Market Leader BEC Higher Practice Exercises and Test Workbook

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MARKET LEADER BEC Higher PRACTICE EXERCISES AND TEST

Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world.

www.pearsonelt.com © Pearson Education Limited 2015 The right o Lizzie Wright to be identified as author o this Work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved; no part o this publication may be reproduced, stored in a retrieval system, or transmitted in any orm or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission o the Publishers. First published 2015 ISBN: 978-1-4479-9950-8 Set in MetaPlus 9.5/11pt Printed in Slovakia by Neografia Acknowledgements We are grateful to the following for permission to reproduce copyright material: Text Article on page 4 rom The rule breaker at IWC on the move to go global (Elizabeth Paton), © The Financial Times Limited. All Rights Reserved; Article 5. rom Overworked and uninspired the misery o the middle manager (Lucy Kellaway), © The Financial Times Limited. All Rights Reserved; Article 7. rom What the best parents can teach us a bout management (Michael Sapinker), © The Financial Times Limited. All Rights Reserved; Article 12. rom Dixons Carphone case study: the hard work afer the merger anare (Andrew Hill), © The Financial Times Limited. All Rights Reserved; Article on page 27 rom For teenage tycoons it is a case o jam today (Emma Jacobs), © The Financial Times Limited. All Rights Reserved; Article on page 28 rom BUSINESS LIFE - Lessons rom a corporate health scare in China (Josh Noble), © The Financial Times Limited. All Rights Reserved; Article on page 30 rom The Lex Column - consumer goods: luxury prices (Lex’), © The Financial Times Limited. All Rights Reserved

In some instances we have been unable to trace the owners o copyright material, and we would appreciate any inormation that would enable us to do so.

Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world.

www.pearsonelt.com © Pearson Education Limited 2015 The right o Lizzie Wright to be identified as author o this Work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved; no part o this publication may be reproduced, stored in a retrieval system, or transmitted in any orm or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission o the Publishers. First published 2015 ISBN: 978-1-4479-9950-8 Set in MetaPlus 9.5/11pt Printed in Slovakia by Neografia Acknowledgements We are grateful to the following for permission to reproduce copyright material: Text Article on page 4 rom The rule breaker at IWC on the move to go global (Elizabeth Paton), © The Financial Times Limited. All Rights Reserved; Article 5. rom Overworked and uninspired the misery o the middle manager (Lucy Kellaway), © The Financial Times Limited. All Rights Reserved; Article 7. rom What the best parents can teach us a bout management (Michael Sapinker), © The Financial Times Limited. All Rights Reserved; Article 12. rom Dixons Carphone case study: the hard work afer the merger anare (Andrew Hill), © The Financial Times Limited. All Rights Reserved; Article on page 27 rom For teenage tycoons it is a case o jam today (Emma Jacobs), © The Financial Times Limited. All Rights Reserved; Article on page 28 rom BUSINESS LIFE - Lessons rom a corporate health scare in China (Josh Noble), © The Financial Times Limited. All Rights Reserved; Article on page 30 rom The Lex Column - consumer goods: luxury prices (Lex’), © The Financial Times Limited. All Rights Reserved

In some instances we have been unable to trace the owners o copyright material, and we would appreciate any inormation that would enable us to do so.

Introduction The Market Leader series is a fantastic resource

for students aiming to take the BEC exams as it covers and practises the kind of language required in an international business environment. When working through the Market Leader Advanced units, units, students should be encouraged to skim read, to guess the meaning of unknown words and to find synonyms and paraphrases for common words and expressions as these are all skills which will help with the BEC Higher exam.

BEC Higher Practice Exercises booklet This booklet offers practice for BEC Higher exam with a strong tie-in to Market Leader Advanced . It provides Reading and Writing tasks that will help familiarise students with the different task types and give practice for the exam, as well as act as revision practice for non-exam students. Each unit has one Reading and one Writing task, which are closely aligned to the vocabulary, grammar and topic of the corresponding Market Leader unit. unit. Furthermore, each task has been aligned to the Global Scale of English, developed by Pearson, to ensure that it is at the appropriate level. Speaking and Listening tests have not been included in the practice booklet, but Market Leader Advanced Course Book provides plenty of BEC-relevant practice for these skills. Specific information showing how the Course Book can be used as practice for the Listening and Speaking exams is included in the Teacher’s Notes, which can be found on the Market Leader website. website.

of speed and accuracy. Students will benefit from the opportunity to develop techniques for approaching the tasks, which will reduce the time pressure many students feel when faced with the real exam.

I N T R O D U C T I O N

Reading tasks The Reading tasks use some authentic FT articles, slightly adapted to suit the level, as well as texts specially written to match BEC exam tasks. These will naturally have some unknown vocabulary and will help students to practise finding the answers despite not being familiar with some of the language. Where possible, vocabulary and grammar from the units are tested, but all the targeted language matches the type of language tested in the BEC exam.

Writing tasks All the Writing tasks are linked to the topic of the corresponding Market Leader Advanced unit unit and accurately reflect the exam task formats that students will encounter. Once again, teachers can work through the first few Writing tasks with the students, guiding them on how to approach each task, especially making sure that all the content points required for the task are included in responses. After that, the tasks will give students an opportunity to practise answering the questions within the time allowed as well as help them to become familiar with the number of words required for each task.

BEC Higher practice test How to use this practice booklet The exam tasks can be used as both a teaching and a testing device. A tip box at the beginning of each task gives advice on how to approach the task. Teachers can work through the tasks with the students at first, helping them to analyse the task closely in order to develop exam techniques

At the end of the booklet there is one full Reading and Writing practice test for BEC B EC Higher, which should be carried out under exam conditions. This allows both teachers and students to gauge how ready they are to take the exam and to give them an idea of what grade they could c ould expect in these two papers.

1

unit

1

Reading and Writing

READING PART ONE

R E A D I N G A N D W R I T I N G

TIPS

– Read the questions carefully first. – The words in the questions are usually not the same as the words in the text so look for

paraphrases in the text. Words from the questions may well be in other texts. – Make sure the text matches the question exactly.

•

Look at the statements below from an article about first impressions.

•

Which section (A, B, C, D or E) does each statement 1 –8 refer to?

•

For each statement 1 –8, mark one letter (A, B, C, D or E).

•

You will need to use some of these letters more than once. Example 0

A decision to talk to someone is often made by just hearing their voice.

1

Grooming and attire are extremely important for an initial contact.

2

First impressions often take precedence over factual knowledge.

3

Studies prove that initial impressions favour indications of knowhow

D

and honesty. 4

Quick assessments of people are counteracted by a more thoughtful process.

5

The ability to do a job well is more important than self-assurance.

6

We judge people more favourably if contact with them could be beneficial to us.

7

People have an instinctive reaction to vocal sounds heard for the first time.

8

The ability to maximise one’s best features is very useful in business.

A

However hard we try, first impressions usually remain with us and affect every aspect of business: meetings, presentations, interviews, demonstrations, advertising and web design, for example. Research shows that it only takes a twentieth of a second for a person to decide if they like a webpage or not. So, if a potential customer takes against the site immediately, business will be lost, even if the product or ser vice offered is second to none. First impressions are so powerful that they will often override whatever people may tell us to the contrary about a person.

B

Experts believe there are two thought systems in our brains. The first is fast, intuitive and emotional, and is involved in first impressions. The second is slower, more contemplative and logical. The former comes into play in that split-second when first seeing or hearing someone. Furthermore, we assess people according to our own social or business world, so if we feel that they will be useful to us, we will focus more on their positive aspects than their negatives. This is when the second system is brought into play so that snap judgements are balanced out.

2

UNIT 1 •• READING AND WRITING

C

Nevertheless, it is appearance that tends to blot out all other aspects in the first instance and, as people make up their minds about someone in the first four to seven seconds, then it is a no-brainer to ensure you look the part. If someone fits in with our idea of a trustworthy, good person, then we may lean towards a favourable view of them. Successful movers and shakers are able to leverage all their attributes to their greatest advantage when networking or making business deals.

D


When presenting yourself or your company to a roomful of people, the intonation and modulation of your voice can indicate how trustworthy people perceive you. For example, the first greeting can seal that first impression and determine whether the listener will want to continue the interaction. Research suggests that some voices just sound more trustworthy and pleasant. Experts have discovered that our ability to judge whether to approach someone is often based on th e first utterance from them, has evolved over millennia and is used by all mammals.

E

Establishing credibility as quickly as possible is vital if business deals are to be successfully negotiated and sealed. Appearance, voice, gestures and mannerisms are all absorbed to create a first impression. Many people say that a strong handshake indicates a confident professional and it helps to confirm a good first impression. However, research has shown that confidence is not necessarily the most important characteristic we seek. Instead it seems that we are concerned mainly with two traits which account for between 80 and 90 per cent of first impressions: competence and trustworthiness.

WRITING PART ONE

TIPS

– Read all the instructions carefully and underline key words. – Look at the graphs carefully to make sure you understand fully what they represent. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks

if you write more than 140 words. •

A local networking group aims to help start-ups in the area. The first chart below shows the unemployment situation in the local area and the number of applicants wanting financial support. The second chart shows the amount of money available to help.

•

Using the information from the charts, write a letter inviting companies to join the network and support the investment.

•

Write 120 –140 words.

Local situation

Funds available 70

60

60

50

50

40

d n a 40 s u o 30 h t

d n a s 30 u o h t

20

20

10

10 0

0 2012

2013

unemployment

2014

2015

applicants

2012

2013

government grants

2014

2015

private investment

3

unit

2

Reading and Writing

READING PART FOUR


TIPS

– Read the text through quickly so you know what it is about. – Think about the meaning of each missing word. – The four options usually have similar meanings. – Look carefully at the text before and af ter each gap. – Make sure that the word fits with the grammar, collocations and phrases of the text. – Read the whole text through again to see if it makes sense with your choices.

•

Read the article below about graduates and apprentices.

•

Choose the best word to fill each gap from A, B, C or D.

•

For each question 1 –10, mark one letter (A, B, C or D).

•

There is an example at the beginning.

GRADUATES VERSUS APPRENTICES In the past, school ( 0 ) B have been encouraged to ( 1 )

on a university education

because it would guarantee a quick route to a good job with security and benefits. People spoke of apprenticeships in a particularly ( 2 )

way, rarely

applauding their value and suggesting this course to those who were considered academically weak. However, the business world has changed considerably since those days and the current thinking is that recruiting apprentices is a better option for companies. Furthermore, apprenticeships which provide both work experience as well as for university study, seem to offer the best of both worlds

giving them a(n) ( 3 )

for companies and employees. In today’s fast-changing world, it is imperative that companies have staff who can connect the ( 4 )

and who have the ability to ( 5 )

opportunities when faced

with them. When employing graduates it can take quite a long time before they understand the company and its work culture, whereas the apprentice not only has sector-relevant skills as they have been ( 6 ) but they also ( 7 )

these ever since they started,

in much more quickly.

Research has shown that today many employers regard graduate skills as being somewhat ( 8 )

from practice and the necessary industry knowledge so that they

are unable to make an immediate impact on the business. Employing graduates can often mean having to ( 9 )

teams in order to accommodate them instead

of their being able to contribute effectively to the team. It is therefore widely recognised that having an apprenticeship system within a company ( 10 ) invaluable benefits.

4

several

UNIT 2 •• READING AND WRITING 0

A finishers

B leavers

C enders

D workers

1

A train

B learn

C embark

D educate

2

A pejorative

B indignant

C offended

D disrespected

3

A budget

B account

C leverage

D allowance

4

A spots

B dots

C points

D marks

5

A spot

B dot

C glance

D glimpse

6

A rehearsing

B reviewing

C honing

D appraising

7

A sit

B set

C fit

D get

8

A separated

B distanced

C split

D divorced

9

A familiarise

B rejig

C expose

D accustom

A confers

B educates

C reveals

D discloses

10

WRITING PART TWO


TIPS

– Read all the instructions carefully and underline key words. – Check the format required (proposal, letter, report, etc.). – Structure your answer with clear paragraphs. – Use a range of business words and linkers. – Keep checking the question to remember the purpose of writing. – Write at least 200 words. If you write fewer you will lose marks. You do not get extra marks


Your HR Director has asked you to summarise the benefits of two training courses which staff attended in the past year as there was negative feedback from some staff. Suggest a new course for the coming year.

•

Write a proposal, including the following points: – brief details of the two courses – an evaluation of them – suggestion for a new course – description of benefits of the new course.

•


5

unit

3

READING PART FIVE


Reading and Writing TIPS

– Read the text through quickly so you know what it is about. – Think about what part of speech is missing. – Think about the possible meaning of the missing word. – Check the words before and after the gap so see if it is a common partnership or collocation. – Read the whole text through again to see if it makes sense with your answers.

•

Read the article below about green buildings.

•

For each question 1 –10, write ONE word.

•


ENERGY EFFICIENT BUILDINGS ( 0 )

Due

to international agreements on the need to reduce carbon emissions

and fossil fuel consumption, businesses have been forced to consider ways to reduce them. The ultimate aim is ( 1 )

all businesses to operate ( 2 )

green buildings. These days designers have to ( 3 )

of

up with different ways

of incorporating energy efficiency into the fabric of a building, using only clean energy such as solar or wind power. These green buildings should then be easier and cheaper to operate and maintain. In the past many companies have been reluctant to engage

( 4 )

the idea

of green energy and buildings because initial costs have been so high. This has therefore stifled any enthusiasm for change and, added to that, a lack of incentive for them to ( 5 )

so has meant that the take-up has been rather

slower than anticipated. However, nowadays the buildings are as cost-effective as conventional ones and companies are able to see a good return ( 6 ) their investment in a relatively short time. These buildings also provide staff with a much better environment in ( 7 )

to work, thus improving productivity and

the ability for companies to retain staff. ( 8 )

addition, it is proving easier to

attract tenants and command high rents in green buildings than in a traditional building, thus proving that they can be a very good investment. ( 9 )

a company is not in line for purchasing a new building, then older

buildings can be retrofitted with resource-saving technologies. However, the misconception that this investment is not financially viable has meant that once again, the take-up has not been as successful as governments might have hoped it ( 10 )

6

be.

UNIT 3 •• READING AND WRITING WRITING PART ONE

TIPS

– Read all the instructions carefully and underline key words. – Look at the bar chart carefully to make sure you understand fully what it represents. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks



The bar chart below shows the current cost of energy consumption for your business and the projected costs over the next five years comparing the current system to investing in solar or wind power.

•

Using the information from the chart, write a report for the Managing Director about the comparative costs.

•


Projected energy costs 160

140

120

100 d n a s u o h t

80

£

60

40

20

0 2016

Current system

2017

2018

Solar power

2019

2020

Wind power

7

unit

4

Reading and Writing

READING PART SIX


TIPS

– Read through the whole text first. – The extra word must be grammatically wrong or does not fit in with the text. It cannot be

just unnecessary. – One word may have several common partnerships so look carefully at the sentence before

making your choice. – Look closely at verbs to see if they are in the correct tense and form. – Look closely at relative pronouns, articles, qualifiers, prepositions, linkers etc.

•

Read the text below about customer-centric marketing.

•

In most of the lines 1 –12 there is one extra word. It is either grammatically incorrect or does not fit in with the meaning of the text. Some lines, however, are correct.

•

If a line is correct, TICK ( ) the line.

•

If there is an extra word in the line, write the extra word in CAPITAL LETTERS.

•

The exercise begins with two examples.

CUSTOMER-CENTRIC MARKETING 0 00

How annoyed do you get by those pop-up ads that suddenly appear on your screen? Today companies know that what we look at online, they can discover our

1

interests, our likes, our needs and then use of this data and customer analytics to

2

put the customer at the centre of their marketing design and delivery. What that

3

means they have to think like their customers: how convenient is it the business

4

for customers? What extra value can be built in to keep up customers interested

5

and then find a hook that appeals to them? The collected consumer data allows

6

companies to create tailor-made advertising which targeting the individual and to

7

build long-term relationships with customers, giving to them a reason to be

8

emotionally involved in the products. In fact, because finding new customers is

9

ten times more than expensive. So these days retaining existing customers just

10

makes no sense for companies to go the extra mile. With all this knowledge and

11

the multichannel relationships sellers have with their consumers, it is more

12

important than ever so to send the right message to each consumer, and pop-up ads may not be the way to go as they can annoy rather than encourage consumers just as cold-calling and mailshots used to do.

8

THAT


TIPS

– Read all the instructions carefully and underline key words. – Look at the table carefully to make sure you understand fully what it represents. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks



You are a Sales Director. The chain of department stores you work for wants to modernise and refurbish its stores. Customers have completed a survey.

•

Using the information from the survey, summarise the information in an email to the Marketing Director.

•

Write 120 –140 words. CUSTOMER SURVEY

YES

NO

The pricing is competitive.

62%

30%

The products are up-to-date.

46%

52%

I like the advertising campaigns.

30%

70%

Staff are helpful and courteous.

84%

10%

The after-sales service is very good.

75%

15%

The logo and image are old-fashioned.

85%

10%

To:

Marketing Director

From:

Sales Director

Subject: Customer survey

9

unit

5

Reading and Writing

READING PART TWO


TIPS

– Read through the whole text first so you get an idea of how it flows and what it’s about. – Make sure that the sentence you choose fits grammatically and in terms of the meaning of

the text both with the sentence before and the sentence after it. – Remember there is always an extra sentence which does not fit anywhere.

•

Read the article below about employment trends and their effect on companies.

•

Choose the best sentence (A–H) to fill each of the gaps.

•

For each gap 1 –6, mark one letter (A–H).

•

Do not use any letter more than once.

•


Who will train the new generation of ‘plug and play’ workers? by Andrew Hill

5

10

15

20

25

10

Mary Barra is a lifer, born and bred to do the job she now holds. But as General Motors' Chief Executive pointed out in an interview last week at the World Economic Forum in Davos, few young Americans now anticipate spending their lives in the warm embrace of a single employer, as she has. (0) H It is a prediction that seems to transfix chief executives, many of whom have themselves risen through the ranks after long tenure at a single company, as they wonder how to engage younger staff. One way is ‘to make sure they have career development and meaningful work’, Ms Barra said. However, I foresee tension between large employers’ offer of long-range, deeply thought-out, but often costly, training and the short period of time most of those staff will stay put. (1) One would be that young workers turn out to be more loyal to single companies than they currently expect and

30

that employers will be more loyal to them. But I doubt it. A truism that executives trot out more frequently than any other is that the only constant of modern (2) 35 business is rapid change. Another possibility is that employers will fight ever more fiercely to acquire skilled workers from one another. 40 Opinions differ about whether this works. I heard one consultant last week extolling the way his company was now home to a bunch of tattooed millennials (3) 45 following a takeover. I agree with the second consultant. But many companies, particularly in the US, are impatient for ‘plug and play’ 50 staff – that is, the perfect person, made to order, ready for their position and ready to go. (4) If the average assignment length for individual employees could 55 be as short as three years, you cannot afford to waste too much time settling people in. Vishal Sikka, Chief Executive

60

65

70

75

80

85

of India's Infosys, told me last week that he saw his main role as providing the right ‘context’ for new staff. ‘It comes down to how quickly you can absorb the ability of a person to contribute to the context you have created,’ he said. (5) He was appointed from SAP last year. He is also a fan of ‘tours of duty’ – mutually beneficial short-term agreements between employer and employee. But this approach leaves unanswered the question of how companies will in future sustain the strong sense of purpose and values that young employees find attractive, if most of the long-serving employees, who used to provide the backbone of big companies, no longer stay on. Infosys and other multinationals continue, rightly, to set great store by their leadership institutes and training programmes. (6) For instance, can a project, staffed by short-term contractors, connected virtually, and led by executives on two-year tours of duty, have a culture?


A Ms Barra herself forecast that her industry would change more in the next 5 –10 years than it has in the past 50. B But as the form of companies changes to more collaborative networks it is increasingly hard to see what the workers of 2075 will belong to. C Even those chief executives who are trying to train workers internally have to be ready to induct staff rapidly into their companies. D Developing skilled employees for an ‘on demand’ age is an urgent priority.


E This contradiction could resolve itself in a number of ways. F

Unlike his predecessors, Mr Sikka was not one of the technology consulting group's founding entrepreneurs.

G But another said companies put far too much weight on ‘talent acquisition’ and too little on developing future leaders in-house. H Ms Barra was not the only executive at Davos to point to surveys that suggest American ‘millennials’ (born 1980 –1999 ) now expect to do between 15 –20 jobs in their lifetime. WRITING PART TWO

TIPS

– Read all the instructions very carefully and underline key words. – Check the format required (proposal, letter, report, etc.). – Structure your answer with clear headings and paragraphs. – Use a range of business words and linkers. – Keep checking the question to remember the purpose of writing. – Write at least 200 words. If you write fewer you will lose marks. You do not get extra marks


The HR Director of your company is worried about the high turnover of managers in the company, and has asked you to investigate the situation and suggest ways of improving staff retention.

•

Write a proposal for the HR Director, including the following information: – outlining the purpose of the proposal – describing the main reasons why managers are leaving the company – suggesting ways in which the company can keep these managers – proposing what the company should do next.

•


11

unit

6

Reading and Writing

READING PART THREE


TIPS

– Read through the whole text first to ensure you understand the main point of the text. – Read the first question and then read the first part of the text to find the answer. – Underline key words in the question option. – Question options usually use synonyms. Look for words in the text with similar meanings. – Check that your choice reflects exactly what is said in the text.

•

Read the extract below about whistleblowers.

•

For each question 1 –6, mark one letter (A, B, C or D) for the answer you choose.

Whistleblowing is not for the faint-hearted – and especially not on Wall Street by William C Cohen

5

10

15

20

25

30

35

12

On Wall Street, as everyone now knows, wrongdoing by bankers, traders and executives led to disaster in 2008 after they were rewarded for taking risks with other people's money. Leading bankers and traders were motivated – by the hope of getting large bonuses – to package up mortgages into securities and then sell them off as AAA-rated investments all over the world. This happened even though one damning email after another makes clear they knew some of the mortgages would probably default and that the securities should never have been sold in the first place. But some people did try to blow the whistle – the problem is they were not listened to. Worse than that, they were treated in a way that would discourage anyone from following in their footsteps. I interviewed three whistleblowers – from different periods of the recent crises that have befallen Wall Street. All three of them made allegations of wrongdoing at their banks, made strenuous efforts to report what they had discovered through internal and external channels, and all three were either fired from their jobs after trying to share the information they had stumbled upon or quit in frustration.

40

45

50

55

60

65

70

Their testimonies and the details of what happened to them are important. Not only do they illustrate the existential risks that whistleblowers take when they attempt to point out wrongdoing that they uncover at powerful institutions. They also matter because their stories show just how uninterested these institutions genuinely remain – despite the lip service of internal hotlines and support groups – in actually ferreting out bad behaviour. The stories of these three whistleblowers reveal, too, how little the regulators charged with keeping watch over the Wall Street banks seem to care about holding them in any way accountable. Often the regulators seemed to be willing to ignore the allegations presented to them. Towards the end of 2003, Peter Sivere, a mid-level compliance officer at JPMorgan Chase, blew the whistle on the Wall Street behemoth. In the course of his job, he had found emails and documents relating to a subpoena from the SEC, which was investigating ‘late trading’ – Sivere believed the bank had failed to turn them over. In October 2004, he paid for his ‘insubordination’, as JPMorgan Chase executives referred to it,

with his job and nearly with his career. It's an old story that has happened repeatedly on Wall Street and in other industries: someone sees wrongdoing, tries 80 to alert his or her superiors as well as the authorities, and the thanks they get for trying to do the right thing is their notice and an overwhelming feeling 85 of helplessness. Although the events occurred nearly 10 years ago, Sivere still feels their effects. He concedes, looking back, that he could have been more alert 90 to the warning signals. Soon after he first raised his concerns, he was demoted and forced to report to people he once supervised, which was humiliating, but he 95 has no regrets about becoming a whistleblower. But he still wonders why JPMorgan Chase did not support him. He says, ‘I had no reason to believe what I 100 did was contrary to what senior management would expect from me and any JPMorgan Chase employee. You are taught at a young age right from wrong. Yet 105 as we grow older and have our own self-interests in sight many of us lose that feeling of right and wrong.’ The ordeal taught Sivere much about the way the world 110 works and the powerful forces aligned against whistleblowers. 75


In the first paragraph we learn that financial executives A denied financial irregularities prior to 2008. B discovered that mortgages were a secure way of making money. C received awards for the investment packages they produced. D brought about their own demise in 2008.

2

According to the second paragraph, the financial industry A sold off the mortgages when people defaulted on them.


B were unable to offload enough mortgages to minimise costs. C dismissed the claims about financial irregularities when they were made. D explained that whistleblowers’ accusations were incorrect. 3

The writer says that the people he interviewed A risked their lives to blow the whistle. B tried very hard to report irregularities to authorities. C were all dismissed from their positions in the company. D found themselves covering up wrongdoings.

4

The writer believes that their stories are important because they A demonstrate how keen companies are to discover wrongdoing. B highlight the failure of authorities charged with controlling the industry. C show that support groups within companies are very effective. D reveal that several companies have been found guilty by regulators.

5

In Peter Sivere’s experience, he A found uncovering secrets ultimately a very traumatic event. B helped his company to comply with the law. C expected to be promoted for discovering irregularities. D was disappointed at being unable to change anything.

6

According to Peter Sivere, A his demotion made him even more determined to tell the truth. B he believed that he had behaved in accordance with company policy. C big organisations are always impossible to bring to account. D he was ill-advised to try and warn the company about the problems.

WRITING PART TWO

TIPS

– Read all the instructions very carefully and underline key words. – Check the format required (proposal, letter, report, etc.). – Use clear headings and subheadings, and a range of business words and linkers. – Write at least 200 words. If you write fewer you will lose marks. You do not get extra marks


The company you work for has recently been accused in the press of sourcing products unethically. Firstly, a range of clothes is produced overseas in sweatshops where the staff are paid very little and have no benefits. Secondly, some so-called organic food products have been found to be from non-organic farms. The CEO has asked you to investigate and write a report about these situations and make recommendations.

•

Write a report for the CEO, including the following information: – explaining about the clothes range and describing conditions – giving details of the food product which was sourced unethically and explaining why this has happened – recommending actions to avoid these problems in the future.

•


13

unit

7

Reading and Writing

READING PART TWO


TIPS

– Read through the whole text first so you get an idea of how it flows and what it’s about. – Make sure that the sentence you choose fits grammatically and in terms of the meaning of

the text with both the sentence before and the sentence after it. – Remember there is always an extra sentence which does not fit anywhere.

•

Read the article below about sustainable investment.

•

Choose the best sentence (A–H) to fill each of the gaps.

•

For each gap 1 –6, mark one letter (A–H).

•


•


PRIVATE BANKING – ALTERNATIVE INVESTING – Next generation of opportunities is sustainable and story-led by Yuri Bender

Clients are being steered to a range of non-traditional options. Wealthy clients of Swiss private bank Julius Baer gather in the 5 lobby of The Crystal, one of the world’s most ecologically friendly buildings, located in London’s Docklands. (0) H The Julius Baer initiative, 10 supported by Boris Collardi, its youthful chief executive, marks the start of a race among banks to be seen as relevant to a changing society, and willing 15 to invest outside the limits of traditional portfolios. (1) Showing its wares at the Next Generation Conference was SenseCore, manufacturers (2) 20 of wearable technology. SenseCore has so far received €10m in investment from the bank’s clients. Other Julius Baer projects 25 include supporting ‘smart cities’ and electric technology for Formula E races, the first of which was held in Beijing in September. (3) ‘In the next few decades, 30 we are not just looking at the rise of China, India and Brazil,’ says Burkhard Varnholt, Julius

14

Baer’s chief investment officer. ‘We will favour those countries 35 that truly understand sustainable development, at a political and economic level. That idea embraces the responsibility we have as investment managers.’ This approach has been 40 adopted by other private banks. With traditional portfolios expected to deliver only singledigit returns, recommending 45 a handful of smaller ventures has also been embraced by US bank Citi, which recently held a seminar in London where 12 start-ups pitched to its clients. Bankers involved in the Citi 50 event say the companies were not high-tech enterprises, and instead were well-managed ‘old economy’ companies 55 involved in oil exploration, car parts manufacturing and clothing retail. (4) These story-led opportunities can be used to tempt clients out 60 of a cash-hoarding mentality. (5) But the cost of holding excessive cash will become starker as monetary policy and economic growth trends

potentially diverge in 2015. He continues, ‘This leaves scope for interesting opportunities for more trading-oriented investors. For 2015, the bank thinks 70 clients should revisit emerging market equities, particularly as Asian countries will benefit from lower oil prices and the wealth this generates is likely to 75 spill over into greater consumer spending. However, Mr Kuehne recommends clients seek stockpicking opportunities rather than broad investments in a country 80 or sector equity tracking fund. (6) Their concerns relate to risks of eurozone stagnation plus fears of liquidity-fuelled assets that could see violent corrections. 85 Investors must seek global companies less dependent on macro headlines, says Mr Duret. ‘In a hesitant recovery, industry matters more than geography.’ Yet Swiss private bankers such 90 as Pictet say client memories are still raw from equity downturns of 2002 and 2008, and they are now ultra-cautious. 65


A Jazmin Sawyers, the UK’s long jump silver medallist in the 2014 Commonwealth Games, demonstrated the clothing, which analyses respiratory, heart and temperature data, helping improve performance and detect ailments. B The ‘great rotation’ from bonds into equities has not happened, says Didier Duret, Chief Investment Officer at ABN Amro Private Banking, who says investors are clinging t o cash. C However, they say that there are plenty of initiatives in the tech space, but that clients show particular interest in investing in the nuts and bolts of the economy.


D Among markets he has recommended are allocations to the US, Japan, China and the rest of Asia. E Instead of the 60:40 equity-to-bonds formula so beloved of wealth managers, Julius B aer’s focus on direct investments in smaller ventures is attracting clients. F

The Swiss bank believes these sustainable, futuristic investments make sense in a world of low bond returns and unpredictable equity markets.

G ‘A modest exposure to cash for future investment opportunities makes sense in a client portfolio,’ says Daniel Kuehne, Head of Investment Solutions and Markets at Julius Baer. H They are attending a summit dedicated to new ideas, long-term profitability and sustainability.

WRITING PART TWO

TIPS

– Read all the instructions very carefully and underline key words. – Check the format required (proposal, letter, report, etc.) – Use clear headings and subheadings, and a range of business words and linkers. – Write at least 200 words. If you write fewer, you will lose marks. You do not get extra

marks if you write more than 250 words. •

Your bank has been asked by Mr Jones, a local businessman, for a €200,000 loan to extend his jewellery workshop and employ two new people, as he cannot keep up with the online orders he is now getting. The bank has asked you to write a letter to Mr Jones to explain why it is only prepared to lend €50,000.

•

Write the letter to Mr Jones: – explaining why the bank can only offer €50,000 – describing the positive aspects of his business – suggesting where Mr Jones could possibly get other investment.

•


15

unit

8

Reading and Writing

READING PART SIX


TIPS

– Read through the whole text first. – The extra word must be grammatically wrong or does not fit in with the text. It cannot be

just unnecessary. – One word may have several common partnerships so look carefully at the sentence before

making your choice. – Look closely at verbs to see if they are in the correct tense and form. – Look closely at relative pronouns, articles, qualifiers, prepositions, linkers, etc.

•

Read the text below about management consulting.

•


•


•

If there is an extra word in the line, write the extra word in CAPITAL LETTERS.

•

The exercise begins with two examples.

ARE MANAGEMENT CONSULTANTS WORTH IT? 0 00

Management consultants can either be considered a costly waste of money or an invaluable asset to an organisation. Whatever your view about them, any recent

1

research confirms that they provide with valuable expertise and knowledge,

2

techniques and methods to do fully analyse an organisation. Having an objective

3

perspective that is really necessary in business. If problems keep recurring, they

4

need to be hammered out and resolved as soon as possible, but long-standing,

5

deeply-entrenched members of a business may not be able to be detach themselves

6

emotionally from the business in order to do this. A good consultant should also

7

be up-to-date with such best practices within the industry and able to develop

8

into strategies to enable the business to successfully move forward as well as

9

overseeing the implementation of which those strategies. A fter weeks of minute

10

scrutiny of staff performance and operational efficiency of a business, so many

11

staff breathe a sigh of relief when the experts pack them up their laptop and

12

leave the building out for the last time. However, business leaders are satisfied and that consultants saved the business from failure an d helped it survive the economic vicissitudes of global change.

16

ANY


TIPS

– Read all the instructions carefully and underline key words. – Look at the graph and table carefully to make sure you understand fully what

they represent. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks



You are a Management Consultant working with a manufacturer of smartphone accessories whose profits have fallen significantly over the past three years. The CEO of the company has asked you for an interim report summarising the current situation.

•

Using the information from the graph and table, write a report for the CEO summarising the key costs and staff opinions.

•


Key financials £2m

£1.5m

£1m

£500,000

£100,000 2013

2014

Sales figures

2015

Staffing costs

2016

Production costs

STAFF OPINIONS ISSUE

Poor %

Satisfactory %

Salary

68

25

7

Work environment

54

43

3

Career prospects

85

5

10

Good %

17

unit

9

Reading and Writing

READING PART ONE


TIPS

– Read the questions carefully first. – The words in the questions are usually not the same as the words in the text so look for

paraphrases in the text. Words from the questions may well be in other texts. – Make sure the text matches the question exactly.

•

Look at the statements below and at the five extracts from an article about strategy.

•

Which section (A, B, C, D or E) does each statement 1 –8 refer to?

•

For each statement 1 –8, mark one letter (A, B, C, D or E).

•

You will need to use some of these letters more than once. Example 0

Certain products were becoming cheaper

1

Customers have changed their purchasing habits.

2

The regulatory body accepts that the industry has changed dramatically.

3

Many copycat companies had started very quickly.

4

New companies are providing niche products.

5

The riskiest strategy is to do absolutely nothing.

6

The authorities failed to recognise the advent of change.

7

A common industry strategy had been rendered useless.

8

Both positive and negative tactics can be learned from this sector.

A

C

BUSINESS LIFE – ANDREW HILL – ON MANAGEMENT

Take note: seven lessons in strategy from Staples’ desk by Andrew Hill

In 1986, Tom Stemberg opened the first Staples superstore in Massachusetts. Stationery retailers have not stood still since. By 1990, Mr Stemberg’s disruptive bright idea had spawned dozens of lookalike office supply warehouses. Consolidation followed, but in 1997, regulators blocked Staples’ bid for Office Depot. Last week, Office Depot again

agreed to be bought by Staples, for $ 6 billion. Antitrust approval is not a given, but what the US Federal Trade Commission deemed a potentially dominant position 18 years ago now looks more like a defensive necessity. So is that it for the category-killing, big-box retail trend of which Staples was part? Almost certainly not. The industry can still teach others a few lessons about strategy – and they are not all gloomy.

B

Do not count on staying dominant. As Rita Gunther McGrath noted in her book The End of Competitive Advantage, with few exceptions, ‘stability, not change, is the state that is

most dangerous in highly dynamic competitive environments’. Mr Stemberg and others fired the staple-gun that launched a new era, in which the half-life of dominant companies has shortened dramatically. A strategy that had served stationers and their customers well for centuries withered in 1986, but Staples’ approach barely survived ten years before it too was under attack.

18


C

Stay competitive on price. Staples and others launched at a point when the cost of office machines was starting to fall. Sales of computer and print er equipment provided a solid foundation for growth, underpinning the discounts on pens, paper and notepads and other bulk supplies. It soon became clear, however, that in retail, your biggest competitor is the Internet. Two years ago, when it approved a merger between Office Depot and OfficeMax, number three in the market, the FTC conceded that customers n ow ‘look beyond’ superstores.

D


In fact, if the commissioners had glanced up in 1997, they would have seen Amazon, which went public that year, on the horizon. At the time, Staples rightly argued the Internet would increase price transparency. But it was still early days: the commission concentrated instead on the deal’s impact on the fraction of the market served by superstores. But do not ignore your offline competitors. Big suppliers proved susceptible to death by a thousand paper-cuts on Main Street and in malls, as the likes of Costco, the retail club, Target and Walmart’s supermarkets and Walgreens’ pharmacies extended their stationery departments.

E

Dominance opens a (small) space for specialists. Tablets and smartphones may have cut bulk orders of printer ink and paper, and offered consumers alternatives to pad, pen and pencil. But specialist stationers are starting to fill a niche for retail customers with bespoke, high-end or quirky ranges of the same paperclips, ballpoint pens and notebooks sold by the discounters.

WRITING PART TWO

TIPS

– Read all the instructions carefully and underline key words. – Check the format required (proposal, letter, report, etc.). – Use clear headings and subheadings, and a range of business words and linkers. – Write at least 200 words. If you write fewer, you will lose marks. You do not get extra

marks if you write more than 250 words. •

Your company, a supermarket chain, is experiencing steadily falling sales in the domestic market. Your boss has asked you to write a report to outline the problems and suggest a new strategy to improve sales and for overseas expansion.

•

Write the report for your boss, including the following: – two reasons for falling sales – strategies to deal with the above problems – strategy for expansion overseas – conclusion.

•


19

unit

10 Reading and Writing

READING PART THREE


TIPS

– Read through the whole text first to ensure you understand the main point of the text. – Read the first question and then read the first part of the text to find the answer. – Underline key words in the question option. – Question options usually use synonyms. Look for words in the text with similar meanings. – Check that your choice reflects exactly what is said in the text.

•

Read the article below about Ginni Rometty, CEO of IBM.

•

For each question 1 –6, mark one letter (A, B, C or D) for the answer you choose.

LUNCH WITH THE FT – GINNI ROMETTY – Corporate titan, computer geek

by Gillian Tett

5

10

15

20

25

30

35

40

20

Virginia Rometty, or ‘Ginni’ as she is usually known, is arguably the most powerful female business leader in the world. She runs IBM, a company with almost half a million employees. Its technology is found in 90 per cent of the world’s banks, 80 per cent of its airlines and 70 per ce nt of all corporate enterprises. Last year it produced revenues of $93 billion. She is, in short, a corporate titan. In 1981, after working at GM for two years, Rometty joined IBM as a systems engineer, then spent the next 30 years diligently climbing the corporate ladder, doing a range of different computing, analytical, management and financial jobs. She became known for her focus, discipline and self-control – and loyalty to the gigantic corporate edifice. She never thought of leaving, and explains that many senior IBM staff have been there for decades. ‘The network of talent around you is phenomenal, and the biggest reason we exist is because of our mission, our purpose. We do the most critical things in the world,’ she says. Her conviction is powerful. But in the fast-moving modern world, is it really a benefit to have this famous history and long-serving workforce? ‘One of the biggest lessons I have learnt at IBM is the importance of knowing what must change and what must endure,’

she admits. ‘There’s this balance, which we need to find.’ At IBM, the balance seems particularly hard. When the company was 45 founded, in 1911, it was a manufacturer of business goods, such as punch card tabulators, the first commercial data processing machines. In the mid-20th 50 century it moved into mainframe computers with great success. But in the 1980s it slid into decline as personal computers eclipsed the mainframe computing business. That changed in 1993, when 55 Louis Gerstner took the helm and implemented one of the most dramatic turnaround stories in corporate history. He switched 60 the company from hardware to software, and dragged it on to the Internet. A decade on, Gerstner’s successor, Sam Palmisano, delighted investors by promising 65 to deliver $10 earnings per share by 2010 and $20 by 2015. Although IBM hit the first of these targets, when Rometty took over earlier this decade, she abandoned 70 Palmisano’s other target. Her plan falls, essentially, into three parts. First, she plans to take IBM out of unprofitable business lines, just as Gerstner did 75 in the 1990s. The second strand of her reform aims is to persuade her staff to reinvent themselves; instead of focusing on their traditional products and services, 80 she wants them to think about

client solutions. When she became chief, she decreed that IBM would conduct a mass cyber ‘learning experience’ on the first Friday 85 of each month, called Think Academy. ‘It’s all interactive, it’s live and it’s mandatory for all IBM-ers,’ she says. The third leg of Rometty’s 90 revival campaign is a bold plan to shift the company into new technologies. She is forging partnerships with groups such as Apple and Twitter to exploit technologies, and 95 mobile developing services such as cloud computing and cybersecurity, which provide a growing proportion of IBM’s revenues. It’s 100 clear, however, that what really excites her is artificial intelligence. IBM has also built a centre housing a new supercomputer, known as Watson. This is 105 pioneering AI – or what Rometty calls ‘cognitive computing’, which she believes will help doctors make diagnoses, lawyers conduct legal discovery, or 110 journalists conduct investigations. ‘We are entering a new age of machines. In the first era, machines could just count things. Then they were programmable, 115 and everything is programmable today. But this is the third era – it’s an era when the machine learns. You don’t just program it. It learns. That is what IBM does 120 now. We are leading the way.’


In the first paragraph, we learnt that A Ginni Rometty is a very important presence in business. B IBM controls several airline companies. C Ginni Rometty could be a world leader. D last year IBM earned more than some banks.

2

What does paragraph 2 tell us about Ginni Rometty? A Originally she did not plan to stay in the company.


B She joined IBM with the intention of becoming the CEO. C She holds her colleagues in great esteem. D Her loyalty to the company is unusual. 3

According to Ginni Rometty, IBM A was quick to adapt to the arrival of the personal computer. B has suffered from an imbalance of power. C has succeeded in knowing when to adapt. D has failed to recover from some industry changes.

4

What does the article say about her predecessors? A Gerstner struggled to bring the company up-to-date. B Palmisano increased the number of company shares. C Gerstner approved of Palmisano’s strategy. D Palmisano increased the share value of the company.

5

What does the article say about Rometty’s plans? A Unprofitable parts of the business will be sold. B All staff have to participate in online training. C IBM needs to focus on traditional products. D An improvement in customer service is top of the list.

6

According to Rometty, the future of her business is to A develop hardware with artificial intelligence. B sell technology for medical purposes. C follow what competitors are doing. D improve the current system of programming.

WRITING PART TWO

TIPS

– Read all the instructions very carefully and underline key words. – Check the format required (proposal, letter, report, etc.). – Use clear headings and subheadings, and a range of business words and linkers. – Write at least 200 words. If you write fewer you will lose marks. You do not get extra marks


You are the HR Manager of a company that has just appointed a Social Media Manager for the first time.

•

Write a letter to the successful candidate, Ms James: – offering her the job – describing the current situation without a manager – outlining the role of Social Media Manager – saying what you hope she will be able to achieve.

•


21

unit


READING PART FOUR


TIPS

– Read the text through quickly so you know what it is about. – Think about the meaning of each missing word. – The four options usually have similar meanings. – Look carefully at the text before and af ter each gap. – Make sure that the word fits with the grammar, collocations, phrases of the text. – Read the whole text through again to see if it makes sense with your choices.

•

Read the article below about being an entrepreneur.

•


•

For each question 1 –10, mark one letter (A, B, C or D).

•


HAVE YOU GOT WHAT IT TAKES TO BE AN ENTREPRENEUR? If you think you are prepared to ( 0 )gamble on your ideas and have the ability to ( 1 ) back from numerous ( 2 )

, then maybe you could be a successful entrepreneur.

However, it does take an inordinate amount of self-( 3 ) fact, ( 4 )

and tenacity to succeed. In

is an essential quality found in those who have succeeded, as well as a large

dose of positivity and an optimistic outlook, particularly when the ( 5 )

gets tough.

The successful entrepreneur never gives up. Self-confidence is vital, especially when doing the rounds of potential investors. Each time you try to raise capital, you are doing a sales ( 6 )

to those potential backers and, however many times you have to do it,

you must remain positive and enthusiastic as well as professional. Then to find your customers you must ( 7 )

your ideas around endlessly, and that can be soul-destroying

unless you have that innate ability to remain upbeat. Furthermore, you do not want to present your business as a one ( 8 )

pony. Having one idea is not enough, so once

you have sold it you have to think about ways of improving or diversifying it. To make matters worse, few start-ups make it past the first year, but if you do survive, all the difficulties you have faced can be the

( 9 )

of you. And, when you are trading, one of

the biggest problems for the entrepreneur will be t he fact that larger concerns often ( 10 )

payment for as long as they can, thus jeopardising cash flow. Challenges such as

these will now be part of your daily routine.

22


A risk

B gamble

C chance

D put forward

1

A return

B jump

C bound

D bounce

2

A setbacks

B drawbacks

C breakdowns

D crashes

3

A consideration

B judgment

C commitment

D determination

4

A inflexibility

B deliverance

C perseverance

D pressure

5

A doing

B going

C working

D making

6

A proposal

B pitch

C proposition

D proposal

7

A market

B retail

C trade

D hawk

8

A idea

B feature

C trick

D plan

9

A creating

B making

C forming

D becoming

A settle

B rebate

C compensate

D withhold

10

WRITING PART ONE TWO


TIPS

– Read all the instructions carefully and underline key words. – Look at the graph carefully to make sure you understand fully what it represents. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks


You are setting up a small cafe with a friend. You are in charge of the finances and have done some research on the start-up costs and potential sales. Summarise the information for your business partner.

•

Using the information from the graph, write an email to your business partner summarising the information.

•


Costs and sales forecasts over first three years 120

100

d n a s u o h t £

80

60

40

20

0

Year 1 Premises

Furniture

Year 2 Kitchen equipment

Year 3 Staffing costs

Turnover

23

unit


READING PART FIVE


TIPS

– Read the text through quickly so you know what it is about. – Think about what part of speech is missing. – Think about the possible meaning of the missing word. – Check the words before and after the gap so see if it is a common partnership

or collocation. – Read the whole text through again to see if it makes sense with your answers.

•

Read the article below about project managers.

•

For each question write ONE word.

•


FINDING A GREAT PROJECT MANAGER Chances ( 0 ) are your company has employed project managers, but how do they know they have chosen the right manager for their project? Up until recently there has been a template for the skills and characteristics required of a project manager, but in this fast-moving world, project management jobs are becoming ( 1 )

specific and

niche than ever before, and the template is no ( 2 )

very reliable.

Good project managers today need to know a ( 3 )

about many things, ( 4 )

than everything about one subject because the t eam will include the required specialists. Project managers need to be able to bring teams ( 5 )

by clarifying

roles and understanding what is needed for each project, what to deal with and what to ignore. They are capable ( 6 )

juggling different issues while motivating the team,

and they have a gift for foresight and are ( 7 ) their team. When problems occur, they can see ( 8 )

to share their vision and inspire is clouding certain issues and

sort it out. It goes without saying that good communication skills are essential, but perhaps it should be noted that listening is probably the most important skill. Furthermore, once the plan is in operation, the good PM will re-evaluate it frequently to ensure t hat it is ( 9 )

budget and schedule. Actions are far more impor tant than words. People will

follow examples of what others do, not what they say, so integrity is of the essence as ( 10 )

as a commitment to ethical practices. With the right project management

team, companies can save money and increase productivity.

24


WRITING PART ONE

TIPS

– Read all the instructions carefully and underline key words. – Look at the graphs carefully to make sure you understand fully what they represent. – Check the format required (email, letter, report, etc.). – Write at least 120 words. If you write fewer you will lose marks. You do not get extra marks



The Gantt chart below outlines the main activities for building a new factory. It is now 15th March and your boss has asked you to

write a report summarising the work already

done and the work still to be done, including the opening of the factory. •

Using the information from the chart, write a brief report for your boss summarising the information.

•


Factory construction schedule TASK

Jan

Feb

Mar

April

May

June

July

Aug

Sept

Oct

Nov

Dec

Planning

Research

Final Design

Construction Follow-up work Factory opening

25

BEC HIGHER PRACTICE TEST

READING

B E C H I G H E R P R A C T I C E T E S T

PART ONE Questions 1 –8 •

Look at the statements below and the extracts about management books.

•

Which extract ( A, B, C, D or E ) does each statement 1 –8 refer to?

•

For each statement 1 –8, mark one letter ( A, B, C, D or E ).

•

You will need to use some of these letters more than once.

•

There is an example at the beginning, ( 0 ). Example 0

Problems that often accompany expansion.

1

Holding onto target markets is not easy.

2

Ability to deal with mistakes head on.

3

A generous attitude towards others has led to great achievement.

4

New ideas often have unlikely origins.

5

The content is not only useful for new companies.

6

The writer tends to criticise large organisations.

7

The giant organisation has many features of a small new company.

8

Apparently insignificant modifications lead to success.

A

D

MANAGEMENT BOOKS by Andrew Hill

Scaling up excellence: getting to more without settling for less by Robert Sutton and Huggy Rao Working out how to expand successfully – or at all – is one of the greatest challenges for a business. Sutton and Rao lay out the lessons on how to avoid bureaucracy without succumbing to unstructured chaos. The most important insight is that expansion is not a big bang but a ‘ground war’ that ‘requires grinding it out, and pressing each person, team, group, division or organisation to make one small change after another’. This is, for the most part, a plainspoken guide with advice that is valid not only for ambitious start-ups but also for established companies.

B Driving Honda: Inside the world's most innovative car company by Jeffrey Rothfeder Love of individualism, a flat hierarchy and a strategy that involves building ideas and innovation from local insights sound like the characteristics of a start-up. But Rothfeder says Honda has always had them. His book, while sometimes over-kind, makes a strong case for considering Honda, rather than Toyota, as the best model of management for the 21st century. Rothfeder goes back to Honda's roots in pre-war Japan, when Soichiro Honda,

a gifted engineer, was scratching around for scrap to build his machines. His unselfish partnership with salesman Takeo Fujisawa became one of the pillars of the group’s success. 26


C Absolute value: what really inuences customers in the age of (nearly) perfect information by Itamar Simonson and Emanuel Rosen Simonson and Rosen deftly unravel the challenge of appealing to – and retaining – customers in an age of transparency, user reviews and information exchange. Hotel chains, carmakers and consumer electronics groups, they argue, must abandon the idea of a monogamous relationship


with customers. Instead, ‘open marriage’ is the norm, as customers decide between options on their merits. Such a trend blunts traditional marketing tools. The authors offer alternative weapons, but the book's real value is as an invitation to re-examine the marketing status quo.

D The hard thing about hard things: building a business when there are no easy answers by Ben Horowitz Horowitz’s book, drawn from his experience as an entrepreneur and, in partnership with Marc Andreessen, as a venture capitalist, is a sort of practical companion to Sutton and Rao's Scaling Up Excellence (above). Whereas the latter offers lessons about avoiding the pitfalls of growth, Horowitz describes what it is like to fall straight into them, pointing out, for instance, how sloppiness, money-burning and time-wasting plague companies as they get larger. You could call it a cautionary tale, but even in the worst of times, for true entrepreneurs ‘there is always a move’.

E The frugal innovator: creating change on a shoestring budget by Charles Leadbeater Building on other authors' works such as Jugaad Innovation and The Fortune at the Bottom of the Pyramid, Leadbeater's book is notable mainly for examples of how necessity can breed invention in places as unpromising as Brazil's favelas. His disparagement of big-company innovation gets wearisome, but this is still mainly a positive book about the potential of ‘convivial technology’ – which opens up possibilities for its users rather than constraining them – and ‘radicant organisations’, which ‘put down roots, draw in and create the resources to sustain themselves as they grow’.

27


PART TWO Questions 9 –14


•

Read the text below about crowdfunding for biotech start-ups.

•

Choose the best sentence to fill each of the gaps.

•

For each gap 9 –14, mark one letter ( A–H ).

•


•

There is an example at the beginning, ( 0 ).

Biotech start-ups look to crowdfunding by Andrew Ward

5

10

15

20

25

30

For young biotech companies starting on the long journey of drug discovery and development, cracking the science can be the easy bit. (0) H Lysimachos Zografos, a Greek computational biologist at the University of Edinburgh, thinks he has found a modern solution to this perennial challenge: crowdfunding. When the 32-year-old was seeking money to research Parkinson's disease, he turned to a website called ShareIn which connects entrepreneurs with willing investors. (9) So far, he has raised just over £60,000 from 47 individual investors and three charitable trusts towards the target of £100,000. Mr Zografos says equity crowdfunding can help bridge the notorious ‘valley of death’ that separates early-stages enterprise from long-term funding – a challenge that is especially acute in the high-risk, capital-intensive world of life sciences. (10) ‘Once you are more advanced and raising millions, more money follows. But getting to that stage is very difficult.’ Barry James, founder of

35

40

45

50

55

60

65

the Crowdfunding Centre, a research group, says there has been scepticism about whether alternative finance would work in life sciences, given the high risks, heavy capital needs and long development timescales. But he points out that biotech companies have the potential to tap investment from people with a personal stake in helping tackle a particular disease that affects either the individual or their family. Equity crowdfunding differs from charitable giving in that investors receive shares – and the possibility of a future financial gain – in return for their money. (11) And the prospect of ordinary people making emotionally-charged bets on highly uncertain medical science is sure to increase nervousness among regulators about the risks involved in alternative finance. The UK's Financial Conduct Authority last year issued a warning to investors in equity crowdfunding that ‘it is very likely that you will lose all your money’. (12) Mr Zografos says that, while most of the investors in Parkure have

70

75

80

85

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95

some personal motivation for supporting Parkinson's research, they are also mainly people with experience in business or finance, and with money to spare. (13) This is borne out by the fact that the sums raised so far are a fraction of the tens of millions of dollars needed to get a medicine into clinical trials and the hundreds of millions, or even billions, more to bring it to market. Moreover, while crowdfunding can help entrepreneurs avoid ceding control to venture capital investors, it can also create its own problems by dispersing the shareholder base among many small investors. Sophie McGrath, partner at Brown Rudnick, the law firm, says this could deter venture capital companies or big pharmaceuticals from coming in later if larger-scale funding is needed – or if the founders want to exit. But Mr Zografos is convinced that crowdfunding has a role to play. (14) Parkure uses fruit flies that have been genetically modified to develop Parkinson's disease so as to identify potential benefits from medicines already in use for other conditions.

A ‘The hardest part is the first £100,000 or £200,000,’ he says. B This is especially true in drug development, given that fewer than 10 per cent of compounds in early-stage clinical trials reach the market. C Through this online financing platform, he invited people to buy shares in his start-up company, called Parkure, which is searching among existing medicines for one that could be repurposed to tackle the degenerative brain disease. D Some 300 people invested between £37 and £108,000 through the Crowdcube platform in return for a combined stake of just under one per cent of the company, giving it a valuation of about £75 million. E He says his project is lower-risk and requires less money than typical biotech ventures.

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F

This could create tensions if biotech companies begin competing for funding from the donor communities that medical charities rely on for support.

G However, even enthusiasts for crowdfunding stress it is no panacea for cash-strapped biotech companies. H The hard part is raising the money to keep the experiments going.

PART THREE Questions 15 –20 •

Read the article below about changes in car manufacturing.

•

For each question 15 –20, mark one letter ( A, B, C or D ) for the answer you choose.


Detroit dinosaurs hit the road to Silicon Valley by Andy Sharman

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Established carmakers take on the tech companies that are shaking up motor industry by moving into their backyard. They are often cast as the dinosaurs, outdated companies left behind by the great disruption playing out across the worldwide motor industry. But established carmakers are trying to turn the tables on the US technology companies shaking up the automobile world by tapping talent in their own backyard of Silicon Valley. Ever since Daimler established its research centre in the San Francisco Bay area two decades ago, the big carmakers have been gravitating towards northern California to harness some of the expertise that has propelled the region to its status as a hotbed of the latest technologies. However, the need to exploit this knowledge has become urgent with the advent of the Internet-connected car and the rapid steps now being taken towards driverless vehicles – where sophisticated software acts as the brain of the automobile. Furthermore, having a presence in Silicon Valley may help ensure the established carmakers do not cede leadershipnof their industry to new entrants, led by Google – which last year revealed a prototype self-driving car – and Tesla, the electric-vehicle manufacturer which has the technology to produce auto-piloted vehicles. Stuttgart-based Daimler

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underlined its determination to stay at the forefront of innovation by launching its F 015 driverless-car concept at last month’s Consumer Electronics Show in Las Vegas. ‘No automaker can afford not being in the valley any more – even in times of an economic or market downturn – because IT and technology innovations will become part of the DNA of the future automobile,’ says Thilo Koslowski of Gartner, the research and consulting firm. A Silicon Valley research laboratory is therefore now a must-have for carmakers. Ford was considered late on the scene when it set up an eight-person office in the San Francisco Bay area in 2012. Last month the manufacturer based in Dearborn outside Detroit strengthened its presence by cutting the ribbon on a new research centre in Palo Alto. In all, more than a dozen carmakers and suppliers have set up in Silicon Valley, the 40-mile stretch from San Francisco to San Jose that has become synonymous with computing and the Internet. As part of the latest moves in the area by carmakers, Honda opened a new studio in November – little more than a garage that will allow software developers to work with Honda engineers on apps – to supplement its existing lab in Mountain View. Ford’s site, on the campus of

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Stanford University, is expected to employ only about 125 people by the end of the year, compared with the 6,000 employed at the company’s River Rouge factory in Dearborn. It declines to put a figure on the investment it has made in Palo Alto, and some analysts question the value of the carmakers’ Silicon Valley research hubs, dismissing them as window dressing to show how they are supposedly in touch with innovation. ‘All car companies have a very strong resistance inside for what we’re facing,’ says the chief of one car supplier, referring to the industry’s pace of change. But the carmakers strongly reject this statement. For them, one of the real draws is being close to a new wave of unlikely suppliers, such as Nest, the Internet-connected home devices company owned by Google. ‘A lot of companies [here] are already our suppliers,’ says Raj Nair, Ford’s Chief Technical Officer. ‘We’re increasingly seeing the car as being the biggest consumer electronics device you can have.’ The era of the Internet-linked vehicle – in which the vehicle sends and receives data from as many as 17 points around the body structure – is putting carmakers at the heart of the big data revolution, and calls for an entirely different skill set.

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The first paragraph says that established carmakers A have been at the forefront of automotive technology. B are considered to be rather old-fashioned. C believe that only technology companies are based in Silicon Valley. D are looking for new technology from around the world.

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We learn in the second paragraph that A Daimler has just established a research centre in California.


B carmakers are creating the software for driverless cars. C California may soon become the global hub of new technology. D carmakers aim to take advantage of latest technology. 17

The third paragraph informs the reader that A three companies are involved in producing driverless cars. B a technology company is now the leading carmaker. C it is an expensive strategy to set up in Silicon Valley. D Daimler is now the leader in vehicle development.

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Of the manufacturers that have moved to Silicon Valley A Ford has been there the longest. B Honda has the largest research facility. C fewer than a dozen have a presence. D the establishments tend to be quite small.

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According to the fifth paragraph, A Ford’s university site currently employs 125 staff. B experts consider the move to Silicon Valley is for appearance only. C Ford’s investment in its Silicon Valley site was considerable. D the move to Silicon Valley indicates how forward-thinking carmakers are.

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In the last paragraph we learn that A many car company leaders are opposed to change. B Ford’s main supplier is in Silicon Valley. C being near to the technology suppliers is important. D carmakers have revolutionised technology developments.

PART FOUR Questions 21 –30 •

Read the article below about making presentations.

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For each question 21 –30, mark one letter ( A, B, C or D ).

•


SUCCESSFUL PRESENTATIONS Making presentations can seem ( 0 ) B for some people, but you can’t get ( 21 )

with

being unprepared – good preparation is vital. Whatever the subject, the key skill is to make people believe you are passionate about it. If you are not interested, how can you expect others to be? You should start with an attention ( 22 ) or funny story that will ( 23 ) yourself: no ( 24 )

– a surprising fact

to the audience. Also be fully aware of how you present

because it makes you look as if you do not want to be there. It also

signals a lack of confidence and indicates that you do not care about your talk. Your ( 25 )

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will tell the audience a great deal about you. Secondly, avoid ( 26 )

– there’s


nothing worse than someone who keeps making small movements during a talk. And finally, be aware of any annoying ( 27 )

you may have. However, you can use certain

gestures to emphasise elements of your talk – your hands do not have to be fixed at your side because this just looks unnatural. Good visual aids can make a huge impact on your presentation, but do not use them just to avoid saying very much because they can become boring and detract from you as the presenter. ( 28 ) audience to make sure no one is nodding ( 29 )

an eye on your

. And when it is time to finish, ( 30 )

up


your presentation positively and invite questions.

A pertinent

B daunting

C demotivating

D indispensable

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A off

B out

C over

D away

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A catcher

B grabber

C seeker

D maker

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A appeal

B attract

C embark

D interest

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A slipping

B slouching

C sliding

D slithering

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A position

B pose

C posture

D posturing

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A fiddling

B leaning

C staring

D fidgeting

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A mannerisms

B norms

C manners

D customs

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A Put

B Take

C Keep

D Hold

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A out

B to

C off

D away

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A pick

B wrap

C close

D end

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PART FIVE Questions 31 –40 •

Read the article below about current bank accounts in the UK.

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For each question 31 –40, write one word in CAPITAL LETTERS.

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CURRENT ACOUNTS – time right to abandon free banking, says Virgin Money by Emma Dunkley

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Britain’s free in-credit banking model is stifling competition and needs to change, Virgin Money said yesterday as it disclosed it (0)would launch its current account across the UK. It will inject a rare dose of competition into the market (31) it rolls out its Essential basic bank account across its entire branch network in England and Wales by April, (32) launching in Scotland and Northern Ireland last year. But Jayne-Anne Gadhia, Chief Executive of Virgin Money, believes Britain’s free in-credit banking model needs to change to stoke competition among banks

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and prevent another mis-selling crisis. ‘The reason we don’t have enough account switching (33) my view is not that customers have such a great deal with their existing bank, (34) that there’s an obstacle to switching, but that there’s no differentiation (35) current accounts,’ she said. ‘(36) of the similarity of products from the incumbent banks, they’ve got the market locked,’ she added. ‘It’s bad for pricing and innovation. If we want the UK banking system to thrive in future, it needs to be addressed.’ Santander’s 123 account,

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pays cash back on household bills and interest on balances for £2 a month, stands (38) ‘as the most different’, Ms Gadhia said. Britain’s big four banks, Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC, control 77 per cent of the personal current accounts market, (39) to the Competition and Markets Authority. The watchdog launched a probe last year into the current accounts market, warning that complex overdraft charges were (40) it tough for individuals to shop around and find the best deal.

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PART SIX Questions 41 –52 •

Read the text below about Netiquette, a set of rules for Internet behaviour.

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If there is an extra word in the line, writethe extra word in CAPITAL LETTERS.

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The exercise begins with two examples, ( 0 ) and ( 00 ).

NETIQUETTE 0

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Netiquette is a set of rules which it has developed to govern online behaviour

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and all employees should be made aware of them so as to avoid any serious

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problems. For example, a lack of knowledge can lead to what we might be called

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cyberbullying if a careless email is considered be offensive by the recipient.

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However, serious cyberbullying is deliberate and can cause the victim so that

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much stress that they are unable to continue to working. All companies have a duty

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to protect their staff either when they are at work, but it is very difficult these days

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with all the inter-connected devices that exist and where website information is

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shared so much easily. They should have a policy to train staff in netiquette and

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one outlining what to do if staff feel they are not being bullied at work. It is easy

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for untrained staff to write a quick email without thinking what the effect it may

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have on the recipient. The rules which have developed for email use in business

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include about simple things such as: make sure you begin a message with a

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salutation and sign off with your name; and be concise, but not ambiguous.

IT


WRITING PART ONE Question 1 •

The table below shows the percentage of managers who rated four different training courses.

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Write a report for the HR Director about the staff comments on the courses.

• Write 120 –140 words. Very good

Satisfactory

Not useful

Staff Appraisal

85%

10%

5%

Communication and Presentation Skills

25%

30%

45%

Managing Teams

40%

35%

25%

IT Challenges

90%

10%

0%

COURSE TITLE


Comments

Excellent! Very interesting! About 30% was useful. Basic stuff! Some useful information. Waste of time! Really good – excellent trainer. Vital information.

Answer ONE of the Questions 2, 3 or 4 below. PART TWO Question 2 •

The company you work for has been trying to save energy and reduce costs over the last year. The CEO has asked you to report the measures that have been t aken and how successful they have been.

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Write a report for your CEO, including the following: – what changes were implemented – any savings gained for each change – the effect on staff.

• Write 200 –250 words.

Question 3 •

Recently several of your long-standing customers have complained about mistakes in their orders and the fact that there are special promotions for new customers but none for them.

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Write a letter to all customers: – apologising and explaining problems with recent orders – giving details of a new loyalty reward system for existing customers – outlining a new range of products/services.


Question 4 •

You are a management consultant working for a small company that wishes to expand its business overseas.

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Write a proposal, including the following: – reasons for the company to expand – potential risks of expanding – suitable markets – recommendation of a market to aim for.


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Market Leader BEC Higher Practice Exercises and Test Workbook

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