ay CAMBRIDGE a UNIVERSITY of CAMBRIDGE POA Ue att Be ee sec Cambridge English Business BENCHMARK Advanced Yael uh mcm siele).4 Crane Cer Ce cure ee ue een aa Pe ee encase en eek engOTs Business a Advanced Student’s Book Rp GAMERIDCE = MCTasicve) aclaeCAMBRIDGE UNIVERSITY PRESS ‘University Printing House, Cambridge cx2 80s, United Kingdom (Cambridge University Press is part ofthe University of Cambridge. [furthers the University’s mission by disseminating knowledge in the pursuit of ‘education, learning and research at the highest international levels of excellence. www cambridge.org Information on tis ttle: www.cambeidge.org/9780521672955 (© Cambridge University Press 2007 ‘This publication isin copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, ‘no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2007 1th printing 2013 Printed inthe United Kingdom by Latimer Trend ‘A catalogue record for this publication is available from the British Library ISBN 978-0-521-67295-5 Student's Book BEC Higher Edition ISBN 978-0.521-67294-8 Student's Book BULATS Edition Advanced with CD-ROM. ISBN 978-0.521-67297-9 Personal Study Book Advanced Higher ISBN 978-0.521-67296-2 Teacher's Resource Book Advanced/Higher ISBN 978-0-521-67298-6 Audio Cassette BEC Higher Edition ISBN 978-0-521-67299-3 Audio CD BEC Higher ISBN 978-0-521-67661-8 Audio Cassette BULATS Edition Advanced ISBN 978-0-521-67652-5 Audio CD BULATS Edition Advanced ‘Cambridge University Press has no responsibility for the persistence or accuracy ‘of URLs for external or third-party internet websites referred to inthis publication, and does not guarantee that any content on such websites is, or will remain, ‘accurate or appropriate, Information regarding prices, travel timetables, and other factual information given in this work is correct at the time of first printing but Cambridge University Press does not guarantee the accuracy of such information thereafter.Introduction Who this book is for ‘This book is intended to be an interesting and stimulating course for Advanced students of Business English (Common European Framework Level C1). It provides a general Business English course for students who have not, yet worked in business and for people who are working and have experience of business environments, Itprovides the practical reading, speaking, listening and ‘writing skills necessary for people who need English for ‘working in business. It also contains a wide range of essential business vocabulary and grammar. For students who want to study fora Business English «ualiication, this book gives you a complete preparation for the Cambridge Business English Certificate (BEC) Higher exam, together with a complete BEC Higher Practice exam, What the book contains ‘The book contains the following elements: * 24 units for classroom study. These units are organised {n groups of four around a theme: management, competitive advantage, etc. While each unit gives training and practice in a variety of skills, the first unit in each group mainly concentrates on reading skill, the second on listening, the third on writing and the fourth con speaking. Each unit contains essential vocabulary input for business students. Many of the activities in the units are similar to those found in the BEC Higher exam, + Grammar workshops. For each group of four units, there is a two-page Grammar Workshop section. These explain and extend grammar work introduced in the ‘units. In the units, you will from time to time see a cross-reference, e.g. €) page 20 (Future simple or future continuous?), which indicates where further explanation and exercises on a specific point can be found. ‘+ Exam skills and Exam practice section. This section, ‘which starts on page 121, gives you detailed guidance ‘on how to approach each BEC Higher exam task, the skills required and what the exam task is testing. The Exam skills pages also contain exercises to build up ‘your exam skills. The Exam practice pages contain all the questions/tasks from a BEC Higher exam. ‘Answer keys to all the exercises and activities in the Student's Book. Sample answers to writing activities have not been included at this level because the range of possible answers is too great for this to be useful. However ‘models’ are provided for all writing tasks. ‘© Transcripts forall the listening activities in the book. The book is accompanied by: + 3audio CDs/cassettes, containing a variety of recorded ‘material, including interviews with business people and BEC exam listening tasks. ‘+ Teacher's Resource Book, containing guidance and ‘suggestions on how to approach activities in the book and a large number of extra photocoplable activities and case studies to supplement the units in the ‘Student's Book ‘+ Personal Study Book, containing activities and ‘exercises based on the vocabulary, grammar and skills covered in each unit, and intended as reinforcement of material which you have studied in class. The Personal ‘Study Book contains keys to al its exercises, so you will be able to check your answers yourself. It also contains ‘a Word list of vocabulary from the Student's Book. ‘Website, containing additional resources and information. Go to http://www.cambridge.org/ businessbenchmark. IntroductionMap of the book Unit Reading Listening Writing 4 Serorate cure | vino espns or My company’ cuture 10-413 corporate cute? senders ana Richard Branson. leaderof | Rachel Babington, Disney ¥ managers vron Channa, on leaders and managers i “wir Rachel Babington on : empowerment 21g itoma intemal messages (memo, | Adkce for communicating ping to messages, . communications | eal, note, note) atfectvely wth colleagues Wirting and replying to amemo, root emai o notice 4 4 Shaina meetings | Achice or chars ‘Key phrases for chairs ‘Amemo summarising action 22-28 ‘Summary of action ports Points [Grammar workshop 1 (Units 1~4) 26-27 _Defring and non-dening relative clauses, Some meanings ofa and Ko, Future simple 5 Customer Giving people what hey want | Bors Shulov on Customer relationships Fiearices on Customer | Relationship Management 2-31 Relations Management | & competitive How the.JJ Group prepares | Wilam Brook Hart, Giford i advantage tenders Engineering Consuitancy, on 5 2-05 competitive advantage; Witam 3 Brook Hart on winning contacts 3 7 Aproposal Proposalforadding tour | Extending the product range ‘Apropos for investigating 5| 7S cea ee § ‘Anema requesting a proposal Preventinaat | Nester ater: The Presentation onthe Ghinese ‘A proposal for breaking into the ‘meetings Phiippine market; Neste icb-cream market ‘Chinese market 40-43 expands ice-cream ines ‘Advertising and sales pitch ‘Advertising and | The ofectiveness of advertising | Nelivey,MediaCom, onthe ‘customers Five extracts on measuring the | effectiveness of advertising 46-49 cfectvaness of advertising 40 Aéreisina ana ‘Motoring ontine Internet sales ‘Areport on advertisers and ‘the internet Nl vey, MeciaCor, on target audiences 50-53 advertising andthe Internet 41 Saterore ‘Abie sales report MehtarTiak on sales actives | Asales report basecton a chart 54-67 ‘Report on Sevile Sales Evert Report on a sales event fora product launch 4.2 Tresseenicn | cracking nebgcomoary | Rosa, O58 14, coktcalnga 58-61 market lent; sa Levy making a sales Grammar workshop 3 (Units §-12) 62-63 Postion of adverbs, Present perfect simple and continuous, Cet SAF sentences 4 Map ofthe bookMapofthe book 5Unit Reading Listening Writing 13 Forecasting disaster Forecasting sales 14 Freancinathe arts | A proposal for fostal Philp Franks on the theatre business | A proposal for sponsoring - cari sponsorship Paul Keene on arts sponsorship | anarts or sports event ”, 45 isspaes ‘Theimpactotiate payments | Conversation wih alata payer Letter complaining aboutate 72-75 onsmall businesses Wiliam Brook-Hart on lat payers | payment At Giford Engineering Consultancy 1G Nesstatinatease | Negoatingyouroicolease | Negotiating busness agreoments | Emallsurmarsing resus of 76-79 Conditions orleasing office space | negotiation {Grammar workshop 4 (Units 18-16) 80-81 Conditional sentences, infntve and verb + ing, Complex sentences 4 47 Wertoace Giving employees what they | Marita Kinsky onwork-elated | Short report on stress and ‘atmosphere want: the retums arehuge | stress absenteeism 82-85 Stress inthe workplace 5 18 ‘The workforce of | ‘The millennium generation Job sharing : the future How people fee! about thir jobs é 86-80 £49 Productivity ‘Magro Toys ~report on Interview with three production | Report on changes to company i 90-83 productity managers organisation 2 ‘Staff negotiations | Memo from CEO about Staff complaints and demands at | Memo summarising agreement, 94-97 ‘expansion plans Travelsafe insurance: Horse-trading at Travesafe Insurance Grammar workshop & (Units 17-20) 98-99 Reference devices, Modal verbs to express degrees of certainty, Variations on concitionals q 24 Somorate ‘CSR—worthy cause? Professor Bernard Hilonfartrade | Proposal to give your company ethics amoreethicalimage 100-103 DD) Expanding abroad | Woseey' srateny Fichard Coates on how Wolseley 404-107 Wolsdeys Chief Executve | expands into new markets Fichard Coates on supervising subsidiaries 23 hroverseas Letterto‘ potential partner | Finding an overseas partner Latter to prospective | partnership Lettorrpving to.@busiess | Reasons and problems with moving | customers; Letter expressing 108-111 approach into a new market interest in business approach DA Aplencing Fisk managernent Fedor Brodsky on how to protact ‘conference yourbrand’ reputation M2115 Nicole Fre on rskin business Grammar workshop 6 (Units 21-24) 116-117 Articles, Future time clauses, Concession Fi ena Communication acts 118 EXAM SKILLS AND EXAM PRACTICE 121-153 Contents ofexam section at ‘Answer Kays 154 Transcripts 170 6 Map ofthe bookSpeaking Vocabulary Language work How diferent elements help to make forecasts What makes forecasts inaccurate? How to prepare a sales forecast, etc What type o forecaster do you think you are? Phrasal vars and expressions: Go bust, stock price, etc. ‘Should the arts be subsidised”? How sponsorship can promote a company’s image, et. Role-play: Continental Bank and Tate Modern How late payers affect a business Discussion: How should you deal with ate payers? Presentation: How to deal with late payers, et. ‘Bank charges, bookkeeping, ec. Formal expressions ‘What you need to know before negotiating Negotiation, problems and advice: Role-play: Negotiating an office lease ‘Compromise, the bottom tne, etc, Conditional sentences: alternatives to it What makes people work harder Trends, pronounced, Reference devices “Types of management-empioyee relationship: Trendsin accidents and stress, etc.; Our attitudes towards stress Workers ofthe future; Working practices inthe future | “Types of worker Ways of working Talk: teleworking, et. ‘Stuckina nut, gong ate, etc. Taking about your present What factors atfct productivity? Descrbing charts: | Assembly ine, chum out, eo ‘Expressing causes and esuts Productivity at Magro Toys; Presentations on productivity;| Praising product ‘Company reorganisation; Would yoube preperedto | Phrasal verbs and expressions Variations on contioal sentences ‘ocala? Thinking about an for Phrases fornegaiing Role-play: Negotiating an agreement Corporate responsibility ‘Benefits, premise, eto ‘atioles SR and corporat cut: Far trace ‘Advetbal pirases What isthe connection betwoen fa vade and OSA, et.” ‘Expanding into foreign markets Acquisitions, year on year, etc. the company you work for ‘Surgea, FTSE 100 \Wolseley’s expansion strategy; Supervising subsidiaries | Adjectives and adverbs of frequency ‘The advantages of making acqustions ‘The problems of expanding into anew market Complex sentences Replying to a letter Tenses in future time clauses Useful hints for making presentations Discourse markers for shor tas Concession Map of the bookAcknowledgements Practice test material written by Elaine Boyd, ‘The author and polishers are grateful tothe following for permission to "eproduce copyright materi Wale every efor hasbeen mae, hss not always been posible to deny the sources fl the materi ued, orto trace ‘he copyright holders, any omissions are brought to our ote, we willbe happy to include the appropiate acknowledgements on reprinting. ‘Text Dp, 1, 13, 16,17, 25,32, 33,34, 52, 61 65, 68 69,72, 86, 8, 92 and 10: Cambridge Advanced Learner’ Ditionary, Cambridge Univerty ress, 200, ‘www dictionary cambridge og, fr various of the detnitons; 2: Coporate ‘Boar Member Magazine forthe ext"Who is esponsible writen by Rob Norton, Reprinted by pemision, Corporate Board Member Magaine: .18: Knowledge Wharton fr the text Leader of Vira’ 82-83: ‘Giving employees what they want, 128-129: Callenters: How to reduce burnout, ntease elceny’p.127"How o avoid the bigest mistake’ p130- Getting ‘he best out of your staf, 133: "How soon wil Your product sl’, p.135:'A, ‘dynam approach o change’ p137:"Dressing casually fr werk. Reprinied ‘with permission rom Keowledge@ Wharton ‘ntp/ knowledge wharton.upennedu, the online research and business nas jouma ofthe Wharton School ofthe University of Pennsylvania: 22: TamWorx Innovation forthe text ‘Chairng3 meting taken from np: www netngwizadory/meetngs/chais meeting fm, Used by kind ‘ermision of Teamiox Innovations; pp 28-29: The Bast othe text “Giving people what the want by Shoshana Zabol, May 2008, p47: "The tfecivenes of adverisng’ by Pal Marl, 3 March 205, pp. 48-49: "Target ‘rate 31 March 2005, pS" Motoring onlin’ 3 March 205, p87: "Know future 21 December 2000, 101:"CSR= worthy cause” 20 January 205, ‘p.I4-I5: "Be prepared” 2 January 204, 15: "Easy tose, 22 January 2004, p.123:"Butcan you teach, 20 May 008, 126: "Why do so many bay ‘un companies survive 9 June 2005 © The Economist Newspaper Limite, 131: PasIteational Corporation forthe ex‘Masters the Customer CConneton' writen by Mindy Blodget, excepted trom CIO Magazine, 15 ‘August 205, p 3: "Customer lationship management writen by Michael Johnson, excerpted from Darwiamag com, September 201.65: Forecasting ddsstr writen by Scot Kiser, excepted fom Darwinmag.com, July 200 Copyright® CXO Media ne. Al igh reserve 33:"How the ) Group prepares tender’ by Phoebe Har, aken fom the Business Link website, ut: basnesink gov sk. ® Crown Copright 42: Decision News ‘Media forthe text‘Neséin Thala published on woe diryreporercom, 11 June 200; p42: forthe ext "The Philippine market by Rosa B Bernardino ‘od and Agr Business Mortr, June 200 Used by permission of The "Universi Asia andthe Pacific. Pasig City, Phlppines a3: "Nes expands ‘cecream ines in Cin’ publised on wor foodnavigat.com, 23 February 2102 Used by permission of Decision News Meda (UK) Limite; p60: Inc.com, forthe text Cracking the big company markt by Evelyn Roth Inc Magazine, ‘November 2002. Used by permission oie com: p.7:Ceartybusinesscom for ‘he text The impact of ate payment on small businesses taken om the ‘west wnclearybusinescom. Used by permission of lalybusnes com; 1977 law com forthe ext"Negoating Your fice las’ by Cleste “Marchland Used by permission of Alta com: 108: The Guardian fr the text “The elo of ethic by Oliver ale 10 March 205, p16: "Nes launch of ar tae coe divides company's rics by John Vidal? October 205, 135: “Workshops miss their target by Nik Pandya, 13 August 200. Copyright (Guardian Newspapers Limited 205; pp 10-105: Wolseley PLC forthe txt "Wolseley sates” taken fom the website worn. wolseley com. Utd by kind permision of Wesley PLC; 106: The Sunday Times fo the text ‘How ‘Wolseley’ boss plumbed o new heights, by Andrew Davidson © The Sunday ‘Tes, London 9 January 2005p 136: Guy Claperton forte text ‘Langltan cheese’ The Guardar 30 October 2003 sed by kind permission of Guy ‘lapprton, ‘Acknowledgements * Logos 1.18: € Nucor Corporation; p14: €Viggn Enterprises Limited p.16:© Disney Enterprises, ne. p32: © Cifond Engineering Consultancy; p.33.° 1) Group: pA8: © Mediacom UK; p12: Faire logo. The us ofthe Fairade mark bbykind permission of the Faruade Foundation. The FAIRTRADE Matk, an independent consumer Ibe, ia cerifiation mark and internationally registered 434 trademark by Fira Labeling Onnisatons Interatonal (FLO) of which the Farzad Foundation (UN isa member p04: © Wolseley PLC. Photos {Cover phot: Corbis “Advertsing Archives for p.4 tem ); Alam for p.10 (8) (magstae), 36 (0) (Digial Archive Japan), 0 () (Christoph apse), 54) (Mark Hagen) 68 (0) (Chuck Pace}, 71 (Arle) 78-79 (Maci| Wojawak, 86 (1) (3 Stock); Alvey & “Towers for pi (nz), 5 (0), 90}; Courtesy of Arbitron for p48 (8); Art Directors {TRIP for p.4 ite e)- 4 (64 extreme 1; Rachel Babngton op 15, by ‘ind permission; Camera Pres foe pa (be); Corbis for pp. (8) Tim McGuite), 50 (exreme 1) Voson), 60-61 im Craig) 64 (m) (Rie Come, 72 in rage), 74 (Helen King) 76 ) (Chuck Savage), 8 (2) (Tim Panne), 89 (extreme!) (Scot Areman, 93 (Lui stoyos), 100 ose Las Pelae, Ine); Courtesy of Domino's iza fr p30 (b):dueaton Photos for p30 (0; Eve Ubiquitous for pp 26 (), 15; hes arelough Worldwide Images foe p. 94-95. (be; Courtesy of The Frade Foundation frp 102 (0) Fare Med or .102-103(h) (Christo Krackhard); Cty Images for p.10() (Zubin Shot), 14 (Anderson Ross), 18 () (Reza Estabian), 2 () (Ryan MeVay),(D) Osi. Pumfey). 28 () (DCA Productions), 29 (Sean Justice, 2 (Aledo mages), 40 (0) (igeam Publishing), 46 (0) (che Funk), 50) (Kent Mathew), 581) (Thomas Norte, 64) (Carnet, 76 () (Peter Cade) 82 (0) (Stewart Coben), {89 (i) (fyan MeVay), 90) (David Butfingtn 4 () (Chabruker, 18 () (Panka &insy Shah Gulimages), 108 () (DCA Productions) 12 () (Stewart ‘Cohen, 16 (eik Sol: Imagestate for pp 4 (), 40 (Gf Engineering ‘Constancy for p32 (),38() and 75, by kind permission; Haymarket Publishing for pp 4 tem a) and 32 or the serenshot of Ala Rome Spe. 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Enterprises Limited fr p15 (Richa Branson) by kind permission; Wolseley PLC for p10, 15 and 106, by kind permission, ustrations ppl 2, 23 and 9 Rupert Beasley p 4, 5, 8,85, 90, 144 and 145 Hart McLeod; p.53 The Economist for Chart "Adverse: andthe age audience’, 31 March 2005, p 4 Cars Fatal acients at work nthe UK and Work related sues in the UK" 26 August 208, ©The Economist Newspaper Limited p64 CatoonStock;p.72 202 by Rady Clasberen, wow glasheren com; p96 im Olver Every effort hasbeen made wo race the copyright holders and we apologise in advance or ny unintentional omisions. We would be pleased to inset the ‘pprprate acknowledgement in any subsequent doh a this publication Photo research: Kevin Brown Design and Layout: Hart McLeod Project management: ane Coates ited by: Catriona Wason-Bown Production controll: Gemma WikinsThanks ‘The author would like to thank the editorial team for their help, advice, guidance, enthusiasm, feedback and ideas throughout the project, especially Charlotte Adams (Senior Commissioning Editor), Sally Searby (Publishing Manager), Jane Coates (Series Editor), Catriona Watson-Brown (Freelance Editor), Gemma Wilkins (Production Controller) and Michelle Simpson (Assistant Permissions Clearance Controller). Special thanks also to Susie Fairfax-Davies for using her compendious list of contacts to search out and interview business people for the book, and thanks to the following people for kindly giving up time and agreeing to be interviewed: Rachel Babington (Disney Channel), William Brook-Hart (Gifford Engineering Consultancy), Neil Ivey (MediaCom), Philip Franks and Richard Coates (Wolseley PLC). ‘The author would also like to thank his Business English students at the British Council, Valencia, from 2004 to 2006, who kindly and good-humouredly worked through and trialled the materials, pointed out faults, suggested improvements and, by applying their business expertise, provided essential input The author would like to give his warmest thanks and love to his wife, Paz, for her help, enthusiasm and encouragement throughout the project. He dedicates the book to his son, Esteban, and his daughter, Elena, with much love. The publishers would like to thank Elaine Boyd for her invaluable feedback when reviewing the course material Recordings by Anne Rosenfeld at Studio AVP (studio engineer: Dave Mort) ThanksCorporate culture Getting started ‘| Work in small groups. Match the sentence beginnings (1-7) with their endings (a-g). We have an entrepreneurial culture; mace Sey companys seppordv cle Siyeonpary hae curl lr : hy company ite fora ' Look at the words and phrases in bold above and. ‘match them to the following definitions. a person who gives another person help and advice over, period of time and often also coaches them in their job mentor a set of rules for what you can wear demands total obedience from staff extra amounts of money given to you as a reward follow the rules exactly view of how the company will be in the future involving risk-taking Corporate culture for example, it doesn’t have a dress code. I know where it’s going; I share its goals. the boss is autocratic, and we do as we're told without question, there are lots of regulations and ‘correct procedures’. We're encouraged to do things by the book, we battle each other for promotion and for bonuses, ‘when we need them, we're sent on training courses. Every employee has a mentor. ‘we're encouraged to look for new business and take risks.Aspects of corporate culture 2 Lookat the list of aspects of company culture in Getting started. Listen to the four speakers, and for Talking point each one, decide which aspect of their company's culture he/she mentions. Write one number by each eeteteee eet Secret etesiae 1 1 Which of the things mentioned in Exercise 1 on page 10 Candela sei are typical of your company's /organisation’s culture? aly? int: 2. Which would you like to be part of your company’s culture? (If you don’t work for a company or ‘organisation, talk about one you would like to work for.) Task tip ‘The speakers talk about the subjact without using the Listening ‘exact words in the lst. You must isten for clues in what ‘they say to decide whichis the correct answer. You will hear four students on an MBA course discussing their companies’ cultures. 1 Before you listen, match these words or phrases Vocabulary (1-10) wi . Coa ese cet ior ee ‘@\complete each ofthe phrasal verbs below with one or 1 cutthroat 2. informal meetings is Wr Iie letiraiors re en In Brsstetah Veen 2 back-up b Internet company you have finished, check your answers by listening to 3 ectopic) © moking moe liet pacamerenton nase’ sinkorswim —/ d_ paperwork at Eredape” / © topmbleotegommnen 1 Hang a) 6 publicly f standard by which you can Sine ss Shee Accountable judge the success of something 3 come seer ane hens edi. 7 streamlining 8 fierce; not involving ate cae) consideration or care about any $ uek 7 =e obey) harm caused to others paces 8 dotcom hh struggle of individuals in a ‘ teal) ince Eee 7 ARH... t0 (the essential thing is) 9 yardstick {succeed of fail without help from anyone else Speaking 10 ratrace support Work in pairs or groups of three. Describe the culture of the company where you work, or a company you are familiar with, using the following procedure. ‘* Before you speak, plan what you are going to say and select words and phrases from the vocabulary you have studied so far in this unit. + Speak for about a minute. ‘* When you are listening to your partner's talk, think of a ‘question to ask at the end of it. Useful language | think there are three main aspects to my company’s culture: frst, there's ‘Another feature is Finally, | should say that So, i's a good piace to work, especially because ... / Vd preter itto be more ... Corporate culture 14Creating a corporate culture Readin os Company background Nucor Corporation i thelargest tel producer inthe United States, lis othe nation’s Ingest reyeler 1 Read this passage fairly quickly and find out: 1 who is responsible for influencing the culture within a 2. how company culture affects a company’s performance. 3 what weakness many companies have with regard to corporate culture. 2 When you have finished, discuss your answers with a partner. 3. Choose the correct sentence (A-G) from page 13 for each gap in the text (1-6). There is one sentence you will not need. WHO IS RESPONSIBLE 2 FOR CORPORATE CULTURE? ‘ow should a director think about the “corporate culture” of the: ‘company on whose board he or she serves? Consult a management text on organizational culture and you'll find a chapter or more of definition ‘which bolls down to something lke “a pattern of shared basic assumptions.” Peter C. Browning, dean of the: business school at Queens University, North Carolina says: “Every ‘organization has a culture which ‘manifests itself in everything from entrepreneurship to risk-taking all the: way down to the dress code. 1.2. "In | ‘some cases, it can do both. Recall how IBM's insular, conservative culture first helped the company soar to success — ‘and then nearly destroyed it before a new CEO, Louis Gerstner, arived in 1993 and saved the company. Browning considers corporate ‘culture an important part of a board's responsibilities. Andhe’s not alone. Ina! recent survey, an overwhelming majority of directors say that culture has a powerful effect on their ‘company’s ethics, risk-taking, and bottom-line performance. 2 | Furthermore, 79% say they believe a board can alter a company's culture. Corporate culture | profitability or market share. Says | Edward Lawler, a professor at the | on inside the corporation.” | unique.” can be traced back to the | tough industry—has been recounted in Even so, many directors are less. comfortable dealing with issues of ‘corporate culture than they are with more easily quantified concepts like F Kenneth Iverson ‘are no company cars or corporate jets. ‘The company offers fouryear scholarships to children of employees | to help them pursue higher education or vocational training after high school ‘When business is slow, Nucor reduces hours but doesn’t make workers redundant. There's a highly effective incentive program. 5... Ditto for the shareholders: Nucor’s total return to investors last year was 37.9%, better than almost two-thirds ofthe other ‘companies in the Fortune 500. | Toensure that Nucor's | collaborative, trusting culture continued, Browning recounts how he “went out and visited innumerable factories. | walked around, talked with people on different shifts.” Then he made sure the other non-executive directors did the same. 6... “Itwas Important for the board to get to know | the culture 60 that we could support the ‘next generation of management 3s they move forward, while preserving the values that really distinguish this “company,” Browning says. University of Souther California: "3... Anunderstanding of corporate culture is one of the main things missing ‘on boards, but they really need itif they're going to monitor what's going ‘Sowhat should directors be doing toevaluate corporate culture, and what ‘actions can they take to influence it? Pater Browning's favorite example Is Nucor, the steel company. Nucor’s culture, which he describes as “extraordinarily powerful, effective, and values and vision of ite legendary founder, F. Kenneth Iverson. The Nucor story—of an egalitarian, collaborative, high-performing business that's been ‘consistently profitable in a notoriously dozens of newspaper and magazine articles and books: 4 ... Although the ‘company earns $6.3 billon in revenues ‘and has 9,900 employees, it has fewer than 60 people in management. There From Corporate Board Member‘A. The result is that employees have come to trust ‘management and share its vision. B And having a supportive culture can produce surprising, gains in terms of productivity. € CEO, Daniel R. DiMicco, answers his own phone and email and shares an assistant with CFO, Terry Lisenby. D_ Most boards are poorly equipped to deal with their organization's corporate culture, because their staffing is not right. E_ The entire board now goes once every year toa mill or plant and spends two days observing operations and talking to workers and managers. F When asked to rate its importance for these issues on a scale where 1 equals “greatly affects” and 10 means “no effect”, the respondents ranked corporate culture at 2. G Itcan be a very powerful influence for good, or it can get companies in lots of trouble. Vocabulary Match these words and phrases from the text (1-7) with their definitions (ag). 1 board dismiss employees, so they no longer have a job 2 bottom-line bd ‘group of people appointed performance to manage a company 3 revenues ¢ money earned from sales 4 make workers people who own shares in redundant company 5. shareholders € set periods of time when people work, e.g. 6 a.m. to 2pm 6 return £ the amount of profit on an investment 7 shifts '§ whether the company makes a Profit or a loss Grammar workshop Defining and non-defining relative clauses 1. Read these five extracts from the text. Find and Underline the five relative pronouns. 1 How should a director think about the “corporate culture” of the company on whose board he or she serves? 2 Consult a management text on organizational culture and you'll find a chapter or more of definition which bolls down to something like “a pattern of shared basic assumptions.” 3. Every organization has a culture which manifests itself, {in everything from entrepreneurship to risk-taking all the way down to the dress code. 4 An understanding of corporate culture is one of the main things missing on boards, but they really need iti they're going to monitor what's going on inside the corporation, 5 Nucor's culture, which he describes as “extraordinarily powerful, effective, and unique,” can be traced back to the values and vision ofits legendary founder, F. Kenneth Iverson. 2 Decide which relative pronouns above could be replaced with that. © page 26 (Defining and non-defining relative clauses) Talking point Discuss these questions in small groups. '* Why is it important for a company to have a strong corporate culture? © What sort of culture would work best for you? '* What aspects of corporate culture do you think can have a negative effect on performance? ‘© What things can managers do to change the corporate culture of the company where they work? Corporate culture 3“ Leaders and managers Getting started 1. Read each of these things people said about their business leaders or managers (1-8) and ‘match them with one ofthe qualities or skills listed in the box (a-h) 1 “Amongst other things, she has this tremendous. ability to see how things could be in the future, and how the organisation should develop.” ‘Treally like the fact that he gives us all plenty of lity. We all feel s0 empowered.” “One thing | have to say about him is that he has ‘excellent people skills; he can handle even the most awkward member of staff.’ 7 She has a totally practical approach. | mean, she doesn't just sitin her office theorising. She rolls Up hor sleeves and gets down to work with the rest of us.” @ Ahands-on approach Good interpersonal 'b Abilty to delegate skis Attention to detail {Originality d Good communication —_g_Trouble:shooting skils skits hh Vision 2 Discuss the following questions in small groups. 1 Which ofthe above skis or qualities do you think are necessary for business leaders, which for managers and Which for both? (Write ‘Lor leader, ‘M" for manager or "for both by each of them.) 2 Add three other skills or qualities tothe list and say whether they are more necessary for leaders, their ‘managers, or both. Leaders and managers 2 ‘He's just great at producing new, unusual ideas, things other people would never have thought of ‘fd say one of his strong points is his ability to get down to the nitty-gritty; nothing is so minor that it escapes his attention.” “One thing she’s particularly good at is problem- solving. You know, in our line of work we seem to {go from crisis to crisis, but she seems to be able to get everything running smoothly again.’ “She's just excellent at gotting her To give you just one example...” Great leaders and great managers Reading Company background ‘Startadin 1971, the Virgin Group operates in a wide ea range of markets, rommusictofnance andvravel. AZZ 1 Before reading, discuss in small groups what you know about Richard Branson and Virgin. 2. Skim the web page very quickly (in two or three minutes) to find out what qualities Branson has ‘which make him a good leader.leader of Virgin By £222 t2rson~the funder and owner ofthe Viin_ and thave tobe wing o step back The company must be R seer remestsconeanertat ince” Stucco wot! Virgin Atantic aries as well as ventures in other In order for this process to work, employees must be industies ike telecommunications, tains, cosmetics and happy. Branson says his philosophy of look forthe best and cxedit cards ~ says his goal sto tur Virgin into the most youl get the best helped him build an empire recognised respected brand in the word. Branson's skill as a brand forts young, fun culture. ‘For the people who work for you builder is one of the reasons underlying his longevity as aor with you, you must lavish praise on them at all times,” business leader, Branson says. ‘It's much more fun looking for the best in itis difficult to separate the success of the Virgin brand people. People don't need to be told where from the flamboyant man behind that brand. He travels t world weekly, reinforcing his good-natured, visible, jet- setting, billionaire reputation ~a reputation like the reputation ofthe companies he owns. ‘Generally speak think being a high-profile person has its advantages,’ says. Advertising costs enormous amounts of money t days. {just announced in India that | was setting up 2 domestic arine, and we ended up getting on the front ‘pages of the newspaper. The costs ofthat in advertising terms would have been considerable.” What is the most important quality of a good ‘Being someone who cares about people is imp says. ‘You can't be a good leader unles: people. That is how you bi ‘other third on new projec, both chaable and ‘and the last third on promoting and talking about t businesses he has set up. As much as you need @ Personality to bulld a business from scratch, you understand the art of delegation,’ says Brar be good at helping people run the individual businesses, ‘3 Read the text again and check that you have understood the main points by choosing the best answer, A, B, C or D, to these questions. 1 What is Branson's business aim? A To diversify Virgin's activities B To make Virgin a global company C Tosurvive longer than other business leaders D Toenhance Virgin's brand image 2 What, according to Branson, is the business advantage of being well known? A Itis easier to establish new ventures. B Itsaves money on publicity. C Heis offered special advertising rates. D It makes his brands easily recognisable. 3 What, for Branson, is the key to managing his workload? A Being continuously involved at al levels of the enterprise B Concentrating on problem-solving Making his companies independent of him D Continually expanding his empire ‘that, and they wil give eveything back: sllped up or made a mess of thing. They sort iout themselves? son fel strongly that an employe Is celing in one aea ofthe company, he should be given the opporuty lina diferent Virgin Group ab. is seldom an option. ional strategies extend to ve ideas. The Key o encouraging ton within the Vig ranks, 5s Branson to lsten to any and offer feedback. Employees Feevaae, "come up ith tne rg aan, spend three months immersed in the business so 1 know ind outs, and then give chief executives a stake in ny and ask them to unit asifits their own,’ gy. n. “intervene as litte as possible. Give them From http:/www.knowledge@wharton How, according to Branson, can you ensure optimum performance from staff? A By having an enjoyable corporate culture B By pointing out your employees’ mistakes C By dismissing incompetent workers D Bytelling people that they are performing well Why, says Branson, do many businesses lose good employees? ‘A. Managers do not listen to employees’ suggestions. B_ Managers do not know how to communicate with staff. © Managers do not encourage innovation. D Managers do not delegate How does Branson optimise performance from his CEOs? A By giving them specialist training B. By giving them a financial interest in the company By giving them a three-month trial period D By offering them innovative ideas Leaders and managers