English Business Communication

8/12/2019 English Business Communication

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CAP 1. THE IMPACT OF CULTURE IN BUSINESS

1.1 Business across cultures

1.1.1 Cultures an! culture'le+andra 'dler is an e+pert in doing business across cultures. ,#e is talking to a group of Britis#businesspeople.

Culture is t#e -a) e do t#ings #ere-. -/ere- ma) be a countr)* an area* a social class or anorganization suc# as a compan) or sc#ool. 0ou often talk about

compan) or corporate culture t#e a) a particular compan) orks* and t#e t#ings itbelie!es are important.

canteen culture t#e a)s t#at people in an organization suc# as t#e police t#ink andtalk* not appro!ed b) t#e leaders of t#e organization.

long#ours culture #ere people are e+pected to ork for a long time eac# da).

mac#o culture ideas t)picall) associated it# men p#)sical strengt#* aggressi!eness*etc.

But )ou must be careful of stereot)pes* fi+ed ideas t#at ma) not be true.

1.1.2 &istance an! familiarit$istance beteen managers and t#e people #o ork under t#em !aries in different cultures.In some countries* managers are usuall) eas) to talk to accessible and approac#able and t#ereis a tradition of emplo)ees being in!ol!ed in decisionmaking as part of a team of equals. "#iscompan) is not !er) #ierarc#ical* it# onl) t#ree management la)ers.In ot#er countries* managers are usuall) more distant and remote. 5mplo)ees ma) feel quitedistant from t#eir managers and #a!e a lot of deference for t#em accepting decisions but notparticipating in t#em. Companies in Countr) B tend to be more #ierarc#ical t#an t#ose in Countr)'* it# more management la)ers.

eference and distance ma) be s#on in language. ,ome languages #a!e man) forms of addresst#at )ou use to indicate #o familiar )ou are it# someone. 5nglis# onl) #as one form* 6)ou6* butdistance ma) be s#on in ot#er a)s* for e+ample* in #et#er first names or surnames are used.

1.1.3 'amesIn t#e 5nglis#speaking business orld* people use first names* e!en it# people t#e) do not kno!er) ell. But if )ou aren6t sure* use Mr and t#e famil) name for men* and Mrs or Miss and t#efamil) name for omen* depending on #et#er t#e) are married or not. M, often replaces Mrs andMiss. 0ou don6t use Mr* Mrs* Miss or M, it# onl) a first name or b) itself.1.1.4 &ress

In 'lp#aland* businesspeople dress quite formall). "#e business suit is common* butfor men* earing nonmatc#ing 7acket and trousers is also a possibilit).In Betatania* t#e dark business suit is obligator) for men. ,ome companies allo omen to eartrouser suits.In 8ammaria* t#e business suit is almost as necessar) as in Betatania* but it# more !ariation incolours. ,ome companies require emplo)ees to ear formal clot#es from Monda) to "#ursda)* andallo less formal ones on #at t#e) call casual 9rida)s or dressdon 9rida)s. In some places*man) banks and s#ops require people dealing it# customers to ear uniforms so t#at t#e) alldress t#e same.In eltatonia* people dress more casuall) at ork t#an in t#e ot#er countries. 9or men* suits andties are less common t#an else#ere. "#is is smart casual.

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1.1.5 (ntertainment an! hospitalit$'le+andra 'dler continues #er seminar on crosscultural issues.5ntertaining and #ospitalit) !ar) a lot in different cultures.

In 'lp#aland* entertaining is important. "#ere are long business lunc#es in restaurants*#ere deals are discussed. Professional and pri!ate life are separate* and clients arene!er in!ited #ome.

In Betatania* e!enings are spent drinking and singing in bars it# colleagues and clients In 8ammaria* lunc# can be important* but less so t#an in 'lp#aland. Important contacts

ma) be in!ited to dinner at #ome. Corporate #ospitalit) is a big industr)* it# clientsin!ited to big sports e!ents.

In eltatonia* restaurants are rare outside t#e capital. ,ol entertainment takes place#en important clients are in!i to people6s #ouses for dinner* or go sailing or to countr)#ouses for t#e eekend* etc.

1.1.# Time'ttitudes toards time can !ar) enormousl).In Bus)!ille* people start ork at eig#t* and officiall) finis# at si+* t#oug# man) managers sta)muc# longer. "#ere is a culture of presenteeism being at ork #en )ou don6t need to be."#ere is a to#our lunc# break* and a lot of business is done o!er restaurant lunc#es. :%unc# ist#e main meal. "#e orking breakfast is rare.; "#ere are no snacks beteen meals* 7ust coffee* soeat properl) at meal times.'s for punctualit)* )ou can arri!e up to 1& minutes 6late6 for meetings. If in!ited to someone6s#ouse :unusual in business;* arri!e 1&3< minutes after t#e time gi!en.on6t p#one people at #ome about ork* and don6t p#one t#em at all after = pm."#ere are a lot of public #olida)s :about 1&; during t#e )ear. Bus)!ille is empt) in 'ugust* as man)companies close completel) for four eeks. 5mplo)ees #a!e fi!e eeks6 #olida) a )ear and t#e)usuall) take four of t#em in 'ugust.

1.1.) Cross*cultural communication/ere are some ot#er areas of potential cultural misunderstandinga. distance when talking to people #at is comfortable>b. eye contact #o muc# of t#e time do people look directl) at eac# ot#er>c. gesture do people make lots of facial gestures> /o muc# do t#e) mo!e t#eir arms and#ands>d. greetings/goodbyes do people s#ake #ands e!er) time> 're t#ere fi+ed p#rases to sa)>e. humor is t#is a good a) of rela+ing people> r is it out of place in some conte+ts>f. physical contact #o muc# do people touc# eac# ot#er>g. presents #en s#ould )ou gi!e t#em> ?#en s#ould )ou open t#em> ?#at s#ould )ou sa)#en )ou recei!e one>h. rules of conversation and the role of silence #o long can people be silent before t#e) feeluncomfortable> Is it acceptable to interrupt #en ot#ers are speaking>

1.2. Companies and organizations

1.2.1 Compan$ structureMost organizations #a!e #ierarc#ical or p)ramidal structure* it# one person or a group of peopleat t#e top* and an increasing number of people belo t#em at eac# successi!e le!el. "#is is a clearline or c#ain of command running don t#e p)ramid. 'll t#e people in t#e organization kno #atdecisions t#e) are able to make* #o t#eir superior :or boss; is :to #om t#e) report;* and #ot#eir immediate subordinates are :to #om t#e) can gi!e instructions;.

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,ome people in an organization #a!e colleagues #o #elp t#em for e+ample* t#ere mig#t be an'ssistant to t#e Marketing Manager. "#is is knon as a staff position its #older #as no lineaut#orit)* and is not integrated into t#e c#ain of command* unlike* for e+ample* t#e 'ssistantMarketing Manager* #o is number to in t#e marketing department.0et* t#e acti!ities of most companies are too complicated to be organized in a single #ierarc#).,#ortl) before t#e 9irst ?orld ?ar* t#e 9renc# industrialist /enr) 9a)ol organized #is coalminingbusiness according to t#e functions t#at it #ad to carr) out. /e is generall) credited it# in!enting

functional organization. "oda)* most large manufacturing organizations #a!e a functional structure*including :among ot#ers; production* finance* marketing* sales* and personnel or staffdepartments. "#is means* for e+ample* t#at t#e production and marketing departments cannottake financial decision it#out consulting t#e finance department.9unctional organization is efficient* but t#ere are to standard criticisms. 9irstl)* people are usuall)more concerned it# t#e success of t#eir department t#an t#at of t#e compan)* so t#ere arepermanent battles beteen* for e+ample* finance and marketing* or marketing and production*#ic# #a!e incompatible goals. ,econdl)* separating functions is unlikel) to encourage inno!ation.0et* for a large organization manufacturing a range of products* #a!ing a single productiondepartment is generall) inefficient. Consequentl)* most large companies are decentralized*folloing t#e model of 'lfred ,loan* #o di!ided 8eneral Motors into separate operating di!isions in

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Managers must balance t#e interests of t#e !arious stake#olders for t#e good of t#e organizationas a #ole. "#e) ma) be able to use t#e netork of relations#ips among t#e stake#olders and t#eorganization to influence stake#olders indi!iduall). 9or t#eir part* stake#olders ma) unite incoalitions to e+ert o!er :a e+ercita* a face uz de influenDA; t#e organization. Indi!idualstake#olders ma) also #old conflicting stakes :interes* participare; in an organization."#e indirectaction component of t#e en!ironment consists of t#eir factors t#at influence t#eorganization indirectl). $ot onl) do t#ese factors create a climate to #ic# t#e organization must

ad7ust* but t#e) #a!e t#e potential to mo!e into t#e directaction en!ironment. emograp#ic andlifest)le !ariables mold :a forma* a modela; an organizationEs labor suppl) and customer base* andc#anges in !alues are at #eart of e!er) ot#er social* economic* political* and tec#nological c#ange.Managers must distinguis# beteen and ad7ust to structural and c)clical c#anges in t#e econom).In addition* t#e) must contend it# :a lupta cu; t#e groing influence of special interest groups inpolitics* and tec#nological de!elopments also fuel t#e competition beteen organizations."ec#nological ad!ances in communication and transportation #a!e made t#e internationalen!ironment increasingl) important. 8reater international competition #as made t#e F.,. lag :a@ntGrzia* a rAmGne @n urmA; in competiti!eness critical* and #as also blurred :a @ntuneca* a pune @nceaDA; t#e distinction beteen t#e pri!ate and public sectors."#e en!ironment determines t#e e+tent to #ic# :gradul @n care; organizations face uncertaint)and to #ic# t#e) are dependent on ot#ers for !ital resources. In turbulent en!ironments*organizations must de!ote more of t#eir resources to monitoring t#e en!ironment. "#e natural

selection* resourcedependence* and industrialorganization models pro!ide alternati!e !ies of t#erelations#ip beteen organizations and t#e en!ironment.Managers especiall) at #ig#er le!els must monitor t#e e+ternal en!ironment and tr) to forecastc#anges t#at ill affect t#e organization. "#e) ma) use strategic planning and organizationaldesign to ad7ust to t#e en!ironment.

1.3. arket structure and competition1.3.1 Market structure"#e market* t#e free market and market econom) describe an economic s)stem #ere prices*7obs* ages* etc. are not controlled b) t#e go!ernment* but depend on #at people ant to bu)and #o muc# t#e) are illing to pa).In most markets t#ere is a definite market leader t#e firm it# t#e largest market s#are. "#is isoften t#e first compan) to #a!e entered t#e field* or at least t#e first to #a!e succeeded in it. "#emarket leader is frequentl) able to lead ot#er firms in t#e introduction of ne products* in pricec#anges* in t#e le!el or intensit) of promotions* and so on.Market leaders usuall) ant to increase t#eir market s#are e!en furt#er* or at least to protect t#eircurrent market s#are. ne a) to do t#is is to tr) to find a)s to increase t#e size of t#e entiremarket. Contrar) to a common belief* #oll) dominating a market* or #a!ing a monopol)* isseldom an ad!antage competitors e+pand markets and find ne uses and users for products*#ic# enric#es e!er)one in t#e field* but t#e market leader more t#an its competitors. ' marketcan also be e+panded b) stimulating more usage for e+ample* man) #ouse#olds no longer #a!e

onl) one radio or cassette pla)er* but per#aps one in eac# room* one in t#e car* plus a ?alkman orto.In man) markets* t#ere is often also a distinct market c#allenger* it# t#e secondlargest markets#are. In t#e car #ire business* t#e c#allenger actuall) ad!ertises t#is fact for man) )ears '!isused t#e slogan H?eEre number to. ?e tr) #arder.E Market c#allengers can eit#er attempt toattack t#e leader* or to increase t#eir market s#are b) attacking !arious market folloers."#e ma7orit) of companies in an) industr) are merel) market folloers* #ic# present no t#reat tot#e leader. Man) market folloers concentrate on market segmentation finding a profitable nic#ein t#e market t#at is not satisfied b) ot#er goods or ser!ices* and t#at offers grot# potential or

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gi!es t#e compan) a differential :distincti!* deosebit; ad!antage because of its specificcompetencies.' market folloer* #ic# does not establis# its on nic#e* is in a !ulnerable position if its productdoes not #a!e a Hunique selling propositionE t#ere is no reason for an)one to bu) it. In fact* in mostestablis#ed industries* t#ere is onl) room for to or t#ree ma7or companies t#ink of soft drinks*soap and as#ing poders* 7eans* sports s#oes* and so on. 'lt#oug# small companies aregenerall) fle+ible* and can quickl) respond to market conditions* t#eir narro range of customers

causes problematic fluctuations in turno!er and profit. 9urt#ermore* t#e) are !ulnerable in arecession #en* largel) for ps)c#ological reasons* distributors* retailers and customers all prefer tobu) from big* ellknon suppliers.1.3.2 Competitors an! competitionCompanies or products in t#e same market are competitors or ri!als. Competitors compete it#eac# ot#er to sell more* be more successful* etc."#e most important companies in a particular market are often referred to as ke) pla)ers.Competition describes t#e acti!it) of tr)ing to sell more and be more successful. ?#en competitionis strong* )ou can sa) t#at it is intense* stiff* fierce or toug#. If not* it ma) be described as lo

ke)."#e competition refers to all t#e products* businesses* etc. competing in a particular situation* seenas a group.1.3.3 Customers an! clientsPeople #o bu) 6e!er)da)6 ser!ices suc# as train tra!el or telep#one ser!ices are calledcustomers. 0ou can also talk about t#e users or endusers of a product or ser!ice* #o ma) not bet#e people #o actuall) bu) it. 9or e+ample* #en a compan) bu)s computers for its staff to use*t#e staffs are t#e endusers.People #o bu) products or ser!ices for t#eir on use are consumers* especiall) #en consideredas members of large groups of people bu)ing t#ings in ad!anced economies.1.3.4 Bu$ers an! sellers' person or organization t#at bu)s somet#ing is a bu)er or purc#aser. "#ese ords also describesomeone in a compan) #o is responsible for bu)ing goods t#at t#e compan) uses or sells. "#esepeople are also bu)ing managers or purc#asing managers.' person or organization t#at sells somet#ing is a seller. In some conte+ts* for e+ample sellingpropert)* t#e) are referred to as t#e !endor. People selling t#ings in t#e street are street !endors.

1.!. Businesspeople and business leaders

Businesspeople and entrepreneurs

' businessman* businessoman or businessperson is someone #o orks in t#eir on business oras a manager in an organization.'ote "#e plural of businessperson is businesspeople. Businessperson and businesspeople can alsobe spelled as to ords business person* business people.

'n entrepreneur is someone #o starts or founds or establis#es t#eir on compan). ,omeone #ostarts a compan) is its founder. 'n entrepreneur ma) found a series of companies or startups.5ntrepreneurial is used in a positi!e a) to describe t#e risktaking people #o do t#is* and t#eir

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acti!ities. ,ome entrepreneurs lea!e t#e companies t#e) found* per#aps going on to found morecompanies. t#ers ma) sta) to de!elop and gro t#eir businesses.'ote 9ound is a regular !erb. Past tense and past participle founded.5stablis#ment can also describe an action :e.g. t#e establis#ment of a successful business as #ismain aim in life;.,ome 5nglis# speakers belie!e it is not correct to use gro as a transiti!e !erb in t#is conte+t.

"eaders and leadership' large compan) mainl) oned b) one person or famil) is a business empire.,uccessful businesspeople* especiall) #eads of large organizations* are business leaders or* in7ournalistic terms* captains of industr).agnates# moguls and tycoonsPeople in c#arge of big business empires ma) be referred to* especiall) b) 7ournalists* asmagnates* moguls or t)coons. "#ese ords often occur in combinations suc# as t#eseMagnate media* press* s#ipping* oilMogul mo!ie* media* s#ipping")coon propert)* softare

CAP 2. WRITTEN BUSINESS COMMUNICATION

2.1. $arts of a "etter

'n) letter #as some parts t#at are to be present no matter #o long or s#ort t#e letter is. "#e) aret#e folloing

1. %eading & letter heading / letter head

2. 'ate

3. (eference line

4. inside address (addressee`s address)&. )alutation

(. )ub*ect line

. Body of the letter

J. Complimentary close

=. )ignature1+.,nclosures

%eadline

It s#ould include t#e name of t#e compan) field of acti!it) address PB codes. 'll of t#em arearranged in a form establis#ed b) t#e general manager of t#e compan). "#e Britis# societies #a!ein t#eir names t#e ords -%imited- or -Co. %td.-. It means t#at t#e responsibilities of t#e societ)

are limited. "#e 'merican companies #a!e t#e ord -Incorporated- or for s#ort -Inc.-.'ate

"#e ne+t element t#at appears on t#e letter is t#e date. "#ere are so man) different a)s ofriting it suc# as t#e 3rd of Ma)* 3 Ma) 3


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numbers #ic# are t#e codes of a department t#at is in c#arge it# t#e sol!ing of a problem. "#e)are generall) placed on t#e left side of t#e paper or in t#e middle but ala)s on t#e same le!el.-nside address

"#e inside address is in fact t#e addressee6s address. It contains t#e full name of t#e person :noabbre!iations are alloed* t#e name is ritten in t#e same a) t#e person rites it* as )ou #a!eseen it on t#e !isit card or on anot#er address;* institution* street* ton* countr)* if it is t#e case."#e name is accompanied b) Mr.* Mrs.* Miss.* Prof.* r. and function is sometimes placed in t#at

situation* it occupies t#e first place and t#en )ou a!oid Mr. etc. It looks likeGeneral Manager John SmithDeputy Director George Brown:it#out an) formula and commas;

The American ariant loo!s this"Mr# $o%ert Brown& Managing Director)alutation"#e salutations or greeting formulas are ritten under t#e inner address and depend on #o aret#e persons )ou are addressing to. It is a matter of custom and a polite a) of addressing to aknon or unknon person. If )ou kno t#e recipient6s name :)ou #a!e alread) mentioned it in t#einside address; t#en )ou ma) begin )our letter it# Dear Mr# 'ourtland or Dear Mrs# Jac!son.

It is better t#an being too formal b) using -ear ,ir- or -ear Madam-. If t#e letter is addressed toa partners#ip :e.g. -,c#mitt and Lo#n Co.- or -Mac#ine Production Co.-; or if an attention line #asbeen used* t#e more formal salutation -ear ,irs- is used.

If )our letter is addressed to t#e #ead of a department or t#e #ead of an organization #ose nameis not knon* t#en t#e salutation -ear ,ir- or -ear Madam- or -ear ,irKMadam- ould be used.Complementary close

"#e last part of a letter is t#e complementar) close #ic# is a matter of custom and polite a) ofclosing a letter. "#e e+pression used for t#e complementar) close must matc# t#e salutation* ass#on #ere.Dear Sirs ours aithullyDear Madam ours aithully (ormal)Dear Sir or Madam ours aithully (ormal)Dear Mr# * ours sincerelyDear Anna/ Dear John ours sincerely)ignature'fter lea!ing 4K& blank lines for a signature* t#e name of t#e sender s#ould be s#on* eit#er it#initial capitals or in upper case as preferred. "#e riter6s designation or department s#ould bes#on immediatel) beneat# t#e name* in t#e folloing e+amples* note t#at t#e title -Mr- is ne!ers#on #en t#e riter is a man* but -Mrs- or -Miss- must ala)s be added in brackets after aoman6s name.

0ours fait#full) K 0ours sincerel)itt) ?#ite :Miss;C#airman

2.2 -nuiries and uotations

'n) commercial transaction begins it# an inuiry i.e. a desire to bu) goods :so )ou request forinformation;. ' compan) is in t#e market for some sort of goods and looks up t#e firm6s addressesin a trade director)Prospecti!e suppliers #a!e been recommended to it b) ot#er customers it##om )ou are acquainted or #a!e #eard of t#em from our foreign agencies or from commercial

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offices or from ad!ertisements in nespapers* re!ies* catalogues etc. ,o )ou are put in t#esituation to rite for information about t#e goods )ou need. "#ere are printed Inquir) 9orms #ic#are filled in #en )ou require general or specific information.

In a routine letter of inquir) )ou are obliged to obser!e t#ese rulesN state clearl) #at )ou reall) ant* general information* a catalogue* price list* samples.N if t#ere is a limit to t#e price list at #ic# )ou are prepared to bu)* do not mention t#is*ot#erise t#e supplier ill raise t#e quotation to t#e limit )ou mention.

N most suppliers state t#eir terms of pa)ment #en repl)ing so t#ere is no need for )ou to askfor t#em unless )ou are seeking special rates.N keep )our inquir) brief and concise.Inquiries mean potential business so t#e) must be acknoledged promptl). "#ere are generalInquiries requesting for latest price lists* catalogues* samples* patterns* specimens. ,uppliersrecei!e routine requests for catalogues and price lists.

5+ample of inquir)Dear Sir/Madam+e hae a large hardware store in Southampton and we are interested in the electric heaters you

are now adertising in the ,+est Ga-ette,# +e !indly as! you to send us a copy o your catalogueand price list#Than! you in adance and we.re loo!ing orward to receie your ast reply#Sincerely yours&John SmithMar!eting Manager+arehouse nc#5+ample of quotation

Dear Mr# John Smith&+e were ery pleased to receie your letter en0uiring a%out electric heaters and we are pleased toenclose a copy o our latest illustrated catalogue#1ope this will %e useul or you and we.re loo!ing orward to receie news with aora%le decision#Truly yours&Anna BrownSales consultant+est Ga-ette

0ou ma) gi!e more details concerning t#e model or )ou ma) indicate t#e catalogue )ou areenclosing to offer t#e required information.

2.3 rdersMost companies #a!e official printed forms #ic# #a!e t#e folloing ad!antagessuc# forms are pre numbered and t#e reference to t#em is !er) eas)printing #eadings ensure t#at no information ill be omittedprinted on t#e back of some forms are general conditions under #ic# orders are placed. eferenceto t#ese conditions must be made on t#e front* ot#erise t#e supplier ill not be legall) bound tot#em.

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2.3.1 -etter or!er,maller companies ma) not use printed forms but instead place orders in t#e form of a letter.,ending an order b) letter* accurac) and clarit) must be ensured b) including2) an accurate and ull description o goods re0uired3) catalogue num%ers4) 0uantities5) prices

6) deliery re0uirements (place& date& mode o transport& whether the order will %e carriage paid orcarriage orward etc#)7) terms o payment agreed in preliminary negotiations"egal position of the parties"#e 5nglis#* la sa)s t#at t#e bu)er6s order is onl) an offer to bu). "#e arrangement is not legall)binding until t#e supplier #as accepted t#e offer. 'fter t#at* bot# parties are legall) bound to #onort#eir agreement.8) %uyer`s o%ligations?#en a binding agreement comes into force* t#e bu)er is required b) laN to accept t#e goods supplied* pro!ided t#e) compl) it# t#e terms of t#e orderN to pa) for t#e goods as soon as possible :failure to gi!e prompt notice of faults to t#e supplier il

be taken as acceptance of t#e goods;9) supplier`s o%ligations#"#e supplier is required b) laN to deli!er t#e goods e+actl) as ordered at t#e agreed timeN to guarantee t#e goods to be free from faults of #ic# t#e bu)er could not be aare at t#e timeof purc#ase. If t#e deli!ered goods are fault)* t#e bu)er can demand eit#er a reduction of price* areplacement of goods* or cancellation of t#e order. amages ma) be claimed.

(outine orders

"#e) ma) be s#ort and formal but must includeessential details describing t#e goods as ell asdeli!er) and terms ofpa)ment. ?#ere to or more items are included in an ordert#e) s#ould belisted separatel) for ease of reference.

2.! -nvoices

'n in!oice or bill is a commercial document issued b) a seller to t#e bu)er* indicating t#e products*quantities* and agreed prices for products or ser!ices t#e seller #as pro!ided t#e bu)er. 'n in!oiceindicates t#e bu)er must pa) t#e seller* according to t#e pa)ment terms.In t#e rental industr)* an in!oice must include a specific reference to t#e duration of t#e time beingbilled* so rat#er t#an quantit)* price and discount t#e in!oicing amount is based on quantit)* price*discount and duration. 8enerall) speaking eac# line of a rental in!oice ill refer to t#e actual#ours* da)s* eeks* mont#s etc being billed.9rom t#e point of !ie of a seller* an in!oice is a sales in!oice. 9rom t#e point of !ie of a bu)er*

an in!oice is a purc#ase in!oice. "#e document indicates t#e bu)er and seller* but t#e term in!oiceindicates mone) is oed or oing. In 5nglis#* t#e conte+t of t#e term in!oice is usuall) used toclarif) its meaning* suc# as -?e sent t#em an in!oice- :t#e) oe us mone); or -?e recei!ed anin!oice from t#em- :e oe t#em mone);.?#en goods are supplied on credit* t#e supplier sends an in!oice to t#e bu)er in orderto inform #im about t#e amount dueto enable t#e bu)er c#eck t#e goods deli!eredto enable entr) in t#e bu)er6s purc#ases da) book

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?#en recei!ed* an in!oice s#ould be c#ecked carefull)* not onl) against t#e goods supplied butalso for t#e accurac) of bot# prices and calculation. In!oices ma) be sent toget#er it# t#e goods*but usuall) t#e) are posted separatel). "#e bu)er #o is not a regular customer is supposed to pa)at once #ile t#e regular ones ma) get credit* in!oices being c#arged to t#eir accounts. In t#elatter case* t#e pa)ment ill be made later on t#e basis of a statement of an account sent b) t#esupplier mont#l) or at an) ot#er inter!al of time. /ere is an in!oice' t)pical in!oice contains

"#e ord in!oice ' unique reference number :in case of correspondence about t#e in!oice; ate of t#e in!oice

$ame and contact details of t#e seller "a+ or compan) registration details of seller :if rele!ant; $ame and contact details of t#e bu)er ate t#at t#e product as sent or deli!ered Purc#ase order number :or similar tracking numbers requested b) t#e bu)er to be

mentioned on t#e in!oice; escription of t#e product:s; Fnit price:s; of t#e product:s; :if rele!ant;

"otal amount c#arged :optionall) it# breakdon of ta+es* if rele!ant; Pa)ment terms :including met#od of pa)ment* date of pa)ment* and details about

c#arges late pa)ment;

CAP 3. VERBAL BUSINESS COMMUNICATION

3.1. 0elephone communication3.1.1 Telephoning across culturesMan) people are not !er) confident about using t#e telep#one in 5nglis#. /oe!er* good

preparation can make telep#oning muc# easier and more effecti!e. "#en* once t#e call begins*speak slol) and clearl) and use simple language.C#eck t#at )ou understand #at #as been said. epeat t#e most important information* look forconfirmation. 'sk for repetition if )ou t#ink it is necessar).emember too t#at different cultures #a!e different a)s of using language. ,ome speak in a !er)literal a) so it is ala)s quite clear #at t#e) mean. t#ers are more indirect* using #ints*suggestions and understatement :for e+ample Hnot !er) good resultsE O Habsolutel) disastrousE; toput o!er t#eir message. $ort# 'merica* ,candina!ia* 8erman) and 9rance are He+plicitE countries*#ile t#e Britis# #a!e a reputation for not making clear e+actl) #at t#e) mean. ne reason fort#is seems to be t#at t#e Britis# use language in a more abstract a) t#an most 'mericans andcontinental 5uropeans. In Britain t#ere are also con!entions of politeness and a tendenc) to a!oid

s#oing oneEs true feelings. 9or e+ample if a utc#man sa)s an idea is HinterestingE #e means t#atit is interesting. If an 5nglis#man sa)s t#at an idea is HinterestingE )ou #a!e to deduce from t#ea) #e sa)s it #et#er #e means it is a good idea or a bad idea.Mean#ile* for a similar reason Lapanese* ussian and 'rabs HsubtleE countries sometimesseem !ague and de!ious to t#e Britis#. If t#e) sa) an idea is interesting it ma) be out ofpoliteness.

"#e opposite of t#is is t#at plain speakers can seem rude and dominating to subtle speakers* as'mericans can sound to t#e Britis# or t#e Britis# to t#e Lapanese.

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"#e Britis# #a!e t#e tendenc) to engage in small talk at t#e beginning and end of a telep#onecon!ersation. uestions about t#e eat#er* #ealt#* business in general and #at one #as beendoing recentl) are all part of telep#oning* la)ing a foundation for t#e true purpose of t#e call. 'tt#e end of t#e call t#ere ma) ell be !arious pleasantries* $ice talking to )ou* ,a) #ello to t#efamil) :if )ou #a!e met t#em; and %ooking forard to seeing )ou again soon. ' s#arp* brief st)le oftalking on t#e p#one ma) appear unfriendl) to a Britis# partner. $ot all nationalities are as keen onsmall talk as t#e Britis#Q

Being aare of t#ese differences can #elp in understanding people it# different cultural traditions."#e difficult) on t#e telep#one is t#at )ou cannot see t#e bod) language to #elp )ou.3.1.2 honing scenario0ou ant to p#one someone in a compan). 0ou pick up t#e p#one. 0ou #ear t#e dialing tone anddial t#e number on t#e ke)pad. 0ou don6t kno t#e person6s direct line number* so )ou dial t#enumber of t#e compan)6s sitc#board. ne of t#ese t#ings #appens

"#e number rings but no one ansers. 0ou #ear t#e engaged tone K bus) tone because t#e ot#er person is alread) talking on

t#e p#one. 0ou #ang up and tr) again later. 0ou get t#roug#* but not to t#e number )ou anted. "#e person #o ansers sa)s

)ou6!e got t#e rong number.

"#e operator ansers. 0ou ask for t#e e+tension of t#e person )ou ant to speak to.0ou are put t#roug# to t#e rong e+tension. "#e person offers to transfer )ou to t#e rig#te+tension* but )ou are cut off t#e call ends.

"#e person )ou ant to speak to is not at t#eir desk and )ou lea!e a message on t#eir!oicemail. 0ou ask t#em to call )ou back or to return )our call.

3.1.3 /sking to speak to someone

3.1.4 Making arrangements

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3.1.5 Closing the con"ersation/ere are some a)s of finis#ing a con!ersation it#out sounding abrupt :rude;.See you on :riday then#es& `ll loo! orward to seeing you on :riday#

hae to go now to a meeting#;ice tal!ing to you# or (t`s %een) good tal!ing to you# or (t`s %een ) nice tal!ing to you#Tal! to you soon& no dou%t#+e`ll %e (%ac!) in touch soon#Than!s or phoning#


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c. Plan t#e content and structure* but don6t rite t#e complete te+t of t#e presentation.d. ?rite notes on s#eets of paper* not on cards.e. "r) to memorize t#e first fi!e sentences of )our talk.f. Prepare !isual aids pictures* diagrams* etc.

g. e#earse )our presentation :practice it so t#at it becomes !er) familiar; it# friends orcolleagues.

2. 0iming

3. oice

Pro7ect )our !oice to t#e back of t#e room* but don6t s#out. on6t ask if people at t#eback can #ear. C#eck t#e !olume :loudness; of )our !oice before#and.

Fse a microp#one if )ou need one. on6t #old it too close to )our mout#.

?#et#er using a microp#one or not* speak in a natural tone of !oice. on6t speak in amonotone :on t#e same le!el all t#e time;. Rar) t#e pitc# :le!el; of )our !oice.

!. (apport with the audience

5+perts sa) t#at )ou can gain t#e audience6s attention in a presentation b)

telling an anecdote :a stor)* per#aps a personal one;. mentioning a reall) surprising fact or statistic.

stating a problem.

asking a question.f course* it is important to respect t#e cultural e+pectations of )our audience.

3.2.2 Closing an! !ealing it uestions&+0 /'& &+'T0

1. body language

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Make e)e contact look at eac# person in t#e audience for about a second* beforemo!ing on to t#e ne+t person. on6t concentrate on 7ust one or to people.

on6t speak to t#e equipment or t#e screen face t#e audience at all times.

,miling is fine at appropriate moments* but not too muc#.

Fse gesture :#and mo!ements; to emp#asize ke) points.

,ta) more or less in one place don6t mo!e around too muc#.

'!oid mannerisms :a)s of mo!ing and speaking #ic# )ou do repeatedl) it#outrealizing;.

/ere are some p#rases #ic# can be useful #en ansering questionsa. "#at6s a fair point. I kno t#at some consultants don6t #a!e a !er) good image. But I t#ink t#at8em Consultants #a!e #elped companies reduce costs and increase profits enormousl).b. "#at6s confidential. I6m afraid I6m not at libert) to tell )ou.c. "#at6s not reall) m) field. But I can put )ou in touc# it# someone in m) organization #o isorking on Internet applications.d. "#e questioner ould like to kno #at sort of background t#e people e recruit usuall) #a!e.Is t#at rig#t>e. ?ell* I t#ink t#at goes be)ond t#e scope of toda)6s presentation. "oda) I anted to concentrateon consultants6 skills* not go into particular case studies in consultanc).f. I6m afraid e6!e run out of time. But if )ou6d like to come and discuss t#at it# me no* I6lltr) and gi!e )ou an anser.If a member of t#e audience didn6t #ear a question* t#e) mig#t sa)`Sorry& didn`t catch the 0uestion ? could you repeat what the 0uestioner said=`5nding t#e presentation 6I t#ink t#at6s a good place to stop. "#ank )ou for listening.6

3.3. eetings

3.3.1 T$pes of meetingMeetings come in all s#apes and sizes* of course./ere are some t)pes

chat:informal discussion; it# colleagues at t#e coffee mac#ine.brainstormingamong colleagues #ere as man) ideas as possible are produced quickl)* tobe e!aluated later.proect meetingK team meetingof emplo)ees in!ol!ed in a particular acti!it).!epartment meeting.meeting ith suppliers* for e+ample to negotiate prices for an order.meeting ith a customer* for e+ample to discuss a contract.boar! meeting an official* formal meeting of a compan)6s directors.

/nnual general meetingK '8M :Br5; annual meeting :'m5; #ere s#are#olders discusst#e compan)6s annual report.(M * e%traor!inar$ general meeting a s#are#olders6 meeting to discuss an importantissue suc# as a proposed merger.

3.3.2 reparation for the meeting1. Chairing an! lea!ing !iscussion+pening the meetingThan! you or coming @(t.s ten o.cloc!)#


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Any comments on our preious meeting=-ntroducing the agenda0ouE!e all seen t#e agenda Sn t#e agenda* )ouEll see t#ere are t#ree items."#ere is one main item to discuss S)tating ob*ectives

?eEre #ere toda) to #ear about plans for Sur ob7ecti!e is to discuss different ideas S?#at e ant to do toda) is to reac# a decision S-ntroducing discussion"#e background to t#e problem is S"#is issue is about S"#e point e #a!e to understand is SCalling on a speaker

IEd like to ask Mar) to tell us about SCan e #ear from Mr. ,mit# on t#is>I kno t#at )ouE!e prepared a statement on )our epartmentEs !iesS

Controlling the meeting,orr) /ans* can e let 'nna finis#>

/enr)* e canEt talk about t#at.)ummarising

,o* #at )ouEre sa)ing is SCan I summarise t#at> 0ou mean S,o* t#e main point is Soving the discussion on

Can e go to t#ink about S%etEs mo!e on to t#e ne+t point.

Closing the meetingI t#ink eE!e co!ered e!er)t#ing.

,o* eE!e decided SI t#ink e can close t#e meeting no."#atEs it. "#e ne+t meeting ill be S2. articipating in meetings)tating opinion

It seems to me SI tend to t#ink SIn m) !ie S?e t#ink K feel K belie!e S"#ereEs no alternati!e to SItEs ob!ious t#at SClearl) K ob!iousl) Ssking for opinionIEd like to #ear from SCould e #ear from S >

?#atEs )our !ie>?#at do )ou t#ink about S>o )ou #a!e an) strong !ies on S >'n) comments>

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-nterrupting

5+cuse me* ma) I ask for clarification on t#is>If I ma) interrupt* could )ou sa) S >,orr) to interrupt* but So )ou t#ink so> M) impression is S?#at> "#atEs impossible. ?e K I t#ink S

%andling interruptions0es* go a#ead.,orr)* please let me finis# SIf I ma) finis# t#is point SCan I come to t#at later>"#atEs not reall) rele!ant at t#is stage SCan e lea!e t#at to anot#er discussion>3. (n!ing the meetingegardless of t#e t)pe of meeting :information or decision making;* it is important to close it# a restatement ofob7ecti!e* a summar) of #at as accomplis#ed* and a list of agreed action t#at needs to be taken.

'fter t#e meeting* it is essential to follo up it# action. ' brief memorandum of conclusionss#ould be ritten and distributed. Inform appropriate people #o did not attend t#e meeting aboutessential decisions made.9inall)* eac# meeting s#ould be !ieed as learning e+perience. 9uture meetings s#ould beimpro!ed b) soliciting e!aluations and deciding #at action is required to conduct better meetings.sking for clarificationCould )ou be more specific>

Can )ou e+plain t#at :in more detail;>?#at do )ou mean b) S>Clarifying

"#is means S?#at I mean is S?#at I ant to sa) is S"o e+plain t#is in more detail SChecking that the clarification is sufficientIs t#at oka)> K is t#at clearer no>

(eferring to other speakers

's Peter #as alread) told us SIEm sure Mr. oski knos about t#is S%ater eEll #ear a report from $eil on SProfessor 8ilberto is certainl) aare of S

'elaying decisionsI t#ink e need more time to consider t#is.

I t#ink e s#ould postpone a decision SCan e lea!e t#is until anot#er date>It ould be rong to make a final decision S,nding the meetingI t#ink e s#ould end t#ere. Lust to summarise S?eE!e co!ered e!er)t#ing* so IEd like to go o!er t#e decisions eE!e taken S,o* to conclude S eE!e agreed S?eEll meet again ne+t mont# S

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?e look forard to #earing from )ou SItEs been a pleasure to see )ou toda) and I look forard to our ne+t meeting S

3.!. egotiations

3.4.1 reparing to negotiate

Before negotiations begin* preparing and planning are !er) important.8et as muc# information as possible about t#e situation. If dealing it# people from anot#erculture* find out about its etiquette and negotiating st)les t#e a) people negotiate #at t#e)consider to be acceptable and unacceptable be#a!iour* and so on.?ork out )our initial bargaining position #at are )our needs and ob7ecti!es :t#e t#ings t#at )ouant to ac#ie!e;> ecide )our priorities :t#e most important ob7ecti!es;."r) to estimate t#e needs and ob7ecti!es of t#e ot#er side.Prepare a fallback position conditions t#at )ou ill accept if )our original ob7ecti!es are not met.Per#aps )ou are in a position to influence t#e c#oice of !enue t#e place #ere )ou are going to

meet. If so* ould )ou prefer to be on )our on ground 1 on #ome ground :in )our on offices; go to see t#e ot#er side on t#eir ground :in t#eir offices; meet on neutral ground* for e+ample in a #otel>If )ou are negotiating as part of a negotiating team* consult )our colleagues about t#e abo!epoints and allocate roles and responsibilities.

3.4.2 6urthering negotiations4in&winIn a successful negotiation* e!er)one s#ould lea!e t#e negotiating table #app) it# t#e outcomet#ere s#ouldn6t be inners and losers. "#e negotiators s#ould tr) to reac# a inin solution anagreement of equal benefit to bot# sides. "#is can be ac#ie!ed in a number of a)s.$robing

ne a) of furt#ering negotiations is probing :asking t#e rig#t questions and listening carefull) tot#e ansers;. /ere are some probing questionsa. ?#at is t#e situation on production at )our plant at t#e moment>b. ?#at sort of quantities are )ou looking for>c. ?#at are e looking at in t#e a) of discount>d. ?#at did )ou #a!e in mind regarding specifications>e. ?#at ere )ou t#inking of in terms of deli!er) dates>f. /o important to )ou is t#e currenc) for pa)ment>

$roposal and counter&proposal"#roug# a series of proposals or offers from one side and counterproposals or counteroffers fromt#e ot#er side* t#e to sides ork toards an agreement #ic# ill benefit t#em bot#./ere are some a)s of making offers

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3.4.3 7eaching agreementgreements and contracts

'n agreement of an) kind is a deal. ?#en )ou reac# an agreement* )ou can talk about clinc#ing adeal or closing a deal.' bargain is also an agreement reac#ed t#roug# negotiation. People #o get #at t#e) ant in anegotiation are said to dri!e a #ard bargain.'n agreement ma) be in t#e form of a contract.6Contract6 is used in t#ese combinations

3.4.4 (ffecti"e negotiation

It is necessar) to #a!e a clear understanding of #at for )ou are t#e most important issues and att#e same time #at for )ou are less important. "r) to identif) aspects in t#e second categor)#ere t#e ot#er side ill be !er) #app) to gain concessions. 8i!e #at is not so important for )ou*but is !aluable for t#e ot#er side."o do t#is* )ou #a!e to do t#e folloingC#eck e!er) item of #at t#e ot#er side ants. 'sk #o important items are and look forfle+ibilit).o not guess t#eir opinions or moti!es )ou could be rong* or t#e) onEt like )our speculation.$ote t#e ot#er sideEs ansers* but donEt immediatel) sa) #at )ou t#ink.'!oid being forced into considering one issue alone consider to or t#ree at once aim for anagreement to a package.

If t#ere are big differences beteen t#e to parties* )ou #a!e a c#oice of t#ese options to accept*to re7ect* or to carr) on negotiating. If )ou decide to carr) on* t#en t#e options in t#e ne+t roundare"o make a ne offer"o seek a ne offer from t#e ot#er part)"o c#ange t#e s#ape of t#e deal :!ar) t#e quantit) or t#e qualit)* or bring in t#ird parties;Begin bargaining.0our bargaining s#ould be go!erned b) t#ree principles be prepared* t#ink about t#e #olepackage* and be constructi!e. In preparing* )ou must identif) t#e issues* and prepare )ourbargaining position. 0ou need'n essential conditions list issues #ere )ou cannot concede an)t#ing

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quite different from t#at of a production super!isor on a 8eneral Motors assembl) line. 0et bot# arefirstline managers. 'nd )et t#ere ill also be important similarities in t#e 7obs of all t#esemanagers.t#er differences in t#e a)s managers spend t#eir time depend upon t#eir le!els in t#eorganizational #ierarc#). /as been identified t#ree basic kinds of skills tec#nical* #uman* andconceptual. 5!er) manager needs all t#ree#

0echnical skillis t#e abilit) to use t#e procedures* tec#niques* and knoledge of a specializedfield. ,urgeons* engineers* musicians* and accountants all #a!e tec#nical skills in t#eir respecti!efields.

%uman skillis t#e abilit) to ork it#* understand* and moti!ate ot#er people* as indi!iduals or ingroups.

Conceptual skillis t#e abilit) to coordinate and integrate all of an organizationEs interests andacti!ities. It in!ol!es t#e managerEs abilit) to see t#e organization as a #ole* to understand #oits parts depend on one anot#er* and to anticipate #o a c#ange in an) of its parts ill affect t#e#ole.ats suggests t#at alt#oug# all t#ree of t#ese skills are essential to a manager* t#eir relati!e

importance depends mainl) on t#e managerEs rank in t#e organization. "ec#nical skill is mostimportant in t#e loer le!els. /uman skill* b) contrast* is important for managers at e!er) le!elbecause t#e) must get t#eir ork done primaril) t#roug# ot#ers* t#eir abilit) to tap :a capta& aa%orda; t#e tec#nical skills of t#eir subordinates is more important t#an t#eir on tec#nical skills.9inall)* t#e importance of conceptual skill increases as one rises t#roug# t#e ranks of amanagement s)stem based on #ierarc#ical principles of aut#orit) and responsibilit). It dependsmainl) on t#e managerEs rank in t#e organization.

4.2.1 Management -e"els5irst&"ine anagers."#e loest le!el in an organization at #ic# indi!iduals are responsible fort#e ork of ot#ers is called firstline or firstle!el management. 9irstline managers direct operatingemplo)ees onl) t#e) do not super!ise ot#er managers. 5+amples of firstline managers are t#eUforemanV :maistru; or production super!isor :se de producie; in a manufacturing plant* t#etec#nical super!isor :se de echip; in a researc# department* and t#e clerical super!isor :se de%irou; in a large office. 9irstle!el mangers are often called Usuper!isors.Viddle anagers."#e term middle management can include to more t#an one le!el in anorganization. Middle managers direct t#e acti!ities of loerle!el managers and sometimes alsot#ose of operating emplo)ees. Middle managersE principal responsibilities are to direct t#e acti!itiest#at implement t#eir organizationsE policies and to balance t#e demands of t#eir superiors it# t#ecapacities of t#eir subordinates.0op anagers.Composed of a comparati!el) small group of e+ecuti!es* top management isresponsible for t#e o!erall management of t#e organization. It establis#es operating policies andguides t#e organizationEs interactions it# its en!ironment. ")pical titles of top managers are Uc#ief

e+ecuti!e officerV* UpresidentV and Usenior !icepresidentV. 'ctual titles !ar) from one organizationto anot#er and are not ala)s a reliable guide to members#ip in t#e #ig#est managementclassification.5unctional and 6eneral anagers"#e ot#er ma7or classification of managers depends on t#e scope of t#e acti!ities t#e) manage.5unctional anagers."#e functional manageris responsible for onl) one organizationalacti!it)* suc# as production* marketing* sales* or finance. "#e people and acti!ities #eaded :aconduce; b) a functional manager are engaged in a common set of acti!ities.

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6eneral anagers. "#e general manager*on t#e ot#er #and* o!ersees :a supraeghea; acomple+ unit* suc# as a compan)* a subsidiar)* or an independent operating di!ision. /e or s#e isresponsible for all t#e acti!ities of t#at unit* suc# as its production* marketing* sales* and finance.' small compan) ma) #a!e onl) one general manager its president or e+ecuti!e !icepresident but a large organization ma) #a!e se!eral* eac# at t#e #ead of a relati!el) independent di!ision. Ina large food compan)* for e+ample* t#ere mig#t be a grocer)production di!ision* a refrigeratedproducts di!ision* and a frozenfoodproducts di!ision* it# a different general manager

responsible for eac#. %ike t#e c#ief e+ecuti!e of a small compan)* eac# of t#ese di!isional #eadsould be responsible for all t#e acti!ities of t#e unit.c#ief e+ecuti!e officer O director e+ecuti!senior !icepresident O !icepresedinte senior :mai important decGt cel Lunior;president O presedintee+ecuti!e !icepresident O !icepresedinte e+ecuti!c#ief e+ecuti!e O director sau administator al unei firme

!.3. 0he management process

4.3.1 lanningPlans gi!e t#e organization its ob7ecti!es and set up t#e best procedures for reac#ing t#em. In

addition* plans become t#e guides b) #ic# t#e organization obtains and commits :a angaCa; t#eresources required to reac# its ob7ecti!es* members of t#e organization carr) on acti!itiesconsistent it# :concordant cu; t#e c#osen ob7ecti!es and procedures* and progress toard t#eob7ecti!es is monitored and measured* so t#at correcti!e action can be taken if progress isunsatisfactor)."#e first step in planning is t#e selection of goals for t#e organization. "#en ob7ecti!es areestablis#ed for t#e su%unitsof t#e organization its di!isions* departments* and so on. nce t#eob7ecti!es are determined* programs are establis#ed for ac#ie!ing t#em in a s)stematic manner.f course* in selecting ob7ecti!es and de!eloping programs* t#e manager considers t#eir feasibilit)and #et#er ill be acceptable to t#e organizationEs managers and emplo)ees.Plans made b) top management for t#e organization as a #ole ma) co!er periods as long as fi!e or ten )ears. In a

large organization* suc# as a multinational energ) corporation* t#ose plans ma) in!ol!e commitments :angaCamente;of billions of dollars. Planning at t#e loer le!els* b) middle or firstline managers* co!ers muc# s#orter periods.,uc# plans ma) be for t#e ne+t da)Es ork* for e+ample* or for a to#our meeting to take place in a eek.

4.3.2 +rgani,ingnce managers #a!e establis#ed ob7ecti!es and de!eloped plans or programs to reac# t#em* t#e)must design and staff an organization able to carr) out t#ose programs successfull). ifferentob7ecti!es ill require different kinds of organizations. 9or e+ample* an organization t#at aims tode!elop computer softare ill #a!e to be far different from one t#at ants to manufacture blue7eans. Producing a standardized product like blue 7eans requires efficient assembl)line tec#niques*#ereas riting computer programs requires teams of professionals s)stems anal)sts* softareengineers* and operators.

'lt#oug# t#e) must interact effecti!el)* suc# people cannot be organized on an assembl)linebasis. It is clear* t#en* t#at managers must #a!e t#e abilit) to determine #at t)pe of organizationill be needed to accomplis# a gi!en set of ob7ecti!es. 'nd t#e) must #a!e t#e abilit) to de!elop:and later to lead; t#at t)pe of organization.4.3.3 -ea!ing'fter plans #a!e been made* t#e structure of t#e organization #as been determined* and t#e staff#as been recruited and trained* t#e ne+t step is to arrange for mo!ement toard t#e organizationEsdefined ob7ecti!es. "#is function can be called b) !arious names leading* directing* moti!ating*actuating :impulsionare& stimulare;* and ot#ers. But #ate!er t#e name used to identif) it* t#isfunction in!ol!es getting t#e members of t#e organization to perform in a)s t#at ill #elp itac#ie!e its establis#ed ob7ecti!es.

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?#ereas planning and organizing deal it# t#e more abstract aspects of t#e management process*t#e acti!it) of leading is !er) concrete it in!ol!es orking directl) it# people.4.3.4 Controlling9inall)* t#e manager must ensure t#at t#e actions of t#e organizationEs members do in fact mo!et#e organization toard its stated goals. "#is is t#e controlling function of management* and itin!ol!es four main elements

4.3.5 (stablishing stan!ar!s of performanceMeasuring current performance and comparing it against t#e establis#ed standards.etecting de!iations from standard goals in order to make corrections before a sequence:succesiune& sir; of acti!ities is completed."aking action to correct performance t#at does not meet t#ose standards."#roug# t#e controlling function* t#e manager can keep t#e organization on its c#osen track*keeping it from stra)ing :a se deprata& a se a%ate; from its specified goals.

!.!. "eadership

"eadership

"raditionall)* t#e model for leaders#ip in business #as been t#e arm). Managers and arm) officers

gi!e orders and t#eir subordinates :t#e people orking belo t#em; carr) t#em out. Managers* likearm) officers* ma) be sent on leaders#ip courses to de!elop t#eir leaders#ip skills* t#eir abilit) tolead. But t#e) still need abasic flair or talent for leaders#ip."#e greatest leaders #a!e c#arisma* an attracti!e qualit) t#at makes ot#er people admire t#emand ant to follo t#em.' leader ma) be described as a !isionar)* someone it# t#e poer to see clearl) #o t#ings aregoing to be in t#e future. People often sa) leaders #a!e dri!e* d)namism and energ).6odern management styles

Before* leaders ere distant and remote* not eas) to get to kno or communicate it#. "oda)*managers are more open and approac#able )ou can talk to t#em easil). "#ere is moremanagement b) consensus* #ere decisions are not imposed from abo!e in a topdon approac#*but arri!ed at b) asking emplo)ees to contribute in a process of consultation. "#ere are moreomen managers no* #o are often more able to build consensus t#an traditional militar)st)leaut#oritarian male managers.,mpowerment5ncouraging emplo)ees to use t#eir on initiati!e* to take decisions on t#eir on it#out askingmanagers first* is empoerment. ecisionmaking becomes more decentralized and lessbureaucratic* less dependent on managers and s)stems. "#is is often necessar) #ere t#e numberof management le!els is reduced.

"o empoer emplo)ees* managers need t#e abilit) to delegate* to gi!e ot#er people responsibilit)for ork rat#er t#an doing it all t#emsel!es. f course* it# empoerment and delegation* t#eproblem is keeping control of )our operations a ke) issue of modern management.6

!.7. 0ime management4.5.1 Timeframes an! sche!ules6"ime is mone)*6 sa)s t#e famous p#rase. "#e timescale or timeframe is t#e o!erall period during#ic# somet#ing s#ould #appen or be completed. "#e lead time is t#e period of time it takes toprepare and complete or deli!er somet#ing."#e times or dates #en t#ings s#ould #appen is a sc#edule or timetable.

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If ork is completed at t#e planned time* it is on sc#edule completion before t#e planned time isa#ead of sc#edule and later is be#ind sc#edule. If it #appens later t#an planned it is dela)ed t#ereis a dela). If )ou t#en tr) to go faster* )ou tr) to make up time. But t#ings ala)s take longer t#anplanned.' period #en a mac#ine or computer cannot be used because it is not orking is dontime.5!er)one complains t#at t#e) ne!er #a!e enoug# time. %ots of emplo)ees do m) time

management courses* to learn #o to organize t#eir time. /ere are some ideas Fse a diar) or calendar to plan )our da) and eek. Personal organizers :small pocket

size computers; are good for t#is. Plan )our da) in ad!ance. Make a realistic plan :not 7ust a list; of t#e t#ings )ou #a!e to

do* in order of importance prioritize t#em. ?ork on t#ings t#at #a!e t#e #ig#est priorit)first.

'!oid interruptions and distractions* #ic# stop )ou doing #at )ou #ad planned. o 7obs to a realistic le!el of qualit) in t#e time a!ailable* and to a le!el t#at is reall)

necessar). on6t aim for perfectionism #en t#ere is no need for it. "r) to balance timecost and qualit).

CAP 5. MARKETING, ADVERTISING AND PROMOTION7.1. arketing

arketingis t#e process of planning* designing* pricing* promoting and distributing ideas* goodsand ser!ices* in order to satisf) customer needs* so as to make a profit.Companies point out #o t#e special c#aracteristics or features of t#eir products and ser!icespossess particular benefits t#at satisf) t#e needs of t#e people #o bu) t#em.$onprofit organizations #a!e ot#er* social* goals* suc# as persuading people not to smoke* or togi!e mone) to people in poor countries* but t#ese organizations also use t#e tec#niques ofmarketing.

In some places* e!en organizations suc# as go!ernment departments are starting to talk about* orat least t#ink about t#eir acti!ities in terms of t#e marketing concept.0he four $s"#e four Ps are

product deciding #at to sell

price deciding #at prices to c#arge

place deciding #o it ill be distributed and #ere people ill bu) it

promotion deciding #o t#e product ill be supported it# ad!ertising* specialacti!ities* etc.

' fift# P #ic# is sometimes added is packaging all t#e materials used to protect and present aproduct before it is sold."#e four P, are a useful summar) of t#e marketing mi+* t#e acti!ities t#at )ou #a!e to combinesuccessfull) in order to sell. "#e ne+t four units look at t#ese acti!ities in detail."o market a product is to make a plan based on t#is combination and put it into action. ' marketeror marketeer is someone #o orks in t#is area.:Marketer can also be used to describe an organization t#at sells particular goods or ser!ices.;arket orientationMarketers often talk about market orientation t#e fact t#at e!er)t#ing t#e) do is designed to meett#e needs of t#e market. "#e) ma) describe t#emsel!es as market dri!en* marketled or marketoriented.

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Brands and branding

' brand is a name a compan) gi!es to its products so t#e) can be easil) recognized."#is ma) be t#e name of t#e compan) itself t#e make of t#e product. 9or products like cars* )ourefer to t#e make and model* t#e particular t)pe of car* for e+ample* t#e 9ord :make; 9ocus:model;.Brand aareness or brand recognition is #o muc# people recognize a brand. "#e ideas people#a!e about a brand is its brand image. Man) companies #a!e a brand manager.

Branding is creating brands and keeping t#em in customer6s minds t#roug# ad!ertising*packaging* etc. ' brand s#ould #a!e a clear brand identit) so t#at people t#ink of it in a particulara) in relation to ot#er brands.' product it# t#e retailer6s on name on it is an onbrand product or on label product.Products t#at are not branded* t#ose t#at do not #a!e a brand name* are generic products orgenerics.

7.2. dvertisingdvertisinginforms consumers about t#e e+istence and benefits of products and ser!ices* and attempts topersuade t#em to bu) t#em. "#e best form of ad!ertising is probabl) ordoford ad!ertising* #ic# occurs #enpeople tell t#eir friends about t#e benefits of products or ser!ices t#at t#e) #a!e purc#ased. 0et* !irtuall) nopro!iders of goods or ser!ices rel) on t#is alone* but use paid ad!ertising instead. Indeed* man) organizations alsouse institutional or prestige ad!ertising* #ic# is designed to build up t#eir reputation rat#er t#an to sell particularproducts.

'lt#oug# large companies could easil) set up t#eir on ad!ertising departments* rite t#eir onad!ertisements* and bu) media space t#emsel!es* t#e) tend to use t#e ser!ices of largead!ertising agencies. "#ese are likel) to #a!e more resources* and more knoledge about allaspects of ad!ertising and ad!ertising media t#an a single compan). "#e most talented ad!ertisingpeople generall) prefer to ork for agencies rat#er t#en indi!idual companies as t#is gi!es t#emt#e c#ance to ork on a !ariet) of adertising accounts:contracts to ad!ertise products orser!ices;. It is also easier for a dissatisfied compan) to gi!e its account to anot#er agenc) t#an itould be to fire its on ad!ertising staff."#e client compan) generall) gi!es t#e ad!ertising agenc) an agreed budget a statement of t#eob7ecti!es of t#e ad!ertising campaign* knon as a brief and an o!erall ad!ertising strateg)concerning t#e message to be communicated to t#e target customers. "#e agenc) createsad!ertisements :t#e ord is often abbre!iated to ad!erts or ads;* and de!elops a media planspecif)ing #ic# media nespapers* magazines* radio* tele!ision* cinema* posters* mail* etc. ill be used and in #ic# proportions. :n tele!ision and radio* ads are often knon ascommercials.; 'gencies often produce alternati!e ads or commercials t#at are pretested innespapers* tele!ision stations* etc. in different parts of a countr) before a final c#oice is madeprior to a national campaign."#e agenc)Es media planners #a!e to decide #at percentage of t#e target market t#e) ant toreac# :#o man) people ill be e+posed to t#e ads; and t#e number of times t#e) are likel) to see

t#em. 'd!ertising people talk about frequenc) or H",E :opportunities to see; and t#e t#res#oldeffect :eectul de pornire; t#e point at #ic# ad!ertising becomes effecti!e. "#e c#oice ofad!ertising media is generall) strongl) influenced b) t#e comparati!e cost of reac#ing 1*


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sales. n t#e ot#er #and* e+cessi!e ad!ertising is counterproducti!e :antiproducti; becauseafter too man) e+posures people tend to stop noticing ads* or begin to find t#em irritating. 'ndonce t#e most promising prospecti!e customers #a!e been reac#ed* t#ere are diminis#ing returns*i.e. an e!ersmaller increase in sales in relation to increased ad!ertising spending.

7.3. $romotion"#e Internet is a ne ad!ertising medium.

Product endorsements are #en famous people recommend a product.' series of ad!ertisements for a particular compan) or product is an ad!ertising campaign. 'person or business t#at ad!ertises is an ad!ertiser. 'n organization t#at designs and managesad!ertising campaigns is an ad!ertising agenc).)ponsorshipis #ere companies sponsor :pa) some of t#e costs of; e!ents like concerts andsports e!ents.4.3.1 romotional acti"itiesPromotion :uncountable; is all t#e acti!ities supporting t#e sale of a product* including ad!ertising.'promotion :countable; describes

a special offer suc# as a discount or reduced price. a free gift gi!en it# t#e product. a free sample a small amount of t#e product to tr) or taste. competitions it# prizes.

,upermarkets and airlines gi!e lo)alt) cards to customers t#e more )ou spend* t#e more points)ou get* and )ou can e+c#ange t#ese points for free goods or flig#ts.Cross&promotionis #ere )ou bu) one product* and )ou are recommended to bu) anot#erproduct t#at ma) go it# it.

CAP 6. BANKING, MONEY AND TAATION

8.1. 0ypes of banks

Commercial or retail banksare businesses t#at trade in mone). "#e) recei!e and #old deposits*pa) mone) according to customersE instructions* lend mone)* offer in!estment ad!ice* e+c#angeforeign currencies* and so on. "#e) make a profit from t#e difference :knon as a spread or amargin; beteen t#e interest rates t#e) pa) to lenders or depositors and t#ose t#e) c#arge toborroers. Banks also create credit* because t#e mone) t#e) lend* from t#eir deposits* is generall)spent :eit#er on goods or ser!ices* or to settle debts;* and in t#is a) transferred to anot#er bankaccount often b) a) of a bank transfer or a c#eque :c#eck; rat#er t#an t#e use of notes or coins from #ere it can be lent to anot#er borroer* and so on. ?#en lending mone)* bankers #a!e tofind a balance beteen )ield and risk* and beteen liquidit) and different maturities.erchant bankin Britain raise funds for industr) on t#e !arious financial markets* finance

international trade* issue and underrite securities* deal it# takeo!ers and mergers* and issuego!ernment bonds. "#e) also generall) offerstock brokingand portfolio management ser!ices toric# corporate and indi!idual clients.

-nvestment banksin t#e F,' are similar* but t#e) can onl) act as intermediaries offeringad!isor) ser!ices* and do not offer loans t#emsel!es. In!estment banks make t#eir profits from t#efees and commissions t#e) c#arge for t#eir ser!ices.In t#e F,'* t#e 8lass,teagall 'ct of 1=34 enforced a strict separation beteen commercial banksand in!estment banks or stock broking firms. 0et* t#e distinction beteen commercial andin!estment banking #as become less clear in recent )ears. eregulation in t#e F,' and Britain isleading to t#e creation of Hfinancial supermarketsE conglomerates combining t#e ser!icespre!iousl) offered b) banks* stockbrokers* insurance companies* and so on. In some 5uropean

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countries :notabl) 8erman)* 'ustria and ,itzerland; t#ere #a!e ala)s been uni!ersal bankscombining deposit and loan banking it# s#are and bond dealing and in!estment ser!ices.

' countr)Es minimum interest rate is usuall) fi+ed b) t#e central bank. "#is is t#e discount rate* at#ic# t#e central bank makes secured loans to commercial banks. Banks lend to blue c#ipborroers :!er) safe large companies; at t#e base rate or t#e prime rate all ot#er borroers pa)more* depending on t#eir credit standing :or credit rating* or creditort#iness; t#e lenderEsestimation of t#eir present and future sol!enc). Borroers can usuall) get a loer interest rate if

t#e loan is secured or guaranteed b) some kind of asset* knon as collateral.In most financial centres* t#ere are also branc#es of lots of foreign banks* largel) doing5urocurrenc) business. ' 5urocurrenc) is an) currenc) #eld outside its countr) of origin. "#e firstsignificant 5urocurrenc) market as for F, dollars in 5urope* but t#e name is no used for foreigncurrencies #eld an)#ere in t#e orld :e.g. )en in t#e F,* M in Lapan;. ,ince t#e F,W is t#eorldEs most important trading currenc) and because t#e F, #as for man) )ears #ad a #ugetrade deficit t#ere is a market of man) billions of 5urodollars* including t#e oile+portingcountriesE HpetrodollarsE. 'lt#oug# a central bank can determine t#e minimum lending rate for itsnational currenc) it #as no control o!er foreign currencies. 9urt#ermore* banks are not obliged todeposit an) of t#eir 5urocurrenc) assets at


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/ere are some more uses of t#e ord 6sale6a. make a sale sell somet#ingb. be on sale be a!ailable to bu)c. unit sales t#e number of t#ings soldd. ,ales a compan) departmente. ' sale a period #en a s#op is c#arging less t#an usual for goodsf. "#e sales a period #en a lot of s#ops are #a!ing a sale

Costs"#e mone) t#at a business spends are its costs

direct costs are directl) related to pro!iding t#e product :e.g. salaries;.

fi+ed costs do not c#ange #en production goes up or don :e.g. rent* #eating* etc.;.

!ariable costs c#ange #en production goes up or don :e.g. materials;.

cost of goods sold :C8,; t#e !ariable costs in making particular goods :e.g. materialsand salaries;.

indirect costs* o!er#ead costs or o!er#eads are not directl) related to production :e.g.administration;.

,ome costs* especiall) indirect ones* are also called e+penses.Costing is t#e acti!it) of calculating costs. 'mounts calculated for particular t#ings are costings.Margins an! mark*ups/ere are t#e calculations for one boat,elling price O &


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'ssets suc# as mac#iner) and equipment lose !alue o!er time because t#e) ear out* or are nolonger uptodate. "#is is called depreciation or amortization. 9or e+ample* #en e bu) necomputers* e depreciate t#em or amortize t#em o!er a !er) s#ort period* usuall) t#ree )ears*and a c#arge for t#is is s#on in t#e financial records t#e !alue of t#e equipment is ritten doneac# )ear and ritten off completel) at t#e end."#e !alue of an asset at an) one time is its book !alue. "#is isn6t necessaril) t#e amount t#at it

could be sold for at t#at time. 9or e+ample* land or buildings ma) be ort# more t#an s#on in t#eaccounts* because t#e) #a!e increased in !alue. But computers could onl) be sold for less t#anbook !alue.6"iabilities%iabilities are a compan)6s debts to suppliers* lenders* t#e ta+ aut#orities* etc. ebts t#at #a!e tobe paid it#in a )ear are current liabilities* and t#ose pa)able in more t#an a )ear are longtermliabilities* for e+ample bank loans.Balance sheet

' compan)6s balance s#eet gi!es a picture of its assets and liabilities at t#e end of a particularperiod* usuall) t#e 12mont# period of its financial )ear. "#is is not necessaril) Lanuar) toecember.

8.7. 0a9ation

#.5.1 Ta%ation an! ho to a"oi! itV+C/B8-/79

:ncome ta% impozit pe !enit

Wealth ta% impozit pe a!ere

&irect ta% impozit direct

:n!irect ta% impozit indirect

rogressi"e ta% impozit progresi!

7egressi"e ta% impozit regresi!

Value*a!!e! ta% "R' 0ales ta% impozit pe !GnzAri

Capital gains ta% impozit pe plusul de capital

Capital transfer ta% impozit pe transferul de capital

6iscal polic$ politicA fiscalA

Ta% a"oi!ance e!itare fiscalA

Ta% e"asion e!aziune fiscalA

Ta% ta+A* impozit

Ta%ation impozit* impozitare

Ta% shelter protecDie fiscalA

Ta% ha"en paradis fiscal

Ta%*!e!uctible deductibil fiscal

(%cise !uties accize* impozit de fabricare"#e primar) function of ta+ation is* of course* to raise re!enue to finance go!ernment e+penditure*but ta+es can also #a!e ot#er purposes. Indirect e+cise duties* for e+ample* can be designed todissuade :a preeni& a schim%a prerea; people from smoking* drinking alco#ol* and so on.8o!ernments can also encourage capital in!estment b) permitting !arious met#ods of accelerateddepreciation accounting t#at allo companies to deduct more of t#e cost of in!estments from t#eirprofits* and consequentl) reduce t#eir ta+ bills."#ere is ala)s a lot of debate as to t#e fairness of ta+ s)stems. Business profits for e+ample* aregenerall) ta+ed tice companies pa) ta+ on t#eir profits :corporation ta+ in Britain* income ta+ int#e F,';* and s#are#olders pa) income ta+ on di!idends. Income ta+es in most countries are

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progressi!e* and are one of t#e a)s in #ic# go!ernments can redistribute ealt#. "#e problemit# progressi!e ta+es is t#at t#e marginal rate t#e ta+ people pa) on an) additional income isala)s #ig#* #ic# is generall) a disincenti!e to bot# orking and in!esting. n t#e ot#er #and*most sales ta+es are slig#tl) regressi!e* because poorer people need to spend a larger proportionof t#eir income on consumption t#an t#e ric#."#e #ig#er t#e ta+ rates* t#e more people are tempted to c#eat* but t#ere is a substantial HblackE orHundergroundE econom) nearl) e!er)#ere. In Ital)* for e+ample* selfemplo)ed people #ose

income is more difficult to control t#an t#at of compan) emplo)ees account for more t#an #alf ofnational income. %ots of people also #a!e undeclared* parttime e!ening 7obs :some people call t#isHmoonlig#tingE; it# small and mediumsized famil) firms* on #ic# no one pa)s an) ta+ ornational insurance. 't t#e end of t#e 1=J(* t#e irector of t#e Italian $ational Institute of ,tatisticscalculated t#e size of t#e underground econom)* and added 1(.X to Ital)Es gross national product:8$P; figure* and t#en claimed t#at Ital) #ad o!ertaken Britain to become t#e orldEs fift# largesteconom).

"o reduce income ta+ liabilit)* some emplo)ers gi!e #ig#l)paid emplo)ees lots of HperksE:s#ort for perquisites; instead of ta+able mone)* suc# as compan) cars* free #ealt# insuranceand subsidized lunc#es. %egal a)s of a!oiding ta+* suc# as t#ese* are knon as loop#oles inta+ los. %ife insurance policies* pension plans and ot#er in!estments b) #ic# indi!idualscan postpone t#e pa)ment of ta+* are knon as ta+ s#elters. onations to c#arities t#at canbe subtracted from t#e income on #ic# ta+ is calculated are described as ta+deductible.

Companies #a!e a !ariet) of a)s of a!oiding ta+ on profits. "#e) can bring forard capitale+penditure :on ne factories* mac#ines* and so on; so t#at at t#e end of t#e )ear all t#eprofits #a!e been used up t#is is knon as making a ta+ loss. Multinational companies oftenset up t#eir #ead offices in countries suc# as %iec#tenstein* Monaco* t#e Ca)man Islands* andt#e Ba#amas* #ere ta+es are lo suc# countries are knon as ta+ #a!ens. Criminalorganizations* mean#ile* tend to pass mone) t#roug# a series of companies in !er)complicated transactions in order to disguise its origin from ta+ inspectors and t#e policet#is is knon as laundering mone).

#.5.2 Wrong!oing an! corruptionBriber$ an! corruption'n illegal pa)ment to persuade someone to do somet#ing is a bribe* or informall) a back#ander*kickback or seetener. "o bribe someone is briber). ,omeone #o recei!es bribes is corrupt andin!ol!ed in corruption. "#is is informall) knon as sleaze* especiall) in politics.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO5$ 9 "/5 CF,5 5$8%I,/ BF,I$5,, CMMF$IC'"I$

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English Business Communication

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