ihe Speaking Test are specified in the syllabus and aligned to the appropriate CEF lovel These are 8 Topics from which 5 specific questions will be prepared by LCI as the context for the Test 1. Earnings Living - wages, living standards + jobtypes and roles 8 > 0 candidate’s (intended) job > employee/employer relationships ~ organizational type/structare, 4. ut ped 2. Production, > distribution: origin and destination of products Sale of Goods > Tetail and wholesale/small shops/supermarkets and Services - new markets and products > consumer protection > customer service/quality 3. Trade > imports/exports > intemational markets - trade blocs e.g, EU 4. Money - methods of paying, purchasing - price changes ~ banking services - savings - pensions 5. Transport - problems, disadvantages > individual, commercial, industrial - local, national, international - improvements? - congestion - pollution 6 Communications - effects on business - effects on individuals > media: TV, radio, newspapers, Intemet > TT, computers, PCs = telephone, email, fax, surface mail - advertising 7. Education - personal - education system - training skills . Travel and Tourism - travel and the individual - tourism and local area - tourism in the nation’s economyTopic 1. - Earning a living FINDING A JOB Job seekers, that is, people who! are looking for a job can find information about job ‘¥acaincies‘in the following sources” * school or college careers advisers * job centres (goverment agencies) Kjodivnote © priyate search firms, Teoruitinent agencies or headhunters * job offers tf newspaper advertisements or the Internet © job fairs cunaator ke. Mmdalio * people who already work in the firm pena ae People who, are interested can apply for the job by sending in a letter of application or covering ‘letter and a curriculum vitae or CV containing details of their education and experience to the Human Resources Department of the company. HR will select the most Suitable applications and prepare a shortlist of candidates, or applicants, who are invited to attend an interview. RulamielL pebte — PObpeO A curriculum vitae is a'6eP history of the applicant. It contains information about the candidate's personal data, schools, qualifications, positions, relevant experience, skills, abilities, hobbies and interests as well as the names and contact addresses of 2 referees who are willing to give further details about the applicant. A covering letter js a formal letter in which the applicant highlights their relevant experience and skills, draws attention to special characteristics and shows wi interview. ci mie dHaanteona 9009, : ‘The main purpose of the interview is to assess the applicant's suitability for the position, their appearance, general manner and communication skills. It also gives the applicant the opportunity to seek further information about ‘the job. At the interview the candidate might be asked questions about his motivation, career objectives, strengths and weaknesses. Within ‘a company it is the Human Resources Department that is in charge of recruitment and personnel problems. Its functions may be summarized as follows: * finding the right person for vacant jobs: e.g. advertising the vacancy, interviewing applicants i H J providing training and further development opportunities ensuring the welfare of or well-being of employees dealing with resignations of workers ‘ Providing testimonials and references (names of persons willing to testify as to the character of a job applicant, written declarations about candidates) * _ dealing with the dismissal of workers JOB ROLES AND TYPES ‘What people do to eam a living is their job or work or occupation. There are two big groups of jobs: blue-collar jobs and white-collar jobs. Blue-collar jobs involve physical work. Some physical workers are skilled workers and have & trade such as electrician or bus-driver or mechanic. Others work as factory hands and they ‘may be skilled or semi-skilled. And there is also a group of unskilled workers who are mostlyemployed in the construction industry and in agriculture. ‘Skilled workers need special training which they can get in vocatiorial schools or in secondary technical schools. People in blue- collar jobs are paid hourly or weekly wages which are generally lower than the white-collar workers’ salary. roy tees White-collar jobs réquire college or university qualifications. They ate also called professions, such as a doctor, a lawyer, an economist. Some professions such as teaching and nursing are also called vocatiéns which suggests that people do them in order to help others. White-collar workers are paid a monthly salary and work in better conditions than blue-collar workers. Jobs can also be classified according to the time spent working. If somebody works eight hours a day, five days a week, that person has a full-time job. Part-time workers only work for four or six hours a day. Very often they are women who have small children and need to spend more time with their families. In Hungary unfortunately many people need to have two jobs, a full;time job and also a part-time job in order f6,carn enough money to Suppoit their families. Casual workers are those who work on a totally irregular basis, a few hours a day or a few days a week, whenever they are needed. Temporary or seasonal workers are mostly employed in catering and the tourism industry and they usually work during the summer period. Another grouping could refer to the period of time one’s work contract is valid. Tenured work offers the highest degree of job security because your work contract is not limited in time. Cobitfdetti Work means that a given work contract is valid for a limited time, a year or two. In this case, of course, job security is replaced by job insecurity. New trends in job types include homeworking which means that people work from their homes through an internet connection, or hof-desking which involves working in an office where you don’t have your own desk, but sit down at any free desk and do your whole work entirely with the help of a computer convmumal work - lecumuntea & WAGES AND SALARIES Remiumeration means the money you receive in exchange for work you have done. It is not surprising that many people considét money to be more important than other things in life. This is because the level of earnings greatly affects the quality of your life. The income you receive detérftiines the type of house and furnishing you can have, the quality of your car or the length of holidays you can take. Obviously the standard of living of well-paid people is much higher than that of poorly-paid people. ‘There are different forms of remuneration, for example, a salary is paid to white-collar workers, wages are paid to blue-collar workers. Students are given a grant, lwyers, doctors and consultants are paid fees, authors are paid royalty, senior managers are offered stock<**-3 ‘option plans, old age people are granted a pension. And taxes are a form of income for the government. froo feakuo Active employees generally have a base salary and they can also receive benefits depending ‘on how important the work they do is. What is gross payment and net payment? —_, i Lyte @ gross pay: the total amount before any deductions have been made net pay: the amount received after deductions have been taken awaylronan What deductions are made on your salary? © income tax St * national Insurance mysigele : * unemployinient contributions, superannuation, contributions -=e-ad. * voluntary deductions: e.g. untioh niehibeHship 1288, payments to private pensi Schemes, private medical schemes Pee wee Petia eke ghen, Looe tas Why are some jobs better paid than others? prude eA TR : Lig The level of wages and salaries depends on a number of factors, such as market forces,“ ualifications, skill factors, job satisfaction, prac odie Fawouk fiwaiok sh oe *~ market forces, that is, demand and supply. If demand for.a certain job is low (few People are needed) and supply is high (many people are available to do the job), wages and falavies wil be lower. On the other hand, if demand for a job is high but the supply of people for this job is low, then wages and salaries will be higher. The demand for a certain job depends on the level of economic development. An important element of this is infistructure. For example, in regions with poor infrastructure there will be fewer factories, less investment, ‘ bour, The supply of labour depends on how difficult and time- and money-tohisuming the abquisition of certain trailes ahd professions is. For example, the supply of doctors will be lower than that of bus-drivers forthe following reasons: ~the occupation requires a high degree of skill and academic ability ~the training period is too long for many people ~the cost of training is too high. Changes in demand can also océur because of the movement of multinationals from one ———— country to another. In this case certain people, mostly managers and technical people whose skills and kndwledge are indispensable for the company will be asked by management to move home in order to follow work. This will have a lot of consequences such as cost of. oving, housing and travelling All these costs wil affect the wage expectations of the people involved, thet is these people will expect to get higher salaries, nie ~ qualificatidns al30 ‘Greatly detetmitie how much income a person receives A good salary generally requires exam-qualifications, that is to say a college or university degree, White-collar workers will be offered higher salaries partly to compensate for the time spent in securing qualifications and partly because the work they are doing is more important for the national economy and the society a8'a whole. Bhie-collar work includes skilled, semi-skilled and unskilled jobs, and of course there are wage-differences between these groups, with higher wages given for more skilled labour, However, unskilled jobs do not always pay the lowest wages because many of these jobs are dirty, unattractive or dangerous so few people are willing to do them. ~ the time it takes to travel to work and home ~ the employee's work experience and age ~ the employee's sex, race, nationality, religion, Discrimination at the workplace often leads to differences in pay. The principles of equal pay and equal opportunities for men and women irtespective of race, nationality, religion should be taken into consideration by all employers. te ~ special skills (languages, computer literacy) ~ the degree of risk a job involves (miners, firemen, policemen, ambulance people should be paid higher wages)~ {ob satisfaction can also be of importance when negotiating wages and salaries, Ifa job is interesting, challenging and exciting, it can offer high job satisfaction which can compensate for less money received. On the other hand if a job is boring and repetitive, with little or no job satisfaction at al, people will want to be paid more money to do it, There are a number of factors that motivate employees and offer them job satisfaction: ‘* good pay and opportunity for wage increase promotion prospects iis none Pc ineky interesting, creative and challenging job working hours (flexible and fixed hours, overtime) .8-—. holiday arrangements job security (knowing that there is no danger of losing your job) , social interaction with colleagues working conditions (pleasant, healthy, nice atmosphere) fringe benefits or ‘perks? se 20, receiving training, opportunity to take qualifications having a position of responsibility working for a respected and well-known company having freedom at work ‘travelling or working abroad Barba Coafetird.) What fringe beiehts 7 pods CakibIe ddttons to the wages) ean be given by companies? {ree or subsidised meals (e.g. luncheon vouchers) company car with full use of petrol, mobile phone five membership of private health schemes (ie « low interest rate loans for house purchase reduced prices for company produets or services assistance with expense of moving house help with payment of private education fees fravel allowance, end-of-year bonus #2412 ‘tok option plan MANAGEMENT MANAGEMENT FUNCTIONS — 9ieu ink Crs \ 1. First of all, managers set objectives, and decide how their organization can achieve them. This involves developing strategies and plans. 2. Secondly, managers organize. They divide the work into manageable activities. They select people to perform the jobs. | “*°™ 3. Thirdly, managers practise the social skills of motivation and communication. They also have to communicate objectives to the people responsible for attaining them, They make decisions about pay and promotion..." yi rece 4. Fourthly, managers have to measure the performance of theit staff > 7 5., Lastly, managers develop people - both their subordinates and themselves. ky we 7 MANAGERIAL FEATURES/ CHARACTERISTICS: What do you think makes a good manager? * being decisive: able to make quick decisionsake © being efficient! doing things quickly, not leaving tasks unfinished, having a tidy desk, and so on being friendly and sociable being able to communicate with people being logical, rational and analytical being able to motivate and inspire and lead people being competent: knowing one’s job perfectly, as well as the work of one’s subordinates ' being peistias having job ideas ; being forward-looking icxlalo being supportive and understanding lomoyelss to mrgurtds being inspirational being hands-off but at the same time available having experience being someone who others can respect and appreciate SioaciL rae'Udaupot being honest and reliable wigexrkats if LEADERSHIP STYLES fas 1. Autocratie. Such leaders are the absolute authority on all matters. They decide what to do, and whatever others may think, it is done. 2. Demoeratie or participative. The leader will consult with employees before making a decision, but will reserve the right not to act on a majority view. 3. Laissez-faire or free-rein, The leader gives general directions to workers on the tasks to be performed, and then leaves them to carry out the work in the way they think is best etuen tat 4. Charismatic. A charismatic leader is one who influences and motivates others because he or she has an outstanding personality or character : able to convince people to do things COMPANY STRUCTURE What types of structure are there? What characterises them? * the most common: hierarchical structure / line structure, one person or a group at the top of the pyramid and an increasing number of people below them at each successive level; everybody has their superior (to whom they report) and their subordinates (to whom they can give instructions). The disadvantage of the pyramid structure is that the lower level you go the less decision-making power people have. This structure is particularly suited to small businesses. * staff structure: there are people (e.g. the managers” assistants) who will help their colleagues in the pyramid but who have no power to give instructions to people at the level below. * functional structure: the whole business is organised according to functions and divided into departments such as marketing, production, staff, finance, personnel, research & development or sales. The head of each specialist department supervises, controls and is responsible for just the one function with which itis involved, that’s why this type of organisation requires a lot of co-operation between departments. It is particularly suited to large companies with divisions located around the country or in different countries.* matrix structure: the employees have to report to several superiors; this is one way of keeping authority at lower levels. Benefits of working for a small business: + Employees are responsible for a variety of tasks which gives them a better possibility of realising their potential. ‘* Because of the small number of employees, they can deal with problems face to face. * Employees get greater job satisfaction as they can actually see the result of their contribution to the company © Because of the relatively simple company structure, employees have more independence, they don’t always have to wait for permission from a superior to perform a change. The atmosphere is friendlier, everybody knows everyone, there is more openness among people, closer communication and better working relationships. Employees feel a personal involvement in the business, Advantages of working for a large company: © Employees can become more specialised in their work. © Because of the size of the company, they can easily change departments if they have problems with their colleagues. They are likely to get a slightly higher salary than they would in a small company. ‘They enjoy a higher degree of job security as a large company is in a better position in an economic downturn or recession ‘* Large companies often have subsidiaries abroad, so people may be able to go and work ina foreign country. People can be proud of working for a company with national or international reputation.freclomeuy = makmd ono PORUSUC vrokeur ‘Types of Business Organisations: TYPE [LIABILITY [PEOPLE [ADVANTAGES DISADV. SOLE lunlimited [sole trader (Sole |- easy to form and | unlimited PROPRIETORSHIP proprietor) = organise liability Regie eedelcons owner and ~ no red tape or ~ limited financial = manager, incidental expenses| resources, = provides all the |-highly motivated | difficult to get olw Leda capital - freedom loans ~ less capital - no fringe necessary to start | benefits j-need not share | illness or profits absence of the ~ personal contact owner is a problem ~ have to provide all the capital = no continuity PARTNERSHIP funlimited [partners (2 or |= easy to form = untimi general partnership more) ~ less limited Tiability unlimited partnershi financial resources, |~ possible \Rozkeresetl Uirsasay [+ secret / silent more people conflicts, partner provide capital disagreements ~ shared expenses and] between ‘management partners - death or withdrawal of partners lat least one partner has luntimited ibility CORPORATIONS limited from 2 toan _|—legal entity = Timited capital la) private limited junlimited number |~ easier to raise because shares {companies (Ltd) Jofshareholders | funds, more people | are not for = shares are not sold on and provide capital public sale the Stock Exchange lownership is | greater continuity separated — limited liability from — separated management ‘management and ownership b) public limited limited ~~ Jfrom2 oan |-Timited liability |~a lot oF companies (Plc) unlimited number ~ legal entity documentation |= shares are listed on the lof shareholders |- economies of scale | and expense to SE, advertised for public land ~ maximum form sate lownership is continuity ~ easy to take over separated ~ can raise large sums |~ can have too from of capital many rules Imanagement | can buy supplies in |~ annual accounts bulk and buy are open to special equipment | public - easier to borrow | - double taxation mone;"ZZ! 50 common interview questions 110 | Why did you choose to study your degree subject? 2 Wis dys meses eno abet yur re tue? 5 Winat sls da you deveion at unnersity? Ws a 5 6 ia corn not Sagres dee couse agra Bank® 5 Hove will your degree help you in this poston? 6 Tel us something about yourset . 7 What do yeu like doing in your spare time? La a.d UI 8 Wy do you want thisjob? 9 Wity should we hte YOU? abies 10 Wat can you bring to tis positon? 11 What do you consider to be the key skills necessary for this postion? Wc Yas bavsate . 12 What yuo you don gett on? Kabroortome'ga 15 What are your svengtnsiveaknesses? 14 What is your biggest achievement? 16 What attracted you to our company? Wont. 17 What do you thin of cur website? 7 18 Who would you consider zo be our main competitors? 2 anton. & 9S wentwytatountunale? ipa wets a ae al ee Ne EN IE? Sp @ tow ao you rypcaly approach new pecs? wafene ed 21 Describe your management style What sorts of things co you ike to delegate? ‘What qualities do you look fr in @ manager? 24 How do you andl stest¢ essere esaughfomaeiocg Coyowesd «Sa holgore) 25 Tellme about your ais bik te 26 tnwhatenvironmest do yu work best? 27 What mativates youn tems cf nat? 28 What neress you mosteastnyoursuentnon? tandeqe outen 29 What would yu change aot your current jf yas coud? 50 Why are you considering leaving Your Cue JOD? ovo ac Ae 51 Why i you tee your lost ob? AeHiAL Wecueia: Of jelntigy. wut? 52 What ae you looking fr ajo? 55 at do you thin be the most haleneing aspect of his le? wink 34 hat kinds of eeslans co you finda te wae? 35 Tous about atime en you demnstrted good customer serie /leaderahip sts ee 36 Tel as about aime when you hove bee nm atv at wera ‘ 57 Tellusatouta time you encuntres a problem and ha you reseed it taa'Licose a 38 Telus ebout ate hai vou Foe make a du desvon, 39 Talus about ime when you successtly managed afl stuation a work 40 Describe a sation in wien you tok ask Wret vere the eel? 4 ow do you ork na team? 42 Hom would our tllogues desc you? 43 How would your manager cascribe your mock? 1 hen were You happiest two? 45 You seem not to hve foo much experience in X, Do You thnk this Would be a problem? 46 Do ou think you ae meat for ths poston? eck cexrpre 47 Howhov you changed overt is fe yeas? 48 Whore do you see youve in fe yeas one? 48 towdo you hope to develop yur creer ther? 50 Do you nave any cuestions you would eo ank us? Appendix 2 Common interview questionsEMPLOYER - EMPLOYEE RELATIONSHIP 1) Why are workers organised in Iabour/ trade unions? Rukerinirk — teejortinek : : labour/trade unions - organisations representing people working in a particular industry or profession and protecting their rights Kaipoadas ® to represent common interests in negotiations with employers for better wages and working conditions EEO to provide a communication channel between employees and employers to put presstiré én or influence employers ey 2)What major issues do they negotiate with employers? * improved wages and reduced working hours © improved working conditions @ job security benefits for members who are sick, retired or on strike * unemployment benefit, sickness benefit and pensions * participation in company decision processes @ovve>% © improved public and social services * training, promotion prospects, redundancies bexgNCS © promotion of equal opportunities and pay woes aed 3) What are the basie rights of employees? safe work environment, fair treatment regardless sex, race, colour, religion, political opinion, national or social origin, age, sexual orientation, ete. 4) What are the methods that workers might use during an industrial dispute? negotiations to reach an agreement or a compromise le industrial action: strike, work to rule, go slow, sit-in, boycott eu ener 5) What working conditions can help women who support a family? * help in combining work and home duties job sharing (two part-time employees = a full time job) flexitime employment, homeworking maiemity leave, nutising breaks, childcare facilities — job security, health protection measures patemity’Teave (surrounding childbirth) 6) What can employers henefit from family-friendly policies? © greater conimiitii&ti, loyal employees, better working morale © more efficiency in doing jobs ® lower tumover of staff, better return on training investments, fewer unplanned absences Yeuigathte Wwoweiea's Puce : _ folenc's © better image, competitive advantage in recruiting rerremfits BS Sy UNEMPLOYMENT i ‘The unemployment rate shows the proportion of unemployed people to the total available labour force. It only includes the officially registered jobless population, and doesn’t count with hidden or disguised unemployment (jobless people not shown in government statistics) What is full employment?‘ideal situation (never achieved) * the supply of labour (the number of people looking for a job) is equal to the number of unfilled jobs * does not mean that there is no unemployment at all, but almost everyone who is able and willing to work can find a job at the wage level they want ‘What are some of the reasons for unemployment? ‘* economic recession (companies lay off staff to reduce expenditures) © the changing pattems of the labour market © labour immobility (e.g. older generations are less mobile, they are bound by family ties to their place of living and are reluetant to move) * people who do not want to work (voluntary unemployment) because they are happy with the unemployment benefit they draw from the state (high unemployment benefit and low minimum wages) * people in the period of changing jobs for better pay or career opportunities (frictional or search unemployment) * declining or disappearing industries, structural change of economy (structural unemployment) * seasonal unemployment, e.g. in agriculture or tourism (at summer and winter holiday resorts) What government policies can reduce unemployment? * providing more retraining schemes ensuring better supply of information about job vacancies * improving geographical mobility of labour by providing housing or granting other benefits © attracting investors, supporting enterprises that settle and create jobs especially in unemployment-stricken regions (tax allowance, temporary tax exemption, subsidies) * providing lower unemployment benefits HEALTH AND SAFETY AT WORK ‘The right to health and safety is a basic right of all employees and students, Each business has to protect its employees. First of all there are certain laws protecting people in the workplace. In addition, it makes sense for a business to protect its workers because satisfied employees perform better and more efficiently leading to higher productivity and more profit Providing a healthy and safe environment includes: ~ ensuring adequate work space, ~ ensuring suitable lighting, ~ ensuring suitable temperature (heating or ventilation and air-conditioning), ~ maintaining standards of cleanliness, ~ providing adequate washing and toilet facilities, ~ guaranteeing hygienic and safe conditions, ~ ensuring noise control, ~ providing and maintaining safety equipment and clothing, ~ ensuring first-aid facilities, ~ providing protection for the use of hazardous substances, ~ ensuring regular maintenance of working tools, equipment, ~ providing proper user’s manuals for special machinery, ~ offering employer's liability insurance cover in case of accidents 10~ providing a break every 4 hours, PC glasses and special chairs for people using ‘computers. Protection against fire refers to the following ~ ensuring fire extinguishers in places that can be easily accessed, ~ providing escape plans, maps showing where to leave a building on fire, ~ offering instruction and training to employees on what to do in the event of fire, ~ organising false fire alarms to acquaint people with what to do if there is a fire. Of special importance are working time regulations which provide basic rights for workers, such as: ~ a twenty-minute rest-break after six hours’ work, ~ two days’ rest in a week, ~ eleven consecutive hours’ rest in any 24 hour period, ~ a limit of an average of 40 hours’ work in a week in which a worker can be required to work, ~ four weeks” annual paid leave. Conditions for a healthy and safe environment will vary depending on the nature of task carried out. Ensuring the health and safety of a mine worker will requite different decisions to protecting an office worker. Itis in the interest of a business to protect its workforce. A healthy and safe work environment should prevent accidents, injury and illness among workers. Any one of these may result in staff absence and lost production for the firm, In extreme cases a business may even be taken to court for failing to provide protection. The court may order the business to Pay compensation to the employee and also a fine. Health and safety regulations are updated from time to time as working conditions change, and they are compulsory for employers and employees as well. uorion 0 Oretamlere a Lemlabme vb os0ty Topic 2. - Production and sale of goods and services Before goods can be sold in shops, they have to be manufactured: In order for goods to be manufactured, raw materials have to be provided. ‘The three seetors of production are: * primary production: the extraction of basic/raw materials provided by nature, farming, fishing, mining * secondary production: manufacturing and construction industries, changing raw materials into some end products + sertiary production: the service industry (commerce and direot services) The chain of distribution refers to the passage of goods from préduder to consumer. It involves the activity of traders (wholesalers and retailers) and the use of services to trade as iatanesten hd eh manufacturer > wholesaler > retailer 5 individual estomers Wholesalers are businessmen who handle goods in the intermediate position between the | producer and the retailer, buying in large quantities and selling in smaller, more convenient=\7i 10 ¢ “lots to the retailer. Traditionally they have always dealt in large quantities. Their premises are usually a large warehouse divided into sections. Retailers may visit the wholesaler to choose their purchases, or orders may be telephoned in or passed to the wholesaler’s representative. Sometimes the producer will by-pass the wholesaler and sell directly to the retailer, €.8.: hayul~ mache * ifthe retailer is part of a large multiple chain, it can buy in large quantities and cwecy.stte deal direct with the producer * where after-sales service is particularly important: durable consumer goods , wmlue and prte wre —or -crlile Services to trade are activities that help traders in their work of buying and selling eee ‘goods and services. They include the following: * Banking: providing short-term finance, easy payment transfer + Finance: long-term finance for industry, commerce and consumer credit béctoatiia 4 Insurance: spreading the risks + Transport: movement of commodities * Communications: mail services, electronic devices, advertising Kvnlamtateed Lien Prorcds- edo RETAIL TRADE A Retail trade refers to the supply of goods to the individual consumers, buying from the wholesaler and selling to the public ‘The functions of retail trade are: * cutting up large quantities into small units et * providing the producer with an outlet for their products, holding stocks ® providing choice for the consumer, giving information and advice © providing a feedback of consumer responses to wholesalers and producers Types of retailer: jeguatrelages * the simplest types: door to door, market traders, sdle traders/ independent shops © more complex: chain stores, supermarkets, hypermarkets, department stores, specialist stores CBA Tesce shopping mail ~ pLestoy i 7 3pie oe ACHE A * modern forms of retailing: vending machines, mail order, electronic commerce, TV shopping, shopping centres, franchise forms Advantages and disadvantages of sole traders ¢ They are small shops owned by a sole trader or small partnership. e ® personal attention to customers, no need to travel into town * limited quantities, prices often higher, a limited range of goods, difficulties in Sue ZPuing the shop if the owner is sick Chain stores (Multiples) pL: Wutee * a number of shops in common ownership, under a single name of common ownership * controlled from central headquarters * offen are sited in town centres and shopping precincts * advertising is cheaper: a single national advertisement can cover all branches nation-wide \ 7 * often by-pass wholesalers (aL tele - Clue aoe “comipe * wide choice: deep-freeze counters, vegetables and fruit, {70Cetiss, cold cuts and cheese, dairy products, detergents, cosmetics, bakery counter, meat counter ete, on nhs tomitrorurene, Self-service stores and supermarkets a pnd: They are considered to be a supermarket when they have more than 2000 square feet of shopping area and 3 or more check-out points. Advantages: BO ldecaoonegphl * These shops deal particularly in pre-packed, price-labelled products. LESSTRAUER ie frequently used to atact customers Customers serve themselves, so they save in staff, ae ah Shopping trolleys Vrcake doen ~ Whontome Impulse buying (unplanned purchase) Disadvantages: : * large preniises in prime areas are expensive * pilferage (stealing) levels are high ‘+ * customers receive little personal contact Jann ~ Seeds ool Hypermarkets ait a eS They are a very large form of supermarket with a shopping arca in excess of 50008 square’ feet, berg hea ans on the outskirts of towns where sites are cheaper usually one of many in a chain danich * big shopping area, self-service, a wide range of goods, long opening hours, often night&eday * arts of the hypermarket complex may be rented out to other traders: independent shops © good parking facilities Department stores ® Heese ‘They are divided into commodity departments. * separate departments, each responsible for their own profitability * Wide variety of goods under one roof, sited in town centres, car parks * often rather expensive because the goods they market are of the highest quality 4Specialist stores * specialise in narrow kinds of commodities © quality and personal service * 88; jewellery, men’s wear, ladies” wear, shoes, sports goods, books, drapery and textiles, stationery, household utensils, electronic goods etc. : PORT Ca otal eae Shopping centres = ¢.4 wesjena * acollector of shops and service providers * anumber of specialist outlets, cach with a different owner * service providers: multiplex cinemas, restaurants and cafes, banks, post offices, exchange offices, fitness rooms, child care, etc, * parking sites, entertainment facilities Vending machines * food, drink, sweets, tickets, stamps ete. * 24-hour opening, fast service, no need for staff * problems: lack of coins, out of order, vandalism reamy Direct sales a selling goods directly to consumers without the use of retail outlets: mail order, TV sales, ¢- ? commerce, teleshopping (by telephone) 9™."¢ © supers * also called home or remote shopping * advantages and disadvantages: ~ comfortable, customers don’t need to leave their homes as they can order by telephone or the Intemet ~ no need for shops, ~ customers save time, + easy to pay: cash on delivery or payment by credit/debit card —=home delivery 5 often expensive (postal fees), ~ difficult to assess‘quality, customers cannot try on or touch products ~ Gelivery might take some time, unsuitable when goods are needed urgently Wueoene ~ impersonal way of shopping ~ can be inconvenient to retum unsuitable goods Advantages and disadvantages of night & day shopping © customers: no need to hurry after work, more time to do the shopping, less keyeug, crowded shops and no quéties, but it can disturb family life and there is a danger of “4 overspending tases * staff: more job opportunities, getting money for overtime, but unsocial working hours wage * employers: greater profits, but higher cots (wages, oveads eg light hating) Customer service Yao b.9! 9° orwibele * Gustomer services: all services connected with the commodity (dealing with complaints, giving advice, repair services, home delivery, assembly services) $ Companies want repeat business (customers to buy from them again)“ s0 companies want to win customer loyalty ° many companies have a code of practice (a set of rules which explains what the customers can expect of the company) * customers can complain if they are not satisfied ascust © the warranty, or guarantee service is a formal written document with the commodity promising to repair or replace the product if it breaks down in a given period of time ‘© customer care: an important issue for all companies fomer-friendly company will provide fast service, fiendly sales staf, persongl WeAtmaeat, helpful answers, easy payment terms, géfietous discounts, competitive prices, 3h consistent quality, long-lasting products, free delivery, clear instructions, up-to-date informs word ation Hire-purchase buying * provides, facilities for credit buying: paying a cash deposit and then paying in instalshents over an agreed period of time * used to purchase durable consumer goods How do supermarkets/hypermarkets try to make customers buy things they may not have planned to by Use of (impulse buying) <= ...5 5) © attractive displays’Of inexpehsivé goods at the check-out, the afrangement of the goods on eye-level shelves, comfort and Gonvenience of shopping, long opening hours winter sales and summer sales (off-season sales), clearance sales to get rid of stocks that cannot find any market, bgzgain,counters all the year round technology © the increasing use of electronic equipment, for example: * Electronic check-outs: Many items have bar codes on their label, At the check out these labels can be passed through a laser beam, which reads the information and transmits it to the electronic cash register. The register then produces for each customer a detailed list of the items bought. * Light pens: can be used to scan the bar codes of products on the shelves of a store. This allows the firm to know precisely what goods are in stock. Bar codes convey. information about an item, e.g. the manufacturer's name or the brand name of the product. How can retailers convince customers to choose their shop for their purchases: * offering a wide range of products of reliable quality, * offering competitive prices, * providing price reduction, discounts, special offers (‘Buy two for the price of one’), offering free samples for new products, spur Minka using effective advertising having the shop located centrally or close to customers” homes, providing late-night and weekend opening, offering basic services within the shop: childcare, cafes, fast food restaurants, making sure more sales staff are available during peak hours to avoid queues, offering personal service, providing optional delivery service offering home shopping facilities (company’s webpage, catalogues), 16 UW am© setting up order lines (customers order over the phone and collect goods from the store), providing free parking, providing good customer care. Branding A brand is a name given by a producer to one or more of its products. The aim is to yyopeuidnled-vbé differentiate the product from similar items of other producers and to make it distinctive t0 consumers. An effective brand name should be short and easy to identify and remember There are different types of branding © multiple branding - this involves a business using a range of brand names for its products, that is each product has its own brand name. An example is Unilever which produces Radio, Surf, Persil and other detergents. The advantage of this type of branding is that failure by one brand will not have a negative effect on another, * corporate branding - this is when a business uses its corporate name as a principal brand identity. Heinz, BMW and Sony are examples. The advantage is that new products are more easily accepted by consumers if they already trust the existing corporate brand. * corporate and individual branding - this is a middle way between the two previous branding strategies + Retailer’s own brand - products are branded with the name of the retailer selling them rather than the manufacturer. Examples include Tesco, Cora, Marks &Spencer own brand products. Own brands help retailers to gain customer loyalty. ‘There are a number of reasons why businesses use branding: © to create brand loyalty, to differentiate the product, to gain flexibility when making pricing decisions, to help recognition of the product, to develop a brand image,R drat tne ce boy “a garde fear acke Roleplay 1 A You are a supermarket customer. When you retumed home.-with your purchases, you discovered that the ice cream you bought was beyond its sell-by date. You return to the supermarket and ask to see the manager in order to complain and request a replacement. B You are the manager of a supermarket. A customer has returned with some ice cream which they claim was purchased today, but which is over its sell-by date. You will need to see the receipt of purchase before exchanging it, You may also need to reassure the customer regarding the freshness of your other stock.'-* Ey apoinhne f cpaconen cage, Sh jawtg 99° a Stree, A Boek aly tomek Magetonsck we ¢ de Woe wore Roleplay 2 A 7 ‘You are a regional sales reptesentative of "Perfect Shine" which makes dishwashing liquid. Your product is new to the market, faltly’ good quality, and environment friendly and reasonably priced. You are touring Austria to promote sales of the dishwashing liquid. You have a meeting with Mr/Ms Achermann who is the purchasing manager of "Exter-Spat" supermarket chain. Discuss with him/her the possibility of a sale including prices, delivery times, method of payment, ete, and try to convince hinvher to place at least 2 trial order. Poa B le ‘As the purchasing manager your epoliaing strategy is to praise the products and services provided by your traditional suppliers of dishwashing liquid. However, you realise that "Perfect Shine" might find a ready market among envifonnient-cojiscious, middle-income! y customers if you can offer a competitive price to the major brands. Try to test the lowest limits of the "Perfect Shine" offer and finally agree to an order on a sale or retum basis, Roleplay 3 A You are an old customer of Baseline Ltd., a manufacturer of tennis equipment. You have come to pay a social visit and to place a repeat order. To your surprise you find that their prices have increased considerably (15%) since last time you placed an order. Obviously, you ‘want an explanation from their managing director. B ‘You are the managing director of Baseline Ltd, a manufacturer of tennis equipment. With great tact and politeness you explain the reasons why you were forced to raise prices. You have had a sharp increase in the price of raw materials because a bigger rival who is now ina position to control prices bought up your old supplier. You have had an industrial conflict inside the factory won by the labour union resulting in higher wage costs, and lots of lost working hours. However, you do not want to lose one of your best customers and try to reach some agreement with him. 18Kewok Topic 3. - Trade TRADE rade is the exchange of goods and services for other goods and services or for money.] {? ‘International trade is the exchange of goods and services between countries. It includes: “ © exports: the selling of goods and services abroad, resulting in an inflow of money (funds) - ‘© imports: the buying of goods and services from abroad, resulting in an outflow of Reasons for international trade: + countries are not self-sufficient in foods they do not have a climate suitable for producing all their needs they need raw materials that can only be found in other countries they don’t have the technology to manufacture certain products there are cultural differences between countries The benefits of foreign trade are: increase in total world output © increased specialization > each nation specializes in the goods and services it makes best * increased competition > a wider range of goods and services, better quality, lower prices > higher standards of living The balance of trade shows the difference between the value of goods a country imports and ‘exports. The balance of payments shows the difference between the value of goods and services a country imports and exports. It shows whether the country is making a profit or a loss in its dealings with other countries. Balances cam be: 3.4.0.2 4 sghitak «favourable when exports exceed imports and a gurplus is created +! a adverse when imports exceed exports and a deficit is'ereated. Free trade is when no trade barriers are imposed, there is a free flow of goods and services between countries Protectionism mictins the resiriction Of the free flow of goods and services between counties. There are a number of reasons why countries often impose barriers to trade: © to protect home producers eas to protect infant industries or declining industries to correct a balance of payments deficit to resist dumping and other unfair trading practices to protect the environment and the population to safeguard jobs ‘Trade barriers are regulations that make trade between two countries more difficult and expensive. They can be: eee tariffs: a tax or custom duty imposed on imported goods to raise the price of foreign goods to the home consumer and thus to protect the home market quotas: a limit on the quantity of the product that can be brought into the country during a year 19embargo: a government ban on trading between one country and another ‘*.. subsidies: a government finance towards the cost of the home-produced product so that it can be sold at a lower price national health and safety standards import certificates that are difficult to obtain + slow administration GLOBALISATION Globalisation is the tendency for the world to work as one unit, led by large international companies doing business all over the world. Things that have led to globalisation include: * tendency to end trade barriers + free moveriént of capital © cheap transport ° 6 * increased use of electronic systems of communication such as the Internet Pro-globalisation arguments: © ‘© expansion and integration of global markets it can help to reduce geographical inequalities*»»"\O' <6 foreign competition forces local businesses to be more competitive free trade, liberalised markets growth in incomes and living standards in certain regions better access to information increased international contact enriches human life and culture Anti-globalisation arguments lening social inequalities between the richest and the poorest groups of society ¢ _profit-orientation leads to the exploitation of the Third World ‘multinationals exploit favourable economic conditions then relocate plants leaving behind massive unemployment * local business alternatives are often ignored ‘+ environmental degradation: pollution, deforestation, habitat loss, climate change, huge waste production spreading of uniform westem culture and the English language ‘digital divide’: those left out of information networks may be margi MULTINATIONALS - ADVANTAGES AND DISADVANTAGES ‘A multinational company (MNC) is an organisation which owns or controls production or service facilities outside the country in which it is based. These companies usually have interests in at least four countries, Examples of multinationals include Ford, British American Tobacco, Volkswagen, Unilever, Sony. dices Multinationals often set up subsidiaries in developing countries because they enjoy a lot of advantages: * availability of cheap raw material is high, «labour. costs are much lower than in Western countries, * they don’t have to pay so much in taxes because they get tax allowances from the government, the quality of the local labour force is improving, employment law are less strict, 20