CHAPTER 1 BUSINESS OWNERSHIP

OBJECTIVES: 1. The students are able to explain the words concerning with business ownership. 2. The students are able to explain the steps in decision-making process. 1.1 INTRODUCTION TO BUSINESS OWNERSHIP

All Business owners must decide which form of legal organization - a sole proprietorship, partnership, or corporation - best meets their needs. The decision is very important because the choice affects many managerial and financial issues, including income taxes, and the owners liability. In determining which legal form their business should take, owners may consider the advantages and disadvantages of each. The sole proprietorship is the ownership form chosen for the small-town restaurant, the neighborhood grocery store, the local auto repair shop, and the bakery. Most sole proprietorships are small businesses, often having only one employee. However, there are some sole proprietorships that are large businesses, many of todays largest companies started out at sole proprietorships. Although the owner may employ someone to manage the business, more commonly the owner is the active manager of the firm. The capital necessary for operating the business is normally provided by the sole proprietor from personal wealth, frequently aided by borrowing. The owner usually makes all decisions personally rather than delegating them to employees. If the business is the owners sole source of income, the ability to operate it at profit is extremely important to him or her. Partnership is larger than sole proprietorship. Yet, most partnerships are relatively small businesses. There is no limit to the number of partners, and they may 1

2 invest equal or unequal amounts of money. Net profits must be shared among all partners involved. It is best, although not necessary, that the agreement between the partners be written and signed. Such a contract may prevent misunderstanding and ill will at a future date. The agreement should cover the following points: (1) who will receive what share of the profits? (2) Who does what, and who reports to whom? (3) What happens if one of the partners dies? (4) if desired, how could the partnership be dissolved? Of the three common types of business ownership, partnerships are the least used. Corporations employ large numbers of people and are owned by large numbers of investors. Only large businesses can mass-produce and mass-market the goods and services consumers need and want. A corporation is a legal entity which is created by the law as an artificial being that has the rights, duties, and powers of a person. A corporation does not change its identity with changes in ownership. A corporation is brought into existence through a charter, which is a document issued by a state authorizing the formation of a corporation. Corporations can raise money by selling shares in the business-called stock- to investors. These investors are known as stockholders, or shareholders. Stockholders are the owners of a business. Business profits are distributed among stockholders in the form of dividends. Stockholders vote in accordance with the number of shares they own. Annual meetings are called primarily to elect a board of directors, who represent the stockholders. Once a board is elected, it assumes final authority for all corporate actions. QUESTIONS 1. What is sole proprietorship? 2. What is the advantage of sole proprietorship? 3. What is the disadvantage of sole proprietorship? 4. What is partnership? 5. What is the advantage of partnership? 6. What is the disadvantage of partnership? 7. What is corporation? 8. What is the advantage of corporation? 9. What is the disadvantage of corporation? 10. What are the similarities among them?

3 11. What are the differences among them? 12. Name some businesses that you are familiar with. Do you know what forms of ownership they represent? Explain! Describe the products or services they offer! 13. Which of the three forms of ownership do you come in contact with most frequently? Why? 14. Where are the various forms of business located in your community? 15. Which type of business do you like shopping at the most? Why? 16. If you were to open your own business, what form of ownership would you choose? Why? NEW VOCABULARY In each set, cross out the word that isnt similar in meaning. Discuss the relationships among the words in each set. 1. Inventory 2. Reputation 3. Bookkeeper 4. Debt 5. Profit 6. Asset 7. Flavor 8. Renovate 9. Proceed 10. Rave 11. Store stock image auditor mortgage expense drawback inedible improve progress condemn shop product illustration accountant dividend income benefit taste destroy continue praise establishment staff name stockbroker liability revenue advantage seasoning remodel stop compliment infirmary

2. LANGUAGE SKILL DECISION MAKING Everyone needs to make decisions. Business people must make wise decisions in order for their companies to survive and grow. Decision-making is a crucial part of the management process. It involves selecting the best course of action for a particular situation.

4 The following are the basic steps in decision-making process. 1. Identify the problem. Gather as much information as possible, taking into account all aspects of the problem. 2. Understand the problem fully and determine why it exists. 3. Generate possible solutions. - Brainstorm. Write down as many ideas and possible solutions as you can. Remember, dont stop to analyze and no idea is too crazy. - Choose your three best solutions. - Write down the advantages and disadvantages of each solution. 4. Choose the solution with the most advantages and the fewest disadvantages. 5. Formulate a plan of action. How will you implement this solution? Be specific. - Be patient, and give the implemented solution a chance to work.

CHAPTER 2 MANAGEMENT

OBJECTIVES: 1. The students are able to explain the definition of words concerning with management. 2. The students are able to explain what to say when giving and receiving feedback. INTRODUCTION TO MANAGEMENT AND LEADERSHIP STYLE Management is the process of planning, organizing, leading, and controlling the resource in an organization. Some of these resources are human, some are material, and some financial. These resources must be managed in a way that allows a company to achieve goals of supplying its products or services to the marketplace while also making a profit. How individual managers work within this managerial process is termed leadership style. Leadership is the way in which managers interact with their subordinates in order to achieve company objectives. Democratic, authoritarian, and laissez-faire are the examples of leadership styles. Planning, organizing, leading, and controlling are all aspects of a managers job. Planning involves determining what the organization needs to do and the best way to achieve it. A crucial part of this step is decision making. The second basic managerial activity is organizing. In this portion of the managers job, he or she must determine how best to arrange resources, human and material, to achieve desired goals. The third managerial function is leading. In this area of a managers job, he or she must guide and motivate employees to accomplish company objectives. Through leadership, managers must exert influence and communicate with their employees to ensure that employees understand and carry out assigned tasks. The fourth managerial function, controlling, means monitoring the firms performance, make sure that goals are being achieve. Managers compare actual performance with planning performance, and make changes based on the results. In order for their companies to be successful, managers must formulate company objectives. Objectives are guidelines and goals for an organization to follow and achieve. Why should we use objectives? Objectives give the business a direction. Objectives set the standards for the company. In addition, objectives motivate the workers and managers to contribute their best efforts. 5

6 QUESTIONS 1. What is management? 2. What are the resources in an organization? 3. What is meant by leadership? 4. What is leadership style? 5. Mention kinds of leadership style! 6. According to you, what are some advantages and disadvantages of each managerial style? Which would you prefer if you are the manager? 7. Mention four managerial function you know! 8. What is objective? 9. Why should the company formulate the objectives? 10. What is a good manager? 11. What personal qualities do you think a manager should have? 12. Have you ever worked under the supervision of a manager? Was this person an effective manager? Why or why not? 13. Have you ever supervised people? Do you think you were an effective manager? Why or why not? 14. What must happen to ensure that managers and employees from different cultures can work together successfully? 15. What do you know about Japanese style? 16. Why do you think the Japanese have been so successful economically? In each set of words or idioms, cross out the word that does not have a similar meaning. Discuss the relationship between the words in each set. 1. Substitute 2. Lean 3. Burden 4. Jot down 5. Penalize 6. Calisthenics 7. Keep on 8. Betray temporary sparse freedom sit down punish exercise stop abandon replacement abundant responsibility write discipline aerobics continue loyal permanent insufficient strain take notes reward inactivity remain unfaithful

2. LANGUAGE SKILL Giving and receiving Feedback Effective managers know how and when to give feedback---telling other people how you feel about them or about something theyve done---in such a way that it will benefits the employee and his or her performance. One important objective of giving feedback is that it should be helpful to the other person and allow him or her to become more effective. Answer the following questions, using what you know about feedback. 1. When is feedback given? (Give a specific example!) 2. Why is feedback necessary? 3. Tell about a situation in which you received positive or negative feedback! a. What exactly was said? b. What was your reaction? The following are the things that you should remember when giving feedback. 1. Feedback is intended to help the individual receiving it. 2. Be descriptive rather than evaluative. (Describe the behavior/action, dont judge it.) 3. Be specific rather than general, with good, clear, and recent examples. 4. Give feedback at a time when the receiver appears ready to handle it. 5. Give only as much as the receiver can handle at one time. The following are the things that you should remember when receiving feedback. 1. Try not to be defensive. 2. Be sure you understand what the person is saying. Summarize the points briefly. 3. Understand that the purpose of feedback is to further develop ones effectiveness. What to Say When Giving Feedback When giving feedback to someone, dont just say, You talk too much. Instead it is better to be more specific by describing the behavior, Ive noticed at our weekly department meetings that you frequently give your opinion and dont allow others to give theirs. At our last meeting, the other managers became frustrated and lost interest because they werent able to contribute. 8 What to Say When Receiving Feedback

When you receive feedback such as the kind described above, remain calm and consider what is being said with an open mind. Dont respond, How can you that? I always allow other people to speak. Anyway, my opinion is more valuable than theirs. Ive been with this company a lot longer than they have. Instead say, You think that I talk too much at our meetings? Well, I wasnt aware of that. Ill keep that in mind at our next meeting.

CHAPTER 3 ORGANIZATIONAL BEHAVIOR

OBJECTIVES: 1. The students are able to explain the definition of words concerning with organizational behavior. 2. The students are able to explain the tips for running an effective Meeting. 1. INTRODUCTION TO WORKING TOGETHER Leading employees to achieve the objectives of the organization is one of the most challenging roles of management. Motivating people to accomplish these objectives is a crucial part of the leadership role and one of the most difficult. The study of organizational behavior is the study of how people work together, and how their behavior affects performance. In a team or a group, everyone should work together in order to produce the desired results. If one person does not cooperate, then the desired result cannot be achieved. MOTIVATION Motivation is the process of stimulating employees so that they perform better in order to reach company objectives as well as personal goals. Characteristics of motivation - Motivation originates within the self. People can only be motivated about things that they truly want to achieve. - Work-related behavior is influenced by external factors. These factors include rewards, such as pay, and threats. - Performance is influenced by the situation in which it occurs. The situation can be positive or negative. Environmental factors include the people around us or even the companys reputation or technology. One model of how managers can motivate employees and affect performance - Managers must determine the needs of their employees. - Managers must find out what their employees want from their jobs. - Managers must first set their own performance goals and objectives before sitting down with their employees to formulate their goals. - Managers must make sure the goals and objectives are realistic. - Managers must link the rewards to the desired outcomes of their goals and objectives. 9

10 - Managers must ensure that rewards are significant, not trivial. - Managers must ensure that star performers are rewarded more than good performers, and good performers rewarded more than poor performers. QUESTIONS Answer the following questions based on the passage! 1. What is meant by the study of organizational behavior? 2. What is organizational behavior it self? 3. Explain how people in a sport team work together in order to produce the desired results? What happens if one person does not cooperate? 4. What makes a group of people successful when working together? 5. What is motivation? 6. Mention three characteristics of motivation! 7. What motivates people to do good job? 8. What types of incentives are used in this country to motivate workers? Do you think they are effective? Explain! 9. How can managers motivate employees and affect performance? 10. Describe some individuals you have difficulty working with! What are the causes of the difficulty? 11. Describe some individuals you work well with! Why do you work well together? 12. Think about a situation in your life when you were extremely productive and efficient. What factors influenced your behavior? 13. Rank the following answers according to your opinion, if the question is What do I want from my job? - Good communication - Promotion and Growth - Power and Influence - Full Appreciation for Work done - Interesting and Challenging Work Now give reason(s) why you rank like that ! - Job Security - Good Benefits - Autonomy and Freedom - Good Pay - Pleasant Working Conditions

11 2. LANGUAGE SKILL RUNNING AN EFFECTIVE BUSINESS Managers need to have meeting with employees to accomplish desired goals and for two-way communication. Before calling a meeting, however, the manager must decide if a meeting is the best way to achieve his or her objective. If it is, the following are some tips to guide you in running an effective business meeting. Tips for Running an Effective Meeting Objective What is the goal, purpose, or basic reason for holding a meeting? the meeting objective. Agenda Through a memo, let participants know in advance: - The purpose for meeting - The time - The place - Topics to be discussed - What materials(plans, facts, or data) they need to prepare. Time Set time limits in advance. - Begin punctually - End on time Communication - Stick to the meeting objective - Discuss only one issue at a time - Give everyone a chance to speak (dont allow one person to dominate the discussion) - Ask probing questions to keep the discussion moving - Summarize important points.

Participation include only participants who can influence the fulfillment of

12 MEMO The following is the example of memo. To Re Date : Production Line Employees : Special Departmental Meeting : October 10th From : Giles Depardieu, Operation Manager

In order to meet the upcoming production deadline, we must discuss and develop a plan of action. I would like each of you to be prepared to present your action plans as briefly and concisely as possible. The meeting will be tomorrow from 9 A.M. to 10 A. M. in the Executive Conference Room. Please be prompt. COMMUNICATION STRATEGIES When you are leading a meeting, it is important to encourage participation among them in a positive way. The following are some key phrases to use while running a meeting - Thats an interesting idea. - Im glad you brought that up. - Keep talking, youre on the right track. - How can we build on that idea? - Thats great. How can we do it? - What else do we need to consider? - I like that. - etc

CHAPTER 4 HUMAN RESOURCES

OBJECTIVES: 1. The students are able to explain the definitions of words concerning with human resources. 2. The students are able to explain what should be done by the interviewer and interviewee. 1. INTRODUCTION TO HUMAN RESOURCES In order for a company to hire the right person for the right job, the human resources manager must do many things. The human resources manager must first write a job description of the position that outlines the objectives, responsibilities, and key tasks in a job. It also describes the conditions of the job and its relationship to other positions. In addition to the jobdescription, there is the job-specification. This describes the necessary skills, education, and experience needed to fill the position. A human resources manager also needs to forecast the demand for labor. As a first step, accompany must gather a large number of interested and qualified applicants for a position. This the recruitment phase. Managers must then sort through the applicants and select the best candidate for the job. When an employee is hired, some form of orientation is usually given. This helps the employee learn more about the job, the companys policies, and its programs. At this time, new employees usually meet the people with whom they will be interacting. Next, an employee is given some sort of training. This could be either 0n-the-job training or off-the-job training. On-the-job training occurs while an employee is actually at work, whereas off-the-job training takes place at a location away from the work site, usually a classroom. Every company needs to asses the performance of its employees in some way. This assessment is called performance appraisal. It is an evaluation of how well workers are doing in their jobs. Workers must first formulate goals and performance expectations with their managers. Then expectations are compared with actual performance. This comparison is used in making decisions about training, promotions, compensation, and dismissal of the employee. Wages and salaries are the amounts paid to employees for their work. Wages are sums that are paid according to the number of hours worked or the number of units produced. Salary, on the other hand, is paid at regular intervals in return for doing a job, regardless of the amount of time or output involved.

13 14 Aside from wages and salaries, companies may also offer incentive programs to the employees. These programs are designed to motivate improved performance and productive by offering additional pay over and above the normal wage or salary level. A common example of this is a sales bonus. In a bonus arrangement, if an employee sells a certain number or dollar amount, he will receive a special payment in addition to his wage or salary. Those employees who do not reach this goal will earn no bonus. Another type of incentive is profit sharing. This is based on profit levels of the firm. Profit earned above a certain level is distributed to employees. Stock ownership by all employees serves as an incentive to lowering costs and increasing productivity and profits, and the increasing the value of the employees stock In addition to incentive, wages, and salaries, firms offer their workers benefits in return for their work. Examples of these include health insurance, retirement benefits, and paid vacations and holidays. QUESTIONS Answer the following questions based on the passage! 1. What should the human resources manager do in order for a company to hire the right person for the right job? 2. What are the steps in selecting a new employee? 3. What is the recruitment phase? 4. What is the function of orientation? 5. Mention two kinds of training for a new employee! 6. What is on-the-job training? 7. What is off-the-job training? 8. Which form of training is better for both the employee and the company? Explain! 9. What is performance appraisal? 10. Explain why performance appraisals are necessary and an important aspect of business! 11. How do companies compensate their workers? 12. Why is it important to match the right employee with the right job? 13. What benefits do you consider most and least important in attracting workers? In keeping workers? In motivating workers? 14. Select your job, and find out a job description and a job specification for this position!

15 WRITING THE RESUME Before you can go on a job interview and be hired by a company, it is important to have a resume highlighting your background and experience. Fill in the following information about yourself to help organize your resume. ______________________________________________________________________ Name Address Telephone EDUCATION (What kind of degree, diploma, or certificate did you receive?) (Where did you receive it?) (When did you receive it?) WORK EXPERIENCE (Position or job title) (Name of company or organization) (When and how long were you employed there?) (What did you do?) OUTSTANDING ACCOMPLISHMENTS (What honors or awards have you received? Or What special skills do you possess?) LANGUAGE SKILLS (Which languages do you speak, read, or write? List only if fluent.) ______________________________________________________________________ : : :

16 The following is the example of the resume. ______________________________________________________________________ RESUME Gustavo Lopez Caleruiga 11 28033 Madrid, Spain Telephone : 34-1-541988 Work Experience Title Where Responsibilities - Managed operations for six resort hotels. - Promoted hotels to travel agents in Germany, England, and France. - Renovated and expanded hotels to be more elegant and to hold 50 percent more guests. - Arranged Package deals with Iberia, the national airline of Spain. - Achieved a year-round average occupancy rate of 89 percent. Outstanding Accomplishments Helped the government to promote hotels in Barcelona for the 1992 Olympics. Education Graduate of the University of Madrid, Major: Business Languages Fluent in Spanish, French, and English. ______________________________________________________________________ Executive Director Buenos Noches Hotel Chain (1986-Present)

17 Read the following statements and determine which term in the list describes the statement best. Orientation Benefits Salary Job-specification profit sharing off-the-job training job description on-the-job training performance appraisal wages recruiting incentive program

1. The Mishka Company is coming to campus next week to interview accounting majors.. 2. I just got $2,000-a-year raise . 3. The job says that the position requires the individual to interact with top management on a regular basis... 4. My first day on the job is Monday.. 5. Do you need an MBA for the job?........................ 6. I just got accepted into the management training program at Bueno& Bueno. I will spend the first six weeks at company headquarters with thirty other new trainees.. 7. I exceeded my monthly sales goal and now the company is giving me a VCR.. 8. I go on vacation next week... 9. I get paid $6.50 an hour. 10. I always try to work efficiently so I can contribute to the profitability of the company. .. 2. LANGUAGE SKILL PROFESSIONAL INTERVIEWING The following are some guidelines to aid you in the interviewing process, both as an interviewee and as an interviewer. INTERVIEWER 1. Create a supportive climate Introduce yourself Use a warm, friendly tone of voice Spend a few minutes in small talk before you begin.

18 Dont communicate an attitude of superiority.

2. Structure the interview. Spend the first 60-70 percent of the interview discussing the candidate, and the last 30-40 percent discussing the company and job. 3. Probe thoroughly. Ask for clarification: What exactly does that mean? Ask for elaboration : Can you tell me more about that?

4. Take notes of key information. 5. Pace the interview. Dont get bogged down in one area. 6. Allow the candidate time to ask questions. 7. Conclude the interview: Thank the candidate for his or her time and tell him or her what to expect in terms of a follow-up. Dont give misleading cues to the candidate.

INTERVIEWEE 1. Dress formally and appropriately. 2. Be prepared. Know as much about the company and the job as possible and know why youre the person they should hire. 3. Practice answering possible questions. 4. Be on time. Its best to get there a little early to allow time in case you get lost and need to fix your clothes and hair. 5. Make a list of questions beforehand to ask the interviewer. 6. Give a firm handshake when greeting the interviewer and when saying good-bye. 7. Maintain eye contact. 8. Be confident and try to act as calmly as possible. 9. Be honest. 10. Follow up the interview with a letter restating your interest and qualifications. If there was something that you wanted to say but didnt, say it now. Also thank the interviewer. COMMUNICATION STRATEGIES These are some questions that may be asked during an interview. Use them as a guide when either conducting a job interview or being interviewed.

19 WORK EXPERIENCE 1. What jobs have you held? How were they obtained? Why did you leave? 2. What did you like most about your jobs ? Least? 3. What were your primary accomplishments? 4. Why did you choose your field of work? 5. What has been your greatest frustration or disappointment in your current job? EDUCATION AND TRAINING 1. Why did you choose particular place of study (University, technical school, college, etc)? 2. Do you feel your grades reflect the kind of work you are capable of doing? 3. How well has your schooling prepared you for your career? SELF-ASSESSMENT 1. Describe yourself? 2. What makes you a good investment for an employer? 3. How do you feel about your progress so far? GOALS AND EXPECTATIONS 1. Where would you like to be in five years? In ten years? 2. Why do you think you would like to work for us? 3. Aside from money, what do you want most from a job?

CHAPTER 5 MARKETING
OBJECTIVES: 1. The students are able to explain the words concerning with marketing. 2. The students are able to explain what should be done in giving a business presentation. 1. INTRODUCTION TO MARKETING Marketing is the link between the organization and the consumer. All organizations must serve consumer needs if they are to succeed. Marketing begins with the identification of consumer needs and the development of a product to meet those needs. Marketing managers develop a marketing strategy based on the four principle elements of marketing. Those four elements, often called the four Ps of marketing, are product (including goods, services, and ideas), price, promotion, and place (distribution). Together, these elements are known as the marketing mix. QUESTIONS 1. What is marketing? 2. What is consumer behavior? 3. What are the 4Ps of marketing? 4. What is a marketing plan? 5. Discuss how the following elements influence the products, services or ideas that are a part of your lifestyle. a. TV b. billboards c. packaging 6. How do you find out about certain products or sales? What entices you to buy the products? 7. Discuss what a company must do in the following areas before a product can reach your hands. a. Product research and development b. Market research c. An advertising campaign d. Quality control 8. What are the steps that a company takes to introduce a new product? 9. When you shop, are you more concerned with price or with quality? 10. Do you buy only things that you really need or do you buy things that are the latest fad?

20 21 11. Do you plan your purchases carefully or do you buy on impulse? 12. How do the following influence you when you shop? a. shopping alone or with someone else. b. salespeople c. your mood d. promotion e. price f. location of store g. time of day 13. Here you act as the consumer. Think about the last time you went shopping and made a purchase. Answer the following questions based on your experience. Product Place What did you buy? Describe it! Where did you buy it? What kind of store was it? Price How much did you pay for it? How did it compare in price to other similar products? Promotion How did you find out about this product? What enticed you to buy it? 14. Bring to class an advertisement from a magazine. Describe to the class the product that company is selling and who the target market is that the company is trying to reach. Determine which of the four Ps the following problems are most closely associated with Product, Price, Promotion, or Place. - The phone number for placing a telephone order is always busy. - The store is only open until 5:00 p.m. on weekdays. - The selling price of the product is only 5 percent higher than the cost of manufacturing it. - The store runs out of the product during a special sale. - A new dress has a rip under the arm after it is worn once. - The product is 20 percent higher in price than other similar products. - The advertisement on TV is targeted to children as consumers and influences them negatively. - A new flavor of ice cream is introduced in the winter.

22 - The shoe store only has size fives (very small) and size tens (very large) left in a very popular style. - A new product is displayed in the back of the store. 2. LANGUAGE SKILL GIVING A BUSINESS PRESENTATION Presentations are extremely important in business. The following are some tips to help you avoid this situation. 1. Preparing the presentation First, ask yourself the following three questions - Who is my audience? - What kind of response do I want? - What do I hope to communicate to this group? 2. The presentation - Start developing your ideas based on your answers to the three questions above. - Select your main ideas and develop them. - Arrange those ideas so that they build logically. Make an outline. - Support each idea with facts and an explanation. - Develop your introduction and conclusion to attract the listeners interest. Remember to summarize main ideas in the conclusion. - Plan your content to fit the time allowed. - Prepare an outline of your presentation on 3 X 5 index cards to aid you in your delivery. 3. The Delivery - Above all, appear relaxed - Try to gain a good rapport with the audience. - Your appearance: - Dress in a comfortable and professional manner. - Maintain good, straight posture. - Maintain eye contact with the audience. -

- Use hand gestures that will add to the presentation instead of distract from it. 23 - Show enthusiasm. - Use visual or audiovisual aids. - Your voice: - Dont speak too fast. - Pronounce your words clearly. - Project your voice so that people in the back can hear you. - Try not to use too many pauses or hesitation. COMMUNICATION STRATEGIES A tape recorder is an excellent tool for self-improvement in public speaking. To find out how effective you are when speaking English. Make two five-minute recordings. For the first recording, read aloud any material of your choice. The second one should be an information conversation with a friend. Listen to both tapes and rate yourself, using the following guide. The left column lists characteristic of an effective speaker, and the right column lists are in need of betterment. If you do have some marks in the right-hand column, think about how you can make improvements. Do you sound: - Self-assured - Warm, friendly - Relaxed - Fluent - Clear - Communicative - Appealing - Not too loud or too soft - Not too fast or too slow - Self-conscious - Impersonal, indifferent - Tense - Hesitant - Difficult to understand - Unresponsive - Monotonous - Too loud or too soft - Too fast or too slow

CHAPTER 6 ETHICS
OBJECTIVES: 1. The students are able to explain the words concerning with ethics 2. The students are able to tell the tips to be more effective when using telephone. 1. INTRODUCTION TO ETHICS Business Ethics deals with the right and wrong actions that arise in any work environment. Sometimes a conflict exists between an ideal decision and one that is practical under certain conditions. It is important that companies and individuals evaluate their ethical responsibilities when making decisions. It is important to remember that ethics are both personally and culturally defined. DISCUSSION 1. Discuss how ethical or unethical the following situations are. Do you think these situations occur often? a. Cheating on an exam b. Spreading rumors about someone that arent true. c. Lying to make yourself look better. d. Taking home company supplies 2. Read about the following situations and decide if they are ethical (no problem) or unethical). Give your reasons! Situation 1 The owner of a freight company is petitioned by an animal right organization to stop shipment of exotic tropical birds. The activists charge that the tropical bird trade is inhumane and is leading to the extinction of several species. The shipping mogul, while sympathetic to these views, argues that hundreds of destitute peasants who hunt the birds could be adversely affected. Besides, the importation of the birds represents a significant amount of the companys earning. He decides to continue the shipment but declares that 5 percent of the profits will go toward creating a wildlife sanctuary in the rain forest. Situation 2

A real estate agent doesnt tell the buyer that the house she is buying is near a former toxic waste dump site. 24 25 Situation 3 A job applicant finds out the day before her job interview that she is pregnant. She decides not to say anything rather than jeopardize her chances. Situation 4 An administrative assistant routinely makes up excuses for her boss to upper management and to his wife when he takes long lunches with his secretary. 3. Why do ethics vary from person to person? 4. Do you think people today have the same morals and values people had twenty years ago? Explain! 5. Do you think that the people running your countrys government and business are generally honest? Explain! 6. How do you think competition among employees affects ethics in the workplace? 7. Do you think that businesses and society today place too much emphasis on profit and success? What effect does this have on ethical behavior? 8. Discuss the following statement: A company that wishes to encourage ethics must pursue a strategy that includes non-economic goals. 9. How do you think company should treat dishonest employees? 10. Do you agree with the statement : An honest person can be influenced to engage in unethical behavior if the work environment has no system of checks and balances? Explain! 11. What specific things can a company or a government do to encourage ethical behavior? 12. Do you think corporations have a responsibility in preserving our environment? Explain! 2. LANGUAGE SKILL USING THE TELEPHONE In todays business world, being able to communicate effectively on the telephone can mean the difference between success and failure. Not only do sales jobs rely on the use of the

telephone, but the phone helps to carry out many functions that people rely on every day, such inquiring, confirming, interviewing, complaining, and

26 ordering. The following are some tips to help you be more effective when using the telephone. 1. Be prepared Write down the important points that you want to talk about before you dial the phone. 2. Be Direct Know your purpose for calling, and know the desired results. 3. Be friendly Since you will be judged on your voice alone, it is important to project a warm, friendly, and enthusiastic tone. People will be more responsive to you and more willing to talk to you. 4. Be Courteous Use the commonly accepted format of greeting and closing. Conversations usually consist of a greeting, a statement of purpose for calling, and a closing. A typical greeting and statement of purpose for calling could be the following : Hello, Mr. Smith. My name is Bob Jones and Im with the orange Computer Company. How are you? (Response from the other person.) The reason Im calling is because A typical closing could be (depending on the situation):I enjoyed talking with you and I hope that you will consider using our product. If I can be of any help to you please dont hesitate to call me. Ill send you our company brochure highlighting our new product. Thank you for your time, Mr. Smith. I look forward to talking with you soon. 5. Be Interest Listen to the person youre talking with. Show that youre interested in that person and what he or she is saying. Listen to his or her concerns and try to resolve them. 6. Be Precise Be able to explain yourself in a concise manner. 7. Be articulate Enunciate your words clearly and dont speak too quickly. 8. Be attentive Give the person youre talking to your full attention. Dont do other things at the same time that may be distracting 9. Leave Message If the person you want to speak with is not available, leave a message with his or her secretary or on the answering machine. Dont be afraid to speak into an answering

27 machine. Wait for the tone and identify yourself and you company and give your phone number. Know what the message is that you want to leave, and say it as few words as possible. 10. Be Resourceful Dont hang up until youve gotten the information that you want . You may have difficulty reaching that person again.

CHAPTER 7 INTERNATIONAL BUSINESS

OBJECTIVES: 1. The students are able to explain the words concerning with international business. 2. The students are able to tell the tips to be a successful negotiator. 1. INTRODUCTION TO INTERNATIONAL BUSINESS International trade makes a wide variety of goods, and services available to people everywhere. Many of the items that we use daily are imports-products that are sold where we live but produced or grown somewhere else. Conversely, products that are made or produced in a country, but shipped abroad, are exports. Regardless of its resources, no country today can produce all of the goods and services demanded by its citizens. Countries naturally tend to export those things that they can produce better or less expensively than other countries. They can then use the proceeds to import things they cannot produce efficiently at home. Think about the following products that you may use everyday. Where do these products come from? Television is from China, Japan, and Germany. Coffee is from Brazil, and Indonesia. Wine is from Russia, and French. Cars are from Korea, Japan, and Germany. Oil is from Indonesia, Iran, Iraq, and Saudi Arabia. Paper is from Indonesia, and China Make a list of other products that you use in your daily life. What countries are they from? Rice is from Indonesia, and Burma. Hand phone is from China, Korea, and Japan. Motorcycle is from Japan, India, and China. Laptop is from Japan, and Korea.. Clothes are from Indonesia, French, and China Why do these countries produce these products? These Countries produce these products because they have the raw material. YOUR COUNTRY AS AN IMPORTER 1. What are your countrys five top imports? Electronic appliances, cars, motorcycle, hand phone, and textile. EXPORTER 1. What are your countrys five top exports? Oil, fish, sugar, coffee, and work force.

2. Why does your country import these goods or services? Because we didnt have the expert yet.

2. Why does your country export these goods or services? Because we have the raw material. 28 29

3. From where does your country import Them? We import them from developed 4. What are the advantages and disadvantages of importing them? The advantages are we have these modern things, and we can use them to enlighten our work. The disadvantages are they decrease our power to buy and we dont challenge our selves to create our own goods.

3. Where does your country export them to? To developed countries or rich countries. 4. What are the advantage and disadvantage of exporting them? We get income from selling them and automatically increase our power to buy. The disadvantage is we decrease our raw material.

NEW VOCABULARY Read the following sentences and try to guess the meaning of the words. Write a synonym or your own definition. 1. At the end of last year, Iguana Oils total assets were $ 38.9 billion and it was ranked as the fourth largest petroleum company in the world based on revenues. 2. The company was founded in 1932 and experienced phenomenal growth during the 1930s and 40s; it made an important contribution to the war effort during World War II. 3. Its growth continued well after the war as baby boomers bought cars to support their need for mobility in their work, entertainment, and vacationing. 4. Now as Iguana Oil prepares for the twenty-first century, the worlds oil supplies are diminishing and the cost of exploring and developing new oil fields is increasing tremendously. 5. At our current rate of extraction, which is in accordance with world demand, our present oil reserves are expected to be used up within the next five years. 6. The oil reserve may be extremely large or it may be extremely small. There is no way of knowing until we actually start developing the oil exploration sites already staked out.

30 7. Since the 1970s, Guilipa has been plagued by a large deficit, unable to earn enough foreign currency to pay for imports. 8. All of president Sanchezs aides were exclaiming, This is what Guilipa needs to help rebuild the economy! 9. Even though President Sanchez thought this could be an excellent opportunity for Guilipa, he was still a bit wary. 10. Yes, Guilipa desperately needs economic help. We are in very difficult times. However, we still want representation, autonomy, and dignity in the venture. Now try to match with one of the given synonyms or definitions 1. Rank 2. Phenomenal 3. Baby boomers 4. Diminish 5. In accordance with 6. Stake out 7. Deficit 8. Exclaim 9. Wary 10. Autonomy Key to the above questions 1. Rank = order 2. Phenomenal = extraordinary 3. Baby boomers = individuals born after the immediate post-world war II. 4. Diminish = decrease 5. In accordance with = corresponds to 6. Stake out = Demarcate 7. Deficit = shortage a. extraordinary b. independence c. shout d. cautious e. order f. demarcate g. individuals born after the immediate post-World War II h. corresponds to i. decrease j. shortage

8. Exclaim = shout 9. Wary = cautious 10. Autonomy = independence

31 2. LANGUAGE SKILL NEGOTIATION The following are some tips o help you in being a successful negotiator. Be cooperative In a cooperative approach to negotiating, the goal is to find a solution that will be perceived as beneficial to both parties-a win-win solution. Be flexible The negotiators must be able to adjust their demands in response to each others proposals. Be Prepared Know exactly what you want to achieve from the negotiation and what you are willing to concede for those things if necessary. Be Honest It is important for both parties to share ideas and concerns openly. This creates an atmosphere of trust and therefore a more cooperative negotiating session.

CHAPTER 8 FINANCE
OBJECTIVES: 1. The students are able to explain the words concerning with finance 2. The students are able to tell the tips to be more persuasive. 1. INTRODUCTION TO FINANCE Every company needs money in order to survive and grow. Financial managers must ensure that the companys earnings exceed its cost-the company must earn the profit. For a proprietorship or partnership, profit means an increase in its owners wealth. For a corporation, profits signify an increase in the value of its common stock. Why is financing an important option for both personal and corporate use? Financing is an important option for both personal and corporate use because every company and personal needs money in order to survive and grow and money means financing. What are some examples of personal financing that you use in your life? The examples of personal financing that I use in my life are mortgages, student loans, saving and checking accounts. What are some sources from which a company can acquire capital? Trade credit allows the buyer to delay payment of the bill for the goods purchased. For example, 2/10, net 30 means that you can deduct a 2 percent discount from the total bill if you pay within ten days. If you dont, the entire amount is due by the thirteenth day. Companies also take out loans from commercial banks. It is the borrowers responsibility to convince the lender that the money will be returned on time, with interest. Equity financing occurs when a company issues and sells ownership in the company. Earnings are paid to shareholders in the form of dividends. If there are no earnings to be shared, the firm can skip dividend payments. There are two different types of stock that a company sells, preferred stock and common stock. Preferred stock is sold with a specific dividend rate. Before any earnings can be distributed to common stock shareholders, the preferred dividends must be paid. Debt financing occurs when a company raises capital by

borrowing. The company issues bonds, which are long-term notes that carry a specific interest rate and maturity date. Payments of interest and the repayment of the loan are fixed legal obligations. When these are due, the firm must pay. 32 33 2. LANGUAGE SKILL BEING PERSUASIVE A manager, an entrepreneur applying for a bank loan, a job applicant interviewing for a position, and a sales representative all have something in common- they need to be persuasive in order to reach their goals. When selling our ideas, ourselves, and our products to others, we need to be convincing. The following are some tips to help you to be more persuasive in your business dealings. - Be confident Remember your body language: straight posture, eye contact, gestures, a strong voice, and enthusiasm! Even though these are not words, they still communicate messages. Remember sometimes actions speak louder than words. - Be an Authority Know your subject matter so that you are an expert. This gives you expert power and makes it difficult for people to argue with you. - Compliment Your Listener Honestly, compliment the person you are trying to persuade. Flattery can easily be overdone, but all of us appreciate recognition of an accomplishment. - Everyones Doing It Demonstrate that everyone is adopting the idea or buying the product. People always feel the need to belong. - Its Up to You In order to be sure youre getting through to your listener, ask frequent questions to make sure he or she understands what youre saying. Your listener will give you valuable feedback and youll be able to establish rapport by emphasizing your concern for clear understanding. - Be Calm and Objective Resistance to persuasion usually increases when you act desperate and nervous over the outcome. It is best to try to be calm and relaxed. Learn to look at situations objectively.

34 COMMUNICATION STRATEGIES The following are some examples of persuasive interaction. Giving a Compliment - You did a fantastic job on the Ivan Project. - Your presentation was very informative. - Im very impressed with your work. - I understand that youre a whiz at computers. - Its always a pleasure doing business with you. - Your work is always exceptional. - Your office is decorated so beautifully. - I heard that the project was your idea. Everyones Doing It - Last week I sold 500 units of this product. I just cant keep enough in stock. - I only have a few left because of the unexpected demand. - If you dont buy it today, you may have to wait a while until I get another shipment. - All the top lawyers use this brand. - This is the most popular product on the market. - Please attend the meeting. All the other employees will be there. - Are you going to the office Christmas party? Everyones going to be there. Its Up to You - Is it clear? - Do you understand? - Does this seem fair? - If its all right with you, Id like to send you the first issue of the magazine. - Does this sound like something youd be interested in?