Экзаменационные ответы по Market Leader(2)

As for bad examples, to my mind each advertisement in its trailer should contain the short message of the theme of this or that advertising. But this message should be on theme, it should contain the right sense of the advertising subject. For example the trailer of Vanish. At the end of advertisement there is a phrase: “Pink color, trust it and there will be no spots”. Whom should we trust? The color or the feature in the pink pot? It’s not correct message of the product.

Unit 7. Cultures

1.Give examples of cross-cultural issues.

2.In what way should cultural stereotypes be handled?

3.Is there a difference between cultures and subcultures?

4.Explain the meaning of the term ‘cultural awareness’. Why is it important?

5.What advice would you give to a business visitor coming to Italy, the UAE, to Russia?

1. Give examples of cross-cultural issues.

An individual's cultural background will affect the specific way in which he or she sees the environment and also how the individual might show his or her feelings, emotion, distress, or conflict in behavior, thought or action. Therefore, culture will influence the experience of mental disorders and how they might present.

Miscommunication is the most popular example of cross-cultural issues.

Miscommunication across cultural lines is usually the most important cause of cross-cultural problems. Miscommunication can be caused by several problems:

•differences in body language or gestures. The same gesture can have different meanings in different parts of the world. For example, Bulgarians shake their heads up and down to mean no. In addition, the way people count on their fingers is not universal: The Chinese count from one to ten on one hand, and eight is displayed by extending the thumb and the finger next to it. The same gesture is interpreted as meaning two in France and as pointing a gun in North America.

•different meanings for the same word. Like gestures, words can have different meanings or connotations in different parts of the world. The French word "char" means Army tank in France and car in Quebec. The word "exciting" has different connotations in British English and in North American English. While North American executives talk about "exciting challenges" repeatedly, British executives use this word to describe only children’s activities (children do exciting things in England, not executives).

•different assumptions made in the same situation. The same event can be interpreted many different ways depending on where one comes from. For example, although the sight of a black cat is considered a lucky event in Britain, it is considered unlucky in many other countries particularly in Russia.

So in extreme cases, miscommunication can lead to casualties.

2. In what way should cultural stereotypes be handled?

We use stereotypes in part because it’s so hard to take in all of the complicated information about other people in the world. It’s difficult to spend the amount of time necessary to understand why or in what different ways people behave. So instead, we learn early in our lives to accept stereotypes of groups, or individuals. We develop stereotypes not just for large cultures, but smaller ones.

Stereotypes eliminate the challenges of understanding people who are different from ourselves; they supposedly give us a general overview of whole groups of people so we know what to expect and how to act. Unfortunately, so many stereotypes are inaccurate(неточный) and are used as a method of scapegoating(козел отпущения), or to separate "their" behavior from "my" behavior. We don’t always agree with, or like the way another cultures behave because it is different, and we therefore perceive it as wrong, and develop negative/ugly descriptions (stereotypes). When we have problems with someone of a different group, we tend to identify the problem as having to do with the group, rather than ourselves or the specific person. So stereotypes do get in the way of how we think and feel. It makes us very judgmental about others and unfortunately often erroneously so. Stereotypes prevent us from identifying the feelings that are really go on inside of us. With stereotypes, the belief will remain that someone did something to us, rather than the problem, fear, or rigidity/closed thinking being within ourselves. When

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we’re stereotyping we get caught up in the issue of that’s what "they do", that’s how "those people" are, instead of being in touch with our actual feelings of hurt, confusion, being slighted, left-out, anger, etc.

3. Is there a difference between cultures and subcultures?

Culture can be defined as all the ways of life including arts, beliefs and institutions of a population that are passed down from generation to generation. Culture has been called "the way of life for an entire society." As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief as well as the art.

Various definitions of culture reflect differing theories for understanding, or criteria for evaluating, human activity.

A subculture is a set of people with a set of behaviors and beliefs, culture, which could be distinct or hidden, that differentiate them from the larger culture to which they belong. If the subculture is characterized by a systematic opposition to the dominant culture, then it may be described as a counterculture.

Subcultures can be distinctive because of the age, race, ethnicity, class, and/or gender of the members. The qualities that determine a subculture as distinct may be aesthetic, religious, political, sexual or a combination of factors. Members of a subculture often signal their membership through a distinctive and symbolic use of style, which includes fashions, mannerisms, and argot.

The study of subcultures often consists of the study of symbolism attached to clothing, music and other visible affectations by members of subcultures, and also the ways in which these same symbols are interpreted by members of the dominant culture.

So subculture it is the stream inside the main culture and they are connected with each other in so or that way.

4. Explain the meaning of the term ‘cultural awareness’. Why is it important?

Cultural Awareness is developing sensitivity and understanding of another ethnic group. Awareness extends to special foods, manners of dress, language, religious preferences and observances, and differences in communication styles. (For example, in some cultures it is impolite to make eye contact, especially with someone you do not know well.) To enhance the quality of the visit, it is helpful to be aware of cultural differences and be sensitive to those differences.

Cultural awareness recognises that we are all shaped by our cultural background, which influences how we interpret the world around us, perceive ourselves and relate to other people. You don’t need to be an expert in every culture or have all the answers to be culturally aware; rather, cultural awareness helps you to explore cultural issues with your recipients more sensitively.

Information about specific cultural practices will help to increase your cultural knowledge by providing an overview of cultural characteristics and issues. However, it is always important to identify individual needs and preferences and remember that no individual can be reduced to a set of cultural norms.

Within any culture, peoples’ values, behaviour and beliefs can vary enormously. Differences may occur due to time of arrival in Australia, length of settlement, socio-economic background, level of education, way of life, identification with cultural and religious background, and different life experiences.

Key Considerations

·Be aware of your own cultural influences.

·Be aware of judging other people's behaviour and beliefs according to the standards of your own culture.

·Be aware of making assumptions about cultural influences and applying generalisations to individuals.

·Understand that the behaviour and beliefs of people within each culture can vary considerably.

·Understand that the extent to which people adopt practices of their new country and retain those from their cultural background can vary within communities, even within families.

·Understand that not all people identify with their cultural or religious background.

·Increase your knowledge about different cultural practices and issues through cultural background information sessions and/or resources and cultural awareness training.

·Understand the importance of appropriate communication.

5.What advice would you give to a business visitor coming to Italy, the UAE, to Russia?

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Italy

Lively conversation is common in Italy. Welcome topics of conversation include Italian architecture, art and films, sports (especially football), opera and praising the hospitality of the country. It is best to avoid criticizing Italian culture, even if your Italian counterparts are doing so. Don’t give a business gift until you receive one. Your gift should be a well known brand name. gifts of alcohol or crafts from your country are often good choices. Other possible gifts are fine pens, a framed print or picture, silver key rings or calculators. Avoid giving gifts showing your company’s logo. Hospitality plays a key role in Italian business culture. Regardless of how you feel, refusing an invitation of any kind may give offence. The business breakfast is almost unheard of. Rare exceptions may be found in the major cities. Business dinners involve only a small, exclusive group. If you are the host, check with your Italian contact before making any invitations. Lunch is still the main meal of the day in most areas of the country. It is usually served after 12:30 p.m. and often has many courses.

United Arab Emirates

The hosts usually set the subject of conversation. They will normally begin with polite enquiries (How are you? How are you enjoying your visit? etc.). If others arrived before you, your hosts will often tell you the subject of the previous conversation and invite you to contribute. Giving gifts in the UAE is more complex than in other countries. This is partly because of the mixture of nationalities: each nationality has different tastes and customs. Also, nearly everything can be purchased in the UAE less expensively than elsewhere in the world. As a gesture of respect, your host is likely to open and carefully examine your gift in your presence. It is important that your gift is the best you can afford to avoid embarrassment. Sharing a meal is considered the best way for people to get to know one another. Locals often entertain at home but they will accept a foreigner's invitation to a hotel or restaurant. Hospitality in the UAE is very important but should not be interpreted as future commercial success. There are local customs to be aware of, for example, it is considered bad manners to either eat or offer something with the left hand.

Russia

Obtaining an appointment can be a tremendous challenge, so persistence and patience are essential. Once your appointment is scheduled, do everything you can to avoid cancellation.

When making appointments, be sure to schedule them far in advance. It will also be in your best interests to confirm any appointment several times, as the scheduled date approaches.

The Russian day begins early, but it can be difficult to foresee when all other daily activities will begin and end. Schedules are constantly subject to change, often at the last minute. Any visitor should strive to be punctual, but at the same time flexible.

Always be punctual, but do not be surprised if your Russian contacts are not. It is not unusual for a Russian to be one or two hours late for an appointment. Generally, the more important the meeting is for your Russian counterparts, the more punctual they will be. Allow plenty of time for each appointment. Not only may appointments start late, they may last far longer than originally planned.

Business hours are generally from 9:00 a.m. to 5:00 p.m., Monday through Friday.

There is an old Russian proverb--"they meet you depending on how you're dressed and they say good bye depending on how wise you seem."

Nowadays, Russian businesspeople pay a lot of attention to how they are dressed. Russian people in general probably spend more money from their family budget on clothing then any other nation in the world.

Those who can't afford to buy top fashion brand clothing (such as Versace, Armani, Gucci, Calvin Klein or Hugo Boss) prefer to be dressed in cheaper but still well made suits rather than wear the fake products widely available in numerous markets across the country.

If you're a man, your best bet will be to wear a suit and tie (make sure not to wear the same ones every day) for all your meetings, whether it's in an office or restaurant. Dark colours and white shirts are only for special ocasions. Otherwise, choose tones in light blue, gray, or brown.

Visitors should try to speak in a calm, moderate, tone of voice at all times.

Usually, your Russian colleagues will be delighted if you make the effort to speak even a few sentences of their language. Nevertheless, if your Russian party speaks your languge, your decision to speak Russian may cause confusion (e.g.--they might think that their English is not good enough).

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Russians are sometimes very careful about what they say, and may revert to speaking metaphorically, symbolically, and perhaps even cryptically. Consequently, there is a great deal of reliance on nonverbal communication. At other times, however, they can be extremely frank; it all depends on the situation. When a Russian touches another person during conversation, it is usually a sign of confidence.

You will sometimes find the Russians to be enthusiastic about discussing politics and the challenges of living in Russia. Participating in this kind of discussion and expressing your views (even if they are opposite) is more welcome than just being an active listener.

Bringing up the subject of Russian culture and history can be an appreciated gesture. Russians are extremely educated--so don't be surprised if they start to talk about the history (more likely than culture) of your own country. Be prepared.

Personal questions are best avoided, although you may be subject to these inquiries. Make the effort to answer these questions as best as you are willing to allow, since your Russian companions may press you for details.

There is tremendous affection for children in this culture; if you are a parent, showing photographs of your children can be an effective way of building good will.

In conversation, it can be permissible to discuss your feelings and hopes for the future. Sometimes, your Russian companions will be far more interested in the personal side of your character than your business agenda.

Welcome Topics of Conversation the changes taking place in Russia current events

World War II economic difficulties

positive contrasts and comparisons between Russia and your country [let your Russian companions bring up this subject first]

books films

Topics to Avoid complaints about Russia the Holocaust

the Czar and the monarchy ethnic minorities

religion

comparing/contrasting Russia to other developing countries comparing/contrasting Moscow and Saint Petersburg

Generally speaking, Russians take pleasure in giving and receiving gifts. Be sure to bring an assortment of gifts, so that you will always have something appropriate to give.

Cheaper gifts do not have to be wrapped, while more expensive ones should be.

Gifts for children are usually opened in private, while gifts for adults are generally opened in the presence of others. If your gift was a hit, you will hear many 'thank-yous.'

Russians spend a lot of money on gifts. Avoid giving gifts such as pencils, pens, lighters (unless they are expensive ones), cheap wine or vodka, notebooks, etc.

When invited to a Russian home, bring a gift of chocolates, dessert items, good wine, or other alcohol [try to select something other than vodka, which is widely available].

Bringing a bouquet of flowers (not too expensive though) for women you are visiting (doesn't really matter how many of them are in the family you're visiting) is a good idea. Make sure you have an odd number of flowers. Even numbers usually are for funerals.

Appreciated Gifts

wine or other alcohol [try to select something other than vodka] fine chocolates [when invited to a home]

a food item that is scarce towels

cameras watches

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perfume, cologne [as a thank-you for an overnight stay] clothing [as a thank-you for an overnight stay]

Unit 8. Employment

1.How do personnel managers act in their companies? What are their responsibilities?

2.What is the way the professional people can make a living if they were made redundant?

3.How can organizations retain high-performers?

4.What should you remember about while attending a job interview?

1.How do personnel managers act in their companies? What are their responsibilities?

They act more as facilitators for other departments: they deal with recruitment in conjunction with

department managers, they administer payment systems in tandem with accounts. They may be responsible for providing training, in industrial relations they are involved in complaints and disputes procedures. They have to break the news when people are dismissed.

Personnel managers may be involved in actions to eliminate racial and sexual discrimination in hiring and promotion and to fight harassment in the workplace: bullying and sexual harassment. They create remuneration systems (schemes of rewards) in order to increase motivation.

2.What is the way the professional people can make a living if they were made redundant?

People who are made redundant should try to find another job. Organization which makes redundancy often try to help their ex-employees and sometimes HR specialists offer outplacement services. They organize meetings for job-seekers with potential employers.

Professional people who are made redundant can make a living as freelancers, or portfolio workers, working for a number of clients.

3.How can organizations retain high-performers?

Money remains an important motivator but in practice high performers tend to think that it goes without saying that they must get a good financial package.

Empowerment is another important motivating force. A high performer wants to feel that he or she “owns” a project.

High performers try to develop their skills so that’s why work needs to be varied and time should be available for creative thinking and developing new skills.

Above all, high performers – especially if they are young – want to feel that organization they work for regards them as special. If they find that company isn’t interested in them as people but only as highperforming commodities they will leave their position.

4. What should you remember about while attending a job interview?

Interview is a good opportunity for you to evaluate the company. Good preparation for interview is a key to success. It’s very important to bring extra copies of your CV and typed list of references. To my mind it is very important to find out as much as you can about your employers and the business they are in.

Also preparing for the interview think about your arriving at least 15 minutes early. It is very important to think about your appearance and dress before interview. Of course we prefer to be hired because of our skills and abilities, not because of our dress. But like it or not appearance is important and it creates image. Your appearance can express motivation and professionalism.

I think that it’s very important not to criticize your previous employers. It’s possible to explain your leaving saying that you didn’t think that you could use all of your abilities and skills. During the interview it’s important to explain why you would like to work for this company emphasizing all the things in your previous experience that you think will be useful in the new job. It’s important to relax and be yourself, look at the interviewer when he or she asks you questions and show great interest in the job.

Unit 9. Trade

1. What are the latest trends in international trade?

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2.Why do many countries argue for protectionist measures for their industries? How do they do that?

3.What is the major concern in international trade and how to deal with it?

4.What do you know about “fair trade”?

1. What are the latest trends in international trade?

Industrialization, globalization, multinational corporations, and outsourcing are the latest trends in international trade. Globalization is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications. It is the emergence since the 1980s of a single world market dominated by multinational companies, leading to a diminishing capacity for national governments to control their economies. Consequences of globalization: globalization increases competition among companies, globalization improves international communication and understanding, trade liberalization-trade barriers become lower, shipping costs decrease (costs on sending or delivery goods), globalization damages local goods, services and cultures, ecological problems.

2. Why do many countries argue for protectionist measures for their industries? How do they do that?

Protectionism is no longer the order of the day in most places; even if some developing countries argue that protectionist measures are the way to get their economies going, they avoid using the term. Trade negotiations are well-known for their epic eleventh-hour negotiating sessions, where individual nations argue for what they see as their specific interests. Countries argue for protection of their strategic industries, ones they consider vital to future prosperity such as the electronics industry in the developed world. A less developed country beginning car assembly might want to protect it as an infant industry. European farmers argue for their subsidies, where governments guarantee farmers a higher price than they would normally gel, making it hard for developing nations to compete in agricultural products. The French argue for cultural protection, pointing out the uniqueness of their film industry and winning restrictions, or quotas, on the number of Hollywood products that Europe imports.

3. What is the major concern in international trade and how to deal with it?

One major concern in international trade between smaller companies is payment. The exporter wants to be sure about getting paid and the importer wants to be sure of getting the goods. A common solution is the letter of credit, where a bank guarantees payment to the exporter's bank once it receives the related shipping documents, including the clean bills of lading, showing the goods have been shipped without damage or other problems. Shipping terms like CIF, or Carriage insurance freight, where the exporter pays for insurance of goods while they are being transported, are part of the standard incoterms defined by the International Chamber of Commerce. These terms are used in standard contracts that form the basis, with adaptations, for most international trade contracts.

4. What do you know about “fair trade”?

Fair trade is an organized social movement and market-based approach to alleviating global poverty and promoting sustainability. The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, and so on. Fair trade's strategic intent is to deliberately work with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade.

Unit 10. Quality

1. What is TQM? What does it involve? (kanban, just in time manufacturing, kaizen)

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2.What is BPR? What is its concept? What is benchmarking?

3.Which features express the idea of quality in the best way? Why?

4.How can manufacturers guarantee product quality?

1.What is TQM? What does it involve? (kanban, just in time manufacturing, kaizen)

Total quality management or TQM was a watchword of the 1980s. This often involved employee

participation, with quality circles of workers encouraged to suggest ways of making things in better ways, It was associated with an influx of other Japanese ideas, such as the kanban system of just-in-time manufacturing or lean manufacturing, where parts are only made and supplied when they are needed, so that inventories (stocks) of parts and the need to finance and store them are eliminated. A related objective is that of zero defects, where things are made right first time, eliminating the need for inspection and reworking. All this is part of kaizen: striving for continuous improvement.

2. What is BPR? What is its concept? What is benchmarking?

TQM gave way in the 19905 to business process re-engineering or BPR, when companies were told by their consultants not just to tinker in a piecemeal way with how goods or services are produced but to abolish everything and to start again from scratch. The concept of leanness was now also applied to reducing the number of management layers, and a lot of middle managers lost their jobs.

It was also in the nineties that benchmarking emerged: the idea that a firm should see which company performed a particular task best, and model their performance on this best practice.

3. Which features express the idea of quality in the best way? Why?

To my mind such features of products (or services) as value for money, reliability, durability express the idea of quality in the best way. It’s very important for customer to be sure that he pays money not only for brand but for quality of product (or service). When I buy something I pay much attention to such features as after-sales service and guarantee. If producer can provide its customers with long-continued guarantee and good after-sales service it can make no doubt that it has a good competitive advantage.

4. How can manufacturers guarantee product quality?

They apply for the certification of the International Organization for Standardization in order to reassure their customers. They provide customers with long-continued guarantee in order to reassure them in product’s durability. And of course good companies which take care of their customers provide them with good after-sales service.

Unit 11. Ethics

1.What is the purpose of any business? Is it just to make money?

2.Why is corruption more common in some countries than in others? What are the consequences of it?

3.Which areas of business do not give enough information about social and environmental matters?

4.How do companies deal with different ethical issues?

1. What is the purpose of any business? Is it just to make money?

From my point of view “moneymaking” is not the only one purpose of the commercial companies. Any business would like to obtain the recognition of their customers and even their competitors. So, the main function of any organization is to make lives of its customers easier. In other words, organizations should clearly defined responsibilities towards its "clients".

All the issues mentioned above are contained in organisation’s mission statement. So that mission statement is a brief statement of the purpose of the company. Companies sometimes use their mission statement as an advertising slogan, but the intention of a mission statement is to keep members and users

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aware of the organization's purpose. (Example-"Organize the world's information and make it universally accessible and useful."—Google)

2. Why is corruption more common in some countries than in others? What are the consequences of it?

To my mind it depends on two factors: the growth of international trade and the business and the economic changes that have taken place in many countries and especially in the economies in transition. Thus, countries where is high concentration of money and opportunities are prone to different forms of corruption. Representative example of such country can be Russia.

Consequences:

-Reducing public sector wages -Dissatisfaction with standard of living -high level of bureaucracy

3. Which areas of business do not give enough information about social and environmental matters?

Every year more and more companies are blamed for giving a lack of information about social and environmental issues. In other words, when we talk about how to make a profit, only minority thinking about pollution, social environment, ethic etc. For example, factories, producing manufactured goods, don’t pay enough attention to harm they cause to environment and save money on filters. The food industry is blamed for obesity. Mobile phone operators are challenged to protect teenagers from online pornography. Record companies are attacked when they sue music-lovers for sharing illegal files on the Internet. Fortunately, now more companies take into consideration environmental and social issues and take action as they regularly face real or potential threat to their reputation. Now 100 of the FTSE 250 cover environmental, social and ethical issues.

4. How do companies deal with different ethical issues?

All businesses increasingly want to be perceived as good citizens. Different types of business face different ethical issues:

•Financial institutions try to prevent insider trading by erecting notional barriers called Chinese walls between different departments (for example, to prevent someone in share trading from discovering from the mergers department that a particular company is involved in merger talks and that its share price will soon rise).

•Companies selling personal finance promise to ensure that clients are sold appropriate products for their needs, and thus avoid misselling.

•Manufacturers claim that their products are green or environmentally friendly in all stages of their production, use and disposal.

•Cosmetics companies say that their products are not tested on animals.

•Clothing companies claim to trade fairly and that their products are not made in sweatshops paying subsistence wages and using child labour.

Unit 12. Leadership

1.Why do companies increasingly nurture their potential leaders?

2.What makes a good leader? What are the differences between men and women leaders?

3.What is the difference between a manager and a leader?

4.Are the leaders born ore made?

1. Why do companies increasingly nurture their potential leaders?

Companies are increasingly thinking about how to nurture their leaders. For example, in US corporate governance has become a key issue with shareholders. The have rejected the previous cosy arrangments, where directors appointed people they knew, to the board, and now demand much geater scrutiny over who is chosen and how. It means that leader should have the empowerment and charisma to motivate to

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others in the achievement of the goals, but their qualities cannot be seen in isolation. There must be the right chemistry between the leader and other top people, and they must have the right mix of complementary skills. If your CEO leaves after six months in the job, perhaps, after what the papers describes as “irreconcilable differences”, or as a boardroom battle, the company and the perception of it will suffer, and so, probably, will its share price. By the time you find another one, two or three years may have been lost, an eternity in strategic terms. That’s why nurturing leaders is an extremly sensitive task.

2. What makes a good leader? What are the differences between men and women leaders? a)An effective leader is by nature a self-confident person who has the courage to overcome doubts, uncertainties and fears while being upbeat even beyond of him/her personal limitations, business

constraints, odd appreciations and envy of co-workers. Leader should be charismatic, humble, decisive, motivating, opportunistic, sometimes unpredictable.

b)There are lot of stereotypes about differences in how men and women work. Most people do not accept women as bosses because they think they have a weak character. Women are more relationship oriented at work than men. They are also using an easier and a more straightforward language compared with men. The language of women is also more emotional and flowery. So, when a woman is a head of the company it’s more likely that in the organization there’ll be the feeling of “togetherness” and even informality and the lack of hierarchy. It makes the employees feel protected and work in cosy/comfortable conditions which will stimulate their efficiency.

As far as men concerned, they are, as a rule, are physically and emotionally stronger than women. Usually it helps to keep situation under control. Most of the time, men are the breadwinners. They work really seriously and see the world as it really isit is perfect leadership quality; therefore, men make correct decisions quickly.

But we shouldn’t forget that it is our personality that makes us competent, not our gender.

3.What is the difference between a manager and a leader?

1)First of all, leadership is a personality trait whereas manager is a job title.

2)A leader is an inspirational, passionate and proactive professional who due to his/her talent is a benchmark to other co-workers, who want succeed like them and learn to be influential in the enterprise’s framework. A leader has the willingness to feel him/her encouraged and face proactively any kind of situation nevertheless of the risk and cost involved. Additionally, a true leader has no matter how challenging and tough these could be.

A manager is an operational and/or functional driven professional whose focus is oriented to ensure operational excellence in those operational issues, financial performance, talent management and marketing strategies relevant to his/her managerial function.

Managers tend to be reactive, blend in with the environment, keep the future the same as the present, maintain image, keep what they have, and not always comfortable being accountable for the responsibilities they wield.

3) Some differences:

- Managers working in the system and leaders working on the system; - Managers reduce weaknesses and leaders amplify strengths;

But, both of them working on progress, on company’s prosperity. So, you need both. Both are required for effective corporate growth.

4. Are the leaders born ore made?

I believe that nothing in our life comes easily. If you want to achieve smth significant, become a founder of an organization, leader not only of your company, but of the public opinion, you should make great efforts. So, from my point of view, leaders are made rather than born. But it’s undoubtfully that leadership is a matter of personality. To become leader you should possess charisma and other above mentioned characteristics.

Unit 13. Innovation

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1.What is the main role of R&D?

2.Why do different industries have different lead-times?

3.What may the launch of a new product involve?

4.How is Procter & Gambler better than its competitors in terms of innovation?

1.What is the main role of R&D?

The main role of Research and Development department is provision of results of scientific research in order to develop new products and improve existing ones. For example the initial idea for a car will be turned into a series of prototypes and tested. In software development, the final 'prototype' is the beta version, which is beta-tested. Pharmaceutical go through a series of trials.

2. Why do different industries have different lead-times?

Different industries have different lead-times, the time between conception and product launch; a new drug might take 10 or 15 years to develop. In consumer goods, market research will be a key part of the development process, with focus groups: small groups representing cross-sections of consumers talking about their reactions to proposed designs, and consumer surveys. After market research there can be trial run of products. After that there can be researches of consumer’s reactions on this product, researches of sales. So all researches require different period of time for different products.

3. What may the launch of a new product involve?

The launch of a new product might involve a national, international or global rollout. A well-oiled public relations machine will have prepared the way for the new product by getting the required media coverage, where the terms leading edge and state of the art will perhaps appear. Any teething problems will hopefully be ironed out during development rather than after the launch. The ultimate nightmare is when a company has to recall products because of design defects. The coverage this might get is the least welcome imaginable.

4. How is Procter & Gambler better than its competitors in terms of innovation?

According to Lafley, the CEO of P&G, organic growth strengthens a company’s ability to innovate. Organic growth – meaning growth from core businesses. Lafley has a model for innovating in a big company:

1.One-on-one consumer research – marketers must spend lots of time with consumers in their homes, watching the ways they wear their clothes and asking them about their habits and frustration.

2.Get employees to exchange ideas – employees from nine countries post problems on an internal website. CEO evaluates the ideas of employees and presents the best findings each year.

3.Stop testing so much – One can not but agree with fact that putting out a product can't be without testmarketing. But it’s necessary to reduce product launch time from laboratory to roll-out.

4.Give designers more power – it’s necessary that designers would be involved in all aspects of product development.

5.Know what not to do – according to Lafley, it’s impossible to offer fat bonuses for innovation or to hire stars from outside. Managers who fail to share ideas simply do not get promoted.

Unit 14. Competition

1.What are the most common competition practices?

2.What is Michael Porter’s model of competitors’ types?

3.Why is Nokia no longer the leader in the mobile phone market?

4.Why are some products unsuitable for foreign markets?

1. What are the most common competition practices?

Competition between companies can be tough, aggressive, even ferocious or cut-throat. Firms may accuse each other of using unfair methods such as dumping, where a competitor (usually foreign) sells products for less than what they cost to produce, or at less than the price charged in the home market. Firms dump in order to build market share and recoup their losses later when, having established

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