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Key to Unit 01: The three sectors of the economy This unit covers a lot of basic vocabulary concerning developed economies much of it in an extract from a well-known British novel. It also discusses the evolution of the economy of most of the older industrialized countries, with the decline of manufacturing industry and its replacement by services. There is an extract from a magazine interview with an economist and an interview with a British Member of Parliament on this issue. 1a Vocabulary p09 Identify the most prominent features in this photograph, which illustrates various important elements of the infrastructure of a modern industrialized country. The photo clearly shows a large factory (the Unilever factory in Warrington, England) in the center, with more factories, industrial units, or warehouses in the top right-hand corner. The large factory seems to include some office buildings. Also visible are agricultural land (in the background; the land in the foreground doesn’t appear to be cultivated), a river, a railway and several roads, and housing, perhaps with a school in the center of the housing estate top left. 1b Reading p10 What is the key point that this extract is making about economies? The text suggests that most people take for granted the amazing complexity of the economic infrastructure. 1c Comprehension p11 1.In lines 4-7, Robyn sees examples of all three. What are they? Tiny fields (the primary sector), factories (the secondary sector), and railways, motorways, shops, offices, and schools (the tertiary sector). 2.The long sentence from lines 12-28 lists a large number of operations belonging to the different sectors of the economy. Classify the 18 activities from the passage Primary sector: digging iron ore, mining coal. Secondary sector: assembling, building, cutting metal, laying cables, milling metal, smelting iron, welding metal. Tertiary sector: advertising products, calculating prices, distributing added value, maintenance, marketing products, packaging products, pumping oil, transportation. 3.Can you think of three important activities to add to each list (not necessarily in relation to the kettle)? Primary sector: farming (agriculture), fishing and forestry Secondary sector: manufacturing, transforming and processing Tertiary sector: financing, designing, retailing 2a Reading p12 1.Why do people worry about the decline of manufacturing? Because they think it will lead to unemployment. 2.Which activities are as important as the production of goods? Designing goods, persuading people to buy them; arts and entertainment. 3.Should people worry about this state of affairs? No, because it is a natural, progressive and inevitable development. 2b Listening p13 Listen to a short interview with Denis MacShane, a British Member of Parliament for the Labor Party. Does he hold the same view as J. K. Galbraith? Denis MacShane quite clearly disagrees with Galbraith. 1.Why does MacShane think that manufacturing has a future? Because there are many new products that have to be invented to serve new needs. 2.Why does MacShane think that manufacturing has a future in the advanced countries? Because these countries have production technology that requires very little labor input. 3.Why, however, is this manufacturing unlikely to solve the problem of unemployment? Precisely because it requires very little labor input. 4.What does MacShane mean by ‘in theory there should be no more manufacturing’ in Switzerland? (It is this theory that makes many people argue that manufacturing must move to ‘less-developed’ countries.) The conventional theory is that the most important cost in manufacturing is labor, and wages and salaries in Switzerland are the highest in the world. (As is the cost of living!) 5.Why does he say it is surprising for a British company to be buying Swiss goods? Because the pound sterling has, over the years, lost a great deal of value against foreign currencies, especially the Swiss franc. 6.What is the reason he gives for the United States still being the richest nation in the world? It has a successful manufacturing economy, including its computer and car (automobile) industries. 7.Match up the following expressions and definitions: 1.to convert itself. B/ to change from one thing to another 2.to serve needs D/ to satisfy people’s desires or requirements 3.Labor input A/ manual work 4.to stumble on E/ to discover something by accident 5.to be dubious C/ to be uncertain, disbelieving 2c Writing p13 Summarize both Gallbraith’s and MacShane’s arguments in a short paragraph of fewer then 50 words. A POSSIBLE SUMMARY Galbraith says that manufacturing industry will inevitably decline in the advanced industrial countries, and be replaced by design, advertising, entertainment, and so on. MaShane says that manufacturing will change, and make new products with new technology. New words in this unit 01 agriculture, business, company, consumer, economic, economy, employment, goods, industry, infrastructure, labour, manufacturing, primary sector, product, raw materials, secondary sector, tertiary sector, unemployment Unit 2 Management Management is important. The success or failure of business organizations, government institutions and public sector services, voluntary and non-profit organizations, sports teams, and so on, often depends on the quality of their management. This unit includes a discussion of the qualities required by managers, a definition of management, consideration of the role of the meetings in management, a critical view of the management of one large American multinational company, and an interview with the manager of a British department store, who discusses his job. Before the discussion on the qualities required by managers and the definition of management, maybe we can discuss the cartoon. What’s the joke? We can assume that Mr. Farvis runs this company (his name is on the door). What can we say about his managerial skills, or his apparent lack of them? Discuss in pairs for two minutes what exactly managers do, concerning organizing, setting objectives, allocating tasks and resources, communicating, motivating, and so on. 1a Discussion What is management? Is it an art or a science? An instinct or a set of skills and techniques that can be taught? Management is a mixture of innate qualities and learnable skills and techniques. What do you think makes a good manager? Which four of the following qualities do you think are the most important? Being decisive: able to make quick decisions Being efficient: doing things quickly, not leaving tasks unfinished, having a tidy desk, and so on Being friendly and sociable Being able to communicate with people ----- Being logical, rational and analytical Being able to motivate and inspire and lead people ----- Being authoritative: able to give orders Being competent: knowing one’s job perfectly, as well as the work of one’s subordinates ----- Being persuasive: able to convince people to do things Having good ideas ----- Are there any qualities that you think should be added to this list? Which of these qualities can be acquired? Which must you be born with? There are clearly no definitive answers as to which of these skills can be acquired. 1b Reading Peter Drucker, the (Austrian-born) American management professor and consultant, is the author of many books about business. This text summarizes some of Peter Drucker’s views on management. It paraphrases the extended definition of management he gives in one of his management textbooks. As you read about his description of the work of a manager, decide whether the five different functions he mentions require the four qualities you selected in your discussion, or others you did not choose. What is management? Drucker’s first point (setting objectives and developing strategies) presumably requires qualities J, H, E and A (not necessarily in that order). The second point (organizing) presumably also requires H, E and J. The third point (motivation and communication) embraces F, D, I and probably C. The fourth point (measuring performance) probably requires H and E. The fifth point (developing people) might require H, F, D and J. But all this is clearly open to discussion. 1c Vocabulary Complete the following sentences with these words. Achieved; board of directors; communicate; innovations; manageable; performance; resources; setting; supervise 1. managers have to decide how best to allocate the human, physical and capital resources available to them. 2. Managers -- logically – have to make sure that the jobs and tasks given to their subordinates are manageable. 3. There is no point in setting objectives if you don’t communicate them to your staff. 4. Managers have to supervise their subordinates, and to measure, and try to improve, their performance. 5. Managers have to check whether objectives and targets are being achieved. 6. A top manager whose performance is unsatisfactory can be dismissed by the company’s board of directors. 7. Top managers are responsible for the innovations that will allow a company to adapt to a changing world. 1d Vocabulary The text contains a number of common verb-noun partnerships (e.g. achieve objectives, deal with crises, and so on). Match up these verbs and nouns to make common collocations. Allocate resources (or people) Communicate information (or decisions) Develop strategies (or people or subordinates) Make decisions Measure performance Motivate people Perform jobs Set objectives Supervise subordinates 2 Meetings ‘One can either work or meet. One cannot do both at the same time.’ (Peter Drucker: An Introductory View of Management) What do you think Peter Drucker means by this comment? Drucker obviously believes that work is largely something that is done individually, and that meetings are not ‘work’, but merely preparation for it, or consolidation after it. 2a Reading p18 Read the computer journalist Robert X. Cringely’s description of the management style at IBM. Is he positive or negative about IBM’s working culture? Robert Cringely’s history of the personal computer industry is very informative, in places very critical, and also very funny. In this extract, he is extremely negative about IBM, saying that they put much too much effort into management and worrying about the possibility of making bad decisions, and not enough into producing good, competitively-priced products. 2b Comprehension Explain in your own words exactly what Robert Cringely means in the following sentences. 1. Every IBM employee’s ambition is apparently to become a manager. It seems as if the people who work for IBM are more interested in being regarded as a manager than as a computer designer or technician 2. IBM makes management the company’s single biggest business. IBM’s corporate culture seems to place more emphasis on management than on developing and selling the company’s products. 3. IBM executives manage the design and writing of software. IBM’s managers don’t actually do the work of designing and writing software themselves, but organize and supervise the people who do it. 4. IBM products aren’t often very competitive. IBM products are rarely as good or as dheap as similar products made by their competitors 5. The safety net at IBM is so big it is hard to make a bad decision. There is an extensive hierarchy and a system of checks and controls which ensures that bad decisions are generally avoided (but good decisions also take a very long time to make). 6. This will be the source of the company’s ultimate downfall. The slowness of IBM’s decision-making process (and the consequent lack of competitiveness of their products) will eventually destroy the company. 2c Vocabulary p18 Find word in the text that mean the same as the words or expressions below. 1. seemingly apparently 2. computer programs software 3. work, time and energy effort 4. computers (and other machines) hardware 5. young workers still learning their jobs trainees 6. knowledge and skill expertise 7. levels or strata layers 8. to make certain that something is true verify 9. corrected or slightly changed amended 10. collapse or failure downfall 3 The retail sector You will hear part of an interview with Steve Moody, the manager of the Marks & Spencer store in Cambridge, England. What do you know about Marks & Spencer? M&S, as many people call them in Britain sell clothes, household goods and food. They have branches all over Britain, and are expanding into continental Europe. 3a Listening listen to part One, in which Steve Moody describes the role and responsibilities of a store manager. Tapesript Part One STEVE MOODY so, as the store manager in Cambridge, which is probably the fortieth largest of the 280 stores we have got, I am responsible for the day-to-day running of the store. All the product is delivered to me in predescribed quantities, and obviously I’m responsible for displaying that merchandise to its best advantage, obviously I’m responsible for employing the staff to actually sell that merchandise, and organizing the day-to-day logistics of the operation. Much more running stores is about the day-to-day operation. And ensuring that that’s safe, and obviously because of the two hundred people that we would normally have working here it’s ensuring that they are well trained, that they are well motivated, and that the environment they work in is a pleasant one, that they are treated with respect, and that they are committed to the company’s principles. Which of the following tasks is he responsible for? 1. designing the store and its layout 2. displaying the merchandise 3. employing the sales staff 4. ensuring the safety of staff and customers 5. establishing the company’s principles 6. getting commitment from the staff 7. increasing profits 8. maintaining a pleasant working environment 9. motivating staff 10. organizing the day-to-day logistics 11. pricing the merchandise 12. running 40 out of 280 stores 13. selecting the merchandise 14. supervising the day-to-day running of the store 15. training staff 3b Listening Listen to Part Two, and answer these questions. Tapescript Part Two INTERVIEWER How much freedom do those people have within their jobs to make decisions themselves? How much delegation is there of responsibility down the chain? STEVE MOODY We would , as a business, like to encourage as much accountability and delegation as possible. Of course that does depend on the abilities of the individuals, the environment in which you’re working, and the time of year. With 282 stores we have a corporate appearance in the United Kingdom’s high streets. It is quite important that when customers come into Marks & Spencer’s Cambridg