of Seventeen
magazine on the power of small signals. "It's not so
much what I say, but what you hear," he says. One 25
of his most effective demonstrations - the one that
has left even mighty CEOs stammering - has him
role-playing a guy who is less and less interested in
what a speaker is saying. "When you do this,"
Young says of the exercise, "you see performance 30
change right on the spot."


76
His goal is to make even hardened executives 35
recognize themselves - or, at the very least, their
superiors - when he acts like the bigwig who keeps
glancing at his watch during a meeting or cuts off a
colleague midsentence to answer his cell phone.
"It's not just mumbo-jumbo, feel-good diversity 40
training," says Gerald Lord, V.P. of finance and
strategy for Campbell Soup's North American
division. After sitting through one of Young's
three-hour, Dr. Phil - style seminars last month,
Lord is convinced that getting his fellow 45
executives to pay attention to micro gestures can
help improve Campbell's bottom line.


www.time.com
77
I. VOCABULARY:

1. Match these terms with
the definitions below:






Answer the following quest


1. the person in charge
2. a word or expression form a particular subject area, that has become fashionable by being
used a lot, especially on television and in newspapers
3. the set of rules or customs which control accepted behaviour in particular social groups or
social situations
4. words or activities that are unnecessarily complicated or mysterious and seem meaningless
5. a person who has an important and powerful position
6. pretending to be someone else, especially as part of learning a new skill
7. someone who travels frequently to a lot of different countries
8. a persons ability to do more than one thing at a time
9. not fair: good for some and bad for others
10. to do something which starts an activity, or to start doing something in order to encourage
other people to do the same



2. Find words in the text that mean the following:

1. to repair and improve
2. the pleasant feeling you get when you are doing something you wanted to do
3. the right of a group of people to govern itself or to organize its own activities
4. a list of planned activities

bigwig buzzword multitasking mumbo-jumbo role-play

etiquette inequitable globetrotter honcho get the ball rolling
78
II. EXERCISES

1. Answer the following questions:

1. What does a new sensitivity training at the office focus on?
2. Who is starting to hold training seminars? What do these seminars teach?
3. Who is Stephen Young?
4. What is Gerald Lord convinced in?

2. Phrasal verb: hold
Match the verbs with their correct definitions:

hold down hold off hold on hold into hold out for
hold out on hold to hold up hold up as


1. to wait for a short time
2. to hold something or someone firmly with your hands or your arms
3. to use someone or something as an example of something, especially very good
4. to keep someone or something in a particular place or position and to stop them from
moving
5. to refuse to give help or information to someone
6. to not do something immediately
7. to wait until you get what you want
8. to cause someone to act on a promise or agreement
9. to delay someone or something
79
3. Grammar: tenses
Complete the sentences below with an appropriate phrasal verb ( hold )
Pay attention to the correct tense!

1. Lets ____________ making a decision until next week.
2. Sweden is often _______________an example of a successful social democracy.
3. The workers are _____________a 10% pay rise.
4. __________, Ill check in my diary.
5. Well ______ him ____the exact terms of the contract.
6. Traffic was __________for several hours by the accident.
7. _____________ the rope and dont let go.
8. Dont _____________me I need to know who did it.
9. He was struggling so much that I took three police officers to _____ him _______.

4. For each country below give I) the adjectives and II) the
word describing the person who comes from that country.
e.g.China I) Chinese II) A Chinese
Poland I) Polish II) A pole
Wales I) Welsh II) a Welshman/Welshwomen

1. Pakistan 7. Sweden 13. Iraq 19. Portugal
2. Peru 8. New Zealand 14. Spain 20. France
3. Thailand 9. Lebanon 15. Finland
4. Scotland 10. Denmark 16. Belgium
5. Turkey 11. Holland 17. Ireland
6. Philippines 12. England 18. Bangladesh
5. Discussion:

What do you think about this new way of training for employees? Is it going to help
companies to increase their results? Why?
80
LESSON 16





Setting goals with your employees is an
essential element of effective human resources
management.
There are a variety of reasons to set 5
employee goals. Goals can: focus employees on
the purpose of your business; enhance your
chances of success by applying your employees
efforts to your company's long-and short-term
success; and motivate employees. Employee 10
goal-setting is also an important part of an
employee appraisal or bonus program because
without goals, achievement is not easily
measured. To be effective, employee goals must
be clear and understandable. Each goal must be 15
concrete, attainable, and critical to the growth of
your business. The tips below will help you set
good goals: employees are often the best source
for information about what job-specific goals
will contribute to overall increased productivity, 20
responsiveness, or other business goal. Involving
employees in goal-setting also eliminates the
potential for the resentment that can arise when
goals are imposed. At a minimum, do this
halfway through the year to insure that goals still 25
make sense and that employees are on track.
Don't set goals such as "Do a better job," because
a general goal does not instruct an employee in
what steps to take. An example of a constructive
goal is "Increase response time to customer calls 30
by 30%" or "Cut customer complaints by half."
Don't automatically assume that bonuses should
be tied to increased sales or even profitability.
For example, it may be most important in a given
year for your business to cut costs or raise 35
visibility. Tie bonuses into that critical goal
rather than one that is traditional. Many people
have a tendency to set goals too high.
Unattainable goals lead to employee frustration
and lack of motivation and it is your job to make 40
sure that employee goals are realistic. Don't set
different goals for employees the same
responsibilities. Not only will this likely breed
resentment, but it can put you in legal hot water
in terms of charges of discrimination. It's 45
81
common for businesses to set annual employee
goals at the beginning of the year. Others may
want to do it before a busy season, or at an
annual company meeting. Be careful to set
employee goals and conduct evaluations on a 50
calendar year, not on employee anniversaries.
This way, it will be easier for you to compare
performance between people with similar jobs.
You want your employees to work against your
competitors, not each other. Avoid things like 55
contests as part of your goal setting. Instead,
have your employees strive to meet a specified
target within a specified period, and reward those
who meet it. By doing this, you provide all of
your employees with incentive to share 60
information and help each other. You might want
to base financial incentives on the overall goals
of your company. This can be used to encourage
teamwork, and for everyone in the company to
know that they are involved in your growth and 65
continued
prosperity.
For
example,
Levi 70
Strauss has
set
financial
goals for
the 75
company
for the year
2001; if the
company attains that goal, it will be possible for
each employee to get a bonus equivalent to their 80
entire 1996 salary!
Build Your Business















82
EXERCISES


1. Read the text and answer the
questions:

1. What can we achieve by setting goals to our employees?
2. What are the main characteristics of the effective
employee goals?
3. Where can unattainable goals lead?
4. When and for what period is common to set employees goals?




2. Match the verbs with the correct sentences:


talk up talks down to talked out of talk into talked down
talk back talk through talked over

1. We __________ the problems in our relationship.
2. The teacher ______ me _______ the test so I knew what to expect.
3. The government is trying to ________ the effect of their policies.
4. Shes a dreadful teacher and _________ her students instead of teaching them.
5. He was going to drive home after drinking half a bottle of wine, but his friends
_______ him _____ it.
6. The teacher was cross because the pupil _________ to her.
7. She didnt want to let me go, but I finally managed to ______ her ________ it.
8. The company CEO ________ the recent fall in shares.


83

3. Read the text again and decide if the following statements
are true (T) or false (F):

1. There is only one reason to set employee goals. T F
2. Employee goal-setting is also an important part of an employee appraisal or bonus
program. T F
3. Involving employees in goal-setting also eliminates the potential for the resentment that
can arise when goals are imposed. T F
4. Unattainable goals lead to employee happiness and satisfaction. T F
5. Basing incentives on the overall goals of the company can be used to
encourage teamwork. T F


4. Phrasal verb
Put each of the following phrasal verbs in its correct place in the sentences
below.

make of make for make out make off with make up
make over make up to make up for

1. Have you seen the disgusting way she _____________ the boss?
2. He bought me dinner to _____________ being so late the day before.
3. You'll have to ___________ the work you've missed while you were away.
4. The builders laid the wrong floor tiles, so they'll have to ______ the floor ______.
5. Nobody can ____________ why you should have been attacked.
6. Somebody broke into the shop and ______________ several TVs
and videos.
7. What do you __________ the new boss?
8. When you leave London, ____________ Birmingham.


84
5. Match the words on the left with the correct description on
the right:

1. unattainable A something which encourages a person to do something
2. to conduct B to improve the quality, amount or strength of something
3. to strive C not achievable
4. incentive D to try very hard to do something or make something happen
5. to attain E to organize and perform
6. enhance F to reach or succeed in getting something





6. Match each country on the left below with name on right by
which it is also known.

1. Holland A. Eire
2. Iran B. The Netherlands
3. Myanmar C. Ulster
4. Sri Lanka D. Persia
5. The Republic of Ireland E. Ceylon
6. Northern Ireland F. Burma





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