Реферат: Ответы по английскому языку
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Название: Ответы по английскому языку Раздел: Топики по английскому языку Тип: реферат |
U n i t 1.Brands . 1. Whatarevisiblepartsofmarketing?Whatarebrandmanagers andsalesteamsresponsible for? 2. Whotakespartindistributionchannels?
4. SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples. 1.Whatarevisiblepartsofmarketing?Whatarebrandmanagersandsalesteamsresponsiblefor? AsthemarketingexpertPhilipKotlerhas said, 'Themost distinctiveskillofprofessionalmarketersistheir abilityto create,maintain, protect andenhancebrands.'Thereareanawfullotofmisunderstandingsabout ‘marketing’. Manypeopleseeit purelyasthevariousways in whichabusinessororganisationadvertises and promotesitself-awebsite,abrochure,corporatehospitality,advertisementsandsalesliterature...But theseareonlythevisiblepartsofmarketing. Professionalliteraturedefinesmarketingas'themanagementprocessresponsibleforidentifying,anticipating and satisfying customerrequirementsprofitably'.Inotherwords, it is not just about producinga pieceof promotionalmaterialto support a salesactivity, it'sabouta systematicand carefulprocessofensuringthateverythingthatthe business developsand provides,whetheritbea productoraservice,is done withthe customerinmind. Thinkofthe processofmarketingratherlikeaniceberg.The topeighthisthe part thatisvisible-seven eighthsareunseen!Whatgoesonbelowthesurfaceisawholerangeofactivitiesandprocessesdesignedto ensurethatanymarketingcommunicationsaredesignedanddeliveredinthebestwaytoachievethedesired results,usuallythat's profitable sales. Themain brandmanager’sand salesteams’responsibilitiesinclude: - Developingandmanagingbrandmarketingplan - Understandingandexpressingbrand’spositioning,designingappropriatemarketingmixtools - Brief&agreeannualmediaplan, superviseworkwithadvertisingagencies - Generateandanalyzeconsumerinsights,integratefindings intobrandactivities - Managepricing - Enliststrongsalessupportforallbrandmarketingactivities 2 .Whotakespartindistributionchannels? Distribution(orplacement)isoneofthefour aspectsofmarketing. A distributoristhemiddlemanbetween the manufacturerandretailer. Afteraproduct ismanufactured it maybe warehousedorshippedto the next echeloninthesupplychain,typicallyeitheradistributor,retailerorconsumer. Anumberofalternate'channels'ofdistributionmaybeavailable: ·Sellingdirect,suchasviamailorder,Internetandtelephonesales ·Agent,whotypicallysells directon behalfoftheproducer ·Distributor(alsocalledwholesaler),whosells toretailers ·Retailer(alsocalleddealerorreseller),whosellstoendcustomers ·Advertisementtypicallyusedforconsumergoods Distribution channels canthushave anumberof levels.Kotlerdefinedthe simplestlevel,thatofdirectcontactwithnointermediariesinvolved,asthe'zero-level'channel. Thenextlevel,the'one-level'channel,featuresjustoneintermediarybetweenproducerandcustomer-a retailer.Insmallmarkets(suchassmallcountries)itis practicaltoreachthewholemarketusingjust one-andzero-levelchannels. Inlargemarkets(suchaslargercountries)asecondlevel,awholesalerforexample,isnowmainlyused toextenddistributiontothelargenumberofsmall,neighborhoodretailers. 3 .Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples. 1
leathergoods maker,whichoutsourcesallitsproductsto Asia,andBurberry,whichalsohasmanyAsian licensingarrangements. 4.SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples. Althoughoutsourcingisawidespreadpracticenowadaysconsumershavedualattitudetoit.Thereisa strongpublicopinionregardingoutsourcing(especiallywhencombinedwithoffshoring-thepracticeof movingacompany'soperatingbasetoaforeigncountrywherelabourcostsarecheaper)thatoutsourcing damagesaproductqualitydramatically.Tobehonest,Isupportthispointofview.Forexample,about tenyearsagoallproductsofBritishcosmeticscompanyAvonweremadeinEurope.Butnowabout70% ofitsproductionis outsourcedin Russiaandnearabroad.Ofcourcethepriceof Avon cosmeticsbecame muchcheaperbutit’snotasecretthatthequalitychangeddramaticallytoo. U n it 2. Travel 1.Whattypes ofairlinesdoyouknow? 2.Howdoyouunderstandtheterm“code-sharing”? 3.Whatformsofcooperationbetweencompaniesarethere? 4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour? 1.Whattypesofairlinesdoyouknow? Formerlyairlineswereclassifiedintolocal,regional,national andinternational.Todaytheyareclassified accordingtotheirannualturnover.Thebiggestcompanieshavetheturnoverfrom$100millionto$1 billion,thebigregional-$10-$100million,theaverage–lessthan$10million. It’s very important to remember that there are two kinds ofairline operations-scheduled and nonscheduled.Ascheduledairlineoperatesonfixedroutsatfixedtimesaccordingtoatimetablethatis availabletopublic. Anonscheduledairlineoperateson routsatatimewhenthereis a demandfortheservice.The nonscheduledairlineisinotherwordsacharteroperationthatrentsanaircraft. 2.Howdoyouunderstandtheterm“code-sharing”? Codesharingisabusinesstermwhichwasfirstoriginatedintheairlineindustryin1990whenthe Australianairline,Qantas Airways andtheUS'sAmerican Airlinescombinedservicesbetweenanarray ofUS domesticcitiesandAustraliancities.Thecodesharewaspartofa"cooperativeservices" agreementbetweenthetwocarriersbeforethevariousairlineallianceswereformed.Codesharingisa commercial agreementbetweentwoairlinesthatallows passengers to useaticketfromoneairlinetotravelon another.Mostmajorairlines todayhave code sharingpartnershipswith otherairlines,andcode sharingisakeyfeature ofthemajorairlinealliances. Lotsofairlines,includingallthebiglegacylines,areinvolvedwithcodesharingarrangements.Those arrangementspermityoutobuythroughtickets on routsthat nosingleairlinecanserve.Theymayalso provideopportunitiestocutthecostofyourairfare. 3.Whatformsofcooperationbetweencompaniesarethere? Therearedifferenttypesofcooperationbetweenairlines:associations(likeInternationalAssociationof AirTransport(IATA)whichdeals withtheairnavigation,thesecurityofairtransportandthe coordinationofflightservices),particularglobalairlinealliancesandcodeshareagreementsthathave multiplied over the pastyears. 4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour? The psychologyofairrageis anewareaofstudy,andthere are almostasmanyexplanations as 2
isincreasingconcernaboutanothercost-cutting exercise,which couldseriouslyharmpassengers’health: cabinventilation. U n i t3.Organisation. 1.Whattypesofcompaniesdoyouknow? 2.Speakaboutflexibilityanditstypes. 3.Whatismeantby"teleworking"? 4.WhatdoyouknowaboutSOL company?Whyisitunusual? 1.Whattypesofcompaniesdoyouknow? Historicallytherewereonly soleproprietorships. Thencamepartnershipsandthencorporations. Corporations areaseveralcenturiesoldphenomena. Partnershipswerearrangementsbetweentwoormoreindividualsinwhichtheypooledresources,andsplitexpenses andprofits. Atfirstcorporations werecharteredbymonarchies. Historicallycorporationsofferedlimitedliabilityandpartnershipsdid not. Inotherwords,iftheventurefailed,theorganizersandpromotersofacorporation retainedtheir personalassets,whiletheowners andorganizers ofapartnershipcouldlosetheirpersonal assets tothe creditors ofthe business venture. Wecannowdefinesoleproprietorship as abusiness enterprise exclusivelyowned,managedand controlledbyasingleperson with allauthority,responsibilityandrisk. Supposeyouwanttoopenarestaurantinyourlocality.Youwillneedtoorganizealotofthings.You mayfind thatitis notpossible toarrangethemoneyrequiredtostartandrunthebusiness alone. You maythentalktoyourfriendsandallofyouagreeto runtherestaurantbycontributingacertainamount ofmoneyandtheotherthingsrequired.Soallofyou jointobecometheowners andsharetheprofitsand losses.Thisisanotherformofbusinessorganization–partnership . Acompanyformof business organizationis knownasaJointStockCompany .Itis avoluntary association ofpersons whogenerallycontributecapitaltocarryon a particulartypeofbusiness,whichis establishedby lawand canbedissolvedonly bylaw.Persons whocontribute capitalbecomemembersofthecompany.Thisformofbusinesshas alegalexistenceseparatefromitsmembers,whichmeanseven ifitsmembersdie,thecompanyremainsinexistence.Thisformofbusinessorganizationsgenerally requireshugecapitalinvestment,whichiscontributedbyitsmembers. Thetotalcapitalofajointstock companyis calledsharecapitalanditis dividedintoanumberofunitscalledshares.Thus,everymemberhassomesharesinthebusinessdependingupontheamountofcapitalcontributedbyhim. PrivateLimitedCompany .Thesecompanies canbeformedbyatleasttwoindividualshavingminimum fixedpaid–upcapital(theamountofmoneyisdeterminedbylegislationofthecountry).Thetotal membership ofthesecompaniescannotexceedacertainnumberofpeople(thisnumbercanbedifferent indifferentcountries).Thesharesallottedto itsmembers arealsonotfreelytransferablebetweenthem. Thesecompaniesarenotallowedtoraisemoneyfromthepublicthroughopeninvitationandarerequired touse“PrivateLimited”aftertheirnames. PublicLimitedCompany. Aminimumofsevenmembersarerequiredtoformapubliclimitedcompany. Itmusthaveminimum paid–up capital.Thereis norestriction onmaximum numberof members.The sharesallottedtothemembersarefreelytransferable.Thesecompaniescanraisefundsfromgeneral publicthroughopeninvitationsbysellingitssharesoracceptingfixeddeposits.Thesecompaniesare requiredtowriteeither‘publiclimited’or‘limited’aftertheirnames.These are themain,butnot the onlytypesofbusinessorganization. 2.Speakaboutflexibilityanditstypes. Flexibilityisthecurrentbuzzwordtoday.Flexibilityisunderstoodastheabilitytochangeorbechanged easilytosuitadifferentsituation.This hasanumberofrelatedmeanings.One typeofflexibilityhas existedforsometimeintheformofflexitimeorflextime,wherepeoplecanchoosewhentheyworkwithincertain limits.Thenthereis theflexibleworking oftheBritishAirways officeinthemaincourse 3
3.Whatismeantby"teleworking"? Teleworking,alsoknownastelecommuting,meansusinginformationtechnologyand telecommunications to replace particle-relatedtravel. Simpleput, itmeans workingathomeorclosertohome. Withteleworking,employeesworkathomeorperhaps at alocalteleworkcenteroneormore daysperweek.Communicationisaccomplished byphone,fax,modem,andteleconferencing. Nationwide,morethan20millionworkersaregoingtoworksimplybypickingupthephoneorturning ontheir computers. 4.WhatdoyouknowaboutSOLcompany?Whyisitunusual? SOL isaFinland'sCleaningServicecompanywhichcombinesradicalinnovationwithdisciplined execution–awinningformulathatmopsupthecompetition.Locatedinarenovatedfilmstudiointhe heartofHelsinki,theofficeexplodeswithcolor,creativity,andchaos.Thewalls arebrightred,white,andyellow;theemployees wanderthehalls talking on portablephones(alsoyellow).Fewpeopledream aboutbecomingacleaner.Butthatdoesn'tmeancleanerscan'tfindsatisfactionintheirwork.Thekeysto satisfaction,Joronenbelieves,arefun andindividual freedom.SOL's cultureisbuiltrelentlessly--almost excessively--aroundoptimismandgoodcheer.Itscleanerswearred-and-yellowjumpsuitsthatreinforce thecompany'supbeatimage.SOL'slogo,ayellowhappyface,isplasteredoneverythingfromherblazer tothecompany'sstationerytoitsmostimportantbudgetreports. Freedommeans abolishing alltherulesandregulations ofconventional corporatelife.TherearenotitlesorsecretariesatSOL,noindividualofficesorsetworkinghours.Thecompanyhaseliminatedallperks and status symbols. U n i t4.Change. 1. Whatchangeshavetakenplaceinorganizationsrecently? 2. Explainthemeaning ofBPR. 3. Howdoyouunderstand theterm'companyculture'?Whatissuesshouldbeincludedinto it? 4. SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough. 1.Whatchangeshavetakenplaceinorganizationsrecently? Recent yearshaveseenmassiverestructuring.Companiesdownsizedanddelayered, gettingridoflevels ofmiddle-managementinordertobecomeleaner,flatter,supposedlymoreefficientorganisations.Often thereasoningwasthatcomputernetworksallowtopmanagersinstantaccesstoinformationthatwas previouslygatheredandtransmittedupwardsbymiddlemanagers,whoseothermainfunctionwasto communicateexecutives'keymessagesdownwardstotheworkforceandinthistheywereaccusedof dilutingorconfusing themessages,orworse.Withfewerorganisational layers,topmanagers saytheycancommunicatemoredirectlywithfront-lineemployees,thepeoplewhoactuallyproducethegoods or services,anddealwithcustomers.Withlessdirectsupervision,employeeshaveoftenbeenencouragedto makemoredecisionsforthemselvesinaprocessofempowerment. Another trendwasre-engineering, theideathatanorganisationshouldnotchangeincrementally, butshouldstartagain fromscratchwithnopreconceptionsabouthowthings-shouldbedone,notjustin manufacturingbutinalltheprocessesthatcontribute to whatanorganization does,hencebusinessprocessre-engineering,orBPR. The humansideofthis,again,wasthattherewouldprobablyberedundancies.Thepeople remainingwouldprobablyfeeldemoralized,wonderingwhenthenextwaveofchangewasgoingto 4
2.ExplainthemeaningofBPR. Businessprocessreengineering(BPR)isamanagementapproachaimingatimprovementsbymeansof elevatingefficiencyandeffectivenessofthe processesthatexistwithinandacrossorganizations.BPRis arestructuringanorganizationby meansofaradicalreconsiderationofitscoreprocesses.ThekeybenefitsofBPRare: ·optimizationofbusinessprocesses: ·integration ofITsystems; · structuringandguidingofreorganization; ·businesscontinuityplanning; ·managementknowledge. 3.Howdoyouunderstandtheterm'companyculture'?Whatissuesshouldbeincludedintoit? Acultureis thevaluesandpracticessharedbythemembers ofthe group. CompanyCulture,therefore,is thesharedvaluesandpracticesofthecompany'semployees. Companycultureisimportantbecauseitcanmake orbreakyourcompany.Companieswithanadaptive culturethatis alignedto theirbusiness goals routinelyoutperformtheircompetitors. Companycultures evolveandtheychangeovertime.Asemployeeleavethecompanyandreplacementsarehired the companyculturewillchange.Ifitis astrong culture,itmaynotchangemuch. Herearesomecharacteristicsofcompanyculturesthatothershaveusedsuccessfully. ·Missionclarity ·Employeecommitment ·Fullyempoweredemployees ·Highintegrity workplace ·Strongtrustrelationships ·Highly effectiveleadership ·Effectivesystemsandprocesses ·Performance-basedcompensationandrewardprograms ·Customer-focused ·Effective360-degreecommunications ·Emphasisonrecruitingandretainingoutstandingemployees ·Highdegreeofadaptability ·Highaccountabilitystandards ·Demonstratedsupportforinnovationanddevelopment 4 . SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough. TheUS andUKdepartmentstores facedwith declineinpopularity.Itcanbeexplainedbyconsumers demandingbettervalueandamoreinterestingandstimulatingexperiencewhileshopping.Department storesfacedstrongcompetitionfromspecialityretailers anddiscounters.Theirsteady lossofmarket sharemaybepartlybecausetheconceptwasborninadifferentera,atimewhen,forfamilies,atriptothestores combinedshoppingwithentertainment.Andnow,what is neededis anewapproach.Atypicalexample ofthis approachworkingis seenatSelfridges.This UKgrouphasrecastitselffroma sleepy 70s-styledepartmentstoreintoaretailinggood-structuredmoderndepartmentstore. Oneofthemainchangesis thatmorefloorspaceis rentedtovendors,inwhatis sometimesreferredtoas theshowcasebusinessmodel:vendorsdesigntheirownboothsandareencouragedtobecreative.The problemisthatalldepartmentstoreslookthesame. U n it 5. Money. 1. Howdoes moneywork? 2. Whatmoneyinstitutions can youmention? 3. Describedifferentkindsofsecuritiesanddifferentkindsofmarkets. 4. Whatcanyousayabouttheattitude to moneyinourculture?Hasitchangedinrecentyears? 5
1.Howdoesmoneywork. Moneymakestheworldgoround,theysay.Perhapsitiseventruerthattheworldmakesmoneygo round,especiallyinaneraofglobalizationwhencapitalcanflowfreelytoandfromalmosteverywhere.Moneyisalways lookingforplaceswhereitwillbemostprofitableandearnthegreatestreturnon investment. Asanindividual,youcanputyourmoneyondepositinabank,andaslongasthebankdoesn'tfailand theeconomykeepsfunctioning,youwillgetinterest.Yourmoneyislentouttopeople,businessesand governmentswho need it to financetheirownprojects, andthebankwillmakeitsmoneyonthedifferencebetweenwhatitpays outininterest ondepositsand whatitgetsininterestfrom itsloans. Ifyouwant tolivemoredangerouslyyoucouldbuysomebonds,andaslongastheorganizationor countryyou'veinvestedinbylendingitmoneydoesn'tdefault,youwillgetyourinterestpayments,and lateryourbondswilleventuallyberepaid.Toliveevenmoredangerously,buysomesharesandsharein the profitabilityofyourchosencompany.Ingoodtimes,the dividendswillbemorethanwhatyouwould getfrombonds,andtheshares themselves willincreaseinvalue, givingyoua capitalgainifyousell them.Butifthecompanyrunsintotroubleandgoesbankrupt,youwillbeamongthelasttobepaidback, andyoumaygetonlypartofwhatyouputin,oryoumaylose allyourmoney. 2.Whatmoneyinstitutionscanyoumention? Thisisforexamplebanks,insurancecompanies,mutual funds (unittrusts intheUK)andpensionfunds whomay, ofcourse,beinvesting themoney ofprivateindividualsindirectly. Themarketsthey investininclude themoneyandcurrencymarkets,stockmarketsforshares(also knownasequities),commoditiesmarketsforanythingfromgoldtoporkbellies(usedformakingbacon), andproperty(buildingsandland). Let’s stopon several institutions. Themostfamousmoneyinstitutionineverycountryisbank.Bank is afinancial institution thatactsas apaymentagentforcustomers,andborrows andlendsmoney.Banksborrowmoneybyacceptingfunds depositedoncurrentaccount,acceptingtermdepositsandbyissuingdebtsecuritiessuchasbanknotes andbonds.Bankslendmoneybymakingadvancestocustomersoncurrentaccount, bymaking installmentloans,andby investingin marketabledebtsecuritiesandotherforms oflending. Amutualfund is aprofessionally-managedfirmofcollectiveinvestments thatpoolsmoneyfrommany investorsandinvestsitin stocks,bonds,short-termmoneymarketinstruments,orothersecurities. Ina mutualfund,thefundmanager,tradesthefund'sunderlyingsecurities,realizingcapitalgainsorlosses, andcollectsthedividendorinterestincome. 3 .Describedifferentkindsofsecurities anddifferentkindsofmarkets. Fromthepointofviewofinvestors,theworld'sfinancialmarketsexistinordertochannelmoneyto profitableinvestmentactivities and projects.Fromthepoint ofviewofborrowerssuchascompanies and governments,financial centresexistso thattheycanfind capitalon thebestterms. Most investorsarenotprivateindividualsbutinstitutionslikebanks,insurancecompanies,mutualfunds andpensionfunds whomay,ofcourse,beinvestingthemoneyofprivateindividualsindirectly.The markets theyinvestinincludethemoneyandcurrencymarkets ,stockmarkets forshares(alsoknownasequities),commoditiesmarkets foranythingfromgoldto porkbellies(usedformakingbacon),and property(buildings andland). Therearealsomarketsforfutures incurrencies,equities,bondsandcommodities:afutureisafixed- pricecontracttobuyacertainamountofsomethingfordeliveryatafixedfuturedate. Therearemarketsforoptions incurrencies,equities,andbonds.Here,aninvestorbuystherightto buy orsellacertainamountofthesethingsatacertainpriceandparticulardateinthefuture.Thisisa formofbetting on howpriceswillmove. Someofthesemarkets,likestockmarkets,arebasedinparticularbuildings,somewith tradingfloors,but mosttradingisnowscreenand telephonebased. Others,likebond and currencymarkets,are'virtual',inthesensethatsellingandtradingtakesplacebyphoneandcomputerbetweenthepremisesofissuers, brokersandtraders. Securities constitute theobjectswhichinvestmentsaremadeof.Therearevarious kinds ofsecurities. Theyare tradedinmarkets,eachone withspecificrules. 6 Stocks arethemostpopularsecurityforinvestment.Theyactuallyrepresentownershipinaspecific company.Themostcommonwaystocks appearinthemarketis byoperations calledinitialpublicofferings (IPO) .Thesehappenwhenacompanydecidestoissuestocks,butgivingawaypartofittothe public,inreturnformoneypaidbythenewshareholders.Thepublicgainsapartofthecompany,bythe costofpayingmoneyforit,whilethecompanyobtains amassiveamount ofmoney,bythecostofhavingtogiveawaypartofitsownership,aswellaspartofitsprofitsintheformofdividends. OutsideIPO's,stockcanbeboughtandsoldinstockexchanges .Theseareplaces(physicalorvirtual) wherestocks are assignedaselling priceandabuying price.Anyonecanbuyorsell stocks with the help ofbrokers. Companies oftenneedmoneyforvarious ends,suchasimprovingitself, expanding,buyingother companies, andsoon.There aremanyforms ofdoing this.One ofitis using abond .Abondisacontract betweenanissuingcompanyandabuyer.Inthiscontract,thebuyerlendsacertainamountofmoneyto the company,foracertainnumberof years.Inreturn,thecompanyis obligedtopayinteresttothebuyer, periodically,ataspecifiedrate. F u n ds becomeaninterestinginvestmenttoolforeveryonewhoisnotinterestedinwasting timewith stockorbondpicking, trading,andsoon. Investmentcompaniesmanageoneormorefunds,where moneyfrommanyinvestorsismanagedbyprofessionals.Oneinvestmentfundusuallyholds aportfolio ofsecurities.Thedecisionstobuyorsellthosesecuritiesaretakenbytheinvestmentcompanybehind thefund. 4 .Whatcanyousayabouttheattitude tomoneyinourculture?Hasitchangedinrecentyears? Moneycan beacurseorablessinginourlives.Ifwedealwithitaccordingtotheworld’sstandards,it canbeacurse.Moneyisthenumberonesourceofstressandtheprimarycausefordivorce. People'sattitudestowardsmoneyvaryenormouslyandarelargelyinfluencedbythevaluestheywere broughtupwithandhowmuchmoneytheyhavenow. Assuming there's enough moneytokeepa roofoveryourheadandbuy basicfoodstuffs,whatyoudo withtherestofyourmoneywilldependonyourparticularattitude.Thefollowingthreestatements broadlysumup themostcommonattitudestomoneyintoday'sculture: 1.Moneyisforenjoying -moneyisforspendingonthethings thatmakeyouhappy.Nooneknows whatthefuturemayholdorwhatcanhappentomorrow, soyoushouldenjoywhatyouhave whenyou haveit.Money'snousewhenyou'redead,solivefortoday. 2.Moneyisforsecurity -moneyshouldbespentonmakinglifecomfortable.Onceyouhavethebasic homecomforts,it'simportanttohavemoneyputasideforarainyday.Nooneknowswhatthefuture mayhold,soit'ssensibletobeprepared. 3.Moneyisforsharing -moneyshouldbe sharedgenerouslywiththoseyoulove andthoseless fortunatethanyourself.Buyingpresents,entertainingothersandgivingmoneytocharitycreatesfeelings inyourselfandothers thatarepriceless.Nooneknows what thefuturemayhold,andsomedayyoumayneedthefavourreturned. Soherearethemainattitudestomoneyinourculturetomymind andIdon’tthinkthatmyopinion differsfrommostpeople,so theattitudetomoneydoesn’tchangethroughyears. 5 .HowhaveWal-MartandTargetstoresperformedlately? Wal-MartStores is anAmericanpubliccorporationthatruns achainoflarge,discountdepartment stores.Itistheworld'slargestpubliccorporationbyrevenue.Itisthelargestprivateemployerinthe world and thefourth largestutilityorcommercial employer.Wal-Martis thelargestgroceryretailerin theUnitedStates. OnSeptember12,2007,Wal-Martintroducednewadvertisingwiththeslogan,"Save MoneyLive Bett er ," replacing the"Always LowPrices,Always "slogan,whichithadusedfortheprevious19years. GlobalInsight,whichconductedtheresearchthatsupportedtheads,foundthatWal-Mart'spricelevel reductionresultedinsavingsforconsumers. Savingpeoplemoneytohelp themlivebetteristhegoalofWal-Mart.It’sthefocusthatunderlieseverything atWal-Mart.Andfor themillionsofcustomerswhoshopinthese storesitmeans alot. By offering thebestpossible priceson the productscustomersneed,Wal-Martcanhelpthemaffordsomethingalittleextra. 7
Targetstorestendtoattractyoungerandmoreeducatedandaffluentcustomersthanitscompetitors. Targethascultivatedamoreupmarketandstyle-consciousimagethanotherdiscountretailers.Itis the third-largestgeneralretailerintheUSbyrevenues. U n it 6. Advertising. 1. Whatformsofadvertisingdoyouknow? 2. Explainthemeaningof'directmarketing'.Whyisitconsideredtargetedmeansofadvertising? 3. Whatisthedifferencebetween'productplacement'and'productendorsement'? 4. WhatmakesMike'sadvertisingtick? 5. Howshouldyouplananadvertisingcampaign? 6. Giveexamplesofgoodandbadadvertisements. 1.Whatformsofadvertisingdoyouknow? Themainformofadvertisingismedia. Itcanincludewallpaintings,billboards,streetfurniture components,printedflyers,radio,cinemaandtelevisionads,webbanners,mobiletelephonescreens, magazines,newspapers,sides ofbusesorcars, andsoon.Anyplacean"identified" sponsorpays todelivertheirmessagethroughamedium is advertising.So youcanseealotofadvertisinginthestreets. Anotherfamoustypeofadvertisingnowadaysisproductplacement . Itis whenaproductorbrandis noticedinentertainmentandmedia.Forexample,inafilm,themain charactercanuseanitemor otherofadefinitebrand.Itisverypopularnowadaysforcars,watches,clothes.Forexample,product placementforFord,BMWand Aston-MartincarsarefeaturedinrecentJamesBondfilms,mostnotably CasinoRoyale . TheTVcomm ercial isgenerallyconsideredthemosteffectivemass-marketadvertisingformat,asis reflected bythehigh pricesTVnetworks chargeforcommercial airtimeduringpopularTVevents.Forexample,football. Increasingly,othermediaareovertakingtelevisionbecauseofmoreconsumer'susageoftheinternet. AdvertisingontheWorldWideWeb isarecentphenomenon.Pricesof Web-basedadvertisingspaceare dependentonthe"relevance" ofthesurroundingwebcontentandthetrafficthatthewebsite receives. E-mailadvertising isanotherrecentphenomenon.UnsolicitedbulkE-mail advertisingisknownas "spam".Sothesearethe mostfamousforms ofadvertising nowadays tomymind. 2. Explain themeaningof'directmarketing'.Whyisitconsideredtargetedmeansofadvertising? Directmarketing is oneofthetypeofmarketing.Therearetwomaincharacteristicswhichdiffersit fromothertypes ofmarketingoradvertising.Thefirstis thatitattemptstosenditsmessages directlyto consumers,withouttheuseofothermedia.Thisinvolvesunsolicitedcommercialcommunication(spam, junkmail,etc.)with consumers orbusinesses.Thesecondcharacteristicis thatitisfocusedon drivingpurchases thatcanbeattributed toaspecific"call-to-action."Iftheadvertaskstheprospecttotakea specific action,forexample callafree phonenumberor visitawebsite, thenthe effortis consideredtobe directresponseadvertising. Directmarketingisattractivetomanymarketers,becausein manycasesitspositiveeffect(butnot negativeresults)canbemeasureddirectly.Forexample,ifamarketersendsoutonemillionsolicitations bymail,andtenthousandcustomerscanbetrackedashavingrespondedtothepromotion,themarketer cansaywith someconfidencethat thecampaignleddirectlyto theresponses.Thenumberofrecipientswhoareoffendedbythejunkmail/spam,however,isnoteasilymeasured.Bycontrast,measurementof othermediamustoftenbeindirect,asthereisnodirectresponsefromaconsumer. 3 .Whatis the difference between'product placement'and 'product endorsement'? 8 P r oduc tplacement advertisementsarepromotionaladsplacedbymarketersusingrealcommercial productsandservicesinmedia,wherethepresenceofaparticularbrandistheresultofaneconomic exchange.Whenfeaturingaproductis notpartofaneconomic exchange,itis calledap roductplug . Productplacementappearsinplays,film,televisionseries,music videos,videogamesandbooks. Productplacementislinkedwith theinclusion ofabrand'slogoin shot,orjustappearanceofa productin shot. Thisis donewithoutanyspecial mention,itis donesothat itlookslikeanaturalpartofwork. Mostmoviestodaycontainproductplacements.Sothemostcommonform ismovieandtelevisionplacements andmorerecentlycomputerandvideogames. Inpromotionandofadvertising,arecomendat i o n orendorsement consistsofawrittenorspoken statement,sometimesfromapublicfigure,sometimesfromaprivatecitizen.Soproductendorsementit is whena well-knownperson sayshowgoodaproductisinadvertisements.Andpeople willbuy the productbecausetheylikeortrusttheperson. Todayendorsementsappearmostlyintelevisionadvertising.Forexample,asmiling starmay demonstrateanddescribethebenefitsthatshereceivesfromusing this orthatproduct.Inthecaseofcelebrityendorsements advertisers aimtousetherecognition-factortodrawonthehaloeffect.Intheory, thissourcetransfersfromthecelebritytotheadvertisedproduct,brand,andmanufacturer.Aproblem with usingcelebrityendorsementsinvolvesanynegativepublicitythatthecelebrity mightget:itwillalsotransferbacktotheproduct,therebyreducingbrandequity. 4 .Whatmakes Nike'sadvertisingtick? PhilKnight,the co-founderandformerChiefExecutive ofNike,hasanabsolutelyclearandcommitted strategytousecelebrityathleteendorsement.HehasbuiltNike’sexpansionintosport aftersportfromits athleticsrootsonthebackofsportingmasters.FromthebeginningNikehasbeenpreparedtotakea gambleonsportingbadboys others wouldnottouch.Itwasastrategythatbeganwith IlieNastase,the originaltennisbadboy.TheRomanianhad thequalitythathascometorepresentNikeandits advertising:attitude.Afterextraordinarygrowth,Nikebecamenumberonetrainermanufacturerinthe US.Butthenitexperimented unsuccessfullywithexpansionintonon-athleticshoes,andlostitsnumberonepositiontoReebok. Knightbet thefutureofthecompanyon anewfeature:a newairtechnologyinsidethetrainer.Salestook offandthe restishistory.Thisbringstoglobalizationandthe question ofhowAmericanthebrandcanbe.Nikeusesamixofglobaladcampaigns suchas ‘good vevil’andlocaladvertising suchasitsfamouspostercampaignsintheUK.MarketingdirectorsatNikedonotrelyonmarketresearchpre-testing whichoftenreducestheimpactofmoreexperimentalcommercials.Thereisalsothelongrelationship with one ofthe world’sbestadagencies. ThingsonlyhappeninNikeads thatsportsmenandwomencan reallydo. 5.How shouldyouplanan advertisingcampaign? Anadvertisingcampaign is aseriesofadvertisementmessagesthatsharea singleidea andthemewhichmakeupanintegratedmarketingcommunication(IMC).Advertisingcampaignsappearindifferent mediaacrossaspecifictimeframe. Thecriticalpartofmakinganadvertisingcampaignisdeterminingacampaigntheme ,asitsetsthetone fortheindividualadvertisementsandotherformsofmarketingcommunicationsthatwillbeused.The campaignthemeisthecentralmessagethatwillbecommunicatedinthepromotionalactivities. Takingonyourownadvertisingcampaignisnoeasytask.You cando itonyourownbutyoushouldbe readytorollupyoursleevesandget towork. YourMarketingPlan Nothingcanhelpyouidentifyyourgoalsmore thanyourmarketingplan.You learnalotabout your company,yourcompetitorsandyourlong-termgoals bycreatingandfollowingyourmarketingplan. Thisiscrucialtoknowingwhattypeofadvertisingisbestforyou. CreateaPlanofAction Onceyouhaveyourmarketingplan,youmustcreateaplanofaction.Yourplanofaction also gives you crucialinfoyoucanuseinexecutingyouradstrategy. De f in eYourAdvertisingBudget Howyouadvertisedependsonyouradbudget.Youneedtostrategicallyuseyouradvertisingmoney.If you'reonlyallowing asmallportion ofmoneytoadvertising,youwouldn'twanttothrowitallintothe 9 production ofonecommercialthatruns at2a.m.Knowexactlyhowmuchyouwillspend onyour advertisingfirstsoyoucanmakewisedecisionsinthecreationandplacementofalladmediums. HuntforAffordableOpportunities Runningyourownadcampaignmeansyouhavetobeyourownmediadirector.You'vegottofindthe bestadplacementandthemostaffordableopportunitiestofitintoyourbudget.Ifyou'relimitedtoavery smallbudget,youcanfindmanywaystobypasshighadvertisingcosts. K no wYourTargetAudience You can'tadvertiseeffectivelyifyoudon'thityourtargetaudience.Knowwhotheyarebeforeyoustart creatingyourads.Ifyourcompanysellsscooterstoseniors,youdon'twanttoinvestincableadstorun onMTV. Adv e r tis einAppropriateMediums Ofallthe differentadvertisingmediumsyoucanuse,youhave tobe able tousethesemediums toyourbenefit.Spending allofyourmoneyonadirectmailcampaignwhenyouraddollarswouldbebetter spentonprintadsisgoingtolimithowmanycustomersyoucould'vegained.Takealookateach medium,thinkaboutyourtargetaudience,takealookatyourmarketingplanandyourplanofactionand decide which medium(s)will bebestforyouraddollars. Don' tBeAfraidtoHireFreelancers Ifyoucan'tturnyouradvertisingovertoanagency,stillconsiderhiringafreelancecopywriterand/or graphicdesigner.Theseprofessionalsknowwhatmakesagoodadvertisement. Manyfreelancershave workedinadvertising agenciessoyougetthebenefitoftheirexpertise. Plus,freelancerscangiveyouprofessionalcopyandmaterialsatanaffordable cost. Co n sist e nc yisKey Ifyou'rerunning TVandradiocommercials,printadsandadirectmailcampaign,keepthemconsistent. Use thesame announcerandmusicforyourcommercials.Printmaterials shoulduse thesame colorsand fonts.Usethesametagline.Youwanttokeepeverythingconsistentsoyourpotentialcustomersstart identifyingyourtagline,yourcolors,yourfont,yourannouncer,jingle-everything-thatrelatestoyour company'sadcampaign. Freque n cy Buying spacefor oneradiocommercialthatairs onceat4:30 inthemorningisn'tgoingtogetmuchofa response.Youwantcommercialstohavealargerfrequencysoyoucan increaseyourchancesofhittingthattargetaudience.Ifyou'rerunningadirectmailcampaign,decidethefrequencyofyourmaterialsup front.Onceyousendyourinitialmaterials out,howmanytimeswillyousendoutfollowupmaterials? Knowtheanswersbeforeyoubegintohelpmaximizeyourstrategy'ssuccess. Books Whenallelsefails andyoustillrunintoquestions,thereareplentyofbooksyoucanusetogiveyou guidance.Alsobeonthelookoutfortitlesthathavejustbeenreleasedsoyoucankeepon topofcurrent advertisingtrends. 6.Giveexamplesofgoodandbadadvertisements. Anadvertisingcampaign is aseriesofadvertisementmessagesthatsharea singleidea andthemewhichmakeupanintegratedmarketingcommunication(IMC).Advertisingcampaignsappearindifferent mediaacrossaspecifictimeframe. Thecriticalpartofmakinganadvertisingcampaignisdeterminingacampaigntheme ,asitsetsthetone fortheindividualadvertisementsandotherformsofmarketingcommunicationsthatwillbeused.The campaignthemeisthecentralmessagethatwillbecommunicatedinthepromotionalactivities. Good orbadwillbethis advertisementit’sanotherquestion.Itis difficulttoidentifywhich advertisementisgoodandwhichnot,becauseeveninthesurroundingsofpitchmentherearedisputes aboutit.Onepeopleconsiderthemostimportantinadvertisementis thatitcouldselltheproduct,the othersmorecreativepersonsmake uselessfromthepointofsalesbutinterestingforpeople advertisements. From mypointofviewthegood examplesofadvertisementsit’sthe advertising ofalmostallperfumes. Itis alwaysstylish,charming trailerwith goodselected music.ForexampletheadvertisementofChannel №5withNicoleKidman.Itisshort,fascinated,low-pressuredadvertising. Anothergoodexample ofadvertisementis classic advertising ofNewYearCoca-Cola. Itis good looking advertisement,funnywhichhelpsyoutofeelthe approachingofholiday. 10
oftheadvertising subject.ForexamplethetrailerofVanish.Attheendofadvertisementthereis a phrase:“Pinkcolor,trustitandtherewillbenospots”.Whomshouldwetrust?Thecolororthefeature inthepinkpot?It’snotcorrectmessageoftheproduct. U n i t7.Cultures 1. Giveexamplesofcross-culturalissues. 2. Inwhatwayshouldculturalstereotypesbehandled? 3. Isthereadifferencebetweenculturesandsubcultures? 4. Explainthemeaning oftheterm‘culturalawareness’.Whyisitimportant? 5. Whatadvicewouldyougivetoa business visitorcoming to Italy,theUAE, toRussia? 1.Giveexamplesofcross-culturalissues. Anindividual'sculturalbackgroundwillaffect thespecificwayinwhichheorsheseestheenvironment andalsohow theindividual mightshowhis orherfeelings,emotion,distress,orconflictinbehavior, thoughtoraction.Therefore,culturewill influencetheexperienceof mentaldisorders andhowtheymightpresent. Miscommunicationisthemostpopularexample ofcross-culturalissues. Miscommunicationacrossculturallinesisusuallythemostimportantcauseofcross-culturalproblems. Miscommunicationcanbecausedbyseveralproblems: •differencesinbodylanguageorgestures .Thesamegesturecan havedifferentmeaningsindifferent partsoftheworld.Forexample,Bulgariansshaketheirheadsupanddowntomeanno.Inaddition,the waypeoplecountontheirfingersisnotuniversal:TheChinesecountfromonetotenononehand,and eightisdisplayedbyextendingthethumbandthefingernexttoit.Thesamegestureisinterpretedas meaning twoinFranceandas pointingaguninNorth America. •differentmeanings forthesameword .Likegestures,words canhavedifferentmeaningsorconnotationsindifferentpartsoftheworld.TheFrenchword"char"meansArmytankinFranceandcar inQuebec.Theword"exciting"hasdifferentconnotationsinBritishEnglishandinNorthAmerican English.WhileNorth American executives talkabout"exciting challenges"repeatedly,British executivesusethiswordtodescribeonlychildren’sactivities(childrendoexcitingthingsinEngland,not executives). •differentassumptionsmadeinthesamesituation .Thesameeventcanbeinterpretedmanydifferent ways dependingonwhereonecomesfrom.Forexample,althoughthesightofablackcatis considereda luckyeventinBritain,itis considered unluckyinmany othercountriesparticularlyinRussia. Soinextremecases,miscommunicationcanleadtocasualties. 2 .In what way should cultural stereotypesbehandled? Weusestereotypesinpartbecauseit’ssohardtotakeinallofthecomplicatedinformationaboutotherpeopleintheworld.It’s difficulttospendtheamountoftimenecessarytounderstandwhyorinwhat differentways peoplebehave. Soinstead,welearnearlyinourlivestoacceptstereotypesofgroups,orindividuals.Wedevelopstereotypesnotjustforlarge cultures,but smallerones. Stereotypes eliminatethechallengesofunderstanding peoplewhoare differentfromourselves;they supposedlygiveusageneraloverviewofwholegroupsofpeoplesoweknowwhattoexpectandhowto act.Unfortunately,somany stereotypesareinaccurate(неточный)andareusedasamethodof scapegoating(козел отпущения),ortoseparate"their"behaviorfrom"my"behavior.Wedon’talways agree with,orlikethe wayanothercultures behavebecauseitis different,andwe thereforeperceiveitas wrong,anddevelopnegative/uglydescriptions (stereotypes).Whenwehaveproblems with someoneofa differentgroup,wetendtoidentifytheproblemashavingtodowiththegroup,ratherthanourselvesor thespecificperson.Sostereotypesdogetinthewayofhowwethinkandfeel.Itmakesus very judgmentalaboutothersandunfortunatelyoftenerroneouslyso.Stereotypespreventusfromidentifying thefeelings thatarereallygo on insideofus.Withstereotypes,thebeliefwillremainthatsomeonedid somethingtous,ratherthantheproblem,fear,orrigidity/closedthinkingbeingwithinourselves.When 11 we’restereotypingwegetcaughtupintheissueofthat’swhat"theydo",that’show"thosepeople"are,insteadofbeingintouchwithouractualfeelingsofhurt,confusion,beingslighted,left-out,anger,etc. 3 .Is thereadifference betweenculturesand subcultures? Culturecanbedefinedasallthewaysoflifeincludingarts,beliefsandinstitutionsofapopulationthat arepasseddownfromgeneration togeneration.Culturehasbeencalled"the wayof lifeforanentire society." Assuch,itincludes codesofmanners,dress,language,religion,rituals,norms ofbehaviorsuch aslawandmorality,and systems ofbeliefaswell astheart. Variousdefinitionsofculturereflectdifferingtheoriesforunderstanding,orcriteriaforevaluating, humanactivity. Asubculture is aset ofpeoplewith aset ofbehaviorsandbeliefs,culture,whichcouldbedistinctor hidden,thatdifferentiatethemfromthelargerculturetowhichtheybelong.Ifthesubcultureis characterizedbyasystematic oppositiontothedominantculture,thenitmaybedescribedasa counterculture. Subcultures canbedistinctivebecause ofthe age,race, ethnicity,class,and/orgenderofthemembers.The qualitiesthatdetermineasubcultureasdistinctmaybe aesthetic, religious,political,sexualora combination offactors.Members ofasubcultureoftensignaltheirmembershipthroughadistinctiveand symbolicuseofstyle, whichincludesfashions,mannerisms, andargot. Thestudyofsubcultures oftenconsistsofthestudyofsymbolismattachedtoclothing,musicandothervisible affectations by members ofsubcultures, andalsothe waysinwhichthesesame symbols are interpretedbymembersofthedominantculture. Sosubcultureitis thestreaminsidethemaincultureandtheyareconnected with eachotherin soorthatway. 4 .Explainthemeaningoftheterm‘culturalawareness’.Whyisitimportant? CulturalAwareness isdevelopingsensitivityandunderstandingofanotherethnicgroup.Awareness extendstospecialfoods,manners ofdress,language,religious preferencesandobservances,and differencesincommunication styles.(Forexample,in someculturesitisimpolitetomakeeyecontact,especiallywith someoneyoudonot knowwell.)Toenhancethe qualityofthe visit,itishelpful tobe awareofculturaldifferencesandbesensitivetothosedifferences. Culturalawarenessrecognisesthatweareallshapedbyourculturalbackground,whichinfluenceshow weinterprettheworldaroundus,perceiveourselves andrelateto otherpeople.Youdon’tneedtobean expertineverycultureorhavealltheanswerstobeculturallyaware; rather,culturalawarenesshelpsyoutoexploreculturalissueswithyour recipientsmoresensitively. Informationaboutspecificculturalpracticeswillhelptoincreaseyourculturalknowledgebyproviding anoverviewofculturalcharacteristicsandissues.However,itisalwaysimportanttoidentifyindividual needsandpreferences andrememberthatnoindividualcanbereducedtoa setofcultural norms. Withinanyculture,peoples’values,behaviourandbeliefs canvaryenormously.Differencesmayoccur due to time ofarrival inAustralia,length ofsettlement,socio-economicbackground,level ofeducation, wayof life,identification withculturalandreligiousbackground,anddifferentlife experiences. KeyConsiderations ·Beawareofyourownculturalinfluences. ·Beawareofjudgingotherpeople'sbehaviourandbeliefsaccordingtothestandardsofyourown culture. ·Beawareofmakingassumptionsaboutculturalinfluences andapplyinggeneralisationsto individuals. ·Understandthat thebehaviourandbeliefs ofpeoplewithineachculturecanvaryconsiderably. ·Understandthat theextenttowhichpeopleadopt practicesoftheirnewcountryandretainthosefromtheirculturalbackgroundcan varywithincommunities,evenwithinfamilies. ·Understandthatnotallpeopleidentifywiththeirculturalorreligiousbackground. ·Increaseyourknowledgeaboutdifferentculturalpracticesandissues throughculturalbackground informationsessionsand/orresourcesandculturalawarenesstraining. ·Understandtheimportanceofappropriatecommunication. 5 .Whatadvicewould yougive toabusinessvisitorcomingtoItaly,theUAE,toRussia? 12 I t aly LivelyconversationiscommoninItaly.WelcometopicsofconversationincludeItalianarchitecture,art andfilms,sports(especiallyfootball),operaandpraisingthehospitalityofthe country.Itis besttoavoid criticizing Italianculture,evenifyourItaliancounterpartsaredoingso.Don’tgiveabusiness giftuntilyoureceiveone. Yourgiftshouldbea wellknownbrandname. giftsofalcoholor craftsfrom your countryareoftengoodchoices.Otherpossiblegiftsarefinepens,aframedprintorpicture,silverkey ringsorcalculators.Avoidgiving gifts showingyourcompany’slogo.Hospitalityplays akeyrolein Italianbusiness culture.Regardlessofhowyoufeel,refusing aninvitation ofanykindmaygiveoffence.Thebusiness breakfastis almostunheard of.Rareexceptionsmaybefoundinthemajorcities.Business dinnersinvolveonlyasmall,exclusivegroup. Ifyou arethehost,checkwithyourItaliancontactbeforemaking anyinvitations.Lunchis stillthemainmealofthedayinmostareasofthecountry.Itis usually servedafter12:30p.m.andoftenhasmanycourses. United A r ab Em i r ates Thehostsusuallyset thesubjectofconversation.Theywillnormallybeginwithpoliteenquiries(Howareyou?Howareyouenjoyingyourvisit?etc.). Ifothers arrivedbeforeyou,yourhostswilloftentell youthesubjectofthepreviousconversationandinviteyoutocontribute.GivinggiftsintheUAEismore complexthaninothercountries.Thisispartlybecause ofthemixture ofnationalities:eachnationality has differenttastes andcustoms.Also,nearlyeverything canbepurchasedintheUAElessexpensively thanelsewhereintheworld.As agestureofrespect,yourhostislikelyto openandcarefullyexamine yourgiftinyourpresence.Itisimportantthatyourgiftis thebestyoucanaffordtoavoid embarrassment.Sharingamealis consideredthebestwayforpeopletogettoknowoneanother.Locals oftenentertainathomebut theywillacceptaforeigner'sinvitation toahotelorrestaurant.Hospitalityin theUAEisveryimportantbutshouldnotbeinterpretedasfuturecommercialsuccess. Therearelocal customs tobeawareof,forexample,itis consideredbadmanners toeithereatoroffersomething withthelefthand. Russia Obtaining anappointmentcanbeatremendouschallenge,sopersistenceandpatienceareessential.Once yourappointmentisscheduled,doeverythingyoucantoavoidcancellation. Whenmaking appointments,besuretoschedulethem farinadvance.Itwillalsobeinyourbestinterests toconfirmanyappointmentseveraltimes,asthescheduleddateapproaches. TheRussiandaybeginsearly,butitcanbe difficulttoforeseewhenallotherdailyactivitieswillbegin andend.Schedulesareconstantly subjecttochange,oftenat thelastminute.Any visitorshouldstrivetobepunctual,butatthesametimeflexible. Alwaysbepunctual,butdonotbesurprisedifyourRussiancontactsarenot.Itisnotunusual fora Russiantobeoneortwohourslateforanappointment.Generally,themoreimportantthemeetingisfor yourRussiancounterparts,themorepunctualtheywillbe.Allowplentyoftimeforeachappointment. Notonlymayappointmentsstartlate,theymaylastfarlongerthanoriginallyplanned. Business hours aregenerally from9:00 a.m.to5:00p.m.,MondaythroughFriday. ThereisanoldRussianproverb --"theymeetyoudependingonhowyou'redressedandtheysaygood byedependingonhowwiseyouseem." Nowadays,Russianbusinesspeoplepayalotofattentiontohowtheyaredressed.Russianpeoplein general probablyspendmoremoneyfromtheirfamilybudgetonclothing thenanyothernationin the world. Thosewhocan'taffordtobuytopfashionbrandclothing(suchasVersace,Armani,Gucci,CalvinKlein orHugoBoss)prefertobedressedincheaperbutstillwellmadesuitsratherthanwearthefakeproducts widelyavailableinnumerousmarketsacrossthecountry. Ifyou'reaman,yourbestbetwillbetowearasuitandtie(make surenot towearthesameonesevery day)forallyourmeetings,whetherit'sinanofficeor restaurant.Darkcolours andwhiteshirtsareonlyforspecialocasions.Otherwise,choosetonesinlightblue,gray,orbrown. Visitorsshould trytospeakinacalm,moderate, toneofvoiceatalltimes. Usually,yourRussiancolleagueswillbedelightedifyoumaketheefforttospeakevenafew sentences oftheirlanguage.Nevertheless,ifyourRussian partyspeaksyourlanguge,yourdecisiontospeak Russianmaycauseconfusion(e.g.--theymightthinkthattheirEnglishisnotgoodenough). 13 Russiansaresometimesverycarefulaboutwhattheysay,andmayreverttospeakingmetaphorically,symbolically,andperhaps evencryptically.Consequently,thereis a great dealofrelianceon nonverbalcommunication.Atothertimes,however,theycan be extremelyfrank;italldependson the situation. WhenaRussiantouchesanotherperson duringconversation,itis usuallyasign ofconfidence. YouwillsometimesfindtheRussianstobeenthusiasticaboutdiscussingpoliticsandthechallengesof livinginRussia.Participatinginthiskind ofdiscussionandexpressingyourviews(eveniftheyare opposite)ismorewelcome thanjustbeingan activelistener. BringingupthesubjectofRussiancultureandhistorycanbeanappreciatedgesture.Russiansare extremelyeducated--sodon'tbesurprisediftheystarttotalkaboutthehistory(morelikelythanculture) ofyourowncountry.Beprepared. Personalquestions arebestavoided,although youmaybesubjecttotheseinquiries.Maketheeffort to answerthesequestions asbestasyouarewilling to allow,sinceyourRussiancompanionsmaypressyoufordetails. Thereis tremendous affectionforchildreninthis culture;ifyouareaparent,showingphotographs of yourchildrencanbeaneffectivewayofbuilding good will. Inconversation,itcanbepermissibleto discussyourfeelingsandhopesforthefuture.Sometimes,your Russiancompanionswillbefarmoreinterestedinthepersonalsideofyourcharacterthanyourbusiness agenda. WelcomeTopicsofConversation thechangestakingplaceinRussiacurrentevents WorldWarII economicdifficulties positivecontrastsandcomparisonsbetweenRussiaandyourcountry[letyourRussiancompanionsbring upthissubjectfirst] books films TopicstoAvoid complaintsaboutRussiatheHolocaust theCzarandthemonarchy ethnicminorities religion comparing/contrastingRussiatootherdevelopingcountries comparing/contrastingMoscowandSaintPetersburg Generallyspeaking ,Russianstakepleasureingivingandreceiving gifts.Besuretobringanassortment ofgifts,sothatyouwillalwayshavesomethingappropriatetogive. Cheapergiftsdonothavetobewrapped,whilemoreexpensive onesshouldbe. Giftsforchildrenareusuallyopenedinprivate,while giftsforadultsaregenerallyopenedinthe presenceofothers.Ifyourgiftwas ahit,youwillhearmany'thank-yous.' Russiansspendalot ofmoneyon gifts.Avoidgivinggiftssuchaspencils,pens,lighters(unless theyare expensiveones),cheapwineorvodka,notebooks,etc. WheninvitedtoaRussianhome,bring agiftofchocolates,dessertitems,goodwine,orotheralcohol [trytoselectsomethingotherthanvodka,whichiswidelyavailable]. Bringingabouquetofflowers(nottooexpensivethough)forwomenyouarevisiting(doesn'treally matterhowmanyofthemareinthefamilyyou'revisiting)is agood idea.Makesureyouhaveanoddnumberof flowers.Evennumbers usuallyareforfunerals. Ap p r ecia t e dGifts wineorotheralcohol[trytoselectsomethingotherthanvodka] finechocolates[wheninvitedtoahome] afooditemthatisscarce towels cameras watches 14
clothing[asathank-youforanovernightstay] U n i t 8. Employment 1. Howdopersonnelmanagersactintheircompanies?Whataretheirresponsibilities? 2. Whatis thewaytheprofessionalpeoplecanmakealivingiftheyweremaderedundant? 3. Howcanorganizationsretainhigh-performers? 4. Whatshouldyourememberaboutwhileattendingajobinterview? 1.Howdopersonnelmanagersactintheircompanies?Whataretheirresponsibilities? Theyactmoreas facilitators forotherdepartments:theydeal withrecruitmentinconjunction with departmentmanagers,theyadministerpaymentsystemsintandemwithaccounts.Theymaybe responsibleforprovidingtraining,inindustrialrelations theyareinvolvedincomplaints anddisputes procedures.Theyhavetobreakthenewswhenpeoplearedismissed. Personnelmanagersmaybeinvolvedinactions toeliminateracialandsexualdiscriminationinhiring andpromotionandtofightharassmentintheworkplace:bullyingandsexualharassment.Theycreate remunerationsystems(schemesofrewards)inordertoincreasemotivation. 2.Whatisthewaytheprofessionalpeoplecanmakealivingiftheyweremaderedundant? Peoplewhoaremaderedundantshouldtrytofindanotherjob.Organizationwhichmakesredundancy oftentrytohelptheirex-employeesandsometimesHRspecialistsofferoutplacementservices.Theyorganizemeetingsforjob-seekers withpotentialemployers. Professionalpeoplewhoaremaderedundantcanmakealivingasfreelancers,orportfolioworkers, workingforanumberofclients. 3.Howcanorganizationsretainhigh-performers? Moneyremainsanimportantmotivatorbutinpracticehigh performers tendtothinkthatitgoeswithout sayingthattheymustgetagoodfinancialpackage. Empowermentis anotherimportantmotivatingforce.Ahigh performerwantstofeelthatheorshe “owns”aproject. High performers trytodevelop theirskills sothat’s whyworkneedsto bevariedandtimeshouldbe availableforcreativethinkingand developingnewskills. Above all,high performers –especially iftheyareyoung– wanttofeelthat organization theyworkfor regardsthemasspecial.Iftheyfindthatcompanyisn’tinterestedinthemaspeoplebutonlyashigh- performingcommoditiestheywillleavetheirposition. 4.Whatshouldyourememberaboutwhileattendingajobinterview? Interviewisagoodopportunityforyoutoevaluatethecompany.Goodpreparationforinterviewisakey to success.It’s veryimportanttobringextracopiesofyourCVandtypedlistofreferences.Tomymind itis veryimportanttofindout asmuchasyoucanaboutyouremployers andthebusiness theyarein. Alsopreparingfortheinterviewthinkaboutyourarrivingatleast15minutesearly.Itisveryimportant tothinkaboutyourappearanceanddressbeforeinterview.Ofcourseweprefertobehiredbecauseofour skills andabilities,notbecause ofourdress.Butlikeitornotappearanceisimportantanditcreates image.Yourappearancecanexpressmotivationandprofessionalism. Ithinkthatit’sveryimportantnottocriticizeyourpreviousemployers.It’spossibletoexplainyour leavingsayingthatyoudidn’tthinkthatyoucoulduseallofyourabilitiesandskills.Duringthe interviewit’simportanttoexplainwhyyouwouldliketoworkforthiscompanyemphasizing allthe thingsinyourpreviousexperiencethatyouthinkwillbeusefulinthenewjob.It’s importanttorelaxandbeyourself,lookattheinterviewerwhenhe orsheasksyouquestionsandshowgreatinterestinthejob. U n i t9. Trade 1. Whatarethelatesttrendsininternationaltrade? 15
3. Whatisthemajorconcernininternationaltradeandhowtodealwithit? 4. Whatdoyouknowabout“fairtrade”? 1.Whatarethelatesttrendsininternationaltrade? Industrialization,globalization,multinational corporations,andoutsourcingarethelatesttrendsin internationaltrade.Globalizationistheprocessenablingfinancialandinvestmentmarketstooperate internationally,largelyasaresultofderegulationandimprovedcommunications.Itistheemergence sincethe1980sofasingleworldmarketdominatedby multinationalcompanies,leadingtoadiminishing capacityfornationalgovernments tocontroltheireconomies.Consequencesofglobalization: globalizationincreases competitionamongcompanies,globalizationimprovesinternational communicationandunderstanding,tradeliberalization-tradebarriersbecomelower,shippingcosts decrease(costsonsendingordeliverygoods),globalizationdamageslocalgoods,servicesandcultures, ecologicalproblems. 2.Whydomanycountriesargueforprotectionistmeasuresfortheirindustries?Howdotheydo that? Protectionism isnolongertheorderoftheday inmostplaces;evenifsomedevelopingcountriesargue that protectionistmeasures arethewaytogettheireconomiesgoing,theyavoidusing theterm.Tradenegotiationsarewell-knownfortheirepiceleventh-hournegotiatingsessions,whereindividualnations argueforwhat theyseeastheirspecificinterests.Countriesargueforprotection oftheirstrategic industries,onestheyconsidervitaltofutureprosperitysuchastheelectronicsindustryinthedeveloped world.Alessdevelopedcountry beginning carassemblymightwanttoprotectitasaninfantindustry. Europeanfarmersarguefortheirsubsidies,wheregovernmentsguaranteefarmersahigherpricethan theywouldnormallygel,makingithardfordevelopingnationstocompeteinagriculturalproducts.The Frenchargueforculturalprotection,pointingouttheuniquenessoftheirfilm industryandwinning restrictions,orquotas,onthenumberofHollywoodproductsthatEuropeimports. 3.Whatisthemajorconcernininternationaltradeandhowtodealwithit? Onemajorconcern ininternationaltradebetweensmallercompaniesis payment.Theexporterwantsto besureaboutgettingpaidandtheimporterwantstobesureofgettingthegoods.Acommonsolutionis theletterofcredit,whereabankguaranteespaymenttotheexporter'sbankonceitreceivestherelated shippingdocuments,includingthecleanbillsoflading,showingthegoodshavebeenshippedwithout damageorotherproblems.ShippingtermslikeCIF,orCarriageinsurancefreight,wheretheexporter paysforinsuranceofgoodswhiletheyarebeingtransported,arepartofthestandardincotermsdefined bytheInternationalChamberofCommerce.Theseterms areusedin standardcontractsthat formthe basis,with adaptations,formostinternational tradecontracts. 4.Whatdoyouknowabout“fairtrade”? Fairtrade isanorganizedsocialmovementandmarket-basedapproachtoalleviatingglobalpovertyand promotingsustainability.Themovementadvocatesthepaymentofafairpriceas wellas socialand environmentalstandardsinareasrelatedtotheproductionofawidevarietyofgoods.Itfocusesin particularonexportsfromdevelopingcountriestodevelopedcountries,mostnotablyhandicrafts,coffee, cocoa,sugar, tea, bananas,honey,cotton,wine,freshfruit,andso on.Fairtrade's strategicintentis to deliberatelyworkwithmarginalizedproducersandworkersinordertohelpthemmovefromapositionofvulnerabilitytosecurityandeconomicself-sufficiency.Italsoaims atempoweringthemtobecome stakeholdersintheirownorganizations andactivelyplaya widerroleinthe global arena toachieve greater equityininternationaltrade. U n it 10.Quality 1. Whatis TQM?Whatdoesitinvolve?(kanban, justintimemanufacturing, kaizen) 16
3. Whichfeaturesexpresstheideaofqualityinthebestway?Why? 4. Howcanmanufacturersguaranteeproductquality? 1.WhatisTQM?Whatdoesitinvolve?(kanban, justintimemanufacturing,kaizen) TotalqualitymanagementorTQMwasawatchwordofthe1980s.Thisofteninvolvedemployee participation,withqualitycirclesofworkersencouragedtosuggestwaysofmakingthingsinbetter ways,Itwas associatedwith aninflux ofotherJapaneseideas,suchasthe kanbansystemofjust-in-time manufacturingorleanmanufacturing,where partsare onlymade andsuppliedwhentheyareneeded,so thatinventories (stocks) ofparts and theneedto financeand storethemareeliminated.A relatedobjectiveisthatofzerodefects,wherethingsaremaderightfirsttime,eliminatingtheneedfor inspectionandreworking.Allthisispartofkaizen:strivingforcontinuousimprovement. 2.WhatisBPR?Whatisitsconcept?Whatisbenchmarking? TQMgavewayinthe19905tobusinessprocessre-engineeringorBPR,whencompaniesweretoldby theirconsultantsnotjusttotinkerinapiecemealwaywithhowgoodsorservicesareproducedbutto abolisheverything andtostartagainfromscratch.Theconcept ofleannesswas nowalsoappliedto reducingthenumberofmanagementlayers,andalotofmiddlemanagerslost theirjobs. Itwasalsointheninetiesthatbenchmarking emerged:theideathatafirmshouldseewhichcompanyperformedaparticulartaskbest,andmodeltheirperformanceonthisbestpractice. 3.Whichfeaturesexpresstheideaofqualityinthebestway?Why? Tomymindsuchfeaturesofproducts(orservices)asvalueformoney,reliability,durabilityexpressthe ideaofqualityinthebestway.It’sveryimportantforcustomertobesurethathepaysmoneynotonly forbrandbutforqualityofproduct(orservice).WhenIbuysomethingIpaymuchattentiontosuch featuresasafter-salesserviceandguarantee.Ifproducercanprovideitscustomers withlong-continued guaranteeandgoodafter-salesserviceitcanmakenodoubtthatithasa goodcompetitiveadvantage. 4.Howcanmanufacturersguaranteeproductquality? TheyapplyforthecertificationoftheInternationalOrganizationforStandardizationinordertoreassure theircustomers.Theyprovidecustomerswithlong-continuedguaranteeinordertoreassurethemin product’sdurability.Andofcoursegoodcompanieswhichtakecareoftheircustomersprovidethem withgoodafter-salesservice. U n i t11.Ethics 1. Whatisthepurposeofanybusiness?Isitjusttomakemoney? 2. Why iscorruptionmorecommon in somecountriesthan inothers?Whataretheconsequencesofit? 3. Whichareasofbusinessdonotgiveenoughinformationaboutsocialandenvironmental matters? 4. Howdocompanies dealwithdifferentethicalissues? 1.Whatisthepurposeofanybusiness?Isitjusttomakemoney? Frommypointofview“moneymaking”isnottheonlyonepurposeofthecommercialcompanies.Any business wouldliketo obtaintherecognition oftheircustomers andeventheircompetitors. So,themain functionofanyorganizationistomakelivesofitscustomerseasier.Inotherwords,organizationsshould clearlydefinedresponsibilitiestowardsits"clients". Alltheissuesmentionedabovearecontainedinorganisation’smissionstatement.Sothatmission statementis abriefstatementofthepurposeofthecompany.Companiessometimes usetheirmission statementasanadvertising slogan,but theintention ofamission statementis tokeepmembers andusers 17
2.Whyiscorruptionmorecommon insomecountriesthaninothers?Whataretheconsequences ofit? Tomyminditdependsontwofactors:thegrowthofinternationaltradeandthebusinessandthe economicchangesthathave takenplaceinmanycountriesandespeciallyintheeconomiesintransition. Thus,countries whereis highconcentrationofmoneyandopportunities arepronetodifferentformsofcorruption.Representativeexampleofsuchcountry canbeRussia. Consequences: -Reducingpublicsectorwages -Dissatisfaction with standardofliving -highlevelofbureaucracy 3 .Whichareasofbusinessdonotgiveenoughinformationaboutsocialandenvironmental matters? Everyyearmoreandmorecompaniesareblamedforgivingalackofinformationaboutsocialand environmentalissues.Inotherwords,whenwetalkabouthowtomakeaprofit,onlyminoritythinking aboutpollution,socialenvironment,ethicetc.Forexample,factories,producingmanufacturedgoods, don’tpayenoughattention toharmtheycausetoenvironmentandsavemoneyonfilters.Thefood industryisblamedforobesity.Mobilephoneoperatorsarechallengedtoprotectteenagersfromonline pornography.Recordcompaniesareattackedwhentheysuemusic-loversforsharingillegalfileson the Internet.Fortunately,nowmorecompaniestakeintoconsiderationenvironmentalandsocialissuesand takeactionastheyregularlyfacerealorpotentialthreattotheirreputation.Now100oftheFTSE250 coverenvironmental,socialandethicalissues. 4.Howdocompaniesdealwithdifferentethicalissues? Allbusinessesincreasinglywanttobe perceivedasgood citizens.Differenttypes ofbusinessface differentethicalissues: •Financialinstitutionstrytopreventinsider tradingbyerectingnotionalbarrierscalledChinesewalls betweendifferentdepartments(forexample,topreventsomeoneinsharetradingfromdiscoveringfrom themergersdepartmentthataparticularcompanyisinvolvedinmergertalksand thatitsshareprice willsoonrise). •Companiessellingpersonalfinancepromisetoensurethatclientsaresoldappropriateproductsfortheir needs,and thusavoidmisselling. •Manufacturers claimthat theirproductsaregreenorenvironmentallyfriendlyinall stages oftheir production,useanddisposal. •Cosmeticscompaniessaythattheirproductsarenottestedonanimals. •Clothingcompaniesclaimtotradefairlyandthattheirproductsarenotmadeinsweatshopspaying subsistencewagesandusingchildlabour. U n i t 12.Leadership 1. Whydocompaniesincreasinglynurturetheirpotentialleaders? 2. Whatmakesagoodleader? Whatarethedifferencesbetweenmenandwomenleaders? 3. Whatisthe differencebetweenamanagerandaleader? 4. Aretheleadersbornoremade? 1.Whydocompaniesincreasinglynurturetheirpotentialleaders? Companiesareincreasinglythinkingabouthow tonurturetheirleaders. Forexample,inUS corporate governancehasbecomeakeyissuewithshareholders.Thehaverejected theprevious cosyarrangments,wheredirectorsappointedpeopletheyknew,to theboard, andnowdemandmuchgeaterscrutinyoverwhois chosenandhow.Itmeans thatleadershouldhave theempowermentandcharismatomotivateto 18 othersinthe achievementofthegoals,but their qualitiescannotbeseeninisolation.Theremustbe the rightchemistrybetweentheleaderandothertoppeople,andtheymusthavetherightmixof complementaryskills. IfyourCEOleaves aftersixmonthsinthejob,perhaps,afterwhat the papersdescribesas“irreconcilabledifferences”,orasaboardroombattle,thecompanyandtheperceptionofit willsuffer,andso,probably,willitsshareprice.Bythetimeyoufindanotherone,twoorthreeyearsmayhavebeenlost,aneternityin strategicterms.That’s why nurturingleadersis anextremlysensitivetask. 2.Whatmakesagoodleader? Whatarethedifferencesbetweenmenandwomenleaders? a)Aneffectiveleaderisbynatureaself-confidentpersonwhohasthecouragetoovercomedoubts, uncertainties andfearswhilebeingupbeatevenbeyondofhim/herpersonallimitations,business constraints,oddappreciations andenvyofco-workers.Leadershouldbecharismatic,humble,decisive,motivating,opportunistic,sometimesunpredictable. b)There arelotofstereotypesaboutdifferencesinhowmenandwomenwork.Mostpeople donotacceptwomenasbossesbecause theythink theyhaveaweakcharacter.Womenaremore relationshiporiented atworkthanmen.Theyarealsousinganeasierandamorestraightforwardlanguage comparedwithmen.Thelanguage ofwomenis alsomoreemotional andflowery.So,whena womanis aheadofthe companyit’smorelikelythatintheorganization there’llbethefeelingof“togetherness” andeven informalityand thelack of hierarchy.Itmakes theemployeesfeelprotected and work in cosy/comfortableconditionswhichwillstimulatetheir efficiency. Asfarasmenconcerned,theyare, asa rule, are physicallyandemotionallystrongerthanwomen. Usuallyithelpstokeepsituation undercontrol.Mostofthetime,menarethebreadwinners.Theyworkreallyseriouslyand seethe world asitreally is-itis perfectleadership quality;therefore,menmakecorrectdecisionsquickly. Butweshouldn’tforgetthatitisourpersonalitythatmakesuscompetent,notourgender. 3.Whatisthedifferencebetweenamanagerandaleader? 1) Firstofall,leadershipis apersonalitytraitwhereasmanageris ajob title. 2)Aleaderisaninspirational,passionateandproactiveprofessional whodueto his/hertalentis a benchmarktootherco-workers, whowantsucceedlikethem andlearntobeinfluentialinthe enterprise’s framework.Aleaderhasthewillingnesstofeelhim/herencouragedandfaceproactivelyanykindof situationneverthelessoftheriskandcostinvolved.Additionally,atrueleaderhasnomatterhow challengingandtoughthesecouldbe. Amanagerisanoperationaland/orfunctionaldrivenprofessionalwhosefocusisorientedtoensure operationalexcellenceinthoseoperationalissues,financialperformance,talentmanagementand marketingstrategiesrelevanttohis/hermanagerialfunction. Managerstendtobereactive,blendinwiththeenvironment,keepthefuturethesameasthepresent, maintainimage,keepwhattheyhave,andnotalwayscomfortablebeingaccountableforthe responsibilitiestheywield. 3) Some differences: - Managers workinginthesystemandleadersworkingonthesystem; -Managersreduceweaknessesandleadersamplifystrengths; But, bothofthemworkingonprogress, on company’s prosperity. So,youneedboth.Botharerequired foreffectivecorporategrowth. 4.Aretheleadersbornoremade? Ibelieve thatnothinginourlife comeseasily.Ifyou wanttoachieve smthsignificant,becomea founderofanorganization,leadernotonlyofyourcompany,butofthepublicopinion,youshould make great efforts.So,from mypointofview, leaders aremade ratherthanborn.But it’sundoubtfullythatleadershipis amatterofpersonality. To becomeleaderyoushould possess charisma andotherabove mentionedcharacteristics. U n it 13. Innovation 19
2. Whydodifferentindustrieshavedifferentlead-times? 3. Whatmaythelaunchofanewproductinvolve? 4. Howis Procter&Gamblerbetterthanitscompetitorsinterms ofinnovation? 1.WhatisthemainroleofR&D? ThemainroleofResearchandDevelopmentdepartmentis provisionofresultsofscientific researchin ordertodevelopnewproductsandimproveexistingones.Forexampletheinitialideaforacarwillbe turnedintoaseriesofprototypesandtested.Insoftwaredevelopment,thefinal'prototype'isthebeta version,whichisbeta-tested.Pharmaceuticalgothroughaseriesoftrials. 2 .Whydodifferentindustrieshavedifferentlead-times? Differentindustrieshavedifferentlead-times,thetimebetweenconceptionandproductlaunch;anew drugmighttake10or15yearstodevelop. Inconsumergoods,marketresearchwillbeakeypartofthe developmentprocess,withfocusgroups:smallgroupsrepresentingcross-sections ofconsumerstalking abouttheirreactions toproposeddesigns,andconsumersurveys.Aftermarketresearchtherecanbetrialrun ofproducts. After that therecan be researches ofconsumer’s reactions onthis product, researches of sales.Soallresearchesrequiredifferentperiodoftimefordifferentproducts. 3.Whatmaythelaunchofanewproductinvolve? Thelaunchofanewproductmightinvolveanational,internationalorglobal rollout.Awell-oiledpublic relationsmachinewillhavepreparedthewayforthenewproductbygettingtherequiredmedia coverage,wherethetermsleadingedgeandstateoftheartwillperhapsappear.Anyteethingproblems willhopefullybeironedoutduringdevelopmentratherthanafterthelaunch.Theultimatenightmareis whenacompanyhastorecallproductsbecauseofdesigndefects.Thecoveragethismightgetistheleast welcomeimaginable. 4.HowisProcter&Gamblerbetterthanitscompetitorsintermsofinnovation? AccordingtoLafley,theCEOofP&G,organicgrowth strengthens acompany’sabilitytoinnovate. Organicgrowth–meaninggrowthfromcorebusinesses.Lafleyhasamodelforinnovatinginabig company: 1.One-on-oneconsumerresearch–marketersmustspendlotsoftimewithconsumersintheirhomes,watchingthewaystheyweartheir clothesandaskingthemabouttheirhabitsandfrustration. 2.Getemployeestoexchangeideas– employeesfromninecountriespostproblemsonaninternal website.CEOevaluatestheideasofemployeesandpresentsthebestfindingseachyear. 3.Stoptestingsomuch–Onecannotbut agreewith factthat puttingouta productcan'tbewithouttest-marketing.Butit’snecessarytoreduceproductlaunchtimefromlaboratorytoroll-out. 4. Givedesignersmorepower–it’snecessarythatdesigners wouldbeinvolvedinallaspectsofproduct development. 5.Knowwhatnot to do– accordingtoLafley,it’simpossibletoofferfatbonusesforinnovation ortohirestarsfromoutside.Managerswhofailtoshareideas simplydonotgetpromoted. U n it 14.Competition 1. Whatarethemostcommoncompetitionpractices? 2. Whatis MichaelPorter’smodelofcompetitors’types? 3. Whyis Nokianolongertheleaderinthemobile phonemarket? 4. Whyaresomeproductsunsuitableforforeignmarkets? 1.Whatarethemostcommoncompetitionpractices? Competition betweencompaniescan betough,aggressive,evenferocious or cut-throat.Firmsmay accuse eachotherofusingunfairmethods suchasdumping,wherea competitor(usuallyforeign)sells productsforlessthanwhattheycosttoproduce,oratlessthanthepricechargedinthehomemarket. Firmsdumpinordertobuildmarketshareandrecouptheirlosseslaterwhen,havingestablished 20 themselves tobenefitfromeconomiesofscale (producinginlargerquantitiessothatthe costofeachunit goesdown),theyareabletochargemarketpriceswithahealthyprofitmarginoneachunitsold.Competition canalsobegentlemanlyorevencosy,socosythatcompaniesmaybe accusedofforming a carteltoagreeonpricesinapricefixingarrangement.Theymaythenbeinvestigatedbyagovernment departmentthatlooksintounfairtradingpractices. Competitorsmayalsoenterintootherperfectlylegitimateformsofcooperation,suchasjointventures forspecificprojects.Theymayeventalkaboutstrategic alliances.But likemergers,these cangoawryandleadtorecriminationbetweentheerstwhilepartners. 2.WhatisMichaelPorter’smodelofcompetitors’types? MichaelPorter'smodelcontaining: •cost-leaders,whoare low-costproducers with abroadscopeandcostadvantage,appealing tomany industrysegments(manygroupsofbuyerswithdifferentneeds) •differentiators,whoappealtobuyerswhoarelookingforparticularproductattributes (characteristics)andpositionthemselvesasthemostabletomeetthoseneeds •focussers,whoconcentrateononeparticularsegmentandtrytofindcompetitiveadvantageby satisfying theneeds ofbuyersinthatsegmentbetterthananyone else.Focussers are,ineffect,nichers.These are the available choices,accordingtoPorter,that acommercialorganisationhasifitwantsto competeeffectively,andnotget'stuckinthemiddle'. 3.WhyisNokianolongertheleaderinthemobilephonemarket? AlthoughNokia'sshareoftheglobalmarketformobilehandsetsismorethancompetitor’sshare,but Samsunghasmomentum.Samsung's cameraphones,with twistingflip-upscreens thatallowuserstotake, sendanddisplayphotosquicklyandeasily,arehot;Nokia's arenot. Thehigh endofthemarket- phonesthatretailfor$300ormoreintheUS-isnolongerNokia's. Samsungmakestheexpensive cameraphonethatayoungconsumerwantstohave.Design shouldbeNokia's strength,sinceitovertook Motorolabyturninghandsetsintohandsomeanddesirableconsumergoods,ratherthantechnological objects.But initsrecentmodels,Nokiaforgotthefirstrule ofmodernistdesign -that formfollowsfunction.Instead,ithasplacedmostemphasis on makingitshandsetscolourful andzappy,with snap-oncovers.AndofcoursethemainNokia’s disadvantageis sizeofhandsets.Itis ratherbigincomparisonwithSamsung. Samsunghasmainadvantage–itis thefactthatitis willingtopayhigh pricesfordevelopmentnew electronicdevices. 4 .Whyaresomeproductsunsuitablefor foreignmarkets? Nowadaysmanynewhightechproductsappearonworldmarket.Producersoftheseproductstryto distributethemintodifferentcountriesinordertoincreaseprofitsbuttheydonottakeforeignconditions andtraditionsintoaccount.ForexampleJapanese robot-toys.IntheRussianmarketsuchtoyshaven’t greatdemand.Maybebecauseofratherhighprice.ButalsomaybebecauseofRussianmentality,habits –weliketocommunicatenotwithrobotpetsbutwithalivepets. 21 |
3. Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples.
Somecompaniesprefertomakeluxuryproductsabroadratherthanathomebecausetheywanttolowerthefirmcosts.The processofsubcontracting toa third-partycompanyis named outsourcing.The reasons for outsourcingaremanyandvaried,suchascostsaving,costrestructuring,improvingquality,knowledge andmanyothers.Theclassicalexamplesofcompaniesmaking theirproductsabroadareCoach, theUS
examples.Mostanalystsofthephenomenon blamealcohol,butmanypeoplenowthinkthat theairlinesareatfault.Tocutcosts,theyarecramming evermorepassengersintotheiraircraft,whilereducing cabincrew,training andqualityofservice,allofwhichincreasepassengerfrustration.Inaddition,there
unit, with someofitsstaffhot-desking,particularlythosewhoarehomeworking,teleworkingortelecommuting andonlyneedtocomeintotheofficeoccasionally.Athirdtypeofflexibilityiswhere employeesarerecruitedon shortcontractsto workon specificprojects,maybepart-time.Perhaps the organisation onlyhasacorestaff,andoutsourcesorcontractsoutworkfromoutsideasandwhenrequired.Somemanagementexpertssaythat thisis thefuture,withself-employmentasthenorm,andportfolioworkerswhohaveanumber ofdifferentclients.
comeandwhetheritwouldbetheirturntobethrownout.
5. HowhaveWal-MartandTargetstoresperformedlately?
TargetCorporation'smainretailingsubsidiary,TargetStores
,is aUnitedStatesdiscountretailchain consistingof1,591(morethan1500)
stores.Ithasunitsinall statesexceptforAlaska,Hawaii,and Vermont,operatingundertheheadsofTarget,TargetGreatland,andSuperTarget.TargetCorporationhasaggressiveplanstohave2,000storesopenbytheyear2010,includingexpandingtoAlaskaand Hawaii.
Asforbadexamples,tomymind eachadvertisementinitstrailershouldcontainthe shortmessage ofthe theme ofthis or that advertising.Butthismessageshouldbe on theme,itshouldcontaintherightsense
perfume,cologne[asathank-youforanovernightstay]
2. Whydomanycountriesargueforprotectionistmeasuresfortheirindustries?Howdotheydothat?
2. WhatisBPR?Whatisitsconcept?Whatisbenchmarking?
awareoftheorganization'spurpose.(Example-"Organizetheworld'sinformationandmakeituniversally accessibleanduseful."—Google)
1. Whatis themain roleofR&D?