11 юнит и дальше

UNIT 11.
RESEARCH SKILLS
PRE-READING
Page 240
2. What is similar/ different between academic and business research?
• Academic research is done 1) for academic purposes, 2) it uses academic research
methods, 3) it is mostly theoretical in nature.
• Business research is done 1) to choose or work out a suitable business policy or strategy, 2)
it uses business research methods, 3) it is practical in nature.
• In commercial research the results are normally private to the client, unless they are for PR
purposes. Traditionally, the results of academic research have been made available to the
wider academic world.
• The definition of research quality is different. Market researchers tend to value Criterion or
Concrete Validity (the extent to which a measure is related to an outcome) as their ‘best’
measure. By contrast, the academic world tends to prioritise Construct Validity, which
relates to how well new findings relate to an accepted theory of how things work.
• Specificity of the research objectives. Market researchers need something that works well
enough to solve a particular business problem. The academic is seeking to build knowledge
and to connect that research to a wider framework.
3. What part does research play in marketing? What is the difference between market and
marketing research? (If in doubt, visit the site below to find it out.)
http://www.marketingteacher.com/Lessons/lesson_marketing_research.htm
Market research and marketing research are often confused. 'Market' research is simply
research into a specific market. It is a very narrow concept. 'Marketing' research is much
broader. It not only includes 'market' research, but also areas such as research into new
products, or modes of distribution such as via the Internet. Here are a couple of definitions:
"Marketing research is the function that links the consumer, customer, and public to the
marketer through information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the methods for
collecting information, manages and implements the data collection process, analyzes, and
communicates the findings and their implications."
(American Marketing association - Official Definition of Marketing Research)
"Marketing research is about researching the whole of a company's marketing process."
Palmer (2000).
This explanation is far more straightforward than the first one i.e. marketing research into
the elements of the marketing mix, competitors, markets, and everything to do with the
customers.
http://www.marketingteacher.com/Lessons/lesson_marketing_research.htm
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4. Why should students develop relevant research skills? Think in terms of Master’s degree
qualifications as well as the demands of the knowledge-based economy.
Refer students to Unit 1 describing Master’s degree competences. Mention Unit 10 about the
use of knowledge technologies (such as knowledge engineering and knowledge management)
to produce economic benefits as well as job creation.
5. What methods of marketing research do you know? Which do you use?
• Different research philosophies: Primary research/ Secondary research,
Qualitative research/ Quantitative research/ mixed-methodology research
Primary research: surveys, direct observations, interviews and focus groups that are
developed and conducted by you or your researcher.
Secondary research: information on the internet, existing market research results, existing
data from your own stock lists and customer database, information from agencies such as
industry bodies, government agencies, libraries and local councils.
Qualitative research - Interviews, Focus Group, Group Interviews, Interactions - is an in-
depth exploration of what people think, feel or do and, crucially, why. If you want to know
why your customers behave as they do and what barriers there may be to their changing that
behaviour, you would use qualitative research to explore those issues. Qualitative research
does not give statistically robust findings. It provides a measure of how many people think,
feel or behave in a certain way and uses statistical analysis to determine the results. If you
want to know how many of your customers support a change in a product or service - and
how strongly they support it — so that you can determine whether you have a business case
for making that change, you would use quantitative research. Quantitative research –
Sampling, Surveys, Observational and Secondary Data. While these are often used as
standalone methodologies they can also be valuably combined into mixed-methodology
research.
What methods are common to academic and marketing research?

Methods of collecting data, using oral and written linguistic competence, mixed-methodology
research: Qualitative research/ Quantitative research: statistics, drawing on previous
research, objectivity, etc.
How can academic research skills enhance marketing research skills?

Developing an ability to analyze and synthesize information, acquiring transferable skills, a
wider vision, applying theory to practice. Using narrative – oral and written linguistic
competence –– in hypothesizing, describing, presenting research and reporting on its results,
that is communicative and soft skills in general, etc.
6. Read the passage below and comment on Prof. Hawking’s attitude to traditional
quantitative or statistical research methods. Is using images in research Prof. Hawking’s
idiosyncrasy or an inherent feature of scientific cognition? Prove your point.
Metaphoric analogy is inherent in scientific cognition, is the basis of numerous scientific
terms, which can be illustrated by: Web, windows, networking, network marketing,
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economic bubble, marriage of two businesses, shuttle spaceship/diplomacy, game theory,
language family, genetic alphabet, mushroom cloud, etc.
“I was sure that nearly everyone was interested in how the universe operates, but most people
cannot follow mathematical equations – I don’t much care for equations myself. This is
partly because it is difficult for me to write them down but mainly because I don’t have an
intuitive feeling for equations. Instead, I think in pictorial terms, and my aim in the book was
to describe these mental images in words, with the help of familiar analogies and a few
diagrams.”(1993).
POST-READING
Page 243.
1. Read the research article in depth and do the following tasks.
• Find research vocabulary and explain the meaning of the terms.
narrative – a spoken or written account of connected events; a story
sound research – based on valid reason or good judgment
qualitative or interpretive –relating to the nature or standard of something, rather than to its
quantity
quantitative research – relating to, measuring, or measured by the quantity of something
rather than its quality
action research – studies carried out in the course of an activity or occupation, typically in
the field of education, to improve the methods and approach of those involved
to balance– offset or compare the value of (one thing) with another
to underpin – support, justify, or form the basis for
paradigm – a typical example or pattern of something; a pattern or model
to denigrate – criticize unfairly; disparage
positivistic research – a philosophical system recognizing only that which can be
scientifically verified or which is capable of logical or mathematical proof,
inherent – existing in something as a permanent, essential, or characteristic attribute
to hone – make sharper or more focused or efficient
intrinsic – relating to the essential nature of a thing; inherent
soft – falling or likely to fall in value, inferior
derive sound conclusions – obtain, draw conclusions
treatise – written work dealing formally and systematically with a subject
to trigger the researcher’s interest - cause (an event or situation) to happen or exist
potent – having great power, influence, or effect
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• Describe the role of quantitative methods from a historical perspective. What are the
shortcomings of this approach? What is common between quantitative methods and
narrative that makes story-telling potent as a research method?
The code of logic on which mathematics and statistics is based is available to the
qualitative researcher and although not using mathematical and statistical techniques
qualitative research can derive sound conclusions through using similar logical procedures.
• Explain what a metaphor, a simile and an allegory are. Do they make understanding the
article easier/more difficult? Why?
Metaphor is a figure of speech in which a word or phrase is applied to an object or action to
which it is not literally applicable: concrete to abstract (e.g. cloud computing).
Simile is a figure of speech involving the comparison of one thing with another thing of a
different kind, used to make a description more emphatic or vivid (e.g. as brave as a lion).
Allegory is a story, poem, or picture which can be interpreted to reveal a hidden meaning,
typically a moral or political one (e.g. Aesop’s Fables).
The use of metaphors in qualitative research enables researchers to examine
phenomena from a unique perspective. Metaphors can be used to provide conceptual frame to
the data and new ideas; to look at a familiar process from a new perspective. Misuse of
metaphors may detract from the intended research message. Choosing to use metaphors
should not become a self-serving attempt at creativity that supersedes subject and substance.
At their best, metaphors illuminate the meanings of experiences; at their worst, metaphors
distort or obscure the essences of them.
• Formulate the communicative function of each constituent part.
The abstract serves as a prelude to an articles, gives a summary of the content of a much
longer article, 1. Intends to introduce the subject to the reader, 2. gives tribute to quantitative
methods however points out their limitations, 3. establishes a relation between the complexity
of much of the business and management research and the need to use a story or a narrative
(or indeed a picture) to deliver a much better and clearer message, 4. supports the argument of
the article pointing out that story telling is a fundamental human way of sharing knowledge,
5. establishes a relation between the narrative and the research cycle, 6. draws conclusions,
References section gives sources of information cited in the article. The structure, and the
subheadings in particular, facilitate understanding serving as a plan of the article.
• Describe the linguistic, stylistic and structural features of this article as an example of
academic/research style of writing.
The article follows Academic Style that is impersonal, formal, logical, objective,
terminological, analytical, critical, follows an accepted structure and lexical clichés. These
features are formed by:
Structural elements: abstract, keywords, headed sections, references.
Linguistic features: clarity in overall and paragraph structure, logical relations, linking words,
arguments are supported by proofs and examples, coherent deductive or inductive
development of ideas, cause and effect relations, generalisations.
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Stylistic features: bookish vocabulary: terms, research clichés, words of Latin or Greek origin,
strict logic (linking words), cohesion, objectivity, commonly formal style, etc.
2. Answer the questions.
c. Soft means non-specific, not involving much work (Oxford Advanced Learners
Dictionary)
• soft methods – involve the study of people - their beliefs, behavior, interactions,
attitudes, institutions, and so forth as opposed to traditional quantitative methods that are
considered to be “hard” = reliable, proved by experiment
• soft skills = interpersonal skills in customer service mean “indefinable in business terms”
as opposed to proper market and marketing methods
• soft in management means “of communicative, interactive, human related,
indefinable numerically nature”
• software is "human, intellectual" part of the computer as opposed to hardware and other
meanings with –ware: table/glass/silverware
LANGUAGE FOCUS (1)

Page 244
1. Look through the article again and choose collocations with the word ‘research’. Use the
patterns given in the boxes. Suggest the Russian for them.
Adjective + research: sound, interpretative, soft, quantitative, qualitative, action,
mathematical, statistical, potent, un/reliable, valid, inferior
Тщательное, интерпретационное, не имеющее экспериментального подтверждения,
количественное, качественное, экспериментальное исследование/ исследование
действием, математическое, статистическое, убедительное/ эффективное, не/ надежное,
достоверное, низкокачественное исследование.
Research + noun: research process, research paradigm, research methods, research cycle
Процесс исследования, исследовательская парадигма (Система основных научных
теорий, методов, по образцу которых организуется исследовательская практика ученых
в конкретной области знаний в данный период), исследовательские методы,
исследовательский цикл.
Research + verb: research denigrates, research is underpinned, research derives conclusions,
research triggers interest
Исследование принижает/ порочит, исследование подкреплено, исследование позволяет
сделать выводы, исследование вызывает интерес.
2. Match the word in bold type to its definition in a, b, or c. Translate the sentences into
Russian.
1). balances c; underpin c; paradigm b.
2). hone c;
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3). potent a
4). treatise c
5). soft b
3. Fill in the gaps with the following words. Translate the sentences into Russian.
1. potency, 2. treatise, 3. soft, 4. underpin, 5. paradigm, 6. balance, 7. paradigm, 8. soft,
9. inherent/intrinsic, 10. potent, 11. honed, 12. underpinned, 13. honed, 14. paradigm,
15. balance, 16. inherently/intrinsically, 17. denigrate
1. Неправильное хранение может снизить действенность лекарства.
2. Аюрведа – это древний медицинской научный труд (система индийской
медицины) об искусстве исцеления и продления жизни, иногда считающийся
пятой Ведой.
3. Он считает, что игра на скрипке - это занятие для девочек.
4. Он привел цифры, чтобы подкрепить свои утверждения.
5. Некоторые из этих педагогов надеются вызывать изменения в современной
системе культурных ценностей.
6. На его стороне значительные преимущества.
7. Существенное изменение научных идей и методов часто называют
парадигматическим сдвигом.
8. Нам придется принять некоторые жесткие решения – мягких вариантов нет.
9. Каковы долгосрочные риски и опасности, присущие этому виду работы?
10. Картины войны / воспоминания о войне и сегодня оказывают сильное
эмоциональное воздействие.
11. Она приобрела навыки участия в дебатах в студенческом союзе.
12. Постепенно законы, являвшиеся основой политики апартеида, были отменены.
13. Кость была остро заточена.
14. В философии науки парадигма понимается как общее представление о природе
научного поиска, в рамках которого ведется научное исследование.
15. Счета не сходятся.
16. Экспериментаторской деятельности в области ядерной физике присуща высокая
степень риска.
17. Примером неэтичного поведения в бизнесе является публикация агрессивного
рекламного материала, критикующего продукцию конкурента.
4. Translate the following sentences into English.

1. Any research is underpinned by a set of concepts and examples in a science
paradigm. Thomas Samuel Kuhn defines a paradigm as "universally recognized scientific
achievements that for a time provide model problems and solutions to a community of
practitioners".
2. The scientists who honed their research skills using exclusively quantitative methods
may treat qualitative marketing methods as not potent enough and thus soft and unreliable.
3. There is no balance of research methods used in different fields. The article makes an
argument that it is necessary to balance prevailing quantitative methods with qualitative ones
to enhance the potency of marketing research.
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4. The treatise demonstrates a paradigm shift in traditional research. The potency of
conclusions is guaranteed by the logic which underpins the argumentation in the practical
part and is also inherent in the study as a whole. Minor shortcomings don’t denigrate the
research paper.
5. Paul Anthony Samuelson, an American economist and a holder of the Nobel Prize in
Economic Sciences “for research enhancing the potency of scientific analysis in economic
theory" is known for his treatise Foundations of Economic Analysis. His conclusions are
underpinned by qualitative and quantitative methods of economic analysis.
5. Render the article in English using the following vocabulary.

Эволюция методов оценки персонала в России
В Советские времена инструментов (tools of appraisal) для оценки (appraisal)
персонала у нас было совсем немного: оценочное интервью и аттестационная
комиссия. Конечно, в соответствующих органах имелись и другие ‘‘количественные и
качественные” (quantitative and qualitative) методы. Но надо признать, что при приеме
на работу и при назначении на вышестоящую должность в основе принятия решения
лежали (decision making process was underpinned) часто особые критерии.
Но вот грянула перестройка, распад СССР и ситуация стала коренным образом
(intrinsically) иной. Формальных процедур не стало. Многие компании вообще
отказались в то время от аттестации как таковой, на работу принимались родственники,
друзья и знакомые. Такой выбор казался более надежным и точным. Со временем
оказалось, что с друзьями и знакомыми возникает множество проблем, В ход пошли
психологические тесты. В середине 90-х психологическое тестирование вызвало
(trigger) огромный интерес в управленческой среде. Не желая принизить значение
(denigrate) этого метода, скажем, что неадекватное использование психологического
инструментария и большое количество дешевых подделок привели к потери интереса к
психологическому тестированию в принципе.
Отказавшиеся в начале 90-х от процедуры аттестации (или совсем ее не
имевшие) компании на рубеже веков вдруг снова стали к ней обращаться. Все дело в
том, что оценка эффективности и результативности работы сотрудников является
неотъемлемым, мощным и важным инструментом (inherently potent tool)
управления персоналом и вообще возможна только тогда, когда проводится регулярно.
Регулярная оценка эффективности работы персонала на Западе называется Performance
appraisal. Заглядывая в будущее, можно прогнозировать все большее распространение
так называемых мягких (soft) способов оценки в ходе тренингов и деловых игр, а
также своего рода сращивания процессов оценки и процессов обучения. Данные
тенденции требуют, чтобы навыки и компетенции людей, занимающихся оценкой,
были расширены и заточены (honed) под тренерские. Как видим, вся сфера управления
персоналом начинает работать в совершенно иной системе координат (paradigm).
HOW TO SAY IT
Page 247
1. Scan the essay on research methodology and find the English for the following Russian
research vocabulary.
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1. философское учение, признающее чувственный опыт a. empiricism
человека единственным источником познания
2. сфера, область
3. недоступный опыту; сверхъестественный b. realm
4. связанный с логическим умозаключением от частного c. metaphysical
к общему, от единичного наблюдения к обобщению, от d. inductive
фактов к некоторой гипотезе.
5. связанный с логическим умозаключением от общих
положений, законов и т.п. к частному, конкретному
выводу e. deductive
6. тщательно исследовать
7. единый, целостный
8. учение о пути развития человеческого сознания
9. точный f. scrutinize
10. погружаться, уходить с головой g. holistic
11. выборка h. phenomenolo
12. перепись gy
13. теория познания i. rigorous
j. immerse
k. sample
l. census
m. epistemology
1. Make a list of research philosophies, approaches and methods mentioned in

the essay.
– qualitative and quantitative methodological approaches, positivism, realism and
interpretivism.
2. Read the article and think over the following questions:

a. What methods can you add to the list of primary marketing research? – mail
survey, mystery shopping, focus groups, projective techniques, product tests
and diaries.
b. What difference attitudes to research are represented by positivist and
interpretivist research philosophies? What research procedures are they
usually associated with? – A deductive process, an inductive procedure.
c. Why is interpretivism rather than positivism appropriate to use when studying
the extent of employee involvement in the implementation of Total Quality
Management? – This approach to managing people and business processes
emphasizes the importance of customer satisfaction, is socially constructed,
gives meaning to people and is not objective.
d. What parts/ aspects of research are intimately interconnected in case study? –
The detailed observations surrounding the case study method, allow us to study
many different parts, scrutinize them in relation to each other, view the process
with its total environment and also utilize the researcher’s capacity for
versatility.
e. What makes phenomenological approach in management-related research a
highly valuable methodology? – Phenomenology is described as a highly
valuable methodology particularly applicable to exploring human experiences
in management-related research. The essence to shared experience requires a
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researcher to immerse into the life world of participants and draw a parallel
between his own experiences and experiences of the target groups/individuals.
f. What is the essence of grounded research? – Developing and verifying a theory
which is grounded in systematically collected and analysed data.
g. Why is primary data collection superior to secondary? Why is the latter also
called “desk research”– Primary data is obtained ‘first-hand’ from its original
source. There are a number of secondary data sources available to the
marketer, and the following list is by no means conclusive but all involve using
library or computer resources:
• Trade associations
• National and local press Industry magazines
• National/international governments
• Websites
• Informal contacts
• Trade directories
• Published company accounts
• Business libraries
• Professional institutes and organisations
• Previously gathered marketing research
• Census data
• Public records
h. Why can Questionnaires be associated with both positivism and interpretivism

approaches of research? – Results can be analysed both quantitively and
qualitively.
i. What are the advantages and disadvantages of telephone/ interviews of
interview method? – The disadvantage with interview method for qualitative
data particularly relates to the complexity in establishing the needed trust,
especially over the phone, usually so important for obtaining this type of data.
j. What are the reasons for using sampling instead of census technique? –
Sampling is used instead of census owing to restrictions of time, money and
often access. It enables the researcher to minimize amount of data the
researcher needs to collect, by considering only data from a subgroup.
RESEARCH SKILLS (1)

Page 250
1. Match the following words denoting types of research with their descriptions.
1. Descriptive 2. Analytical 3. Exploratory 4. Predictive
2. Fill in the blanks with the missing word for a type of research. Suggest the Russian terms.
1. Predictive прогностические исследования
2. Descriptive описательное исследование
3. Exploratory Исследования с целью научного прогнозирования
4. Analytical аналитическое исследование
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3. Combine in oppositions the following words denoting research approaches.
Quantitative/qualitative, applied/basic, deductive/inductive
Fill in the blanks with the missing word from the box.
1. Inductive research moves from particular situations to make or infer broad general
ideas/theories.
2. Qualitative research is more subjective in nature and involves reflecting on the less
tangible aspects of a research subject: values, attitudes, perceptions.
3. The primary aim of basic research is to improve knowledge generally, without any
particular purpose.
4. The emphasis of quantitative research is on collecting and analyzing numerical data.
5. Students at the school of Management are expected to engage with applied research or
problem-solving research project.
6. Deductive research moves from general ideas to specific situations.
4. Think over the definition or description of a research method and fill in the gaps with the
missing word for the name of a method. Suggest the Russian for the English terms.
1. A case study offers an opportunity to study a particular subject, e.g. one organization, in
depth. – Изучение конкретного случая из практики бизнеса.
2. Cross-sectional is a study involving different organizations or groups of people to look at
similarities or differences between them at any one particular time. – Перекрёстный анализ.
3. Action research involves an intervention by a researcher to influence change in any given
situation and to monitor and evaluate the results. – Экспериментальное исследование,
исследование действием.
4. Grounded theory is a method that operates almost in a reverse fashion to traditional
research. Rather than beginning by researching & developing a hypothesis, data are collected
as the first step. The analysis of the data serves as the basis for the creation of a theory, or a
reverse engineered hypothesis. – Метод выдвижения гипотезы на основе обобщения
фактов, в отличие от классического научного метода выдвижения гипотезы и ее
последующего доказательства фактами.
5. Surveys involve selecting a representative and unbiased sample of subjects drawn from the
group you wish to study. – Опрос, анкетирование.
6. Participative enquiry is a study within one’s own group and involves the active
involvement and cooperation of people who you normally work with: sharing, discussing, and
agreeing/disagreeing. – Метод совместного обсуждения проблемы участниками группы.
7. Longitudinal are studies over an extended period to observe the effect that time has on the
situation under observation. – Продольные, осевые исследования.
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8. Female research is done from a feminist perspective and focuses on knowledge grounded
in female experiences. – Гендерные исследования.
9. Experimental studies are done in carefully controlled and structured environments. –
Экспериментальные исследования.
10. Participant observation, also called anthropology, evolved from anthropology where the
researcher becomes a working member of the group or situation to observe. – Метод прямого
наблюдения.
CASE STUDY
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2. Understanding research proposal structure.
Read the proposal and match the following headings to their appropriate parts. There
is one extra heading.
Research proposal
Title
Background
Research objectives
Method
Timescale
Resources
References
3. Research proposal assessment.

c. Are the methods fully described? What quantitative method of data collection was not
mentioned in the Method section? – Sampling.
What other methods of primary data collection could have been used? – Conversations,
interviews.
4. Implications for personal research.
Put the stages of research process in the correct order and explain the choice. Based on this
order, set the timescale of your own research.
Stages of the Research Process

1 – 4, 2 – 1, 3 – 2, 4 – 6, 5 – 7, 6 – 3, 7 – 5
HOW TO SAY IT
Page 255
1. The logical structure of a research paper rests (among other things) on linking words
and phrases. Say what part of research (a-f) the following expressions (1-13) refer to. –
1 - b; 2 - g, m, n; 3 - e, j; 4 - c, l; 5 - f, i; 6 - a, h; 7 - d, k
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3. Look at the clichés. Arrange them according to the headings 1-7 in task 1 above. Make up
a list of useful expressions that you can use in your own research paper/abstract/article. The
list of clichés makes Portfolio entry.
1. Introducing Work – a, b, c, d
2. Stating objectives – a, e, f, g, j
3. Referring to the Literature i, t,
4. Introducing Criticism/Theoretical Gap k, l, m, n, o, p, q, r, s, t
5. Describing Methods
6. Reporting Results
7. Writing Conclusions
Note: Refer the graduates to The Academic Phrasebank at
http://www.kfs.edu.eg/com/pdf/2082015294739.pdf
and get them to complete their lists of clichés with phrases under the headings Methods,
Results, Conclusions from the Phrasebank or with the clichés from the list below that is
copiable and can be handed out.
Describing Methods
1. A case study approach was used to allow a ….
2. A quantitative approach was employed since ….
3. It was decided that the best method to adopt for this investigation was to ….
4. The study uses qualitative analysis in order to gain insights into ….
Reporting positive / negative / interesting results
1. Strong evidence of X was found when ….
2. The results, as shown in Table 1, indicate that ….
3. Further statistical tests revealed ….
4. No difference greater than X was observed ….
5. The most striking result to emerge from the data is that ….
6. The single most striking observation to emerge from the data comparison was…
Writing Conclusions
1. This paper has argued that ….
2. The present study was designed to determine the effect of ….
3. This study has shown that ….
4. The findings / evidence from this study suggests that ….
5. The following conclusions can be drawn from the present study ….
6. An implication of this is the possibility that ….
WRITING (1)
Page 259
2. Refer particular thematic parts or lines of the abstract below to the recommended
structural parts of an abstract/ article. Does the author follow the recommendations?
KEY:
• Objectives and scope of investigation
The aim of the paper is to discuss a possible extension of narrative analysis to a new
medium of expression of consumer behaviour, specifically YouTube.
• Methods
Narrative analysis is presented as a possible means of understanding YouTube.
138
• Major Results/Findings
These indicate that YouTube content can be better understood as stories, rather than example
of other approaches, such as visual analysis, media studies, videography, and others.
• Principal Conclusions (Implications, value)
From the analysis conducted, preliminary managerial implications can be drawn. It explores a
new context that is gaining relevance in both the marketing literature and managerial practice.
• Keywords
Consumer behaviour, Marketing communications, Mass media, Narratives, Storytelling,
Video
THEM AND US
Page 260
Compare the following abstracts from a Russian journal with the international one above.
What are culturally specific features of Russian academic style?
– The overall structure of the Russian abstract is similar to that of the international one. The
culturally specific feature is that in addition the author’s name and affiliation, the abstract
itself, the key words and the list of references are translated into the English language, with
the Russian language references being transliterated from the Cyrillic alphabet into the Latin
alphabet (not translated).
READING AND SPEAKING (2)
WHILE-READING
Page 261
Scan the article below for the following words and check your understanding by matching
them with their definitions.
1. – c, 2 – l, 3 – e, 4 – a, 5 – I, 6 – h, 7 – f, 8 – k, 9 – b, 10 – d, 11 – g, 12 – j
POST-READING
Page 263
1. Read the text and decide on the correct meaning of the highlighted words.
1. But while Turnitin lets faculty (a) level the playing field, many students--even (b) the
straight arrows--see its use as a breach of trust.
a) faculty
− all the teachers in a university, college, or school
b) level the playing field

− to create a situation in which none of the competing parties has an advantage at
the outset of a competitive activity
139
c) the straight arrows
• someone who is reliable and good but may be rather boring
2. As soon as a paper is vetted for cut-and-paste plagiarism, it joins a database.

to remove a part of a computer document, especially in order to place it
into another document
3. So if the McLean High School students prevail with their copyrighted essays ambulance-
chasing lawyers will start tailing school buses and Turnitin may have to close up shop.
lawyers who specialize in representing accident victims are likely to
switch to school children’s suits against iParadigm.
4. That's why some schools, including McLean, rely on both honor codes and plagiarism-
detection software to keep students (a) on the up-and-up--without seeing these methods as
being (b) at odds with each other.
a) on the up-and-up
trustworthy or honest
b) at odds with each other

appearing not to correspond or match
LANGUAGE FOCUS (2)

Page 265
1. Fill in the blanks with the suitable idioms. Translate the sentences into Russian.
1. at odds with — Восхищаюсь я и вами, хотя мы с вами не очень ладим.
2. ambulance chasing –– Юристы аукционных домов представляют навязывание
адвокатских услуг пострадавшим от несчастных случаев как доведённую до
совершенства форму клиентского обслуживания.
3. on the up and up — Это законная сделка?
4. a straight arrow — Он далеко не добропорядочный полицейский.
5. A level playing field — Единые правила игры, равные возможности должны
гарантироваться всем игрокам на рынке.
6. on the up and up — Он неуклонно идет вверх по служебной лестнице.
7. ambulance chasing – Представляется, что охота за барышами от судебных исков
пострадавших от несчастных случаев, часто называемая “гонками за “скорыми”,
не слишком достойная часть работы юриста.
8. at odds with — Предложенная Блейком версия событий расходилась с
официальным отчетом полиции.
140
9. straight arrow — Стэн Смит - человек прямой и до мозга костей старомодный.
Когда его спросили, не раздражает ли его стиль игры Тириака, он, оставаясь
верным себе, ответил: "Я назвал бы это не стилем, а грубостью".
10. at odds — Два брата постоянно не ладили между собой.
11. on a level playing field – Если налоговые системы во всех европейских странах
отличаются друг от друга, как отрасли промышленности могут иметь равные
возможности?
12. was at odds with – Седые волосы как-то не вязались с ее моложавой фигурой.
5. Render the text into English paying special attention to the italicized words and word
combinations. Say, what you think about the problem.
УНИВЕРСИТЕТЫ ПРОТИВ ПЛАГИАТА: КТО КОГО?

Большинство студентов давно сообразили, что в наше время заниматься
плагиатом (to plagiarize) просто, как никогда, и никаких посредников для этого не
надо. В наших вузах плагиат — повальная проблема. Интернет служит запросам (to
cater to) не только нерадивых (negligent, remiss, careless), но и вполне “правильных”
студентов (straight arrows). Но что считать плагиатом? А точнее, как определить его
границы? В той или иной степени в плагиате можно обвинить практически любого, кто
получал высшее образование. Я, например, в лихие (valiant, intrepid; (удалой)
dashing) студенческие годы тоже вставлял в свои тексты чужие абзацы,
позаимствованные в интернете (cut/copy and paste from the internet). Признайтесь, вы
ведь тоже, наверное, что-то переписывали из (to cut and pasted/copy and paste/pluck
from the internet), “умной книжки”, найденной в интернете, в свои курсовики или
рефераты?
В плагиате и нарушении авторского права (to accuse of copyright infringement)
обвиняли многих известных и не самых глупых людей. Даже Мартин Лютер Кинг,
известный своим красноречием и ораторским искусством, вроде бы, читал чужие речи.
(Was alleged to deliver other people’s speeches).
Понятно, что если принести чужую статью, подписанную собственным именем,
— это будет безусловный плагиат. Но есть варианты. Например, текст компилируется
из разных кусков различных статей. Вроде бы, какая-то минимальная работа проделана,
но итог все равно явно нечестный (obvious plagiarism). Потому что своих буковок и
мыслей в тексте нет, а есть только доказательство того, что человек умеет: а) читать и
б) пользоваться функцией “копировать-вставить” (copy-paste/cut-and-paste).
В хороших западных университетах работе с источниками и правильному
цитированию учат уже на подготовительных курсах (называется это Academic writing),
чтобы помочь студентам обеспечить честность и благонадежность (to keep students
on the up-and-up) в отношении авторского права. В Западной Европе преподаватель,
если ему покажется, что работа несамостоятельная и противоречит (at odds with the
rules) установленным академическим правилам, может отправить текст на проверку.
Специальная система сверит его с базой данных предыдущих студенческих работ и
проверит на совпадения интернет (to vet for cut-and-paste plagiarism against a data
141
base of students’ submissions). Борьба с плагиатом оправдана: все студенты должны
находиться в равных академических условиях. (To have a level playing field) В
некоторых вузах (например, в Центрально-Европейском университете) однажды
замеченных в плагиате обязательно проверяют после каждого курса. Попавшиеся на
плагиате в итоговой дипломной работе остаются без диплома. Самые жесткие правила
существуют в США. Один из популярных сервисов борьбы с плагиатом Plagiarism.Org
дошел до того, что предлагает снимать отпечатки пальцев (to lift fingerprints from all
students’ papers) со всех студенческих работ! В Голландии или Швеции курсовую
работу могут забраковать (to reject) , если плагиатом окажется хотя бы полстраницы
текста. В Польше, где только начали сражаться с повальным копированием текстов из
интернета, местная система проверки plagiat.pl прекращает проверять работу, если
обнаруживает, что неоригинальный текст составляет 50%.
LISTENING (1)
Page 266
Listen to the interview.
a) Make sure that you understand the following words and expressions.
• Exonerate (v) to clear or absolve from blame or a criminal charge, оправдать;
реабилитировать; восстановить в прежних правах.
• Self-reported cheating making a formal statement or complaint about oneself to the
necessary authority, добровольно признанное нарушение, списывание, явившийся с
повинной
• Understate describe or represent (something) as being smaller or less good or
important than it really is, не высказывать открыто, до конца; недоговаривать
• Egregious outstandingly bad; shocking, вопиющий, отъявленный, очевидный
• Sororities a social club or society for university women, женское студенческое
общество
• A self-fulfilling prophecy a prediction certain to happen because people think it is
likely and then behave in ways that make it happen, накликанная беда,
самореализующееся предсказание; самореализующийся прогноз
• An iconic test, (problem) having a fixed conventional style, символический
• A bottom line mentality thinking in terms of the result, подход при котором
важен итоговый результат
• Transgressions a breach of a law, etc.; sin or crime, проступок
• The hearings a meeting of a court of law or official organization to find out
the facts about something, слушания
• Hearings voids ?
• Lenient punish someone less severely than they could, мягкий, снисходительный
• To give smb the benefit of the doubt to treat someone as if their behaviour is honest or
correct, even though you are not certain that it is, сомнение в пользу ответной стороны
• Integrity the quality of always behaving according to the moral principles that you
believe in, so that people respect and trust you, прямота, честность
142
Cheating at Duke in March 2006
Script
Host:
When 34 first-year graduate students took their final exam at Duke University in March they
made a big mistake: they cheated and were caught. Officials call it the most widespread
episode of cheating in business schools' history. 9 students now face expulsion, 15 were
suspended for a year and received an F in the course and one received an F on the exam and 4
were exonerated (to clear or absolve from blame or a criminal charge, оправдать;
реабилитировать; восстановить в прежних правах).The students made an appeal to the
Judicial Board and can attend classes while they wait for the final decision which is expected
over the next month.
• The results of Prof. McCabe's survey
Cheating is not an aberration (помрачение ума). National survey suggests it's wide spread
among graduate students. Rutgers University Professor Donald McCabe released one of these
surveys. 5.300 students from 54 Universities took part. And he joins us today in this studio.
Welcome, Professor.
Professor Donald McCabe :
Thank you. Good morning.
Host:
Your survey came out before that resent episode. But what did it show?
The results confirm what we have suspected for a long time. I have been working with
graduate students over the years and consistently business and engineering students rise to the
top levels of self-reported cheating.
In this survey we decided to break out graduate students from a large number of MBA
students and MBA students are at the top in terms of self-reported cheating.
• The accuracy of self-reported cheating
Host:
You say “self reported” so how accurately your numbers reflect what is actually going on?
It’s an interesting question. I think they understate what is going on at least if you look at
more egregious (вопиющий, отъявленный, очевидный) offenses. Now think about it.
You are sitting down to filling out a survey and you are board from a term-paper to a term-
paper mill you are not anxious to admit even to yourself perhaps not to certain guys in New
Jersey doing a survey
• The field of study having a higher prevalence of cheating
143
Host:
Do you think there is a particular field of study having a higher prevalence of cheating?
Interestingly, when I do my survey there are 3 groups singled out: athletes, members of
fraternities and sororities (a social club or society for university women, женское
студенческое общество), and students majoring in business
• A group mentality
Host:
Fraternities and sororities? Is there a group mentality there? I mean, in athletes too.
I think what happens …Especially in case of fraternities and sororities. They develop a habit
of helping out their sisters and brothers. They bring back the copies of the papers that they
submitted and they create these files. A big issue is time management. So many divisions at
schools make concessions to athletes when they let them in even if they don't quality, then we
give them an equivalent of a full-time job and expect them to perform normally in the
classroom, It's a self-fulfilling prophecy (a prediction certain to happen because people
think it is likely and then behave in ways that make it happen, накликанная беда,
самореализующееся предсказание; самореализующийся прогноз).
Host:
Business?
Yes, mam.
• Why do they cheat?
There’s 2 things going on here.:, 1 - the nature of testing, If you are working on finance or an
iconic problem (having a fixed conventional style) there is a right answer and you can glance
at the paper of the student sitting next to you and see what the information is. .There’s a high
pay-off for a quick glance. And in contrast, when I take a history exam and write an essay if I
see a few words from another paper it doesn't help me very much. Over and above that,
.there’s no question that the attitude business students expressed in the survey is that they are
learning business skills, an amount of the profession; they say it's less important for the
business how you do the work unless you get it done! That’s bottom line mentality (thinking
in terms of the amount of money that a business makes or loses).
• Cheating continues outside the education system.
Host:
Do you think cheating continues outside the education system Can you trace it?
144
Yes, we’ve tried to trace it. Linda Klebe Trevino who analysed this work with me. We did a
survey of alumni. Our interest was … in a pair of articles that we put there over the years.
And certainly those students who are now alumni of 5, 10, 15 years respectively self reported
a reasonable number of transgressions (a breach of a law, etc.; sin or crime) in the real
world.
• The nature of cheating differs over the years.
Host:
Has the nature of cheating change over the years? Has new technologies contributed to it?
I happen to be a minority when I suggest that new information technology did not necessarily
have to result in a dramatic increase in the number of cheaters. It has certainly led to some
increase. There's no question of technology. The internet is so convenient to use, all
information is readily available there.
• Teachers' attitude to cheating.
Host:
Are there any universities or teachers banning, for example, Black Berries (a hand-held
device for sending and receiving e-mail) from the classroom?
There's a recent flurry of activity to use iPods. I wouldn't ban an iPod. I don't see why a
student may need to use an iPod during the exam. But I don’t know about Black Berries being
specifically banned.
• Is cheating penalized?
Host:
How often is cheating penalized?
Professor Donald McCabe:
Not as often as it should be. And this is a large measure because the law is not observed. The
main problem is at the faculty level. The faculty members themselves do not believe
somebody in their course would cheat, many faculties don’t want to. If they see something
suspicious their first reaction is “Well, I’m not sure if the student cheated or I wouldn’t be
approved if I bring the matter to the hearings (a meeting of a court of law or official
organization to find out the facts about something, слушания). The best thing for me is
not to do anything” they think. So little comes forward to the Hearing Boards. When we have
many Hearing Boards… I can't say hearings are lenient (punish someone less severely than
they could мягкий, снисходительный). But they give the students the benefit of the doubt
in many cases (сомнение в пользу ответной стороны, to treat someone as if their
behaviour is honest or correct, even though you are not certain that it is). There are many
145
cases when we are erring and the system lets the guilty students off. A very little percentage
of guilty students are punished.
• Can discipline curb the problem?
Host:
Can discipline curb the problem?
Professor Donald McCabe:
I don't think that's the question that would help. Having set favour approaches to go after
strong discipline, I favour the approaches that promote integrity (the quality of always
behaving according to the moral principles that you believe in, so that people respect and
trust you, прямота, честность), make the students understand why integrity is so important,
important for the members of this community. It's an exercise in self-responsibility.
Host:
Donald McCabe is a Professor of management and global business at Rutgers University.
Thanks a lot for your time.
Oh, my pleasure.
LISTENING AND VIEWING (2)

Page 267.
1. Watch this short video to find out what English Professor Renee Nimtz recommends
students learn about when it comes to attributing others' work. Answer the questions.
Script
3 Ways to Avoid Plagiarism – Summary, Paraphrase and Quote
There is so much talk about plagiarism these days! But how do you actually avoid
plagiarizing? Three ways to save yourself from plagiarizing are summary, paraphrase
and quote.
Let’s start with summary. This is one students are pretty familiar with, but that doesn’t
mean it’s so clear cut.
A summary is a condensed version of the original text that highlights the main or key
ideas in YOUR own words. So if you were going to summarize a chapter, it might be a page.
If you were going to summarize a paragraph, it might be a couple of lines.
The second way to avoid plagiarism is with a paraphrase. A paraphrase is
typically the same length as the original text but written in YOUR own words, like a
summary. So a paraphrase of a page would be about a page; a paraphrase of a paragraph
would be roughly the same length as the original paragraph. The real trick to paraphrasing is
making sure you use your own words and NOT using the words from the original source.
146
A quote seems so easy because you merely take the original text, put it in quotation
marks and put it into your paper. Well, not so fast.
Students tend to think that they should quote the most in the paper. And why not? It’s
the easiest, and tends to make the paper longer, but by quoting someone, you are saying
something about the text.
You are saying that the way the person wrote the text him or herself is so powerful
and so impactful that if you were to rewrite it in any way, it would lose its impact and value.
If that is not the case, you should summarize or paraphrase it. You should actually quote the
least. That means that if you put “ ” marks around text, it better be really powerful language.
So with summary, paraphrase and quote, for which of these do you need a
citation. This is a trick question; they all need a citation. If you borrow any ideas or
language from someone or a text (or a YouTube video), you must include a citation.
A good rule of thumb for summary, paraphrase and quote, is to 1. Introduce the
ethos (the set of ideas and moral attitudes that are typical of a particular group: характер,
дух) of the author or original text, 2. Include the summary, paraphrase or quote, 3. Cite
the original source and 4. Discuss the borrowed material and how it relates to the
remainder of your point/paragraph or paper.
Writing with summary, paraphrase and quote is a skill that requires practice and care
to get it right, but remember, there are only these three ways to borrow outside sources and
each needs a citation.
THEM AND US
Page 269
Render the text into English and say whether research should be part of Russian business
education.
Бизнес-образование: прагматики против академиков
Гарвард, Стенфорд, Вартон, словом, весь «верх» мировых рейтингов (the top of
the world rankings) принадлежат к «университетской» группе бизнес школ. В России к
данному формату принадлежит Высшая школа менеджмента Санкт-Петербургского
государственного университета с большим портфелем программ (portfolio of
programs), собственным штатом преподавателей (own faculty), тесной интеграцией с
ведущими школами мира вплоть до создания совместных программ. Конечно, такая
школа должна производить не только выпускников, но и новые знания, активно
участвовать в научных исследованиях (do research).
В «чистом виде» независимая В2В-модель МВА обучения впервые была
реализована в швейцарском International Institute of Management Development (IMD).
Здесь бизнес стал диктовать правила: реорганизовал структуру (shake up/out), обновил
(update) и усилил (buffed up/upgraded/overhauled) учебные планы. К "независимым"
можно отнести INSEAD.
147
Несколько лет назад ряд известных российских бизнесменов во главе с Рубеном
Варданяном, опираясь на швейцарский опыт, решили открыть Московскую школу
управления в Сколково. Характерной чертой этой бизнес школы является отсутствие
программ бакалавриата, а так же требование к профессуре покинуть свои башни из
слоновой кости (silos /ivory towers), став более практически ориентированными.
Проблема, однако, заключается в том, что школы В2В не ведут научную деятельность
(are not engaged in scholarly endeavours) и ограничены в получении
профессиональных аккредитаций, например, AACSB (The Association to Advance
Collegiate Schools of Business). Следовательно, они менее привлекательны для
профессоров с мировыми именами. (top-ranking scientist/of worldwide reputation)
148
UNIT 12. MAKE CHANGE WORK FOR YOU
PRE-RREADING
It might be useful to revise the topic words: longevity, lifespan, the average life expectancy.
WHILE-RREADING
2. Page 272
Company traits
necessary but not sufficient for survival essential for survival
Strong values (Lehman Brothers) Flexibility and adaptability
Strong corporate culture (Enron) Sensitivity to the environment
Strong sense of identity Tolerance of experiments
Probity Financial conservatism
POST-READING
2. Page 273
1. Because new companies spring out.
2. Because the company is a community of humans. “There are certainly human costs
when a company dies. It leaves communities without jobs, suppliers without
customers and former employees with the feeling that they have been deprived of their
memories.”
3. 40-50 years.
4. The Groot Constantia Estate (wine producer from South Africa, 330 years old) and
Hudson’s Bay Company of Canada (345 years old). The first one stayed in the wine
business all life while the second one kept changing its business strategies.
5. No. Hudson’s Bay Company of Canada and IBM are vivid examples.
6. Strong values (Lehman Brothers), Strong corporate culture (Enron), strong sense of
identity.
7. Flexibility and adaptability.
8. Political - South Africa, technological - IBM, market - Hudson’s Bay Company of
Canada
9. Newspapers, booksellers, travel agencies.
10. “But he added that companies that survived were tolerant. “These companies were
particularly tolerant of activities in the margin: outliers, experiments and eccentricities
within the boundaries of the cohesive firm, which kept stretching their understanding
of possibilities.” So long-lived companies encouraged their people to try something
different.”
11. “Conservative financing meant companies had the money to pursue experiments and
explore new markets and technologies.”
LANGUAGE FOCUS (1)

1. Page 273
1) novelty 2) novel 3) novel 4) innovative/innovatory 5) inventive 6) invention 7) discovery
149
2. Page 274
1) transform sth 2) evolve 3) adapt to sth; adjust to sth; amend sth; assimilate sth; reform sth;
4) restore sth; reverse sth; revert (back) to sth;
3. Page 274
1) transformed 2) adapt 3) assimilate 4) evolved 5) revert 6) reversed 7) reform 8) amend
9) reforms 10) evolution 11) transformation 12) irreversible
4. Page 274
1) major, radical, refreshing, sweeping, wholesale 2) minor, subtle 3) welcome
5. Page 274
Most employees resist change that is imposed on them. So, if a company wants to pursue a
policy that aims to bring about sweeping, or even subtle changes, managers need to remember
that their role is to facilitate change and not enforce it. This requires a/n ongoing consultation
process with the staff, so that any changes have their support before they are implemented.
LISTENING (1): What is Change Management?

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1. In our globalized and interconnected economy organizations deal with continually shifting
market conditions, customer demands, technologies, input costs, competition.
2. Change management is thoughtfully and carefully re-aligning the organization based on
the answers to the continually asked questions about the appropriateness of the strategy
and tactics they are employing to reach their long-term goals.
3. It causes the resistance and is usually accompanied by uncertainty, poor communication,
power-plays, chaos.
4. If you’re managing a change, ensure you 1) communicate the threat of not changing 2)
involve your team in decision-making (when possible) 3) minimize uncertainty 4)
celebrate success in moving towards the goal 5) keep explaining the reasons to change.
Script
What is “Change Management”? Management ‘gurus’ make a fortune teaching
managers how to deal with change. But ultimately it comes down to this: In our globalized
and interconnected economy organizations deal with continually shifting market conditions,
customer demands, technologies, input costs, competition. Organizations must adapt or die.
They must continually re-evaluate their business model and ask questions about the
appropriateness of the strategy and tactics they are employing to reach their long-term goals.
Change management is thoughtfully and carefully re-aligning the organization based on the
answers.
But the problem with change is that people who have been doing things a certain way
for a long time don’t like to suddenly be told, “You have to do things differently!” Change is
usually accompanied by uncertainty, poor communication, power-plays, and chaos.
But there are ways to manage change successfully. If you’re managing a change,
ensure you 1) communicate the threat of not changing 2) involve your team in decision-
making (when possible) 3) minimize uncertainty 4) celebrate success in moving towards the
goal 5) keep explaining the reasons to change. When there’s an information vacuum, people
always assume their managers are plotting terrible things. So be as transparent as possible.
150
And finally, remember that change is less scary when you’re driving it. Consider your
passengers.
FOOD FOR THOUGHT

Answers the following questions.
Page 278
1. Innovation is a process of finding novel solutions to important problems. Comment on
the difference between the adjectives ‘new’ and ‘novel’.
2. Heidegger’s definition is more insightful and useful: if we want to innovate by
creating new technologies, we need to first discover things and then figure out how to
put them to good use.
3. Both are discoveries and technologies, but only DNA is the product of innovation.
4. The left ones represent new knowledge while the right ones stand for new products.

Page 281
A possible summary.
Jason Clarke argues that people who try to introduce a change in their company often face
with a “wall” of unwillingness. To get through it, it’s important to realize that this wall
consists of two different types of reasons to resist: false excuses that can be easily revealed
and discarded and real reasons that need to be worked on step by step. The seven real reasons
analysed in the presentation are all based on negative emotions. People should be invited to
express these negative emotions and then modify them into positive ones. Nobody wants to be
remembered for being a conservative status quo sentinel. People want to make a difference
but sometimes they need to be reminded about it.
FUNOLOGY
Page 281
Inspiring Innovation Films
(1) Moneyball
This is my favorite innovation film. It would be hard to imagine a better vehicle to teach all
aspects of innovation. It’s nominally about baseball, but really, it’s about implementation of
an innovative way to do something. It has all the typical steps of innovation: drastic need, lack
of resources, a breakthrough concept, bold steps, team building, resistance to change,
enrollment in the project, depths of despair and ultimately triumph. The initial meeting with
the old scouts is what every innovator with a vision has faced. Fave clip might be the mid-
season meeting where innovator hero Billy Beane convinces the team owner to stay the
course on the new approach. Or, a clip with the late, great, Philip Seymour Hoffman playing a
very innovation-resistant passive-aggressive team manager. Hard to go wrong.
(2) Mad Men

Okay, it’s not a movie. Still, there are so many lessons related to innovation in this series you
could write a book about it. Every single episode contains complex creative challenges and
innovative solutions. In a way it perpetrates some of the mythology around creativity, so,
there are negative examples — such as all the drinking and drug usage. The main character
Don Draper is forever dissing research and doing things from the gut (which is not always
151
wrong). The scene of the writer who has a genius idea late at night, starts drinking, doesn’t
write the idea down — and then the next morning completely can’t remember. That’s my
“one clip” suggestion. Draper’s presentation to Kodak is a great example of an incredible
idea pitch.
(3) Tucker, the Man and His Dream

Preston Tucker’s story is brought to life in this memorable film. Tucker was a visionary
entrepreneur and engineer. The most powerful innovation clip might be the compelling
original design/vision of his cool new car. The drawing alone gets people motivated to join
the team. The scene where Tucker talks to Howard Hughes is also powerful — two innovators
talking solutions and connecting dots.
(4) The Aviator

Howard Hughes was an incredible innovator and this film shows his unique quest for
perfection. My favorite innovation scene is where he’s talking to engineers and demanding
that an entire plane be rebuilt with recessed rivets. A very unreasonable and expensive request
— because he sought truly breakthrough results. Hughes spared no expense to achieve
perfection. Also interesting is where he talks about putting 13 film cameras in the sky to
capture planes dogfighting (the Hollywood mogul he’s talking to thinks he’s nuts) but he
creates the best ever aviation film. This illustrates going against conventional thinking. Sadly,
it also shows the dark side of a highly creative personality.
(5) The Pursuit of Happyness (as in the original)

This is a film about persistence, a key trait for an innovator. Will Smith plays a down on his
luck black man dodging homelessness and jail while desperately trying to provide for his
young son. He ultimately finds a way to succeed and it’s incredibly uplifting. Based on a true
story. Here’s a great clip on how he innovates cold calling.
(6) Jobs
The movie is not as good as the book Steve Jobs by Walter Isaacson, but there are many
moments in the film that are highly instructive for innovators. I particularly enjoyed when
Jobs takes over the MacIntosh team. He walks into a room and in minutes has changed the
direction of a moribund team (a leadership clip). An early scene where his boss is dressing
him down is also classic — every innovator I know has been frustrated by a boss who doesn’t
begin to get “the vision.” Here’s a clip about him firing a guy because he doesn’t get the
need for fonts (perfection and sticking to the vision). The guy he fired was being
reasonable. Being unreasonable is where innovation happens.
(7) Envy
There is a scene early in this film where the two main characters played by Jack Black and
Ben Stiller are in an invention discussion — this is the clip to use. It illustrates allowing
divergence to be truly wild. As it turns out the wild idea actually is made to work. Here’s the
clip where they demo the idea the first time.
152
(8) Apollo 13
There is an amazing creative problem solving sequence around finding a fix for the air
filtration challenge as the space capsule returns to earth. Remember the phrase “Houston we
have a problem”? Thankfully NASA found a solution.

(9) The Social Network
This film is a portrait of a start-up and there are numerous clips that could be used in an
innovation course. The best scene to use might be the one where Zuckerberg has the initial
idea for the product. FB was not invented in a vacuum, it stemmed from a real life human
need. And we all know innovative products must fill some need.
(10) Lorenzo’s Oil

Sometimes a person outside a given field of expertise brings a needed fresh perspective —
whether the insiders like it or not! That’s what this very realistic true-story film is all about.
The parents of an afflicted boy search for a solution in spite of consistent push back from
doctors who say nothing can be done. The scene I’d use in a course or workshop would be the
scene where the Nick Nolte character — who is not a doctor — hypothesizes at a white board.
It’s classic “what if” thinking.
READING AND SPEAKING (2) Reinventing the Future: How IBM Innovates
POST-READING
2. Answer the questions

Page 284
1. IBM has led the list of companies receiving US patents for the 23rd consecutive year. It
not only consistently tops the list, but outpaces the number two company on the list,
Samsung, by 50%.
2. Steve Jobs completely reinvented Apple. With a new vision for the computer as a hub
for devices, he launched the iPod, the iPhone and the iPad and transformed a failing
enterprise into the world’s most valuable company.
3. Yet IBM has done essentially the same thing multiple times. It originally grew to
prominence with punch card machines, but then moved almost seamlessly to digital
computers when they replaced the earlier technology. In the decades that followed, its
foundational innovations in software, computer memory, databases, personal computers
and, most recently, cognitive computing led to billion dollar businesses.
4. a calculating machine – a hub for communication devices – an assistant in cognitive tasks
5. We tend to think of innovation as a single event—a flash of genius followed by a
revolutionary product or service. But the truth is that the road to any significant
innovation is a long and twisted path. First, research must uncover important insights.
Then, those discoveries must be engineered into useful solutions and finally, new
products and processes must be implemented at scale in order to transform a particular
field or industry.
6. “You’re never certain as to what’s going to be commercially fantastic” says Bernie
Meyerson, the Chief Innovation Officer at IBM whose own work on Silicon-Germanium
chips revolutionized the ability for chips to facilitate communication in wireless networks
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such as Wi-Fi. “That’s why we take an unconstrained approach to research and
innovation. We want to know about everything that can help us solve a problem.”
7. 1) Theoretical breakthroughs in scientific research 2) market leading products
3) addressing the needs of the clients’ businesses
8. Steve Jobs famously said that “people don’t know what they want until you show it to
them,” but Meyerson counters, “Our customers can’t tell us about a future that doesn’t
exist yet, but they can tell us about unresolved problems and we can get to work on them.
Addressing a really grand challenge like Watson can begin 5 or 10 years before the result
is seen in public. It was a science project, but with business problems in mind.”
9. 1) its longstanding commitment to open technology. The company also often contributes
patents to open source foundations, to protect the technology. So IBM’s patent leadership
has both an offensive and defensive function. It helps create new businesses, but also
helps give it freedom of action and avoid patent infringement dustups like the one that’s
been raging between Apple and Samsung.
2) What makes IBM unique is its ability to continually renew itself and create new
markets. That’s key to understanding how IBM approaches innovation. While other
companies think in terms of quarters or years, IBM thinks in terms of decades—or longer.
Its hardware business may be faltering, but its cloud business is definitely thriving. Its
conventional software business is slowing, but it’s also entering a new era for data. Lots
of companies are trying to make machines intelligent, but nobody has anything like
its Watson Platform.
3) behind each patent is a new discovery that has the potential to lead to a new business.
LANGUAGE FOCUS (2)

1. Page 284–285
1g, 2e, 3l, 4h, 5m, 6k, 7a, 8n, 9b, 10i, 11d, 12c, 13f, 14j
2. Page 285
1. It was my idea but he stole my thunder.
2. It was very hard to make acquaintance with her boyfriend’s parents but Kate’s nice
smile helped to break the ice.
3. I would like to go to the theatre with you this Saturday but I’m so busy this week. Can
we take a rain check?
4. I don’t want my best friend to get wind of my surprise, so I’m not telling other friends
about it.
5. Their discussion is peaceful now but it’s only the calm before the storm.
6. I’m feeling under the weather today. I think I much have eaten too much.
7. Yesterday my car broke down, then I twisted my ankle. It never rains but it pours.
8. You might have your head in the clouds if you think I’m going to do your duties
every day.
9. I’m afraid I can’t go to the theatre. I’m snowed under with work this week.
10. You can’t become a professional footballer at 45. You should quit chasing rainbows.
11. He is a fair-weather friend. He didn’t lend me a helping hand last year when I was
ill.
12. I’m so exhausted now but after a few hours of rest I will be as right as rain.
13. Newlyweds had a row yesterday but it was just a storm in a teacup.
14. We have to put this project on ice until our investors are able to put money in it.
154
3. Page 285
KEY: 1f, 2d, 3b, 4g, 5c, 6e, 7a
4. Page 286
1. come and go 2. wax and wane 3. chopping and changing 4. cut and run 5. fret and
fume 6. pinch and scrape 7. wait and see
5. Page 286
1. The village had only one phone to share and everybody fretted and fumed when
somebody tied it up.
2. As the moon waxes and wanes, so does the height of the tide change.
3. After chopping and changing for the first year, Paul and Peter have settled down to a
stable system of management.
4. When foreigners own property and corporations in the US, they are less likely to cut
and run in bad times, and more likely to invest extra capital.
5. To stay afloat (survive) our company had to pinch and scrape during the first years.
6. Do you think they’ll raise taxes? We’ll have to wait and see.
7. As requirements change and employees come and go, new clauses are added to the
contract.
6. Page 286
KEY: 1g, 2c, 3a, 4i, 5h, 6d, 7e, 8b, 9f
7. Page 287
1. hard-and-fast 2. ups and downs 3. few and far between 4. once and for all 5. fair and
square 6. the one and only time 7. all the ins and outs 8. this, that and the other 9. up and
down
CASE STUDY
Step 1
Page 287
pivot [ 'pivәt] – (n) разворот, переориентация, резкая смена стратегии (темы), движущая
сила, главная опора, поворот вокруг оси,
(v) вращаться вокруг оси, (в баскетболе) распасовывать
(adj) поворотный, (в спорте) центровой, распасовывающий
Definition (from Financial Times Lexicon (ft.com/lexicon):
When used in relation to entrepreneurship, pivot (which generally refers to a shift in strategy),
describes the tortured path that most start-ups go through to find the right customer, value
proposition, and positioning.
Eric Ries, the creator of the ‘Lean Startup’ methodology, reminds us that pivots imply
keeping one foot firmly in place as you shift the other in a new direction. In this way, new
ventures process what they have already learned from past success and failure and apply these
insights in new areas.
155
What 'Pivot' Really Means
We hear about pivots all the time. But what separates the great ones from the disasters?
By Alan Spoon
“Pivoting” is a familiar word in the startup world. When your first business model
isn’t working (and this happens more often than not), the CEO and team pivot to plan B.
These are deep breath moments!
But pivoting doesn’t necessarily mean desperation. It can be a tool to discover
additional growth--growth you might otherwise have overlooked.
Businesses can grow beyond their initial dreams by re-imagining their assets and
talents, thinking more broadly about the customer problems they solve, and accessing growth
capital to seize the new high ground.
Take for example Earth Networks, one of our portfolio companies. It started as a
classroom science equipment company in the early 1990s, connecting students with weather
information outside their classroom and other classrooms across town.
The internet, not surprisingly, changed everything. Soon, Earth Networks’
management realized it was becoming a fast growing media company that could sell
advertising alongside real-time weather reports provided by a growing number of connected
weather stations. Eight thousand connected weather stations later, their “Weatherbug” app
now has the most complete local weather information available. Meteorologists and safety
officials in local and national government agencies--and hedge funds, too--use the app to get
them a degree of detail they never anticipated.
The re-imagination of Earth Networks as a network sensor and data analysis company
was just the first major step - one which opened new markets and revenue streams. A second
re-imagination exercise opened yet another new market - using network sensing and data
analysis to gather detailed information on the source and flow of greenhouse gases,
worldwide.
Now that’s pivoting for growth.
It’s not just Earth Networks. Many CEOs at our portfolio companies have re-imagined
their companies and discovered lucrative pathways. Most asked themselves:
What do we do--whether based on talent, technology, or culture--that is distinctly
valuable and defensible and might be extended to other customer needs?
How can our customer interactions be made more lasting and valuable? Are there
recurring revenue services and products that can extend beyond the initial sale?
These entrepreneurs and their teams closely study their customers’ broader behaviors around
the use of their products and services. Here’s another example of careful listening and
watching.
Phreesia began by offering doctors and their practice management staff wireless tablets as a
substitute for their clipboards. The tablets could be used to check patients into the office and
prepare the doctor for that particular patient. By paying close attention to the needs of doctors
and their staffs, Phreesia saw that its network could also be used to accurately and discretely
collect co-pays and settle outstanding balances. Phreesia conceptualized itself in a new and
more rewarding way as the “Patient Engagement” company.
Earth Networks and Phreesia are constantly pivoting, constantly re-imagining themselves.
Should you be, too?
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Extension
Change Management 101: How Businesses Win With Innovation

By Scott Steinberg
Among the most frequently cited topics in the business world today is strategic
innovation. Leaders and managers often wonder how to deal with change management since
the world is constantly in flux and everything is changing at a brisk pace — including
markets, best practices and customer expectations. It often seems that as soon as we wrap our
heads around one new idea, it changes shape, or something completely new comes down the
creek and we’re left reeling. So how can we as management executives and leaders possibly
stay ahead of the curve in a world, and commercial marketplace, that moves this quickly?
Fortunately, there’s no need for crystal balls, tarot cards, or cloying incense. The irony
is that almost any enterprise can see where trends are headed long before they come down the
pike. The trick is rather to have the good sense to step aside so you don’t get run over by
them. Start by implementing processes, platforms and people-centric solutions that allow you
to stay abreast of rising trends and topics, then proactively develop, implement and test new
methodologies, products and services to address these emerging areas of concern. From there,
observe the responses prompted by these solutions and react, iterating accordingly as you go.
That makes it a bit easier to adapt. Ultimately, it pays to be proactive. It’s wiser to stock a fire
extinguisher on-hand before the roof catches flame then finding yourself having to sprint for
one while the house is burning down around you.
While such observations may sound trite, the challenge is that successfully addressing
and adapting to strategic innovation requires implementing a culture of participation — not
necessarily the type of culture built into most Industrial Age organizations. But it’s key to
remember that executives, managers and front line employees alike seldom have trouble
spotting emerging innovations. More often, troubles surround their ability to successfully
communicate these opportunities and challenges to upper management, and obtain the
organizational buy-in needed to quickly and concisely respond to these potential hazards. As a
business leader, to succeed, it’s important to think of change management as an ongoing, not
occasional, activity that should be ingrained in any enterprise from day one. Organization-
wide, you need to open yourself up to the possibility of change instead of steeling yourself
against it, and both flatten lines of communication and optimize leadership, decision-making
and action-based hierarchy to allow for flexible and powerful responses to rising areas of
concern.
Many leaders harbor an inherent fear of or resistance to change, partially because
we’re afraid that the move we make might not be the right one. However, if we want to
succeed, it’s vital to note that freezing up is not an option — if the path is constantly shifting
in front of us, doing so is tantamount to hitting cruise control while steering headlong off the
road. Think of running your business like playing a game of football. Yards will be gained,
yards will be lost, and you’ll often get clobbered — all that matters is moving the ball down
field in the aggregate. Strategic innovation requires that you constantly be trying, failing and
learning from mistakes — market-leading products, services and organizations are seldom
born fully matured. All develop over time, as further experience, information and insight is
gained, allowing us to make better and more informed choices.
Decision makers need to make decisions, even if they don’t have perfect information.
Even the most successful organizations and managers in the world are never 100 percent sure
how outcomes will play out — and sometimes, they’re even aware that first attempts may
well be disastrous. As Prussian military theorist Carl von Clausewitz famously stated, “No
157
good plan survives first contact with the enemy.” In other words, the second that you hit the
battlefield, every variable can change. So to succeed, you need to be prepared to meet those
potential changes, and respond in kind. To this extent, you need to experiment, prototype,
gain hands-on learning and — whether speaking from an organizational or personal level —
constantly be striving to acquire the experience, skills, contacts, insights and connections that
will help diversify and strengthen your outlook as a result of each successive attempt. So long
as you’re doing so strategically and in measured, cost-effective fashion with an eye towards
eventual success, short-term failure can actually pave the way to success. In the same way that
early prototype versions of high-tech products lead to polished end products, so too can
nascent leadership strategies and approaches eventually grow into powerful ways of
addressing developing topics and trends.
From a broad level, it pays to encourage employees to speak up and contribute, open
channels of communication, and create incubators within any given organization. Make sure
that leaders at all levels can communicate with one another and share ideas. Keep up with
emerging trends, and once you have a better idea of what’s coming down the pike, you can
prototype with new strategies, new products, and new processes designed to piggyback on or
steer safely clear of them. And ultimately, keep your organization’s end goals in mind — you
can lose individual battles, but still win the war. Don’t be afraid of failures, as long as they’re
measured, strategic, and cost-effective — after all, said failures are the best way to learn.
Apple’s iPod didn’t spring from the blueprints and off the assembly belt in one smooth
motion. Countless experimentation and mistakes were involved before the company got the
design right.
As a leader, give yourself permission to speak up, try and do, and give others within
your organization permission to do so, too. Don’t allow employees to keep quiet, or keep their
heads down — encourage their contributions and insights. And when all’s said and done with
an initiative, don’t worry if it isn’t perfect — instead, ship your product or venture and see
what happens, iterating as you go.
It pays to have back-up plans, keep experimenting new approaches, and leave yourself
enough headroom to maneuver as new feedback and information is gained. You don’t need an
industry prophet, fortune teller or high-powered management consultant to realize the secret:
constant motion and flexibility are how you stay ahead of the curve.
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UNIT 13. DIGITAL BUSINESS
Page 293
PRE-READING
1. In groups of three or four discuss the benefits and drawbacks of using the Internet in a)
retailing, b) advertising, c) innovation management, d) procurement & logistics etc.
How Do Businesses Use the Internet?
The Internet is a powerful tool that can make a business more productive and profitable.
When the Internet and email are used effectively, they help streamline business activities,
communicate more efficiently with customers and even generate new customers or clients—
all while helping to reduce business expenses.
• Research Competition Some businesses use the Internet to research competitors.
• Buy and Sell
• One of the basic uses of the Internet for businesses is to sell products and services.
Businesses create E-commerce websites to sell anything from cell phone contracts to
books and CDs.
• Gauge Customer Interest. Business owners use the Internet to monitor customer
purchasing trends and interests. A business owner can also use the Internet to connect
and communicate with his customers through these same websites.
• Advertising. Businesses also use the Internet to find new customers through online
advertising.
• Provide product information. Give customers direct access to information about your
products. Some people prefer to learn about products on their own.
• Augment/replace phone banks
• .Recruit new employees .
Internet business Advantages
• Very cheap start-up costs when compared to other business such as owning a shop
(cost effective);
• You can run your business from anywhere;
• Low overheads (hosting and maybe staff costs);
• The internet is still an open market, lots of opportunities for new business models
exist;
• Networking opportunities (a global community of peer);
• The World Wide Web operates 24 hours a day, seven days a week;
• Broad customer reach;
• Continuous innovation and business agility
159
Disadvantages
• Low barriers to entry which means that it is easy for someone to set up a website and
compete with you
• Business models can easily be copied.
• Can take a bit of time to train yourself.
• Spamming; you can spend a lot of your time dealing with spam emails and sales
people telephoning you trying to sell you directory listings
• Virus threat. Virus is a program that disrupts the normal functioning of your computer
systems.
• Lack of trust. Consumers are sometimes wary of purchasing products online.
• Copycats. It can be expensive to copyright or patent your website ideas globally. The
inability to protect your ideas can be a disadvantage of doing business on the Internet.
Though the internet can create havoc, destruction and its misuse can be fatal, its
advantages outweigh its disadvantages.
2. What is it about the Internet that is fundamentally different from earlier methods of
communication?
The most common methods of communications on the Internet (as well as within the major
online services) can be roughly grouped into six categories: one-to-one messaging (such as
"e-mail"), one-to-many messaging (such as "listserv"), distributed message databases (such as
"USENET newsgroups"), real time communication (such as "Internet Relay Chat"), real time
remote computer utilization (such as "telnet"), and remote information retrieval (such as "ftp,"
"gopher," and the "World Wide Web"). Most of these methods of communication can be used
to transmit text, data, computer programs, sound, or visual images.
With the Internet, the number of speakers is boundless, anyone can speak for pennies a day
(or for free at his or her public library), and listeners can respond and engage the speaker in an
interactive and on-going dialogue.
WHILE-READING
4. Write out all IT-related words. Visit http:// www. wordspy.com or

http://whatis.techtarget.com to look for their definitions.
wikinomics - a description of the way the relationship between businesses and markets
has changed because of much greater involvement of customers and users directly with
products or companies. This is a combination of the words 'wiki' and 'economics'.
crowdsourcing - the act of taking a function traditionally performed by an employee and

outsourcing it to an undefined, generally large group of people using information
technology. Crowdsourcing relies on a combination of distributed networks, inexpensive
digital tools of production and people who create content, rate other people's work or
solve problems in their spare time.
social media - the collective of online communications channels dedicated to community-

based input, interaction, content-sharing and collaboration.
160
supercomputer - a mainframe computer that is among the largest, fastest, or most
powerful of those available at a given time.
Web - a very large collection of documents, pictures, sounds etc stored on computers in
many different places and connected through the Internet
Web-enabled community - a virtual community whose members interact with each other
primarily via the Internet.
online reputation – the status of a corporation or a person in the Internet through blogs,
public discussions and other Web articles.
software - a general term for the various kinds of programs used to operate computers and
related devices.
social software - a category of software systems that primarily functions to allow user
collaboration and communication. Examples of social software include: Instant
messaging, Email, Internet forums, Chat rooms, Wikis (Web pages allowing editing by
viewers), Web blogs, Social network services (participants that communicate about shared
interests, such as hobbies or causes)
file-sharing - the public or private sharing of computer data or space in a network with
various levels of access privilege.
blog - a regularly updated website or web page, typically one run by an individual or
small group, that is written in an informal or conversational style.
wiki - a server program that allows users to collaborate in forming the content of a Web
site. The term comes from the word "wikiwiki," which means "fast" in the Hawaiian
language.
social networking - the practice of expanding the number of one's business and/or social
contacts by making connections through individuals.
5. Find words or expressions in the text that mean the following

to gather together in a large group to flock
to make an activity or process begin to usher
present everywhere ubiquitous
to share something with a group, especially in to pool
order to enhance efficiency
to succeed in discovering something difficult, to tease out

complicated or secret
to use something in an enthusiastic way in to seize on
order to gain an advantage
161
good at judging situations especially in canny
business
someone who does something because they dabbler/amateur

enjoy it instead of as a job
someone who does not work or study full time part-timer
someone who enjoys doing something as a hobbyist
hobby
to use someone’s ability or a supply of to tap
information and get some benefit from it
not obvious or not developed yet latent
to make an effort to understand and deal with to engage with
someone or something
to work jointly with others especially in an to collaborate
intellectual endeavor
clever and intelligent smart
POST-READING
Page 295
1.Explain what is implied by:

a. crowdsourcing - an IT-enabled business trend in which companies get unpaid or
low-paid amateurs to design products, create content, even tackle corporate R&D
problems in their spare time.
b. online reputation - the status of a corporation or a person in the Internet through
blogs, public discussions and other Web articles. The reputation can be controlled
or monitored by checking any mention of a physical or legal entity and removing
any negative comments or promoting positive ones.
c. cooperation across time and space – 24/7 interaction across national borders
(including the world’s most remote areas)
d. to flock to the virtual commons –to share common interests, ideas, and feelings
over the Internet or other collaborative networks.
e. peer production - a term coined by professor Yochai Benkler to describe a new
model of economic production, in which the creative energy of large numbers of
people is coordinated (usually with the aid of the internet) into large, meaningful
projects, largely without traditional hierarchical organization or financial
compensation.
f. peer innovation – innovation process that engages outsiders who are experts in
their own domains and whose expertise is likely to complement the knowledge
that your organization already has.
g. to achieve economies of scale – to gain a cost advantage that arises with
increased output of a product. Economies of scale arise because of the inverse
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relationship between the quantity produced and per-unit fixed costs; i.e. the
greater the quantity of a good produced, the lower the per-unit fixed cost because
these costs are shared over a larger number of goods.
h. group intelligence - a form of networking enabled by the rise of communications
technology, which has enabled interactivity and users generating their own
content.
i. to break down cost barriers – to overcome the existing high start-up costs or
other obstacles that prevent new players from easily entering an industry or area
of business.
j. smart companies - those who managed to commercialize truly innovative
technologies or techniques and gain leadership in a market. Competitors have to
refine or rethink their strategies.
k. to tap latent talent of the crowd – to capitalize on potentially existing but not
presently active, evident or realized group intelligence of broad masses.

What Is Wikinomics?
Script
Featured Guest: Don Tapscott, CEO of New Paradigm and coauthor of Wikinomics:
How Mass Collaboration Changes Everything.
• PAUL MICHELMAN: Hello, and welcome to the HBR IdeaCast Harvard Business
School Publishing. I’m Paul Michelman, online editorial director here, and I’ll be your
host. This week, IdeaCast producer Steve Singer talks with Don Tapscott, author of
Wikinomics: How Mass Collaboration Changes Everything. In its latest incarnation,
Tapscott says, the World Wide Web has become a communal experience.
Collaborators from anywhere or any walk of life now have the ability to solve
problems and produce results through collective wisdom. Although some business
leaders may find the prospect of this kind of openness rather frightening, Tapscott
believes that leveraging the new wave of community is the way of the future. And in
our HBR in Brief segment, what great managers do. So stay with us as we dive into
the era of Wikinomics.
• STEVE SINGER: Hello, I’m Steve Singer. And I’m on the phone to Toronto today
with Don Tapscott, CEO of New Paradigm and the author of the new book
Wikinomics: How Mass Collaboration Changes Everything. Welcome, Don.
• DON TAPSCOTT: Thanks very much, Steve.
• STEVE SINGER: Don, your book takes a look at how the masses– you, me, and
everyone else– are participating in and contributing to the economy and political
discourse like never before, through new and creative uses of the internet. And you
also take a close look at what the implications of this participatory culture are for
businesses. So why now? What’s making Wikinomics work now, and why hasn’t it
happened sooner?
• DON TAPSCOTT: Well, it’s a great question. And we talk about this, of course, in
the book. We call it the perfect storm, that you have four big factors that are coming
together at this unique time in economic, and really, in human, history. And that is,
number one, you’ve got the new web. This is not your daddy’s internet. The old web
was a publishing platform. It was based on HTML for the presentation of information,
which was why everyone talked about websites, and eyeballs, and stickiness, and so
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on. The new web, it’s based on XML, and that’s creating a giant global computer that
everyone programs whenever they use it. So this is creating a platform for self-
organization.
Second factor is a demographic revolution. The children of the baby boom are the first
generation to group up bathed in bits. And these kids are different. They process information
differently. They think and behave differently. And they are now the biggest generation in the
workforce and in the marketplace. They’re coming into the workforce and the marketplace.
Put those two together, you get a social revolution.
So on Christmas morning, my 20-year-old son, Alex, decides he’s going to create a

Wikinomics community on Facebook, because I gave him an advance copy of the book for
Christmas. And by the time we’re eating turkey, he’s got well over 100 people in seven
countries, with regional coordinators in each– a CIO, a president, a secretary. And they’re
placing demands on me to create value for their community.
And then these three factors come together to create an economic revolution, where the web is
radically dropping collaboration cost, and you’ve got a new generation that wants to innovate
and behave differently. And this is resulting in this deep change in the way that we innovate,
and the way that we orchestrate capability. So buckle up.
• STEVE SINGER: Don, we seem to be hearing about this everywhere now. Google
buys YouTube. The old media companies buy Web 2.0 companies. And in the book,
you say that Wikinomics is both an art and a science. Would you explain what you
mean by that?
• DON TAPSCOTT: Sure. Well, basically, what’s happening here is that it’s true that
social networking is exploding. MySpace has 375,000 new registrants a day. There’s a
new blog created every second of the day, 24 hours a day. And Time magazine says
you, the online collaborator, is the Person of the Year.
What Wikinomics is about is what’s the next step. And the next step is that this is not about
gardening, or hooking up online, or downloading videos. This is becoming a new mode of
production– that if you can create an encyclopedia with thousands of people who’ve never
met, and it’s ten times bigger than Britannica, in dozens of languages, it’s real time, but the
quality is just as good, then what else could you create? And it turns you can create software,
the Linux operating system, or application software. There’s 150,000 open source application
projects underway today. You can create a mutual fund, Marketocracy. Could you create a
savings bank? Well, the embryo is called Zopa.
And it turns out you can create physical things, goods and services. Even the most
complicated thing I can think of, the most complicated product, a new generation jumbo jet,
the Boeing 787 Dreamliner, was created using the principles of Wikinomics. So that’s what
Wikinomics is. It’s the art and science of harnessing mass collaboration for innovation, for
growth, for competitive advantage, and for profit.
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• STEVE SINGER: And you talk about the seven models of mass collaboration. Could
you take a look at maybe just one of those as an example, and how it might affect a
company or a sector?
• DON TAPSCOTT: Well, sure. Let me tell you a story. There’s a company called
Goldcorp. And the then-CEO, Rob McEwen– I know this guy, because he’s my
neighbor, actually– he’s a banker. He takes over this company. And his geologists
can’t tell him how much gold there is on the property, or where the gold is. After two
years, he’s very frustrated and he’s ready to shut down the mine. But he’s a curious
guy, and he heard about this thing called the Linux operating system. And he
wondered, if my people don’t know, maybe somebody else knows.
So what he did is a radical thing. He published his geological data, the most secret thing that
you have if you’re a mining company. It’s kept in safes and high-security computer systems.
He publishes it and holds a contest on the internet called the Goldcorp Challenge, half a
million dollars for the top three submissions in prize money. He gets submissions from all
around the world, 77 of them. They use techniques that he’s never heard of– not just
geologists, but computer scientists, and chemists are giving organic solutions to these
inorganic problems. He’s got computer graphics people, mathematicians.
He picks the top three, hands out his half a million dollars in prize money, and for it, gets $3.4
billion worth of gold. And his market value goes from $90 million to $10 billion. And I can
tell you, because he’s my neighbor, he’s a happy camper.
• STEVE SINGER: I’ll bet.

• DON TAPSCOTT: And so are his shareholders. So what’s going on here? Well, this
is a very different mindset about how to run a company. What he did was, rather
than thinking in terms of hierarchies, he thought in terms of peers and peering. Where
are the peers to his geologists? Rather than hoarding and fiercely protecting his
intellectual property, he opened it up and published it. Rather than thinking the
best talent is inside the boundaries of our company, which is conventional
wisdom– your HR is your most precious resource. It goes out the elevator every
night– he said, no, no, no. The world will be my geology department. And rather
than thinking global and acting local, that’s the expression, he acted global. He’s
used the global economy as his platform for growth and for innovation.
• STEVE SINGER: So isn’t that really scary to a lot of CEOs and senior managers?
And how do they get over that scare factor?
• DON TAPSCOTT: Well, it sure is. All of this flies in the face of conventional wisdom
about how to innovate, and orchestrate capability, and run a company. But in industry
after industry, it works. Now, back to Wikinomics, there is a real art and science to
doing this. And there could be all kinds of unintended consequences of, say, releasing
IP inappropriately. And don’t get me wrong, I’m not suggesting you should open the
kimono on everything. Lots of IP, you need to protect. And sometimes you need to
have secrets, and be closed, and so on.
But overall, I think this is a huge change, not just in the modus operandi of companies, but
really in the deep structures and architecture of a corporation. And when you have a shift like
this, it’s often received with coolness. Vested interests fight against change. And leaders of
the old have great difficulty embracing the new. So why is it that Boeing can figure it out, and
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Airbus can’t, or that Procter & Gamble can figure it out, reaching out to the world as its
chemistry department, and as its research department? And rather than NIH, Not Invented
Here syndrome, they have what they called PSE, Proudly Found Elsewhere. The basic driver
for research, rather than R&D, they call it C&D, Connect and Develop.
• STEVE SINGER: That actually leads into my next question, which is, how can
companies and individual managers prepare for this?
• DON TAPSCOTT: Well, the first part to this answer may surprise you. Personal use is
the precondition for any comprehension. The last time I said that as a theme in my
work was over a decade ago, when Mosaic came out, and the early web was in its
early stages. I said you got to use it to understand it. And now you got to use the new
web to understand it.
So if you have a teenager or a university student in your family, ask them to show you the
Facebook. Participate in a wiki. You should have a blog, if you’re a manager with some ideas
and opinions on things. You should be spending time. Download a video. Go vote for the best
video on the Super Bowl at Frito-Lay. Just become immersed in the culture. It doesn’t take a
lot of time. And it’s very stimulating, a lot of fun. That’s the first thing.
And the second thing is, start to apply these principles to your companies. And there are many
ways to do it. The wiki workplace– I was visiting a briefing at a large technology company,
and the head of sales and marketing came up to me and said, could we wiki our sales
playbook? Why do we have a bunch of bureaucrats in that office developing a sales manual,
when the people who know how to sell are the people in the field that interact with
customers? Why not give them a wiki? They’ll create the sales playbook. It’ll be better. It’ll
be cheaper. And they’ll comply with it, of course. And they built it.
So there are a million opportunities like that. And many, many opportunities in every
company. And that’s the art and science of trying to figure out where to get started and how to
move forward. And that’s really what we addressed in the book.
• STEVE SINGER: So, Don, doesn’t the Wikinomics idea, though, take away from the
underlying historical aspects of the firm in general, of the definition of a firm–
protecting their IP, and keeping all that insular, and then going out, and presenting it to
the world?
• DON TAPSCOTT: Well, it does in some ways. But one of the ways that this is
interpreted by many executives that I’ve met, is that this looks like something that’s
bad. And it’s injurious. It’s certainly not benign to my company. That when you take
activity out of the profit-making part of the economy and put it into something like the
commons– you create Linux, for example, is an operating system owned by nobody–
doesn’t that hurt the companies selling operating systems, like Microsoft? Didn’t
Wikinomics hurt Britannica?
And our research basically came to the conclusion that it hurts you only if you let it. And that
au contraire, if you’re a smart executive, and you embrace the principles of Wikinomics, that
mass collaboration is the best thing that’s come along in a long time for your business. In fact,
it’s something that you need to do. And if you do, like Boeing, you can succeed. And if you
166
don’t, as Airbus did, some people suggest that the competitor to the 787 Dreamliner from
Boeing, that the competitor from Airbus may actually never come to market.
So IBM, rather than fighting Linux, embraced it. And they gave hundreds of millions of
dollars to the Linux community. They save themselves $1 billion a year developing and
maintaining a new operating system. And they’ve created a whole new platform based on
Linux for a multi-billion-dollar business. So it only hurts you if you let it.
• STEVE SINGER: What does it take for a company to do this, though? Does it take
somebody, one person, standing up and saying, we have to do this? Because it seems
like, as you said, it’s a change in paradigm of the company, right?
• DON TAPSCOTT: Yeah. Well, it takes leadership. And there is a crisis of leadership
that’s emerging now in the market and in most companies. The punishment is already
unfortunately proving to be swift for those that don’t figure this out.
Peter Senge wrote a book way back called The Fifth Discipline. And of course, it was a big
HBR article as well. And I find myself these days turning back to a couple of his ideas when
I’m thinking about how to help companies bring this about. And he said essentially that you
need to be able to learn as an organization. And because the person at the top can’t learn for
the organization as a whole anymore, things are getting too complicated. That kind of means
that leadership can come from anywhere in an organization.
And that’s been our experience. We have found people at every level of organizations, and
often leaders come from outside the organization, that help companies to rethink their modus
operandi, how they innovate, and how they go about creating value. So that’s a very hopeful
thought. Leadership is the personal opportunity of anybody. All you have to do is will it,
really.
• STEVE SINGER: Well, this is very interesting, Don. I want to thank you very much
for your time this afternoon.
• DON TAPSCOTT: Well, my pleasure. And thanks to you folks for the good work that
you do.
• PAUL MICHELMAN: Next up, what great managers do. First, the idea in brief. You
spent months coaching that employee to treat customers better, work more
independently, or get organized, all to no avail. How to make better use of your
precious time? Do what great managers do. Instead of trying to change your
employees, identify their unique abilities, and even their eccentricities, to help them
use those qualities to excel in their own way. You’ll need these three tactics.
One: continuously tweak roles to capitalize on individual strengths. One Walgreen’s store
manager put a laconic, but highly organized employee in charge of re-stacking aisles, freeing
up more sociable employees to serve customers. Two: pull the triggers that activate
employees’ strengths. Offer incentives such as time spent with you, opportunities to work
independently, and recognition in forms each employee values most. And three: tailor
coaching to unique learning styles. Give analyzers the information they need before starting a
task. Start doers off with simple tasks. Then gradually raise the bar, and let watchers ride
shotgun with your most experienced performers.
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The payoff for capitalizing on employees’ unique strengths– you save time. Your people take
ownership for improving their skills. And you teach employees to value differences, building
a powerful sense of team.
Next, the idea in practice– a closer look at the three tactics. One, capitalize on employees’
strengths. First, identify each employee’s unique strengths. Walk around, observing people’s
reactions to events. Note activities each employee is drawn to. Ask, what was the best day of
work you’ve had in the past three months? Listen for activities people find intrinsically
satisfying. Watch for weaknesses, too, but downplay them in your communication with
employees. Offer training to help employees overcome shortcomings stemming from lack of
skills or knowledge.
Otherwise, apply these strategies. Find the employee a partner with complementary talents. A
merchandising manager who couldn’t start tasks without exhaustive information performed
superbly once her supervisor, the VP, began acting as her information partner. The VP
committed to leave the manager a brief voicemail update daily, and arranging two touch base
conversations weekly. Reconfigure work to neutralize weaknesses. Use your creativity to
envision more effective work arrangements, and be courageous about adopting
unconventional job designs.
Two: activate employees’ strengths. The ultimate trigger for activating an employee’s
strengths is recognition, but each employee plays to a different audience, so tailor your praise
accordingly. If an employee values recognition from his peers, praise him by publicly
celebrating his achievement in front of co-workers. If an employee values recognition from
you, praise him by telling him privately, but vividly, why he’s such a valuable team member.
If an employee values recognition from others with similar expertise, praise him by giving
him a professional or technical award. If an employee values recognition from customers,
praise him by posting a photo of him and his best customers in the office.
Three: tailor coaching to learning style. Adapt your coaching efforts to each employee’s
unique learning style. If an employee is an analyzer, he requires extensive information before
taking on a task, and he hates making mistakes. Coach him by giving him ample classroom
time, role-playing with him, and giving him time to prepare for challenges. If an employee is
a doer, he uses trial and error to enhance his skills while grappling with tasks. Coach him by
assigning him a simple task, explaining the desired outcomes, and getting out of his way, and
gradually increasing a task’s complexity until he masters the role. If an employee is a
watcher, he hones his skills by watching other people in action. Coach him by having him
shadow top performers.
6. Give examples of successful mass collaboration/crowdsourcing projects in

different fields of human activity.
• Innocentive – created by the pharmaceutical company Ely Lilly with the objective of
bringing together companies with specific R&D needs (called seekers) and scientists
dispersed all over the world (called solvers). A certain seeker comes to the online
platform and describes what problem he is trying to solve, specifying the award he is
willing to pay for the answer. Registered solvers are able to read the problem and
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submit solutions. Should the seeker find a feasible solution among the submitted ones
the person who came up with it receives the award.
• iStockphoto – only two years ago if you were interested in getting some professional
looking images you would probably need to spend between $ 50 and $ 200 a pop with
a professional photographer or studio. Today iStockphoto offers a huge collection of
images with professional quality for prices as low as $ 1. What is the trick? They
enable anyone to upload their own pictures and earn royalties as people or
organizations purchase them. The service is also extremely simple and user-friendly:
you register up for free, search images by keywords, select the ones you are interested,
pay and download them.
• Mechanical Turk – “Today, we build complex software applications based on the
things computers do well, such as storing and retrieving large amounts of information
or rapidly performing calculations. However, humans still significantly outperform the
most powerful computers at completing such simple tasks as identifying objects in
photographs—something children can do even before they learn to speak”. The
Mechanical Turk was created by Amazon.com to link together companies requiring
HITs (Human Intelligence Tasks) performed and people who have spare time and
want to earn some money.
• Trendwatching – the company counts more than 8.000 collaborators (called trend
spotters) around the world who are responsible for tracking and reporting any changes
in the market place and consumer behavior. After this “trends gathering” process the
firm offers both a free monthly briefing and specific paid services. What the
collaborators earn? When they submit trend reports they receive points that can be
accumulated and exchanged for prizes such as flash memories, iPods and the like.
• Threadless – incredibly smart concept. Artists or anyone with some spare creativity
can submit their T-shirt designs. The designs get vote by the community (looks like
the site is very famous within MySpace, but I have not checked it). The top rated
designs get then produced and sold back to anyone interested. That is what I call lean
production…
• John Fluevog – in three words: Open Source Footware. Now that might sound weird,
but it is exactly what John Fluevog Boots & Shoes is doing (by the way check out the
site, they have some good sense of humor). One can submit his design for a shoe or
even only part of a shoe. If the design subsequently passes the voting phase it will
enter the production line. Now the person who came up with the design will not earn
royalties on it since we are talking about “open source”, instead he will be able to put
his own name on the shoe and be recognized as a contributor for the John Fluevog
company.
• Ninesigma – the business model of Nine Sigma is pretty similar to Innocentive, but
instead of focusing exclusively on scientific and research problems they aim for
innovation management problems. The demand side (companies or managers) can
request solutions for problems related to services, information or software, hoping to
improve the innovative processes within their organization.
IT MATTERS
Page 296
Search the Internet for some more examples of crowdsourcing used in a) IT-industries b) old-
line industries. Discuss them in class.
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1. Second Life – Linden Lab developed a virtual world completely created and
customized by the users (called residents). There could be some discussion on
whether Second Life represents or not a crowdsourcing company. On the one
hand it is relying on the work of thousand of people worldwide to build the
content and create value for the “game”. On the other, however, there is no
clear relationship between the parts involved. Some players create content
spontaneously to have fun, others aim to make profits, etc.
2. Rent A Coder – “Rent a coder is an international marketplace where people
who need custom software developed can find coders in a safe and business-
friendly environment.” The company basically receives requests for software
development and forwards such requests to their pool of coders, which
amounts to 150.000 worldwide. The coders, in turn, may decide to answer to a
specific request with a proposal. Finally, the requester chooses among the
received proposals (with the possibility to view the resume of coders) and a
contract is established once he finds a satisfactory solution.
3. Cambrian House – “Cambrian House’s mission is to discover and
commercialize software ideas through the wisdom and participation of
crowds”. Created at the end of 2005 the company basically collects, filters,
develops and implements software ideas. All parts of the process are managed
with inputs from the crowds, and royalties are paid whenever someone
contributes with concepts or coding.
4. General Mills Worldwide Innovation Network (G-WIN) - This major food-
processing firm has created the General Mills Worldwide Innovation Network
(G-WIN) to vigorously generate innovative concepts. It openly seeks ideas that
will help the company in many areas of its business – from ingredients to
packaging to new product ideas and suggestions to improve technology or
digital presence. The company credits G-WIN with helping it bring new
products to market quickly. Anyone can make suggestions to General Mills on
its website.
5. The Cairo Transport App Challenge. Citizens of Cairo were asked to design
solutions to a number of problems related to traffic congestion and safety as
part of an open innovation competition. The winner was Beliaa, an app that
automatically sends GPS data to the nearest road assistance centers when cars
break down.
6. Coca-Cola. Well-known for keeping secret the formula of its most famous
beverage, Coke now uses a more open business model, assuming an
increasingly prominent position in corporate crowdsourcing. Its open-sourced
“Shaping a Better Future” challenge asks entrepreneurs to create improvement-
ventures for the project-hubs of youth employment, education, environment
and health. In addition, its “Where Will Happiness Strike Next?” series of
short films and TV-commercials relies on the social media-input of Coke
customers, contributing ideas about creating happiness. Coke also seeks
crowdsourced online suggestions for marketing its products more effectively,
once again tying social media to co-creation.
7. Nokia. It focuses on consumer-derived collaboration across 210 nations to
improve the viability of Nokia products in all markets. The Ideasproject is
valuable because it draws on the consumer-experiences of participant-
innovators to generate new ideas about the kind of products they seek from
Nokia. Crowdsourcing participants are enabled, becoming their own agents of
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product-design. Current crowdsourced innovations can be examined, and new
ideas offered. Nokia shares revenues generated from crowdsourced ideas with
Ideasproject participants.

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PRE-READING
In groups of two or three, discuss the strengths and weaknesses of professional vs. amateur
approach in different fields of human activity (e.g. arts, theatre, literature, sports, medicine,
investing, commerce, gambling etc.).
We should all be professionals in whatever role we have in life, whether as an athlete,

executive, salesperson or volunteer.
Three basic attributes that separate professionals from amateurs.
1. A Commitment to Outcomes. Professionals are compensated for positive results. A

professional athlete delivers an individual performance in wins/losses or they
accumulate points… etc. Every employee or leader needs to perform in order to add
value. It is imperative to understand the results and expectations of ones’
contributions. If expectations or outcomes are unclear, the level of professionalism
drops. A professional is always committed to outcomes that give them the best chance
to win.
2. A Dedication to Training. The formal definition of a professional is an individual
who is paid for their effort and typically has formal training within their field
expertise. In today’s rapidly changing world, we always have to be learning if we want
to win. A dedication to training is not a degree you earned in the past or a one-off
training course, it’s a perpetual mindset that drives you to seek out new information,
learn new skills and push yourself out of your comfort zone. Too many people rely on
credentials from yesteryear or on-the-job experience and they miss out on the
advancement opportunities available to them.
3. An Unwavering Attitude. Amateurs are fair weather players. If they feel like
performing or showing up, they will. A professional gives their best in every situation
regardless of their mood, feelings or the circumstances at hand. They don’t allow
temporary setbacks to take them off course and they never waver in their focus to
deliver. Their loyalty and tenure within the workplace is second to none. An amateur
jumps from one company to another, or from one project to another, hoping for better
circumstances.
POST-READING
Page 299
1. What do expressions in italics mean?
1) It’s all a smokescreen - ширма, прикрытие
2) User-generated content is decimating the ranks of cultural gatekeepers
• информационная продукция, предоставленная пользователями сайта
• вытеснять
• профессиональное, экспертное мнение
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3) New business models suck the economic value out of traditional media
• лишать экономической выгоды
4) All that Web 2.0 really delivers is hijacking our time and playing to our
gullibility
• красть время
• пользоваться доверчивостью
5) Cutting and pasting is a child’s play
• компиляция
• ерунда, пустяк, детская забава
6) a younger generation of intellectual kleptomaniacs
• люди, охваченные непреодолимым стремлением красть интеллектуальную
собственность
7) Nurturing true talent in a sea of amateurs may be the real challenge
• пестование, взращивание истинного таланта
• бесчисленное множество дилетантов
• серьезная проблема
8) You won’t find talented, trained individual shipwrecked in his pajamas
behind a computer
• «зависший», в расхлябанном состоянии
9) Blogs can be vehicles for veiled corporate propaganda and deception
• средство
10) But the anti-corporate blogs are equally loose with the truth.
• искажающий истину, лживый
11) Blogs are increasingly becoming the battlefield on which public
relations spin doctors are waging their propaganda war.
• недобросовестный интерпретатор, пиарщик, манипулирующий общественным
мнением
12) the hundreds of start-ups all hungry for a piece of the Web 2.0 pie
• начинающая, недавно созданная компания
• стремиться урвать долю
13) by stealing away our eyeballs
• переключая внимание на себя, отвлекая
14) Our culture is essentially cannibalizing its young
• уничтожать, вытеснять
15) New winners – are unlikely to fill the shoes of the industries they are
helping to undermine
• служить достойной заменой
16) Talent, as ever, is the needle in today’s digital haystack.
• словно иголка в стоге сена; затеряться в цифровом пространстве
LANGUAGE FOCUS (1)

Page 300
Ex. 1. Match the following words to their synonyms
• to blur • to confuse
• to obfuscate • to obscure
• to seduce • to lure
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• to decimate • to slaughter
• to stifle • to suppress
• to woo • to persuade
• to confer • to grant
• to nurture • to cultivate
• to churn out • to produce
• superficial • shallow
• dubious • doubtful
• inane • nonsensical
• laudatory • praiseful
• defunct • obsolete
• unbiased • impartial
Ex.2. Suggest the Russian for the following word combinations.

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mature audience (взрослая/подготовленная публика) / industry (традиционная
отрасль, исчерпавшая возможности дальнейшего развития, достигшая предела) /
wine (выдержанное вино) / technology (проверенная технология)/ bill (вексель/счет,
подлежащий оплате)/ broker (опытный брокер, имеющий свою клиентуру) /
economies (развитые страны)
nascent suspicion (зарождающееся подозрение) / industry (новая отрасль, на стадии

зарождения/возникновения) / firm (недавно созданная компания)/ freedom (только
что обретенная свобода)
latent energy (потенциальная энергия) / reserves (неразведанные запасы/скрытые

резервы) / inflation (скрытая инфляция) / partner (негласный участник
коммерческого предприятия) / talent (нераскрывшийся/непроявившийся талант)
shallow mind ( неглубокий ум) / argument (неубедительный довод) / stream (мелкий

ручей) / knowledge (поверхностные знания) / policy (недальновидная политика)
smart money (выгодные инвестиции) / company (успешная/предприимчивая

компания) / card (пластиковая карта с чипом памяти) / use (рациональное
использование) / blow (сильный удар) / punishment (суровое наказание) / clothes
(элегантная/нарядная одежда)
superficial glance (беглый взгляд) / knowledge (поверхностные знания) / pastimes

(легкомысленные развлечения) / examination (внешний осмотр) / fault
(незначительный дефект)
defunct company (обанкротившаяся/расформированная компания) / species

(исчезнувшие виды)/ law (недействующий закон)
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biased error (системная ошибка) / view (предвзятое отношение/взгляд)/ sampling
(необъективный выбор) / judge (пристрастный судья) / export-biased growth
(экономический рост за счет опережающего развития отраслей, ориентированных
на экспорт)
Ex. 3. Complete the following sentences with the correct form of the words in italics.
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obfuscate
1. The message from the investment community is that [___obfuscation__] is not the
way to restore their precious confidence.
2. There are many obstacles in Europe that [_obfuscate__] the accountability of
managements to shareholders.
3. Orwell warned us to beware of governments spouting [__obfuscating__] newspeak.
retrieve
1. Once a certain amount of market position has been lost, [___retrieval____] is very
difficult indeed, and is usually possible through some outstanding technical or
production achievements.
2. Once waste materials have become mixed, the problems increase enormously and
certain substances become virtually [____irretrievable______].
3. It was found out that end-users were able to master the basic commands of the
interface sufficiently well to be able [___to retrieve_____] references on search topics
within the fields of interest.
bias
1. Good managers have [___bias__] for action.
2. Homeowners only take out an equity release product once they have carefully
considered the pros and cons of going ahead from an [__unbiased___] third party.
3. The salary structure [__is biased_] against women returning to work later in life.
custom
1. We are ready to make a concession as we are reluctant to lose your
[____customers____].
2. Mass [__customization___] is the tailoring of products or services to individual
[__customer’s ___] preferences.
3. Dell Computer [___customize____] their products to suit the needs of particular
users.
tease
1. Most orchestras, opera houses and concert venues nurture profiles on social
networking sites, upload [__teaser__] videos on to YouTube and share behind-the-
scenes information via blogs, podcasts, Twitter messages and photo shares.
2. Polls are frequently taken to try to [___tease out____] or determine likely directions
and trends, but once taken, they belong to the past, requiring that new polls be taken.
3. My job is a bit like doing a brain [___teaser____] every day because it's about
problem solving.
4. Any [___teasing__] or bullying of overweight employees must not be tolerated.
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engage
1. Over the last generation, the world’s poorest states have become immeasurably poorer
as a result of well-meaning [__engagement____] with the developed world.
2. He tapped out another rapid series of digits and the lock [____disengaged______].
3. The high subsidies offered by the UK government and by other European
governments to Nissan to encourage Japanese investment gave rise to fears that the
Europeans [___were engaged____] in “beggar-my-neighbour” subsidy policies,
which would benefit the Japanese and give them an unfair competitive edge.
mature
1. If you bought your bill through a bank, the bank will credit your account on the date
the bill [___matures___].
2. An enormous part of our [_mature_] experience cannot not be expressed in words.
3. Age is a very high price to pay for [__maturity__].
4. The [_immature__] mind often mistakes jealousy for love, or assumes that the greater
the love, the greater the jealousy.
function
1. Steps should be attractive as well as [___functional___].
2. Friedman had breathed new life into the Pigovian theory of labour market adjustment,
which, until the late 1960s, most economists had regarded as [__defunct___] and
thoroughly discredited.
3. The crew lost control of the ballast system after seawater splashing through broken
portlights washed over the ballast console and caused it [___malfunction____].
integrate
1. Terms of delivery make an [__integral___] part of any Sales Contract.
2. While the EEC did not [___disintegrate__] under the conflicting pressures, the
Community was endangered.
3. I trust we as a nation will maintain our [__integrity__] and influence.
courage
1. The Seller offered a number of incentives [____to encourage___] the prospective
customer to place an order with him.
2. Many investors [_are discouraged__] by political instability in emerging markets.
3. [___encouragement__] and support of home ownership is the top priority of the local
government.
Ex. 4. Fill in the gaps with the words from the box. Make changes if necessary.
KEY: 1. to tap, 2. ubiquitous, 3 nascent, 4.nurturing, 5. is blurring, 6 defunct, 7 mature,
8. obfuscation, 9. latent, 10. content
Ex. 5. Fill in the blanks with appropriate particles
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KEY: 1.up, 2. out, 3. with, 4. in, 5. out, 6. up, 7. on, 8. in, 9. for, 10. up, 11. against
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Ex.6. Match the following shoe idioms to their definitions.
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a. to be in someone’s shoes 1. to be in the same situation as
b. to be shaking in one’s shoes someone else
c. to wait for the other shoe to 2. to be very frightened or anxious
drop 3. to wait for something bad to happen
d. to fill someone’s shoes 4. to do what someone else has done
e. comfortable as an old shoe as well as they did
f. to wait for dead man’s shoes 5. familiar and very much at ease
g. where the shoe pinches 6. to wait for someone to die in order
to inherit his possessions
7. the source of trouble, grief,
difficulty
Watch the video interview with e-mail and metrics guru Jim Sterne “Don't Neglect E-mail
Marketing” and say what his recommendations are on how to run a successful e-mail
marketing campaign.
In this video interview, e-mail and metrics guru Jim Sterne explains that e-mail is the first
social medium and the effective workhorse of business. He recommends: (1) Be responsive --
reply to e-mails promptly. (2) Be human -- respond on a personal note. (3) Segment your
clients by behaviour to increase revenues.
IT MATTERS
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Go to http://www.imediaconnection.com and read the article
“Email campaigns that failed” by Dylan Boyd. Make a list of the most common e-mail fails.
Discuss them in class.
Email campaigns that failed
http://www.imediaconnection.com/profiles/iMedia_PC_Overview.aspx?ID=6485Dylan Boyd
The more experience you gain as an email marketer, the more you come to understand the
true purpose of an email.
It isn't simply to blast something to subscribers without relevancy or reason. It isn't to make a
quick, dishonest buck off them. It isn't to pull off a massive bait-and-switch. It isn't even to
release the hounds on the competition. It's about nurturing, building trust and
relationships, and ultimately increasing and solidifying the reputation of your brand.
Every email sent must have a purpose and needs to personally relate to the subscriber. If
the email lacks personalization or has no purpose, you're taking a risk that may cause
subscribers to not only opt-out of your emails, but also mentally and emotionally opt-out
from any future engagement with your brand. When this happens, the recipient
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immediately becomes emotionally unsubscribed. We in the industry identify it with a very
technical term: email marketing fail.
Everyone fails at some point. A recent study by Return Path discovered that up to 20 percent
of top brand marketers continue to send emails to addresses on their lists that have
unsubscribed -- more than 10 days after a confirmed unsubscribe request.
Sending to an unsubscribed address is definitely Fail No. 1.
This is a violation of CAN-SPAM, and results in complaints and possible legal trouble.
You may find your email reputation soon relegated to that of a spammer. This is a
slippery slope. When a brand has degraded itself past the point of no return with so many
email marketing fails, it has basically strung itself out on spam. At that point, batch-and-blast
spamming may be the only way to get in front of enough people to make a few sales. To
avoid this, it's important to find the silver lining in a fail. Learning from mistakes will
actually strengthen your skills and refine your habits as an email marketer.
Not learning from mistakes and getting strung out on spam is just one negative result of an
email marketing fail. When campaigns are poorly executed, or give in to the temptation of
slash-and-burn email marketing revenue, they forfeit any likelihood of meaningful, long-term
customer engagement, not to mention powerful word-of-mouth or even viral campaign
exposure. This is what separates poor email campaigns (fails) from excellent ones (wins).
So, what does an email marketing fail look like? Here are some examples.
Fail 2. Confuse me, then play me out
There is nothing more frustrating than receiving emails that are completely irrelevant to
your interests and not having an option to opt-out of the subscription.
This email from IMAJ Designs is special -- two fails in one. I was immediately confused by
the meaning of the statement "Please push your 'Picture Bar' located under the Subject Line."
Using language nobody understands simply does not make sense.
The next problem was the footer, which, to paraphrase, essentially says, "This is a one-time
email, there's no way to unsubscribe, and if it is not wanted, just delete it." This is the email
marketing equivalent of hitting on every girl in a bar until one doesn't throw a drink in your
face. IMAJ is saying, "Sorry we sent this to you, and we have zero interest in having a
relationship with you. That is, unless you want to buy something now!"
Fail 3. The phantom save/co-reg handoff
Check out this next email from Dex. It had tricky opt-out options, and why I even received it
in the first place made no sense -- it is completely irrelevant. When was the last time I used a
phonebook? Back in the '80s, maybe?
When I decided to opt-out, the company tried to get me to opt-in to other emails from an
unknown place. The default position of the radio button selection is Dex's attempt to stop me
from unsubscribing. I would not typically fault this, as it is a good idea to give people
relevant options if they want to leave behind a subscription. The real question is why would a
subscriber opting-out of your emails want to sign up for offers from an unknown place? Why
not just let me unsubscribe if I don't find any value in this relationship and nothing new of
value is being offered? The idea must be to make some money from co-registration with the
yellow pages to help build its email lists. Sure, times are tough, and I can understand that
companies want to keep email addresses that might be valuable to them -- but this could have
been executed much better.
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Fail 4. The Iceberg Slim switch
Even the late pimp Iceberg Slim himself knew when to quit. So why are marketers still
shamelessly pimping out their email lists? Partnering is one thing, but it's important to not
overdo it. This can potentially harm relationships with subscribers and drive them to opt-out
of your emails.
I opted-in for "Flight of the Conchords" from HBO. Recently, I was sent a store clearance
email from HBO that had little to do in any way with the "Flight of the Conchords" content
for which I had signed up. What made me want to share this is the "from" line. It was
disguised as an email that I would normally get from HBO about "Flight of the Conchords." It
was a complete bait and switch about buying merchandise in a sale campaign. I read through
the copy thinking maybe I missed something. I suspected it was a list swap in its truest form.
So, is this OK to do? From a marketing perspective, the answer is yes. From the perspective
of the relationship and expectations from those that opted into a certain list, absolutely not.
Remember, you need to think not only about your own goals but carefully consider the
relationship you have established and the trust that you have put in place.
I know that many of you out there are jaded when it comes to list rental campaigns. Here are
four reasons I dislike partnering brand lists:
1. They often will not perform to expectations. Many brands expect these lists to be so
well found and segmented that they will achieve the same reach and performance from
their own lists. This will never happen.
2. They are not from the original brand. And they should not be. Many times, such as
with HBO, they are sent from the original brand and not the purchasing brand. This
disconnect is bad for all, and results in more list attrition from the list owner if done
incorrectly.
3. They can affect the list reputation of the original brand. If you're doing list rentals, you
should be aware that they could have a negative impact on your brand. People could
consider you a spammer.
4. You could get a spam complaint. This email, although not technically sent from you or
your ESP platform, can cause you to be blacklisted due to your domain(s) being in the
links of the email.
There are so many other ways to do lead generation campaigns that better connect and
resonate, in a best practices way, with your new subscribers. Be smarter about how you
approach a relationship, and don't just gun for the automatic sale.
Fail 5. The overachieving design
Don't set yourself up for a fail due to lack of basic email marketing principles. The
fundamentals still stand strong and will do so throughout time. It's disappointing when
companies like Ubisoft send emails that lack these principles. Ubisoft sent out the below
email with zero copy -- not even image text. What is the reader supposed to do? Maybe click
on it and discover a landing page where it takes four minutes to load the Flash? The result is
an ambitious yet completely failed email marketing attempt. An addition, the fundamentals
for CAN-SPAM compliance were missing from this email. The lack of a footer with an
unsubscribe link and physical mailing address is a complaint or lawsuit waiting to happen.
Fail 6. All form, no function
Becker Surfboards also failed with this email it recently sent me. The main problem here was
that the email lacked functionality and only focused on how it looked. Using a massive
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image file for an email campaign is not fully utilizing it as a marketing medium. Using web
text and chopped, alt-tagged images ensures that if the images are blocked, your
subscribers are not going to get an empty email with only a footer. Design is the start of
the battle to win the hearts and minds of your subscribers, but the email also needs to take
those first fundamental, best practice steps to effectively engage and turn them into long-term
customers.
Fail 7. The insecure brand
Some might say that marketing is part promoting your own brand and part disparaging the
competition. More often than not, however, bashing the competition via email is just a bad
look. There is some merit in showing how you stack up, but when you start pulling
competitor brands into your messaging, you're setting yourself up for a full blown war.
Your competition is most likely receiving your emails to see what you're up to, just like you're
receiving their email campaigns to see what they're up to.
If you choose to leverage your competitor's weakness and faults, as with these emails from
FedEx and Subway, be prepared for your competitors to retaliate. Instead of focusing on
your competitor's weaknesses and slamming its brand, highlight your strengths and how
they address customer needs and challenges. Use your own brand positioning to educate
and show how you are performing better than others in your market niche. Use examples of
good customer success stories that illustrate how your products, programs, or services
deliver the best experience for your loyal customers.
Fail 8. The expert fail
Lack of personalization in an email campaign can damage your email reputation. The
strength in a good email campaign lies in its ability to make the message personal to the
recipient, intriguing them to open and actually read the email. When I received the email
from self-proclaimed email marketing solutions expert Constant Contact, I spotted a big no-
no. There was no "First Name" data for me, hence I got this greeting: "Dear ,"
This illustrates the importance of quality data when running any type of dynamic content or
personalization. If your CRM or other data source is flawed, you're setting up your email
marketing to be flawed as well. Good data will let you effectively personalize, and more
importantly, it gives you the ability to target the most relevant offers to each recipient
segment or profile. A more powerful email campaign would have included a relevant article
or interesting subject line to engage the subscriber, instead of relying on standard JV
personalization. This is a good example of how you can get into trouble using JV
personalization. Why would the viewer care to read the email if it has nothing to do with
anything that interests them?
Fail 9. The messaging identity crisis
Where is the line between a transactional email and a marketing email? From my
understanding a transactional email is one that:
• Confirms an order or action
• Alerts you to a change in status or account
• Informs of a change in relationship, privacy policy, or access
There is a fine line in transactional emails where, according to best practices, you can allocate
20 percent of the email to marketing messages. Apple does this well with iTunes transactional
email receipts. The company does not lead with marketing, nor does it interfere with the
transactional email message. Subject lines are clear, copy is clear, and the message can be
easily scanned to understanding what is occurring.
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I recently received the below email from Technorati. I had to pause to understand if this was a
transactional email or a marketing email. My first thought was that it was alerting me to
changes at Technorati in regard to features that would be of interest to me and my account. As
I read through it more, it seemed to be a straight marketing message. The problem is this
email was disguised as a transactional email and didn't have the CAN-SPAM compliance in
the message.
Fail 10. The drive-by train wreck
Why is the below email from Vista Print such a train wreck? First, it's coming from a valid
company but being sent from someone spoofing the offer. It seems that it's a third party
trying to drum up some business for Vista Print.
Second, note the enormous header text link to show images. Really? Is that your main
concern ahead of the email offer and creative?
Then we have the box of copy telling you not to respond to this email, as this email address is
not monitored. That's not exactly a great email marketing tactic. Basically, the sender is
saying, "We sent you this, but don't bother responding as we don't read the emails you send to
us."
To sum it up, it ends with some of my favorite words, "This message is an Advertisement,"
with a whole footer about CAN-SPAM compliance and how this email is not a violation of
this law. If it has to be stated, then it is most likely unsolicited email and worthy of a
complaint.
Fail 11. The brand biter
Using popular brand names to gain credibility in your email campaign is a bad practice.
The "Twitter" email below, though in no way related to or from Twitter, uses the Twitter
brand and brand marks of trusted news sources to try to give the email some credibility. I
would wager that many people simply place trust into emails since they come with the
brand/site themselves. This is just another way to spam.
I'm sure many people are wondering how many brands and individuals are using the new
president as a way to jump into the marketing efforts of the Barack Economy? I have been on
the lookout for brands and discovered the Ben and Jerry's email below, which is riding off the
past election and using this event as a way of cashing in on search and tying the company to
the optimism surrounding the new president. Before you infringe on another brand to
promote your own, ask yourself how you would feel if you were in that brand's shoes --
particularly if the campaign was poorly executed.
Conclusion
Hopefully this article will give you email marketing enthusiasts out there an idea of what not
to do. Let me again say that everyone makes mistakes, and making mistakes is how we
improve. As shown in eROI's recent study on email analytics, thinking outside the box,
testing different methods, then making decisions based on those analytics will lead to
optimized email campaigns. That said, it's important to base your initial approach on
best practices.
LANGUAGE FOCUS (2)

Page 309
Ex.1. Fill in the gaps with appropriate words from the list.
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1. A business which operates only on the Internet is called [___dot com_]
• dot bomb
• dot com
• e-wallet
2. Since the dotcom revolution, many surviving dotcoms that skipped that first step are
realizing the benefits of opening a [___brick-and-mortar __] location.
• set-in-stone
• brick-and-mortar
• e-tailer
3. The flesh-and-blood real world, the opposite of cyberspace is [__meatspace__]
• meatspace
• dotcom
• hot spot
4. A person who spends a lot of time at the computer is called [_a_mouse potato__].
• couch potato
• sock puppet
• mouse potato
5. Someone with whom regular e-mail is exchanged is called [___keypal___].
• penpal
• keypal
• screenager
6. A teenager who spends all day long in front of a computer is called a [_screenager_].
• streetager
• cyberwidow
• screenager
7. A network set up to attract crackers so that their actions can be observed is called
[__honeynet__].
• honeynet
• logic bomb
• dark net
8. A woman whose husband uses the Internet to much is called [__cyberwidow_].
• housewife
• cyberwidow
• do-it-herselfer
Ex.2. Here are some more Internet-related words that have recently come into popular usage.
Try to guess and define their meanings:
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e-mail bankruptcy - the state of being unable or unwilling to read and respond to all the
email messages one has received, and so to delete those messages and start over again.
181
word of mouse - communication via computer-based means, such as email, chat rooms, or
newsgroups
a cracker - one who makes unauthorized use of a computer, especially to tamper with data or
programs
to page-jack - to steal a webpage and send it to a search engine under a different name and
address, so that anyone who goes to that webpage is sent straight to a different website, often
a pornographic website
ham - wanted messages - the opposite of spam
malware - computer viruses and other software designed to damage or disrupt a system.
e-mail hygiene - principles or practices that reduce spam and protect a computer from viruses
and other threats embedded in or attached to email messages.
click-and-brick - business in which a company uses both shops and the internet to sell
products
Go to http:// www. wordspy.com to check your answers.
Ex. 3. Here are some more expressions using food words idiomatically. Match them to
definitions given below. Use 4-5 of them in the sentences of your own.
A cup of tea, to beef about something, to be in a pickle, hot cakes, hot potato, to spill the
beans, a tough cookie, to eat a humble pie, to have all eggs in one basket, big cheese, to butter
up, to have one’s finger in the pie, icing on the cake, pie in the sky, to walk on eggs, to use
carrot and stick, cool as a cucumber.
an important person, a leader big cheese

promising to reward along with threatening to to use carrot and stick.
punish
something one enjoys or does very well a cup of tea

admit one’s error and apologize to eat a humble pie
calm, not nervous or anxious cool as a cucumber.
to be interested and participate in something that is to have one’s finger in the pie
happening
a question or argument that is controversial and hot potato
difficult to settle
to flatter someone to try to get their favor or to butter up
friendship
182
to reveal the truth; to share confidential information to spill the beans
to rely on one single thing to have all eggs in one basket
someone who is very determined to do what they a tough cookie
want
something that makes a good situation or activity icing on the cake
even better
to be very cautious to walk on eggs
to complain about something to beef about something
to be in a difficult situation to be in a pickle,
something utterly impractical pie in the sky
a task that is easily accomplished hot cakes
PAIR WORK
Page 311
Discuss with your partner the variety of existing payment instruments. What are the pros and
cons of these?
Cash
With cash, you don’t have to worry about fraud, bounced checks, bogus credit or debit cards,
transaction fees, and you receive payment immediately. Cash transactions do need to be
carefully documented in the event of an IRS audit, which can require additional time and
diligence. However, accepting cash is beneficial for you and the customer, and it’s the rare
business owner who would say no to a stack of greenbacks.
Checks
Accepting checks can come with significant risks beyond those associated with other forms of
payment, so proceed with caution. Most businesses only accept local or in-state checks;
starter checks, unnumbered checks, or non-personalized checks should not even be
considered. If you can trust any employees to carefully examine each check you receive, you
can consider accepting checks from your customers, but it’s something you’ll want to be wary
of before you make a decision.
Credit Cards
While credit card transactions come with fees galore, running a cash-only business can turn
away significant numbers of millennial customers who are unlikely to be carrying the green
stuff. Credit card processors, payment gateways, and virtual terminals–the new terms alone
can be intimidating, but do your research and you can find a system that’s both simple to
183
navigate and within your budget. Since not everyone has PayPal, you can lose customers
online too if you don’t have a way for them to buy what you’re selling.
Online and Mobile Payments
Whether you’re accepting credit cards, PayPal, or other mobile options, you may be losing
customers if you’re not looking closely at how you handle online payments. These aren’t
going to be necessary if you’ve got a local store that only deals with customers who come into
your shop, or a hairdresser who accepts payment at the time of an appointment; it’s going to
be immediately apparent to you if you need to offer these at all. However, you’ll want to think
carefully about just how easy it is for your customers to pay. Many businesses lose customers
at the last minute because it was too difficult to enter credit card information, or too confusing
to see the total.
Bitcoin
Bitcoin can seem intimidating to the uninitiated, but it’s an excellent way to diversify your
investments. You needn’t worry about fraud, the money will get to you quickly, and you’ll
attract like-minded customers who believe in the power of the blockchain. Start by posting a
sign that says you accept Bitcoin, then consider what type of merchant solution will work best
for you (it will be different depending on whether you’re selling things online or in a brick
and mortar store). It’s completely legal, and being tax compliant when you accept Bitcoin
isn’t really that challenging either. If you’ve considered it before, perhaps now is the right
time to make Bitcoin a part of your business.
Bartering
If you’re a hairdresser or a photographer, you’re probably already familiar with the idea of
trading a service you can’t do for yourself with one of your friends. You might usually be
competitors, but it’s pretty tough to take your own engagement shots (of course it’s been
done, but it’s so much nicer to trade). If you’re a small business with a lot of inventory but
only a little cash, you may want to consider trading with someone else who has what you
need. Think about joining a barter network, in which you can acquire barter credits in
exchange for your services to use whenever you need.
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UNIT 14. BUSINESS AND SOCIETY
Page 318
2. Paraphrase or explain the following.
KEY:
• corporate citizenship – гражданская ответственность корпораций;
• sound management practices – рациональные управленческие методы;
• “Once seen as a purely philanthropic activity – a source of general goodwill, with no
bottom-line consequence –citizenship is moving from the margins of concern to the
center at leading companies; – Социальная ответственность, под которой раньше
понималась обычная благотворительность, которая без ущерба для доходов
компании повышала ее престиж и не рассматривалась серьезно (была на
периферии ее основной деятельности, считалась второстепенной), в настоящее
время становится все более актуальной в ведущих компаниях.
• CSR began to gain momentum – проблема ответственности бизнеса становится
более актуальной;
• comprehensive sustainability reporting – отчетность с учетом критериев
устойчивости;
• to boost employee engagement – повысить активность сотрудников;
• The Pluralistic generation – Generation Z (also iGen, Post-Millennials, or Plurals,
people born after the Millennials (from the early 2000s to around 2025.)
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POST-READING
1. How has the notion of CSR evolved? What is the “triple bottom line?”
In the text: ‘environment and society are elements of a financial bottom line and should be
considered as such. The “triple bottom line» is a business principle that measures
corporate performance along three lines: profits, environmental sustainability, and
social responsibility.
LANGUAGE FOCUS (1)
Ex. 1. Match the following Russian phrases with their synonymous English expressions.
a – 6; b – 5; c – 7; d – 3; e – 11; f – 1; g – 4; h – 10; i – 2; j –12; k – 9; l – 8
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2. Translate the sentences into Russian.
1. 1.Она придала новый импульс кампании за права женщин.
2. 2.Машина набирала скорость, спускаясь с холма.
3. Мы должны сохранить динамику продаж.
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4. За последние недели игра команды стала менее результативной (команда
выдохлась.)
5. Она выиграла с явным преимуществом. (Она одержала убедительную победу).
6. Он выиграл с незначительным преимуществом.
7. Конференция по изменению климата в Париже в 2015 придала импульс этому
процессу, темпы которого надо наращивать.
8. Необходимо закрепить и поддерживать набранные темпы реформ.
9. Нам также необходимо сделать еще один шаг с тем, чтобы услышать, чего же в
действительности хотят люди на местах.
10. Мне нравится иметь дело с этой компанией. Персонал очень доброжелательный.
11. Эти люди всегда прилагают максимум усилий, чтобы помочь нам.
3. Translate the sentences into English.

1. The efforts to find a final solution seemed to have lost momentum.
2. We have accomplished much, but this is no time to lose momentum.
3. The party won by a clear margin.
4. There is little or no margin of error in brain surgery.
5. Tablets were not very popular until the iPad, and then the quickly gained momentum.
6. This business is slow now but I hope it will gain momentum soon.
7. We need people, who can face challenge, meet deadlines and are ready to go the extra
mile.
8. The participants of the Paris summit appealed to all States to go the extra mile to
ensure success in solving the climate change problem.
4. Study different meanings of the “bottom-line” idiom and translate them into Russian.
KEY: a – окончательный вывод, итог; b – суть, сущность; с – итоговая строка в
отчете; d – прибыль.
5. Match the other “bottom” idioms to their definitions.
KEY: 1 – d; 2 – e; 3 – f; 4 – g; 5 – c; 6 – a; 7 – b
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6. Fill in the blanks with the correct idiom and translate the sentences into Russian.
1. …signs of [bottoming out]. В экономике наметились признаки оздоровления.
2. [The bottom] has fallen out… Рынок меховых изделий обвалился.
3. [rock bottom] Ситуация в управлении хуже некуда: работников увольняют, а
руководству предъявляют уголовные обвинения.
4. [got to the bottom] В энергетической компании еще не выяснили, почему
произошло полное отключение электроэнергии.
5. [at rock bottom]. Цены на зерно достигли нижнего предела.
6. [bottom fell out] Когда обвалился рынок недвижимости, многие потеряли свои
деньги.
7. [The bottom line] Финансовые результаты – это то, что сегодня является
главным для большинства компаний.
8. [knocked the bottom out]То, что Бен потерял работу, полностью расстроило
наши планы о покупке квартиры.
9. [at rock bottom] Они распродают ковры по бросовым ценам.
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10. Confidence in the company is [at rock bottom]. Доверие к компании резко упало.
11. [The bottom fell out] Рынок произведений искусства обвалился, и у арт-дилеров
остались сотни непроданных картин.
12. [at the bottom] Я не знаю, почему она не любит тебя, но подозреваю, что
причиной является ревность.
13. [bottom line] Эффективность и производительность – похвальные цели для
сегодняшних компаний, заинтересованных в достижении высоких финансовых
результатов, но достижение этих целей также способствует эффективному
использованию ресурсов, предотвращает загрязнение окружающей среды и
сокращает отходы.
7. Translate the sentences into English using the above idioms.

1. Give me the bottom line of this company bank debt.
2. The bottom line is that the sponsors would like to have this very man as head of the
project.
3. Who is at the bottom of all these innovations?
4. The bottom has fallen out of the grain market this year.
5. He always tries to get to the bottom of the matter.
6. I do not know why you have such strained relations in your family, but I suspect that
jealousy is at the bottom of it.
7. What I have learned about genetic research has knocked the bottom out of my life.
8. The newly appointed head of the department has at the bottom a reputation of highly
qualified and experienced man.
9. What is at the bottom of these serious allegations? After all there has not been any
direct evidence.
10. The rise in mortgage rates really knocked the bottom out of the housing market.
11. Skip the details and give me the bottom line.

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1. Paraphrase, translate and explain the following.
‘Severely tarnish the entire CSR movement’ – seriously harm the notion of responsible
business.
‘Deliberate fraud and deceit’ – conscious and intentional deception.
Rogue employees – dishonest people, fraudsters.
‘Pick out the rotten apples, and the harvest will be saved’ - it could suggest that finding one
malefactor in a group should make you suspicious of everybody else. "A bad apple spoils the
bin."
‘The bad behaviors appear endemic’ - cheating customers has become common among
automakers.
In stark contrast with the automaker’s own code of conduct – Very different from company’s
real conduct;
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The company’s code of conduct is fascinating to read, in hindsight’ – After the scandal it
became clear that VW was only paying lip service to being a responsible company, and it was
only window dressing.
Monitoring and compliance were up and running (to be up and running - работать,
функционировать, как следует, без сбоев) - С контролем и соответствием нормам все
было в полном порядке.
Window dressing - making something appear deceptively attractive or favorable.

It was not negligence. It was deliberate and willful criminality, pure and simple. – It was not
just a failure to exercise the care, but it was deliberate distortion of the information to
mislead the clients.
Far from dampening enthusiasm for responsible business practices, the VW scandal should
accelerate it. – The scandal made it abundantly clear, that such fraudulent practices should
no longer be put up with.
Information is not taken at face value but subject to more careful scrutiny. – Companies
reports on non-financial performance require better verification by external agencies and
must not be taken for granted.
LANGUAGE FOCUS (2)
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1. Match the words to their definitions and translate them into Russian.
KEY: 1 – d; 2 – c; 3 – e; 4 – a; 5 – f; 6 – b
2. Match the Phrases with their English equivalents.
KEY: a – 7; b – 5; c – 2; d – 6; e – 1; f – 3; g – 4
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2. Match the phrases with their synonymous Russian equivalents.
KEY: a - 6; b - 4; c - 1; d - 8; e - 9; f - 7; g - 2; h - 5; i - 3
3. Outline the basic differences in the way the concepts of CSR and RBC are viewed today.
Substantiate your answers.
First, CSR is often associated with philanthropy and volunteer work in the social sphere,
rather than long-term sustainable development.
Second, CSR is often understood to be an optional add-on external to core business
operations.
Corruption issues are often not considered a CSR issue and are not dealt with by CSR
managers. Corporate tax responsibility, an integral part of the OECD MNE Guidelines,
likewise is most often not on the radar screen of a CSR manager.
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RBC, as promoted by the OECD, provides an integral perspective; it is a core business
function, and as such must be integrated within corporate governance, procurement, finance,
and so on;
Core elements of RBC as outlined in the UN Global Compact or the OECD MNE Guidelines
are not voluntary in most jurisdictions;
The ‘voluntary’ association with CSR suggests there are no consequences to non-
compliance. That is a misconception. Research demonstrates that there is a strong business
case for companies to behave responsibly. Responsible business practices can result in
positive outcomes such as improved reputation and productivity. On the other hand,
irresponsible practices can lead to significant financial liabilities and hamper access to
finance;
CSR is strongly associated with the ‘old school’ social audit system while Responsible
business conduct goes beyond auditing and stresses the importance of a continuous process
of due diligence.
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LISTENING (1)
Study on Social Corporate Responsibility
1. The study was to examine the CSR policies of around 250 companies.
2. Companies are now looking for the vehicles to use CSR to drive new revenue streams, to
retain and grow customer loyalty, to seek new market share and even to develop new products
and services.
3. In the old days CSR was seen as a regulatory issue and today it is seen as a revenue
generation opportunity.
4. The energy companies find opportunities to explore new vehicles for the creation of energy
and are particularly focused on very poor areas, at the same time as they are spotting new
opportunities to drive revenues from their products.
II. Answer the following questions. Support your answers by giving the relevant information
from the video.
1. How has the Internet become instrumental in promoting CSR agenda?
It’s allowed consumers two things: a greater visibility into the into the actions that
companies are actually taking and it’s allowing consumers to band together to create
advocacy groups much easier than they could ever do in the past and to exert influences on
corporations once they banded together. So as a result of this the companies are doing two
things: one is their increasing transparency with which they operate and the other thing is
that they are not being pried open by consumers but they’re rather sharing much more
openly and leveraging a power of the visibility that the consumers have to their benefit.
The companies are getting feedback and the support from the consumer on a day today
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bases relating to both the products and services as well as the way in which they conduct
business with different communities and even oversees.
2. What are the major stakeholders groups, which are a part of the company’s CSR
landscape? What other groups of population care about CSR activities?
The first is customers right the ones to hump the greatest and sometimes the most influential
ability to change the direction of the company. The second is shareholders and, in particular,
some of the most senior shareholders in the organization and the most influential
shareholders, the ones who seem to care the most about CSR and of finding CSR to be
literally a Board level issue. So, and why is that the case? It is because CSR has the ability to
build up or damage a brand almost instantly. Therefore, because of that, because of this high
risk but also of high opportunity it has become a Board level issue for many companies. There
are three additional constituencies that are important. Employees are very important
constituency. What we’re finding is that the motivation especially of younger people
entering the workforce is very significant, meaning that they are very interested in finding
companies to work for that have some level of social consciousness namely with respect
to regulations. Government and NG’s play a very strong role in managing those and
developing those. So obviously, they are core constituencies for companies as well.
3. Are many companies aware of their customers’ expectations?
The three quarters of the companies we surveyed did not understand any of the expectations the
customers had about their CSR activities. And beyond that, only 16 per cent of them have engaged the
customers in any way to find out more about what the customers are looking for.
4. How do most companies see CSR and what are today’s most pressing issues for CSR
to address?
More than two thirds of the companies we spoke with see CSR really as a new revenue
generation play or at least the ability to create stronger connections and retention of market
share with their core customers.
5. Why is it important for companies to interact with consumers?

CSR will have a profound impact on business going forward. The reason is that consumers care about
these issues and are making buying decisions based upon the CSR performance of companies.
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II. Watch the “Story of Stuff” video by Annie Leonard and complete the missing information.
1. Our stuff simply moves along these stages: extraction to production to distribution to
consumption to disposal.
2. A system in crisis means that it is a linear system and we live on a finite planet and
you cannot run a linear system on a finite planet indefinitely.
3. The reason the corporation looks bigger than the government is that the corporation
is bigger than the government.
4. Extraction is a fancy word for natural resource exploitation, which is a fancy word
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for trashing the planet.
5. Our problem is not just that we are using too much stuff, but we are using more than
our share.
6. Globally 200,000 people a day are moving from environments that have sustained
them for generations, into cities many to live in slums, looking for work, no matter
how toxic that work may be.
7. There are nearly 2 million tons of mining waste for every one ton of gold produced;
that translates into about 20 tons of mine waste created to make one gold wedding
ring.
8. Planned obsolescence is another word for “designed for the dump. It means they
actually make stuff that is designed to be useless as quickly as possible so we will
chuck it and go buy a new one. It is obvious with stuff like plastic bags and coffee
cups, but now it is even big stuff: mops, DVDs, cameras, barbeques, everything!
Even computers.
9. Perceived obsolescence convinces us to throw away stuff that is still perfectly useful.
10. Our two main activities are watching TV and shopping. In the U.S., we spend 3 - 4
times as many hours shopping as our counterparts in Europe do. The primary way
that our value is measured and demonstrated is by how much we contribute to this
arrow, how much we consume.
11. A new school of thinking on this stuff is based on sustainability and equity: Green
Chemistry, Zero Waste, Closed Loop Production, Renewable Energy, Local living
Economies.
C. What do these figures stand for?
100, 51 of the 100 largest economies on earth now, 51 are corporations
1/3 One-third of the planet’s natural resources base have been consumed. Gone.
4% In the United States, we have less than 4% of our original forests left.
40% Forty percent of waterways have become undrinkable)
5% The U.S. has 5% of the world’s population but we’re consuming 30% of the
world’s resources and creating 30% of the world’s waste
75% of global fisheries now are fished at or beyond capacity
2000 In the Amazon alone, we are losing 2000 trees a minute. That is seven football
fields a minute
$4.99 All along this system, people pitched in so I could get this radio for $4.99.
These people paid with the loss of their natural resource base. These people
paid with the loss of their clean air, with increasing asthma and cancer rates
http://www.youtube.com/watch; (www.storyofstuff.com)
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CASE STUDY “THE CORPORATION”
Watch the documentary and get ready to discuss the film and the problems it raises.
THE CORPORATION – INDIVIDUAL OR INSTITUTION
• What is a corporation?
KEY: Firm that meets certain legal requirements to be recognized as having a legal existence,
as an entity separate and distinct from its owners. Corporations are owned by their
stockholders (shareholders) who share in profits and losses generated through the firm's
operations, and have three distinct characteristics (1) Legal existence: a firm can (like a
person) buy, sell, own, enter into a contract, and sue other persons and firms, and be sued by
them. It can do good and be rewarded, and can commit offence and be punished. (2) Limited
liability: a firm and its owners are limited in their liability to the creditors and other obligors
only up to the resources of the firm, unless the owners give personal-guaranties. (3)
Continuity of existence: a firm can live beyond the life spans and capacity of its owners,
because its ownership can be transferred through a sale or gift of shares. The Sarbanes-Oxley
Act of 2002 or SOX) is legislation passed by the U.S. Congress to protect shareholders and
the general public from accounting errors and fraudulent practices in the enterprise, as well as
improve the accuracy of corporate disclosures. It was enacted as a reaction to a number of
major corporate and accounting scandals, including Enron and WorldCom, sets deadlines for
compliance, and publishes rules on requirements.
• How did corporations come into being? What were they like at the beginning? How is
the rise of the corporation associated with the early stages of the Industrial Revolution? What
significant technological developments are connected with these stages and the emergence of
the modern corporation?
1564 – First joint company was formed; 1793 – The corporation was first called a “person”;
1856 – Limited liability of corporate shareholders; 1930 – concept of CSR (first demonstrated
– companies working to regain trust after the Great Depression; public saw the Depression as
a by-product of corporate greed and mismanagement) – “Throughout their history,
corporations have gone through periods of heavy regulation, followed by less regulation,
followed by scandals, which has led again to heavy regulation. Original 19th century
corporations were limited in their tasks, shareholders were liable, and many had a finite
lifespan.
• Constraints on corporations were lifted after the Civil War when the 14th amendment
to the constitution extended the legal rights of persons to corporations. According to the film,
in what ways was the Amendment used differently from its original intent?
KEY: Corporate lawyers realized that they needed more power to remove some of the
constraints that have been historically placed on the corporate form. The 14th amendment,
which said, “No state can deprive any person of life, liberty and property without the process
of law” was passed at the end of the war to give equal rights to black people. “Six hundred
thousand people were killed to give rights to slaves but in strokes of pen, these rights were
192
applied to capital and property. Between 1890 and 1910 out of 307 cases brought to court 288
were from corporations and only 19 – by African Americans.”
• What are the rights of a legal person?
Legal persons are of two kinds: natural persons (physical persons) and juridical persons
(also called artificial or fictitious persons – groups of individuals, such as corporations,
which are treated by law as if they are persons. While human beings acquire legal
personhood when they are born, juridical persons do so when they are incorporated in
accordance with law.
THE ROLE OF THE CEO
• How much discretion (право действовать по своему усмотрению) do CEOs have
to impose their values on a corporation? On what might it depend?
KEY: Throughout the western world, there are two fundamental principles in corporate law:
one is the idea that the corporations are to be treated as persons in the sense that they have the
same rights as individuals do in terms of owning property, trading property, suing, being sued.
In the United States and Canada, corporations also have human rights. So for example, a
tobacco company can go to court and allege that restrictions on tobacco advertising are
violations of its free speech. And the other is what is often referred to as the best interest
principle. It says that directors and managers of corporations always have to make decisions
that are in the best interest of the corporation. The courts have generally understood that to
mean in the best interest of the shareholders. So to that extent, it's illegal for corporations to
make decisions for the benefit of others. A corporate executive could say, "I'm going to make
this decision to preserve a river by spending more money on anti-pollution devices. Even
though that's going to cost my shareholders, I'm doing it because I think it's good for the
environment." That would be illegal. A corporate executive who did that could be sued by his
or her shareholders successfully.
ENVIRONMENT
Ray Anderson, CEO of Interface: “Every living system is in decline and the notion
that we can take and take, waste and waste, without consequences, is driving the biosphere to
destruction”
THE CORPORATION AS GOVERNMENT
• What makes it so difficult for governments to control the activities of corporations?
The film gives two examples of how, why and what happens when corporations get involved
in providing public services: the violent public resistance that eventually overturned a
decision by the Bolivian government to allow a private firm to operate the water system of
Cochabamba; Pfizer Inc.’s program of subsidizing and maintaining subway security in the
neighborhood around its Brooklyn, New York, facility.
• How can the roles of corporations and governments differ and overlap?
1. Corporations often have to provide social services because governments fail to do so and
societies expect them to fill the gap.
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2. The corporations take risks by participating in social services because it is difficult to
reconcile social needs with shareholder interests, and also because once involved, it is very
difficult to pull back in commitment.
3. The activities perceived to be essential (e.g. medical, water, or power services) pose
significant social and public relations challengers for the corporations that provide them.
The most “right” position: “governments are incapable of managing anything well, so that
anything that can be privatized should be.”
The most left position: “governments must provide essential services because the public good
cannot be defended by private interests.”
RESPONSIBLE PRODUCTS AND ETHICALITY OF BUSINESS
• To what extent do companies have a moral responsibility to limit the use of their
products? – Chemical manufactures, such as Monsanto, sell products that they knew are
harmful to humans and animals. A Monsanto product called Posilac (BST) is artificial
hormone for factory farm cows that increase milk production. One side effect of Prosilac is
that it causes infection in cows, which results in pus getting into milk. It also requires giving
cows antibiotics that cause strains of super viruses.
Comment on this statement: “they have no soul to save, no body to incarcerate” – A woman
from India describes “terminator bio-technology, «that is, seeds that are designed to grow
crops for only one season. “You really have to have a brutal mind. It is a war against
evolution even to think in those terms. But quite clearly profits are so much higher in their
minds”.
• What is implied by the notion of “externalities?” What are some examples of this?
How does this notion relate to the ethical status of the corporation as a “Person”? –
Corporations pass on problems and expenses to the public or taxpayers: “a corporation is an
externalizing machine in the same way a shark is a killing machine” Sweatshops worldwide –
example of a jacket made in El Salvador: Retail cost $178 each, workers were paid 74 cents
for each jacket they made.
• Is there any situation in which this might be morally justified?
In discussing the “nag factor” – A person stated that 20%-40% of children’s products would
not have been purchased without children nagging their parents. In discussing the “nag
factor,” Lucy Hughes says that she “doesn’t know” if what she does is ethical, while Michael
Moore states that “we have to accept responsibility” for our actions.
Choose a topic and make a presentation highlighting the problems raised in the film.
1. How can the roles of corporations and governments differ and overlap?
2. How does the social good differ from the corporate good?
3. “Corporations do not make decisions, people do. The responsibility of corporations is
determined by the decisions of the people in them.”
4. Why is advertising to children more of an issue than advertising to adults?

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UNIT 15. FIGHTING CORRUPTION IN BUSINESS
LANGUAGE FOCUS (1)
Page 340
1. Fill in the blanks with the right word in an appropriate form.
1. combating, 2. commit, 3. forge, 4. catering, 5. foster, 6. forgery, 7. combatants,
8. committed, 9. combative, 10. caterers, 11. has fostered, 12. caters, 13. commits,
14. forge, 15. combat, 16. caters, 17. forge, 18. fosters, 19. combat, 20. committed,
21. forged, 22. fosters, 23. caters, 24. forge, 25. foster, 26. forged, 27. commitment,
28. forge
4. Match the words and word combinations with their synonyms.

Page 341
KEY: 1-b; 2-d; 3-a; 4-c

5. Translate the following into English using the phrasal verb ‘to play’
1. Advertisers often play on/ upon human weaknesses like vanity, snobbism, the uncertainty
of the future and all kinds of fear.
2. The yellow press had tried to play up the scandal allegedly connected with money
laundering before the official investigation was over.
3. The significance of the merger between the two largest oil companies is hard to play
down. It is important for the economy of the industry.
4. The tennis match was played out despite the fact that it was interrupted several times by
the pouring rain.
5. You shouldn’t play upon her feelings. It is dishonourable.
6. When the department was headed by a new boss, he did not try to play down either merits
or achievements of his predecessor.
WHILE-READING
1. In the article below find synonyms for the following:
KEY:
• to put up with/ tolerate (to condone)
• a book/ document that contains the ethics of corporate behaviour (compliance
manual)
• right/ careful and thorough work or effort (formal) (ethical due diligence)
• a disputable question (a controversial issue)
• counterfeit, bogus (sham)
• to give way (to yield to)
• to produce or provide sth (profit, result, crop) (to yield)
• following examples (emulation)
LANGUAGE FOCUS (3)

Page 349
1. Find four idioms in the article and explain their meanings. Suggest the Russian for them.
195
KEY: to draw a line – положить конец чему-то; to learn the ropes – досконально
узнать, детально выяснить обстоятельства дела, войти в курс дела.);to drop/ explode
a bombshell – сказать, сделать что-л. из ряда вон выходящее или шокирующее (ср.
‘произвело впечатление разорвавшейся бомбы’); to spill the beans – выдать секрет,
проболтаться, разболтать, проговориться.]
a) For family reasons, he had to look for a job to pay his way through university when he
was in the second-year.
b) The police regularly raided the quarter to purge it of drug dealers.
c) The sprawling city has almost engulfed the picturesque suburbs.
d) The organizers of the swindle kept all the details a secret, but finally there was an
information leak – some of them must have let the cat out of the bag.
e) The credit crunch frustrated the company’s plans and its implementation of a large-
scale project.
f) The news about the scale of corruption in the well-known company exploded a
bombshell.
g) The newly appointed CEO of the company will have to learn the ropes yet.
h) A representative of the regulatory authority assured the commission that he would put
an end to all financial fraud in the corporation.
i) His rash and empty promises became the butt of jokes.
j) The programme of Siemens’s management, connected with share buy-back, built up
the shareholders’ trust, who had moved a vote of no-confidence in the former
management.
THEM AND US
Page 350
Read the article and render it into English.
Коррупционеры поступили по-самурайски (like samurais)
В Японии зачастую соблазн корыстно (for mercenary ends) использовать свое
служебное положение (abuse of power/ abuse of office) у чиновников сильнее страха
перед наказанием. И это притом, что в случае обвинительного приговора (in case of
indictment) человека фактически выбрасывают из жизни общества: проворовавшегося
чиновника не возьмут даже на самую грязную работу. “Потерять лицо” в глазах
окружающих для японца страшнее смерти. Поэтому и нередки случаи, когда
пойманные с поличным (caught red-handed) чиновники совершают самоубийства.
Оба чиновника проходили по одному делу о коррупции: глава Минсельхоза
Японии не смог отчитаться о потраченных (squandered) средствах, а его коллега,
распределявший квоты (who dealt out quotas), находился в подчинении министра.
Любопытно, что повесившийся министр Мацуока в прошлом сам являлся подчиненным
Ямадзаки.
Коррупционные скандалы преследовали экс-главу Минсельхоза Мацуоку
практически во все времена его карьерного роста (career advancement). Его любовь к
“левым” деньгам (kickbacks) была известна в деловых кругах Японии. Органы
правопорядка (law enforcement agencies) неоднократно пытались взять Мацуоку с
196
поличным, но все безрезультатно: он, как Фантомас, ускользал от обвинений. Поэтому,
несмотря на слухи, карьера Мацуоки шла только вверх (continued climbing up the
career ladder). Известно, что Мацуоки на своем столе оставил несколько писем,
адресованных парламенту, премьер-министру Синдзо Абэ, и открытое письмо к
японскому народу. В последнем письме он просит прощения и говорит, что всю правду
о нем знает лишь его жена. По некоторым данным, жена его шантажировала (had been
blackmailing him).
LANGUAGE FOCUS (4)

Page 351
1. Match the following words with their definitions.

KEY:
a) bribery – 1. an illegal payment to persuade someone to do sth.
b) fraud – 2. deliberate deception, trickery or cheating intended to gain an advantage
c) price fixing – 3. a secret agreement between companies in the same market to
establish prices at a certain level, so they do not have to compete with each other
d) money laundering – 4. legalization of ‘dirty’ money, hiding its illegal origin
e) faking – 8. causing (sth inferior or not genuine) to appear more valuable,
desirable, or real by fraud or pretence
f) embezzlement – 5. misappropriation, misuse, theft
g) kickback – 6. part of an income paid to a person having influence over the size or
payment of the income, esp. by some illegal arrangement
h) counterfeiting – 7. making a fraudulent imitation of some goods
i) insider trading/ insider dealing – 13. buying or selling securities using the
information which is not publically available
j) market rigging – 9. manipulating a financial market in a fraudulent manner to stop
it functioning as it should) esp for profit or an advantage
k) racketeering – 10. demanding ‘protection money’ from businesses by using threat
and such like
l) forgery – 11.the act of reproducing sth for a deceitful or fraudulent purpose; the
false making or altering of any document, such as a cheque or character reference
or any tape or disc on which information is stored, intending that anyone shall
accept it as genuine

Page 352
Fighting Corruption (Nicos Passas)

Script
I am a lawyer and criminologist. I’ve been studying economic crime and corruption
around the world. It’s particularly painful to look into Greece, even though I’ve been away for
35 years. Now, the conventional story about the Greek Crisis and the debt is that it’s due to
domestic corruption, tax evasion and a Greek mentality of not working too hard and just
taking care of oneself. Clientelism, and therefore, don’t expect much to change any time soon.
Well, yes, corruption exists in Greece, but not just inside Greece. The way I see the story is
rather different, and you have to look at a number of other things as well. You have to look at
how the debt was created, who contributed to that, how the debt was hidden from public view,
197
what kind of solutions were applied, and what contributed to those if there were solutions at
all. Was actually Greece bailed out or somebody else? And as we go through this, some ideas
will come to mind, what can be done about that, because there is hope, and we must pursue
the change. It is feasible and we have to defeat defeatism, and I will show you why and how.
Now, starting with corruption in Greece. Corruption is misuse of private or public
power and authority for personal gain. And we have a lot of things people are familiar with:
“Fakellakia”, the little envelopes you give someone in order to get things done a little faster.
“Speed money” to get treatment at the hospital, get clearance at customs faster. This is the
sort of thing that is widespread and normalized in the sense that people do it without thinking
that there’s much wrong about it, especially when the doctors’ and other salaries are not at
real living standards. Then we have other forms of corruption, quite serious: bribery from
domestic and foreign companies bribing domestic politicians, we have oligarchic controls
over industries, sports, media, political finance and so on. We do have tax evasion, we do
have problematic privatizations, we even fix soccer matches. So generalized but so easy to
discover things are that lake Kopais was drained in the mid 50’s and in 2010 there still existed
an agency with a number of people employed advertising for new employees every year with
a president who had a permanent driver. That was in 2010, so, the general picture here is that
we have a problem of overgrown administration, clientelism, overregulation, inefficiency, the
oligarchic controls. And that leads to this widespread culture of tolerance, especially when
corruption solves practical problems in everyday life. All this leads to shortfalls in revenue
and a trust deficit both in government and business. But is this enough? Does that explain that
crisis? As you will see, that is not the case. The overspending Greeks were not doing more,
they were actually doing less than other Eurozone members. There was only one area where
we did overspend, that was military. We created 40 billion Euros between ’95 and 2009,
among other things, buying submarines from Germany. Well, we did not need submarines,
Greece was already underwater. Look at how the debt grew from 1981 to the time that the
bubble burst. And this was driven not by domestic banks, which did have a lot of debt at the
beginning, but gradually it was foreign banks, especially French and German banks that got in
the game, and it was a supply driven growth of debt from the mid ’90 to the 2019’s. And,
then, Greece could not meet the criteria of the Euro and therefore they had to make it up, they
had to “cook the books”. And they got assistance from American financial institution that
applied rules that Eurostat actually approved. It was legal! These are the practices that
according to the letter of the law, but when you look at the consequences, they are worse than
crimes. These are the lawful but awful practices that I refer to. And then, the crisis was
recognized, and we had the IMF, and we had the European institutions coming to apply their
cure, even though the IMF knew full well from the beginning that the debt in Greece was not
sustainable. They went through violating their own rules, because they cannot participate in
something that’s unsustainable and apply the austerity measures which led to massive
unemployment, cuts in public services, health and so on. Capital left Greece, no foreign
investment came in, poverty and inequality grew, depression, drug use, suicides, all went up.
Look at just the facts. This is the government spending how it goes down. This is the
unemployment that goes up to above 25%, especially among those under 25, it goes beyond
60%. All economic classes see their income drop substantially. Poverty skyrockets. Those at
risk, especially those children under six and young people under eighteen, are at risk of
poverty, 49% of them. Inequality goes up, health expenditures go down, HIV rates go up,
suicide rises, and look at what economy does: it tanks 25% down. Who wins out of this? Of
course, then people start looking for jobs in Australia, Europe, and the United States. But who
actually got something out of that? The Euro we saved for a while, the banks were bailed out,
and a German study found that the German treasury benefited from the Greek crisis by 100
198
billion Euros, because their borrowing costs went very low as well. So, if Greece defaulted
completely, Germany would only lose 90 Euro out of that, which means that they would be
better off by at least 10 billion Euros. Now, is this bailout of Greece? Really? And a German
minister said, ”Some states apparently believe, they bear no responsibility and are under no
obligation to participate in the joint response to the current great challenge”. But he was not
referring to the Greek crisis, it was the migration crisis, about which the Euro rules got a little
flexible, because of hundreds of thousands of refugees. But there was no flexibility in
applying EU rules to the millions of Greeks who were suffering under those. So, I submit to
you, when the law produces results that bring about such misery, these laws must change.
Insisting on applying the same rules, the same projects, the same progress that actually bring
about the opposite results from those stated amounts to regulatory fundamentalism.
Not among the core values of the European project. So, we have toxic laws, toxic
medicine, toxic mining, toxic diesel cars, toxic media comments, toxic political and business
cultures. So, we need the detoxification all around. We need to rethink, inside and outside
Greece. While we do this, we need to take a look at context. What’s wrong with this car? Too
many people on a badly maintained car. A very good rule, traffic rule says you can’t do that,
it’s bad for safety, it’s bad for the car, but consider this: these people are coming from the
village where there are no jobs, no public transportation, no means to buy another way of
getting from home to work and bring some food to the table. Not giving them a ticket, not
impounding the car is not because a traffic warden is on the take, it is because he understands.
He sympathizes. In the same way you can’t fight corruption on an empty stomach. You can’t
fight corruption when salaries are below real living standards and people are looking left and
right for solutions. You need to prioritize, you need to find what you do first, what you do
second, and you need to start fixing the economy at the same time. Greece is not alone in
trying to fight corruption, but all around the world we are failing. And there are signs about
this everywhere. People are going after political opponents instead of equally applying the
law to everyone. High officials enjoy impunity, and we go after middle and low level
officials. All kinds of metrics we use are disappointing.
We have more bureaucracy, more complexity in law, more formalism over substance
and the real goals why we have the rules and processes in place, and we even have new
motives, opportunities, and incentives to engage in corruption. These are World Bank
institutes, metrics of governance for the entire world. And you can look at corruption at the
bottom right. If you are looking at PODs of a patient, that patient is dead. Why? No real
political will, no looking into the causes, society at large is not participating, you have
solutions from the top, or from outside the country. ‘One size fits all’, therefore, ‘solutions’,
too much law, no strategic approach, what we do first, what we do second, and who has what
role about these things. We just fragment the way in which we fight corruption to multiple
agencies, they get in the way of each other, and educational institutions don’t do enough to
promote a culture of integrity and capacity in societies to actually have the skills that it takes
to make things different.
So, we are drilling holes in the water, we waste resources, everything we do is
unsustainable, and changes wherever they are attempted, and they are in many, many places
they lose momentum, credibility and legitimacy. Here, in Greece, there is the chance, the
opportunity right now to set an example of how to do things differently and well.
But there are challenges. And there are needs. Greece is in the intensive care, indeed.
Long-term thinking is actually a luxury, especially as government is being micro-managed
right now. But we need to tackle humanitarian crisis. We need to have an accurate diagnosis
of the problem, inclusive diagnosis, which means that not just the government, all political
parties, private sector, civil society, media, academics, need to participate in what’s the
199
problem and what are the possible solutions. And we need the best brains to make the country
healthy again. You don’t want to be operated on by a first-year student. By established
doctors, right? We need some good plans and advocacy in the face of both regulatory
fundamentalism from outside and the resistances that we will certainly have inside Greece.
But even though we have a plentiful world, Greece cannot enjoy it, and is boosted into
isolation and blamed also from the outside. This isolation and vulnerability is captures well in
a film by … in a scene of a film “Taksidi sta Cythera”, (“A Trip to Cythera”) of
Aggellopoulos. And let’s take a look at it.
Let us not abandon Greece and the vulnerable in the mist. We can do better than that.
And the steps to build momentum and credibility are right in front of you. We need genuine
political will at the top, government and government agencies. We need, all together, to come
up with priorities and solutions just as the patient going to intensive care needs the
ambulance, the ambulance driver, the nurses, the doctors, the surgeons, the anaesthesiologist.
All of us have a different role to play to take care of the patient. It is a collective action. A
challenge on how we bring competition, transparency, and some accountability in this place.
Some long-term planning. Small successes the lead to the next step, and where we want to be
in 5, 10, 20 years. Simpler laws, stronger institutions, and open government. There are already
good programs in Greece, such as “DIAVGEIA” and “ELLAK” and I invite you to support
them. Coordinated fight against corruption and research institutions to build the capacity and
the culture of integrity we need. We need accountability. Those who actually are on the deck,
they need to be sanctioned, but we also to look at the positive. Where do we have the good
examples, like the ones I mentioned? We need to create those islands of integrity. We monitor
what we do, we change the strategy as we go and, yes, the one thing that people cannot take
from Greece is hope. Hope is there. There are practical answers and solutions in many
countries. Those islands of integrity you find from Rumania to Columbia, from Indonesia to
the Philippines, from Nigeria to Venezuela. So, together, we can get from the full catastrophe
to a rebirth of the Greek spirit. We need solidarity, sustainable reforms, trust in government
and business, economic growth, and good governance. ‘Eunomia’ is the word. ‘Eunomia’ is a
Greek word. Let’s practice it in its birthplace! Thank you.
2. Answer the following questions.
Page 353
KEY:
1. A myopic financial policy of the Government, widely spread corruption at all levels of
society as well as the negative role of the IMF and foreign banks, huge debts, military
expenditures, etc.
2. “Well, yes, corruption exists in Greece, but not just inside Greece”.
Nicos Passas lays the blame for the crisis not only on the Greek Government, but also on the
IMF policy, foreign banks and businesses
3. It is closely connected with question 1, 4, 5
4. “Corruption is misuse of private or public power and authority for personal gain”.
Overgrown administration, clientelism, overregulation, inefficiency, the oligarchic controls,
“speed money” (bribes) in every sphere of life. Other forms of corruption, quite serious, are
bribery from domestic and foreign companies bribing domestic politicians, oligarchic controls
over industries, sports, media, political finance, tax evasion, problematic privatizations and so on.
5. The crisis leads to the widespread culture of tolerance, especially when corruption solves
practical problems in everyday life, to shortfalls in revenue and a trust deficit both in
200
government and business, massive unemployment, cuts in public services, health, and so on.
“Poverty and inequality grew, depression, drug use, suicides, all went up”.
6.A 40 billion Euro debt between 1995 and 2009, driven not by domestic banks, which did
have a lot of debt in the beginning, but gradually it was foreign banks, especially French and
German banks that got in the game, and it was a supply driven growth of debt from the mid
’90 to the 2019’s
7. Greece could not meet the criteria of the Euro and therefore they had to make it up, they
had to “cook the books”.
8. Greece got assistance from American financial institution that applied rules that Eurostat
actually approved. These practices were legal according to the letter of the law, but when you
look at the consequences, they are worse than crimes. These are the lawful but awful
practices. Then, the crisis was recognized, and Greece had the IMF, and the European
institutions coming to apply their cure, even though the IMF knew from the beginning that
the debt in Greece was not sustainable. They went through violating their own rules, because
they cannot participate in something that’s unsustainable and apply the austerity measures
9.The government spending goes down, the unemployment goes up to above 25%, especially
among those under 25, it goes beyond 60%. All economic classes see their income drop
substantially. Poverty skyrockets. Those at risk, especially those children under six and young
people under eighteen, are at risk of poverty, 49% of them. Inequality goes up, health
expenditures go down, HIV rates go up, suicide rises, and what economy does: it tanks 25%
down. People start looking for jobs in Australia, Europe, and the United States.
10. The Euro was saved for a while, the banks were bailed out, and a German study found that
the German treasury benefited from the Greek crisis by 100 billion Euros, because their
borrowing costs went very low as well. Therefore, if Greece defaulted completely, Germany
would only lose 90 Euro out of that, which means that they would be better off by at least 10
billion Euros.
11. So, we have toxic laws, toxic medicine, toxic mining, toxic diesel cars, and toxic media
comments, toxic political and business cultures. We need the detoxification all around. We
need to rethink, inside and outside Greece. While we do this, we need to look at context…
The laws must change. Insisting on applying the same rules, the same projects, and the same
progress that actually bring about the opposite results from those stated amounts to regulatory
fundamentalism.
12. You cannot fight corruption on an empty stomach. You can’t fight corruption when
salaries are below real living standards and people are looking left and right for solutions.
13. Greece is not alone in trying to fight corruption, but all around the world we are failing. In
addition, there are signs about this everywhere. People are going after political opponents
instead of equally applying the law to everyone. High officials enjoy impunity, and we go
after middle and low level officials. All kinds of metrics we use are disappointing. We have
more bureaucracy, more complexity in law, more formalism over substance and the real
goals why we have the rules and processes in place, and we even have new motives,
opportunities, and incentives to engage in corruption. These are World Bank institutes,
metrics of governance for the entire world.
201
14 Greece is in the intensive care, indeed. Long-term thinking is actually a luxury, especially
as government is being micro-managed right now. However, we need to tackle
humanitarian crisis. We need to have an accurate diagnosis of the problem, inclusive
diagnosis, which means that not just the government, all political parties, private sector,
civil society, media, academics, need to participate in what’s the problem and what are
the possible solutions. And we need the best brains to make the country healthy again. You
don’t want to be operated on by a first-year student. By established doctors, right? We need
some good plans and advocacy in the face of both regulatory fundamentalism from outside
and the resistances that we will certainly have inside Greece.
15 No real political will, no looking into the causes, society at large is not participating,
you have solutions from the top, or from outside the country. ‘One size fits all’, therefore,
‘solutions’, too much law, no strategic approach, what we do first, what we do second, and
who has what role about these things. We just fragment the way in which we fight
corruption to multiple agencies, they get in the way of each other, and educational
institutions don’t do enough to promote a culture of integrity and capacity in societies to
actually have the skills that it takes to make things different. So, we are drilling holes in
the water, we waste resources, everything we do is unsustainable, and changes wherever
they are attempted, and they are in many, many places they lose momentum, credibility
and legitimacy. Here, in Greece, there is the chance, the opportunity right now to set an
example of how to do things differently and well. However, there are challenges. In addition,
there are needs. However, even though we have a plentiful world, Greece cannot enjoy it, and
is boosted into isolation and blamed also from the outside.
Note: For more detailed info, refer to the Script.
3. Say, what makes the presentation so powerful. What images and metaphors are used by the
speaker?
a) An extended metaphor: “a gravely sick patient in need of intensive care” (Greece)
It is supported by other words of the same family: PODs of a patient, that patient is dead,
established doctors, cure, inclusive diagnosis, to be operated on, toxic medicine,
detoxification
b) “Greece was under water”, “economy tanks”, (fails), submarine – metaphor of drowning,
sinking
c) “drilling holes in the water” – metaphor of futile efforts
The crossword puzzle
Page 358
KEY:
Across words Down words
2.kickbacks 1.patronage
3.racket 4.compliance
5.confront 6.combat
8.moneylaundering 7.embezzlement
10.bribe 9.extortion
14.loophole 11.cronyism
17.forge 12.commitment
18.dodge 13.underhand
19.outwit 15.evade
20.nepotism 16.foster
21.graft
202
UNIT 16. EXTERNAL BUSINESS ENVIRONMENT. RISK MANAGEMENT

PRE-READING
Page 360
1. What is business environment and what are its types?
A business organization cannot exist in a vacuum. It needs living persons, natural
resources and places and things to exist. The sum of all these factors and forces is
called the business environment. Business environment is of two types-
(i) Micro environment or the internal environment
Micro environment comprises of the factors in the immediate environment of the
company that affect the performance of the company. In includes the suppliers,
competitors, Marketing intermediaries, customers, pressure groups and the general
public.
(ii) Macro environment or the external environment
The forces and institutions outside of the organization that can potentially affect the
performance of the organization come under the external environment of Business.
The macro environment of business consists of the economic, demographic, natural,
cultural and political forces.
2. Infer the content of the articles from the following headlines. Name the factors of
external environment in which businesses have to operate.
The Kaspersky equation = equation a problem or situation in which several things must be
considered and dealt with
KEY: like many an executive in his industry, his regular warnings about big, emerging cyber-
threats just happen to be good for drumming up business. However, Kaspersky Lab has
repeatedly impressed sceptics by exposing genuine and serious cyber-security problems.
WHILE-READING
Page 361
2. Write down the features of the market of Iran noted by the author.
Investment in Iran. Not so fast
Enthusiasm for post-sanctions Iran is being tempered by realism
Para 1. Not only would they enjoy access to Iran’s 80m people, but also to a hub for trading
with hundreds of millions more in Iran’s troubled neighbours.
Para 2. The Tehran stock exchange… stuttered and fell… Businessmen there moan of
unshiftable inventories and sharply overdrawn balance-sheets. Property prices and
construction are flat.
Para 3. Sanctions have indeed created trends that are on the collision course … but also the
dried up liquidity needed to finance it. Oil prices are down by half, sharply reducing revenues
as well as the incentives to invest when reopening happens.
203
Para 4. In the meantime nepotism, legal unpredictability and state companies masquerading
as private ones will all bedevil business. There’s no evidence of cleaning up in Iran to bring it
up to scratch. “The corruption is still at unbelievable rates”… some American financial
sanctions will remain.
Para 5. Not all is gloom. Sanctions relief should release $50 billion-120 billion (estimates
vary wildly) of Iranian assets frozen abroad. Repatriation from the diaspora might add $20
billion more. Big league companies are preparing to enter the market too.
POST-READING
Page 363
c) Which factors are not listed in the PESTEL diagram in the PRE-READING section
and can be added there?
KEY:
1. Repatriation from the diaspora- immigration / emigration/ repatriation social
factors.
2. Lifting / imposing sanctions- political factors.
3. Nepotism, state companies masquerading as private ones - corruption – legal
factors
LANGUAGE FOCUS (1)

Page 363
1. Match the following phrasal verbs with their definitions.
1. take over1-c; 2.take over2-f; 3.round on sb-e; 4.account for1-b; 5. account for2-j;
6. break up1-a; 7. break up2-d; 8. break up3-i; 9. lay on-k; 10. shake up-h; 11. clean up-j
2. Fill in the blanks with an appropriate phrasal verb.
1. taking over, 2. broke up, 3. rounded on, 4. laid on, 5. cleaned up, 6. taken over,
7. break up, 8. laid on, 9. took over, 10. account for, 11. break up, 12. shaking up,
13. account for, 14. break up, 15. rounded on, 16. laid on
3. Paraphrase the sentences using the following idioms.

1. The new foundation will be giving away $55 million a year; putting it in the big
league of powerful charities.
2. With every new exchange of political accusations, the relations between the two
countries went from bad to worse.
3. All attempts at diplomacy have broken down and the steps the two states are now
taking are certain to be on a collision course.
4. If the company takes on all these orders it will probably bite off more than it can
chew.
5. Having more police on the streets helped to clean up the city.
6. The hotels they recommended weren't up to scratch.
204
4. Fill in the blanks with an appropriate idiom.
1. is on a collision course with
2. up to scratch
3. to clean up
4. Don't bite off more than you can chew.
5. went from bad to worse
6. He got all the flak.
7. They are in the big league

1. The authors of book reviews round on those writers who write exclusively for money.
2. The success of the store is accounted for by the ability of the retailer to convince
buyers and eventually sell off the goods.
3. The figures can be broken up into several groups, showing us different ways of
looking at the firm's activities. For example, this group of figures relating to the last
project shows that the firm has bitten more than it could chew.
4. The questioning didn’t break up for a few hours. The physical and psychological
condition of the prisoner went from bad to worse.
5. The company is in the big league of oil and gas producers. That is why all business
analysts are intrigued to learn who is going to take over as Executive Director.
6. The newly elected mayor rounded on his predecessor. He declared his intention of
cleaning up the city council and its executive personnel.
7. Mega malls based outside the city usually lay on shuttles to transport the buyers,
which besides other factors accounts for the popularity of the shops.
8. The owners of the hotel chain were keen on providing excellent service. They doubted
that the young heiress could maintain it up to scratch.
9. The cabinet seems to be broken up into different fractions that are on a collision
course about the economic policy in the country. The cabinet needs shaking up.
THEM AND US
Page 365
1. Render the text in English.
Политические факторы внешней среды,
влияющие на деловую активность предпринимателя
Традиционно, факторы, влияющие на деловую активность, подразделяются на
внешние и внутренние. Важную роль в успешном развитии бизнеса играют внешние
факторы, а в их числе – собственно политические, оставляя в стороне факторы
естественные (погодные условия и природные бедствия the elements), технологические
(связанные с появлением новых открытий, в науке и технике, инноваций),
экономические (международная и внутрихозяйственная конъюнктура (state of home /
foreign markets, situation on the market), ситуация на валютной бирже the situation on
the foreign exchange market, состояние рынка труда the general state of the labour
market и т.п.
205
К политическим факторам можно отнести: крупные общественные потрясения
social disturbances, войны, общенациональные мероприятия профсоюзов nationwide
trade union activities, забастовки, победу на выборах оппозиции, принятие
парламентом госбюджета и налоговой политики approval of the state budget and fiscal
policy in Parliament.
Важными для ведения бизнеса в России являются такие политические факторы,
как общая расстановка общественно-политических сил the alignment of political forces,
положение в регионах, взаимоотношения государств в условиях нового мирового
порядка in the new world order, поскольку они в наших условиях реформирования
отношений имеют первостепенное значение.
Также среди политические факторов внешней среды такие, как
законодательство и налоговая политика правительства, региональный фактор и фактор
внешней политики, которую проводит президент.
Отставание в правовом регулировании gaps or shortfalls in legislation or
implementation является одной из главных причин, тормозящих hindering/ impeding
развитие свободного предпринимательства в России. Несовершенство законодательной
базы inadequacy of legal frameworks/basis, deficiencies of legislative instruments,
отсутствие эффективных мер экономического стимулирования, необеспеченность
защиты предпринимателей failure to provide adequate protection серьезно сдерживает
формирование предпринимательской деятельности.
В отношении к политическим факторам – условиям внешней – среды
предприниматель не должен ждать милости от властей rely on the goodwill / mercy of
authorities, уповать на trust that принятие нужных для него законов и т. п. На наш
взгляд, он должен занять активную позицию to adopt a more proactive approach
давления на власть to exercise pressure on the authorities, влиять на законодательный
процесс, на процесс принятия решений президентом, правительством по
интересующим его вопросам, используя при этом самые разнообразные формы,
начиная от публичных выступлений с критикой властей, лоббирования властных
структур до непосредственного участия в законодательной legislative work,
политической деятельности
PEER TO PEER
Page 366
2. Do the quiz below. Сompare your answers with those of your partner. Substantiate your
opinion.
KEY:
1. You shouldn’t say so. Chinese people would find this very offensive. They have always
considered Taiwan to be a part of China, not a separate country.
2. That would be the right thing to do. In most Muslim cultures you should not handle
food with your left hand as it is considered unclean.
3. A Japanese businessman would actually mean to say “no”, which they consider rude
and too direct. So persuading him further would be the wrong thing to do.
206
4. This would be perfectly acceptable. At most informal social occasions, it is normal to
arrive a little late. It would be wrong to arrive too early.
5. You are likely to produce a good impression. Your Saudi host should appreciate your
attempt at speaking Arabic, if you could only speak a few words such as “Good
morning”.
6. This would be the right thing to do. In many Arab countries, it would be considered
rude to start talking about business immediately.
LISTENING (1)
Page 367
1. Listen to the description of McCain Foods Company and the way it responded to the
changing external environment. Give the information under the following headings:
Script
How McCain responds to changes in the external environment
Introduction
Businesses have a number of objectives. Typical examples include:
• winning the biggest share of the total market
• increasing sales
• satisfying customers
• making profit for shareholders.
A business’ ability to meet these objectives depends on two main groups of factors:
i. the internal strengths of the organisation – for example being able to make the right
products in an efficient way
ii. being able to identify external influences in the business environment and on its
consumers and adapt accordingly.
The external environment today is changing fast. This case study shows how
McCain needs to identify changes in the external environment. It must then rise to the
challenges posed by change. The external environment consists of everything outside the
business.
The McCain product most people recognise is chips. McCain is the world’s largest
producer of chips. McCain buys 12% of the British potato crop. McCain is also one of the
world’s largest frozen foods companies.
McCain is a privately owned company with a strong market focus. This means that it
carries out research to find out what consumers want. It then uses this market information to
create products that consumers want to buy.
McCain’s business focuses on frozen potato products and frozen light meals. It
provides consumers with a wide variety of cut and seasoned potato products through UK
207
retailers, like supermarkets and restaurants. These include roast potatoes, potato wedges, hash
browns, waffles and potato croquettes. McCain produces more specific potato shapes like
Potato Smiles, Crispy Bites and Sumthings (shaped as numbers) which appeal to younger
consumers. McCain also makes pizzas.
If asked to name a typically English dish, most people will say ‘fish and chips’. Chips
are produced in lots of different shapes and sizes, ranging from those deep-fried in fish and
chip shops to today’s oven chips.
One of the biggest environmental factors affecting McCain in 2005/6 was the
growing concern about obesity, particularly in children. This case study shows how McCain
has risen to the challenges of this debate and other external challenges. McCain’s view is that
its chips can and do play a role in a healthy balanced diet and it is continually finding ways
to ensure
McCain products are as healthy as possible.
SLEPT analysis
In order to be able to understand its customers’ requirements and respond to other
changes, it is important for a company to analyse its environment. A SLEPT analysis is a tool
that helps to analyse the environment.
To create a SLEPT analysis the company needs to examine the key environmental
factors that affect its business. These are broken down into: social, legal, economic, political
and technological factors.
Having carried out the analysis it must then take action to respond to the important
changes that have been identified. Of course, some of the factors in the SLEPT analysis can
be placed under more than one of these headings.
The following analysis outlines SLEPT factors and indicates some of the changes that
McCain has made and is making.
Social trends are one of the key factors affecting a business. Consumer buying
patterns are determined by trends. Just as the demand for some popular clothes are determined
by fashion, demand for food products is determined by eating patterns. Eating habits are
always changing. Currently one in four of all British potatoes consumed are eaten as chips.
Recently McCain and other food producers have seen falling sales as a result of campaigns to
encourage healthier eating such as that spearheaded by Jamie Oliver.
McCain has responded to this challenge in two main ways:
• by reducing quantities of salt and oil throughout its potato products. McCain argues that
these figures are very low already. For example, McCain’s Oven Chips contain only 5% fat,
0.8% saturated fat and 62mg of sodium in every 100g portion. They are made with only
natural ingredients - specially selected potatoes and sunflower oil.
• by seeking to get the message over that its chips are not unhealthy. The message that it
communicates through public relations campaigns and advertising is that McCain products
are made from simple ingredients such as whole potatoes and sunflower oil.
208
A key way in which McCain has responded to changing customer tastes has been to
improve the nutritional make-up of its products. Chips are now pre-cooked in sunflower oil
instead of regular vegetable oil to reduce saturated fats. There is no added salt in oven chips
and added salt has been reduced by up to 50% in other potato products.
Legal factors
Responsible businesses not only abide by the law, they seek to create standards above
minimum requirements. McCain has to be aware of a number of legal factors. The
government’s Food Standards Agency has recommended that firms put ‘traffic light’ labels on
food to help people understand what they are buying and to help them make the right choices.
• Red represents high levels of ingredients such as fats and salts.
• Green represents low levels.
Also featured on the labels are Guideline Daily Amounts (GDAs) which show how
much fat, saturated fat, sugar and salt each product contains. This helps the consumer to
achieve a consistently balanced diet. McCain has put ‘traffic light’ labels on its British
products as a response to consumer concerns about healthy eating. All of McCain’s potato
products are able to display the green label for saturated fat and none of its products shows a
red label.
In the UK, advertising of products is supervised by a voluntary body within the
advertising industry.
It is called the Advertising Standards Authority (ASA). McCain makes sure that all its
advertising sticks rigidly within the requirements of the ASA. The ASA sets out that all
adverts must be: legal, decent, honest and truthful
In addition, McCain’s products comply with a range of laws, including:
• The Food Safety Act, covering the way in which food is prepared and served.
• The Trades Descriptions Act, which states that goods and services must be exactly as
described.
• The Weights and Measures Act – governing such aspects as giving the right weight on
packs.
For example, McCain’s oven chips come in packs of 454g, 907g, 1kg, 1.5kg, and 1.8kg.
McCain takes these responsibilities very seriously. It is important to build a reputation for
honesty and fair play.
Economic and political factors
Economic factors include changes in buying patterns as people’s incomes rise. For
example, as incomes go up people prefer to buy what they see as superior varieties of a
product type. We see this with the development of ready prepared foods. As people become
cash-rich and time-poor they prefer to switch to ready meals and simple to prepare foodstuffs
that they can quickly heat in an oven or microwave. Rather than buying potatoes and making
chips at home or taking the time to go to a fish and chip shop, it may be seen as more
209
desirable to buy oven chips. Of course, it may be cheaper to make your own chips by peeling
and cutting up potatoes. However, with growing affluence people prefer ready prepared oven
chips. McCain has risen to this challenge by creating a range of varieties e.g. straight cut oven
chips, Homefries (seasoned chips), roast potatoes and wedges, to appeal to a variety of
customers.
On political factors, the UK government has increased the pressure on food suppliers
to come up with healthier foods. The government publicises and supports healthy eating by
creating initiatives such as ‘Healthy Schools’. This encourages pupils to think about the
choices they make when choosing what to eat. Responsible eating and healthy exercise
encourages everyone’s health and well-being. McCain supports the government’s initiative. It
believes that the foods that it provides, including potato based products, are nutritious
provided that they are prepared in a healthy and simple way.
Technological changes
Food technology is one of the most dynamic technologies in the modern economy. Food
technology involves researching and developing new techniques for making products as
diverse as ice cream, probiotic yoghurt, frozen oven chips and muesli bars. Each of these
products involves finding technical solutions to problems such as how to:
• freeze while retaining flavour
• maximise natural nutritional characteristics
• turn a frozen product into an oven heated product.
McCain is continually being faced by new challenges from technological factors. It
should be no surprise therefore that McCain’s food technologists were only too happy to rise
to the challenge of making its potato products even healthier. McCain needed a solution that
not only reduced fat and salt, but also kept the sort of flavour that would delight customers.
The solution was to use sunflower oil which reduced saturated fats by 70% across the whole
product range. Food technologists know that by working with real potatoes they are dealing
with a product with a very strong nutritional pedigree. For example, it is a little known fact
that a potion of chips contains four times more vitamin C than a portion of grapes. As a
product, potatoes are the second most important staple food in the world today (rice is the
first), providing essential carbohydrates that help us to generate energy.
Potatoes also have tremendous future potential. In 1995 the potato became the first
vegetable to be grown in space. NASA worked with top scientists to develop super-nutritious
and versatile potatoes. These can be used to feed astronauts on long space voyages and
NASA hopes one day that these will feed space colonies.
Conclusion
Change is the one constant in the business environment. Change comes from a number
of sources – Social, Legal, Economic, Political and Technological. This case study has
illustrated how these changes have affected McCain, particularly in relation to its core
products.
210
Because McCain is a market focused company it recognises that it has to respond to
what its consumers want. There are clear indicators that today’s consumers want to live a
healthier lifestyle. Consumers are increasingly aware of food content and food issues. More
and more people look at food labelling and read information in the press about what is good
for them. They listen to people like Jamie Oliver and government spokespeople. They listen
to advice from teachers and nutritionalists. The challenge has been, and continues to be, to
prepare chips in the healthiest way possible. Fortunately for McCain, it has market
researchers and food technologists who enable the company to keep in tune with the changing
environment. McCain’s advertising supports the company’s message that chips are
nutritionally acceptable provided they are made in the right way. The challenge now is to
keep listening to customers and to the external environment in order to continue to give
consumers the best value healthy chips and other food products. Of course, the choice rests
with the consumer. What do you think? Is McCain doing the right thing?
http://www.thetimes100.co.uk/case-study--how-mccain-responds-to-changes-external-
environment--101-272-1.php
2. Listen for detail and fill in the gaps with appropriate information.
In order to be able to respond to changes, it is important for a company to analyse its
environment. A SLEPT analysis is a tool that helps to analyse the environment. SLEPT is
broken down into: social, legal, economic, political and technological factors. Of course,
some of the factors in the SLEPT analysis can be placed under more than one of these
headings. Social trends are one of the key factors affecting a business. Consumer buying
patterns are determined by trends. Just as the demand for some popular clothes are
determined by fashion, demand for food products is determined by eating patterns. Recently
McCain and other food producers have seen a slow down in sales as a result of campaigns to
encourage healthier eating. McCain has responded to this challenge in two main ways:
• by reducing quantities of salt and oil throughout its potato products range. McCain's
Oven Chips contain only 5% fat,.0.8% saturated fat and 62mg of sodium in every
100g portion.
• by seeking to get the message over that its chips are not unhealthy. The message that
it communicates through public relations campaigns and advertising is that all
McCain potato products are made from simple ingredients. All of McCain's potato
products are now pre-cooked in sunflower oil instead of regular vegetable oil to
reduce saturated fats. Added salt has been reduced by up to 50% in other potato
products.
3. Match the five factors of a SLEPT analysis to the steps taken by McCain Food Company..
KEY: 1-e), 2-b), 3-a), 4-c), 5-d)
HAVE YOUR SAY

Page 368
2. Read the article and name the framework summarizing the types of external forces.
KEY: PEST, a pest
211
3. What cases does the author mention to illustrate the impact of external forces?
Political forces. For example, beginning in 2008, health care companies began
anticipating dramatic changes to the US health care system as President Obama made
health care reform his top priority.
Political forces do not only exist in the home country of a business. Many US companies
operate in China, a country where the government has much more influence over
business behaviors. These US companies must be aware of the political pressures in
China if they want to be successful in that attractive market.
The financial crisis of 2007-2008 demonstrated the impact that economic forces
can have on companies. …banking or the housing industry saw their revenues drop,
sometimes dramatically, as unemployment rose and disposable income dropped. - a battle
that some 100-year old companies lost, such as Lehman Brothers and Bear Sterns.
Any change in the economy that impacts the supply or demand for a company's
products and services fits into this category. Sometimes they have a positive impact, like
when a country's gross domestic product (GDP) increases more than expected. Other
times, economic forces can hurt a business, like when consumer confidence drops, and
potential customers spend less and save more.
Social factors are those that reflect the preferences, fads, and trends in society.
Media companies are very sensitive to social trends …Reality TV, unheard of 20 years
ago, is now some of the most watched productions in prime time. Social trends often
follow technological trends. For example, technological forces made email possible.
Advancement in technology has had a dramatic impact on the business world over the
last two centuries…..like when Apple anticipated a shift from CDs to electronic media
and introduced the iPod. …Kodak was a market leader in photography and film until
1990s. While Kodak still exists, it is not much more than an afterthought in the market
of digital media industry.
Page 369.
PRE-READING
3. Can you suggest ways in which risks could be managed/mitigated/averted? – Predicting,
assessing, dealing with, avoiding, transferring, etc.
WHILE-READING
1. Write down collocations with the word ‘risk’.
unmanaged risk, effective/risk management, risk management process, risk
practitioners and professionals, risk arises, threat risks, risk management standards and
guidelines, occurrence of risk, to manage risk, built-in risk management, risk
managers
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LANGUAGE FOCUS (2)
Page 372
1. Choose the most suitable words and word combinations and fill in the blanks.
Translate the sentences into Russian.
1. Calculated risk. На обдуманный риск идут, точно рассчитав шансы на успех

или неудачу.
2. Upside. В своем написанном в январе 2003 года эссе, посвященном
преимуществам периода экономического спада, Фиш отметил: “К плюсам
отнесите и что, что никто не будет назначать вам встречи, отрывая от дела”.
3. Grave risk. Американские банки шли на большой риск, выдавая
необеспеченные банковские кредиты.
4. Risk-takers. В соответствии со статистическими данными среди
курильщиков больше людей способных идти на риск.
5. Risk management. В идеале управлению риском предшествует процесс
приоритизации, при котором первыми рассматриваются наиболее вероятные
риски с наибольшими возможными потерями.
6. Downside, upside. Акции продаются с 25% скидкой относительно стоимости
активов, и практически нет риска дальнейшего снижения, а потенциал
возможного роста составляет 25%.
7. A security risk. Использование IT создает потенциальный риск безопасности
компании и может привести к риску, связанному с нарушением
информационной безопасности (общий термин, соединяющий в себе все
виды защиты данных в системах, основанных на компьютерных
технологиях).
8. Identify potential risks. Следующим шагом после рассмотрения ситуации и
общего контекста является определение потенциальных рисков.
9. Risk Takers. Рисковые люди/ Смельчаки – это документальный канадский
телесериал о людях опасных профессий, привыкших идти на риск.
10. A downside. У известности есть и отрицательные стороны.
11. A risk shaper. Компания, которая «формирует» свои риски, заинтересована в
достижении результатов и поэтому направит свои действия на эксплуатацию
рисков во имя достижения бизнес целей, а не на уклонение от них.
12. Risk aversion. Основным последствием будет продолжительный период
ухода от риска (готовность инвестора заплатить большую сумму за
финансовый инструмент с более низким уровнем риска при фиксированной
ожидаемой доходности), при котором инвесторы будут держаться в стороне
пока не почувствуют большую уверенность относительно конфликта в
Афганистане.
13. Incurs. Каждая стадия процесса подвергается дополнительному риску.
14. Poses no risk. Нам говорят, что авария на данном атомном объекте не
представляет риска для окружающей среды.
15. Security risk. Человека, представляющего потенциальную угрозу
безопасности страны, тем, что он может подвергаться давлению, имеет
политические убеждения, направленные на подрыв существующего строя и
т.п., называют неблагонадёжным.
16. Unmanaged risk. Неуправляемый риск опасен тем, что может привести к
непредвиденным результатам.
213
17. Risk arises. Риск возникает от неопределенности.
18. Treating risks. Полезно рассматривать риски одновременно как угрозы и как
новые возможности.
19. Risk transfer. Размер страхуемого риска незначителен по сравнению с
общим размером кредитного риска.
2. Match the following types of risk with their definitions. Translate the sentences into
Russian.
1. Legal and regulatory risk, риск изменения законодательства (риск потерь,
связанных с изменением законодательства).
2. Financial risk, финансовый риск (любой риск, связанный с финансовыми
операциями).
3. Credit risk, кредитный риск, риск неплатежа [делькредере].
4. Liquidity risk, риск (потери) ликвидности (риск, связанный с возможным
отсутствием ликвидных средств при наступлении обязательств; в этом случае
придется продавать неликвидные активы по заниженной цене).
5. Market risk, рыночный риск (риск потерь, связанных с непредвиденным
изменением рыночных цен (например, на товар, на акцию и т.д.).
6. Operational risk, эксплуатационный, операционный риск (риск небрежных или
некомпетентных действий, в результате которых может быть причинен
материальный ущерб.
7. Volatility risk, риск нестабильности (напр., в характере потребительского
спроса), риск волатильности (изменчивость, колебание курса какого-л.
финансового инструмента).
8. Technological risk, технический риск, связанный с технической неисправностью
9. IT risk риск, связанный с использованием информационных технологий
(информационная безопасность).
10. Complacency risk. Риск самоуспокоенности.
11. Cyber risk. Киберриск, компьютерный риск.
3. Substitute the words in italics for their synonymous collocations with ‘risk’. Translate the
sentences into Russian.
1. Eliminate. В зависимости от типа риска и его возможного влияния на бизнес
управленческий аппарат и члены Совета директоров могут принять решение
избежать или уклониться от риска/ исключать риск, то есть, где возможно, не
осуществлять определенные действия или процессы, которые вызвали бы
повышение риска.
2. Mitigation. Ослабление риска связано с применением методов, которые сокращают
тяжесть последствий от потерь или не допускают их вовсе.
3. Risk reversal. Замораживание цен на продукты питания – это мера, направленная на
коренное изменение критической ситуации к лучшему. К ней прибегает
правительство, чтобы обеспечить поддержку на предстоящих выборах.
4. Retention. Официальное признание наличия риска и решение принять на себя
потери от него – это действенная стратегия, при которой страховка против риска
стоила бы в конечном счете больше, чем общие понесенные потери.
214
5. Risk transfer. Покупка страховки – это один из способов переложить
ответственность за риски на другую договаривающуюся сторону в результате
подписания особого контракта.
6. Treat. Когда тип риска установлен и его величина оценена, технология управления
риском сводится к выбору одного или нескольких методов из четырех основных
категорий.
4. Fill in the gaps with one of the following words, which is appropriate for all the sentences
in each set. Translate the sentences into Russian.
1. cede ___уступить
• Первые постоянные поселения европейцев были основаны французами

в Канаде, начиная с 1605 года, и затем переданы в управление
британцам в 1763 году после ряда колониальных войн.
• Беспроигрышный (такой, при котором все стороны выигрывают; при
котором не приходится ничем жертвовать) принцип ведения
переговоров рекомендует договаривающимся сторонам возможность
уступить по одному из пунктов переговоров ради получения деловых
преимуществ обоими сторонами сделки.
2. to relate _____относиться, общаться, рассказывать

• Нам надо взглянуть на статистику, относящуюся к последнему
полугодию.
• Мартину всегда было легче общаться с женщинами.
• Филипп начал рассказ об ужасах своих детских лет, проведенных в
престижной частной школе.
3. glean ______собирать, тщательно подбирать

• Их решения основывались на финансовых данных, почерпнутых из
интернета.
• Многих женщин арестовывали за то, что они собирали колосья,
оставшиеся в поле, после сбора урожая колхозниками.
4. conundrum _________головоломка, дилемма

• Головоломка, называемая «игрой слов», часто непонятна иностранцам.
Например, в предложении 'The violinist spent the night in a vile inn” слова
vile inn (означающие «плохой отель») звучат как violin скрипка.
• Для работающих родителей организовать присмотр за детьми во время
школьных каникул может быть трудной задачей.
5. loom _________ виднеться, маячить, принимать угрожающие размеры

• Внезапно горы стали неясно вырисовываться в туманной вышине.
• Правительство старается смягчить мнение о том, что кризис принимает
угрожающие размеры.
215
6. wield _________ орудовать, обладать (властью)
• Шайка, орудовавшая бейсбольными битами, разбила стекла в ее машине.
• Он остается председателем, но обладает малой властью в компании.
7. score/s/ed_________ноты, завоевать(успех), множество, забивать

• Тем, кто интересуется покупкой нот всех сочинений Штрауса,
рекомендуется поехать в Вену.
• Они добились значительного успеха в увеличении продаж.
• Множество волонтеров предложили свою помощь.
• Средний результат за тест составил 75 баллов.
• Ни одна из команд не забила гол в первой половине встречи.
1. The police gleaned the story behind the robbery from a few chance remarks by the
witness and eventually scored a great success in the investigation.
2. Risk retention doesn’t always mean ceding a commercial position. There are scores
of examples showing that risk insurance may be more expensive.
3. The upside of taking calculated risks is considered to offset their possible downside.
4. Unlike risk-averse companies, risk-shapers often exploit the upside of their active
policy and wield more market power.
5. The writer relates business cases showing how companies facing grave looming
risks could identify, assess and treat/manage them successfullyб by mitigating or
eliminating them.
PEER TO PEER
Page 376
2. Scan the article for as many collocations with the word ‘risk’ as you can. The one who
finds the most wins. – risk taker, risk shapers, risk reversal, downside risk, unmanaged risk, to
fear risks, to exploit risks
Page 377
Dr. David Hillson, the Risk Doctor, recommends structuring a company’s risk process by
asking and answering six simple questions. Listen to Dr. David Hillson’s presentation ‘Risk
management basics: What exactly is it?’, list the questions and give reasons for asking them.
What steps of the risk process do the questions correspond to?
KEY:
The questions that everybody wants to ask no matter what situation they are in
whether it’s a personal dilemma, a project process or some kind of an organisational decision.
1 question: What are we trying to do? Step 1 - objective setting, understanding the context,
the scope, the environment within which we’ll have to manage risk.
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2 question: What might affect me? Are there things out there in the future that either can
hinder me achieving my goals or even help me? Step 2 - risk identification, finding the
uncertainties that matter, the future events that if they occurred would help or hinder as we try
to achieve our goals.
3 question: Which of those things that might affect me are most important? Step 3 – risk
assessment, risk analysis, risk valuation. Try to prioritize those things that might affect us in
two key dimensions: how likely is it to happen and if it happened what effects it might have
on our goals: positive or negative because, of course, risk includes both threats and
opportunities.
4 question: What should we do about it? Is very important because otherwise, we may
become just victims of uncertainty and things, which we were not expecting might happen.
5 question: Did it work? Often we find that the actions that we plan to take in response to risk
are not actually achieving what we wanted. Therefore, we may need to modify our approach.
6 question: What changed? Projects, life, business are constantly changing very dynamic. We
should be able to spot new risks that have arisen since we last looked.
If we build our risk management process around these 6 questions, it becomes easy to
do it, intuitive, it becomes a natural process that doesn’t involve a lot of bureaucracy, lots of
forms, lots of statistics.
CASE STUDY
Page 379
Sony Pictures Entertainment hack
Introduction.
3. Describe the structure and size of Sony Pictures Entertainment Inc. (SPE).
KEY:
Sony Pictures Entertainment Inc. (SPE) is the American entertainment subsidiary of Sony
Entertainment Inc., a subsidiary of Japanese multinational technology and media
conglomerate Sony. Based in Culver City, California, it encompasses Sony's motion picture,
television production and distribution units. Its group sales in March 31, 2015 were reported
to be of $7.3 billion. Throughout the years, SPE has produced, distributed, or co-distributed
successful franchises such as Spider-Man, Men in Black, Underworld, and Resident Evil.
Sony Pictures Entertainment is a member of the Motion Picture Association of America.
https://en.wikipedia.org/wiki/Sony_Pictures_Entertainment
Senior Management Team
http://www.sonypictures.com/corp/seniormanagementteam/michaellynton.html
LANGUAGE STUDY
Page 381
b) Scan the article and make a list of “cyber threat” topic vocabulary.
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незаконный доступ, проникновение (в защищённую систему) – hack
нарушение брандмауэра (защиты от хакерских атак) – to breach firewall
терабайты секретной информации – terabytes of sensitive information
утечка информации/ выдавать, раскрывать, сообщать (секретные сведения) – leak
вредоносное ПО – malware
троянский вирус – trojan
фишинг (разновидность интернет-мошенничества), выуживание информации –
phishing
обновлять антивирусную программу – updating anti-virus software
находить уязвимые места в сетях компании-цели – find holes in a target company’s
networks
носимые устройства – wearables
массовое нарушение/ проникновение – a massive breach
устройства считывания карт и кассовые терминалами для считывания штрих-кодов
(POS) – point-of-sale (POS) networks
имя пользователя – username
пароль – password
загружать информацию – upload
уровень безопасности/ средства обеспечения безопасности – security posture
GROUP WORK
Page 382
Read the article. Hold a group discussion on the following problems.

• Criticism of traditional approaches.
The placebo effect, far too much complexity, compliances, not an adequate form of risk
management, indecision and paralysis have crept into the decision matrix, orientation toward
risk aversion blinds us to clear warning signs that trouble lies ahead. New technologies and
disruptions are ceded to upstarts
• What makes VW [ˈvoʊks wæɡәn] (man-made) and Panama Papers (speed of the
unforeseen) cases instructive?
- Once considered a paragon of corporate governance and a leader in the automotive industry,
in 2015 VW grappled with a rapidly eroding reputation and a precipitous decline in its market
value due to an entirely preventable emission-rigging scandal. VW’s case is very much
emblematic of risk in our times, where climate change, reputation and technology converged
to amplify the losses to the company’s shareholders, inviting worldwide scrutiny. Actions that
were once accepted as an externality are now treated as something punishable with monetary
fines and sometimes irreversible damage to a firm’s hard earned reputation.
- Risk agility and effective decision making is not about fearing the twenty-first century,
although it certainly deserves deference. It is about respecting the speed with which things
can fall apart as a result of unforeseen or unexpected events - as quickly as the so called
Panama Papers were leaked and within a day had claimed its first head of state in Iceland. As
such, the basis for making bold choices should include doing something never done before, or
waiting to see what happens before making a move. Agile enterprises are transparent,
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trustworthy, entrepreneurial and, above all, risk takers. Aversion to risk is dangerous and
implies being stuck in another era and held at a standstill by the inertia of fear.
• How should the attitude to risk management change?
Adaptability and Agility, Greater simplicity is needed, our ability to harness risk, encourage
bounded risk taking, and improving overall organization, aversion to risk is dangerous.
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UNIT 17. THE FUTURE OF WORK
Page 385
HAVE YOUR SAY
1. What trends in today’s labour market are likely to change it profoundly in the
foreseeable future?
KEY: IT; AI (artificial intelligence), distant working; more independent,
decentralized, creative working; changing one’s career path several times in order to fulfill
one’s vocation, LLL,
on-demand economy – providing services on demand by using IT: Uber taxi, Airbnb,
Airbnb – a website for people to list, find, and rent lodging,
Google Now – Google's virtual assistant for Android and iOS mobile devices as well as
the Chrome Web browser,
IBM Watson – a technology platform that uses natural language processing and machine
learning to reveal insights from large amounts of unstructured data, e.g. answer your
customers' most pressing questions, quickly extract key information from all documents,
Cortana – a voice-controlled virtual assistant for Microsoft Windows Phone 8.1.
Comparable to Siri.
PRE-READING
Page 386.
2. Have people always feared machines? Give some examples of "technological

unemployment".
KEY: the Luddites 19th-century English textile workers (or self-employed weavers who
feared the end of their trade) who protested against newly developed labour-economizing
technologies.
POST-READING
Page 387.
1. Explain the following.

• it has been an article of faith - KEY: a firmly held belief
• this wave of disruption - KEY: a situation in which something is prevented from
continuing in its usual way.
LANGUAGE FOCUS (1)

Page 388
1. Words with multiple meanings. Choose a word fitting a set of three-four sentences.
Translate the sentences into Russian.
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KEY:
a)__address_____________
1. All enquiries should be addressed to head office.
2. Governments have been slow to address the problem of global warming.
3. Would you help me to address these envelopes?
4. We need to address ourselves to the question of cost.
KEY:
1. Все запросы следует направлять в головной офис.
2. Правительства разных стран не спешили решать проблему окружающей среды.
3. - Не поможешь мне написать адреса на конвертах?
4. Нам необходимо обратить внимание на проблему стоимости.
b) ___stem____________
1. You and I will search the garage. We'll go through it from stem to stern.
2. Cut the stems to ground level in winter.
3. These policies have helped to stem population loss.
4. Dependence on alcohol often stems from unhappiness in the home.
KEY:
1. Мы с тобой обыщем гараж. Перевернем все вверх дном.
2. Зимой обрежьте стебли на уровне земли.
3. Эти меры помогли прекратить потерю населения.
4. Алкогольная зависимость часто обусловлена неудовлетворенностью в личной жизни.
c) __retention_______________
1. Retention of power seemed to have been their main aim.
2. The sea's retention of heat is greater than the land's
3. The retention of old technology has slowed the company's growth.
4. Documents retention period depends on their sensitivity but on average it is 20 years.
KEY:
1. Казалось, что сохранение власти было их основной целью.
2. Море обладает лучшей способностью сохранять тепло, чем земля.
3. Сохранение старых технологий замедлило рост компании.
4. Период хранения документов зависит от их секретности, но в среднем равен 20
годам.
d) ___momentum_____________
1. The momentum towards economic and political union in Europe is obvious.
2. Interest in human rights issues has gained momentum
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3. The vehicle gained momentum as the road dipped.
4. We must maintain the momentum of reform.
KEY:
1. Движение к образованию экономического и политического союза в Европе очевидно.
2. Интерес проблеме прав человека возрос.
3. Автомобиль набирал скорость, так как дорога шла под гору.
4. Мы должны сохранять высокую скорость реформ.
e) ___ agenda ____________

1. The Minister seems to have her own agenda.
2. We need to put efficiency high on the agenda
3. He has set the agenda for future work in this field.
4. Let's move to the last item on the agenda.
KEY:
1. Кажется, у министра есть своя программа работы.
2. Мы должны больше внимания обращать на эффективность.
3. Он наметил план действий на будущее в этой области.
4. Перейдем к последнему пункту на повестке дня.
f) ___ seam ____________

1. It’s impossible to find a seam in the zone defence: it’s seamless.
2. Seamless underwear is very comfortable.
3. The world public expected the transition of power to be seamless.
4. This gadget ensures seamless communication.
KEY:
1. Невозможно найти разрывов в зональной обороне: она непроницаема.
2. Бесшовное белье очень удобно.
3. Мировая общественность ожидает, что передача власти произойдет без помех.
4. Это устройство обеспечивает высококачественную связь.
g) ___ reticent _______________

1 From long association with men she had learnt a manlike reticent attitude.
2. She remembered how reticent her father had been about his past.
3. The King executed him for reticence of substantial facts.
KEY:
1. Долго общаясь с мужчинами, она приобрела их сдержанную немногословную
манеру.
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2. Она вспомнила, как мало говорил ее отец о своем прошлом.
3. Король казнил его за сокрытие важных фактов.
h) __compel________________
1. Love cannot be compelled.
2. His own poor situation compelled confession.
3. The defendant gave a compelling story of the events and the judge decided that there was
compelling evidence in her defence.
4. Why people took a liking to Gagarin was his compelling smile.
KEY:
1. Полюбить по принуждению нельзя.
2. Собственное тяжелое положение вынудило его признаться.
3. Обвиняемая убедительно описала события, и судья решил, что в ее рассказе
содержатся убедительные доказательства в ее защиту.
4. Причиной всеобщей любви людей к Гагарину является его неотразимая улыбка.
j) ___disruption_____
1. The train strikes caused major disruption to thousands of commuters.
2. Bus services will be disrupted tomorrow because of the bridge closure.
3. She was a disruptive influence on the rest of the class.
4. The award ceremony completely was disrupted by a technicians' strike.
KEY:
1. Забастовки железнодорожников нарушили планы тысяч пассажиров пригородных

поездов.
2. Автобусное сообщение завтра будет прервано из-за закрытия моста.
3. Она дурно влияла на остальных учеников класса.
4. Церемония награждения была полностью сорвана забастовкой технического
персонала.

1. Modern technologies ensure seamless communication which gives momentum
towards the development of new forms of labour organization.
2. Migration authorities discussed measures to stem the influx of illegal immigrants
into the country.
3. Strong religious beliefs and the political clout of Church account for the retention
of old lifestyles and family pattern.
4. Environmental campaign is gaining momentum. The ecological situation has
become the agenda of most political parties and nongovernmental organizations.
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5. Some looked for hidden political agenda in this event and tried to disrupt the
meeting of the two leaders. Despite this/ Against all the odds it took place and gave
momentum to the development of bilateral relations.
6. The change of government ensured a seamless transition/movement from one
economic system to another. But one shouldn’t underestimate the ability of the
conservative part of the population to retain old views.
7. The minister charged three members of the Cabinet with a task of working out a
program to stem unemployment.
8. Her success stems from hard work and being prepared for life long learning.
3. There is a phrasal verb step back in the text. Match other phrasal verbs with ‘step’ to their
meanings. Suggest Russian translations.
1. f step aside or step a) to offer help to someone who 1.уступить должность,

down needs it пост, уйти с поста
2. g step down as b) to stop for a moment in order 2. уходить в отставку с

to consider something поста президента…
3. b step back c) to leave a place for a short time 3. отвлечься,

отстраниться, уступить
4. a step forward d) to increase something 4. предложить свою

помощь
5. e step in e) to become involved in a 5. вмешиваться

discussion or argument,
especially in order to make it stop
6. d step up f) to leave an official position or 6. расширять,

job, especially so that someone увеличивать;
else can take your place усиливать, повышать
7. c step out g) to resign 7. выходить (особенно

ненадолго)
4. Translate the following sentences into English using phrasal verbs.

1. From time to time, parents should step back and let the children run things their own
way.
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2. I felt that when there were so many younger and more energetic people in the
department, I should step aside.
3. Lord X stepped down as Speaker of the House of Lords due to the exposure of
information about financial wrongdoing/ malfeasance/ financial irregularities of its
members.
4. He's not in the office; he's just stepped out for a breath of fresh air.
5. The police have asked for witnesses of the accident to step forward to help with
enquiries.
6. The government must have to step in to settle the disagreement between the union and
the employers.
7. The governments have been trying to step up manufacturing and trade.
8. Company executive did not wait for the employees opposing his ideas on future
development to step back. He took drastic steps as he was sure that well-coordinated
team work will ensure success.
9. One of the passing motorists stepped forward and offered to change the tyre.
10. HR agencies and employers are stepping up their requirements to applicants.
11. His ability to step back from day-to-day company management enabled him to spot
the changes appearing in the market.

Page 391
1. Go to https://www.youtube.com/watch?v=lwwCfx3fadg and watch ‘Humans Need
Not Apply: A Guide to Wealth and Work in the Age of Artificial Intelligence.’
Script
HUMANS NEED NOT APPLY
Every human used to have to hunt or gather to survive. But humans are smartly lazy, so
we made tools to make our work easier. From sticks, to plows, to tractors we’ve gone from
everyone needing to make food to modern agriculture with almost no one needing to make
food — and yet we still have abundance. Of course, it’s not just farming, it’s everything.
We’ve spent the last several thousand years building tools to reduce physical labor of all
kinds. These are mechanical muscles — stronger, more reliable, and more tireless than
human muscles could ever be. And that's a good thing. Replacing human labor with
mechanical muscles frees people to specialize and that leaves everyone better off even though
still doing physical labor. This is how economies grow and standards of living rise.
Some people have specialized to be programmers and engineers whose job is to build
mechanical minds. Just as mechanical muscles made human labor less in demand so are
mechanical minds making human brain labor less in demand. This is an economic revolution.
You may think we've been here before, but we haven't. This time is different.
Physical Labour – When you think of automation, you probably think of this: giant,
custom-built, expensive, efficient but really dumb robots blind to the world and their own
work. There were a scary kind of automation but they haven't taken over the world because
they're only cost effective in narrow situations. But they are the old kind of automation, this is
the new kind.
225
1. How different are emerging robots from their predecessors?
Unlike his older brothers he isn't pre-programmed for one specific job, he can do
whatever work is within the reach of his arms. Baxter is what might be thought of as a general
purpose robot and general purpose is a big deal. Think computers, they too started out as
highly custom and highly expensive, but when cheapish general-purpose computers appeared
they quickly became vital to everything. A general-purpose computer can just as easily
calculate change or assign seats on an airplane or play a game or do anything by just
swapping its software. And this huge demand for computers of all kinds is what makes them
both more powerful and cheaper every year. Oh, and, by the way, this robot is actually a giant
network of robots that remembers who you are and how you like your coffee no matter where
you are. And because their mechanical minds are capable of decision making they are out-
competing humans for jobs in a way no pure mechanical muscle ever could.
2. What is Baxter? What can it do?

Meet Baxter – Unlike these things, which require skilled operators and technicians and
millions of dollars, Baxter has vision and can learn what you want him to do by watching you
do it. And he costs less than the average annual salary of a human worker. Unlike his older
brothers he isn't pre-programmed for one specific job, he can do whatever work is within the
reach of his arms. Baxter is what might be thought of as a general purpose robot and general
purpose is a big deal. Think computers, they too started out as highly custom and highly
expensive, but when cheapish general-purpose computers appeared they quickly became vital
to everything. A general-purpose computer can just as easily calculate change or assign seats
on an airplane or play a game or do anything by just swapping its software. And this huge
demand for computers of all kinds is what makes them both more powerful and cheaper every
year. Baxter today is the computer in the 1980s. He’s not the apex but the beginning. Even if
Baxter is slow, his hourly cost is pennies worth of electricity while his meat-based
competition costs minimum wage. A tenth the speed is still cost effective when it's a hundred
times cheaper. And while Baxter isn't as smart as some of the other things we will talk about,
he's smart enough to take over many low-skill jobs. And we've already seen how dumber
robots than Baxter can replace jobs. In new supermarkets what used to be 30 humans is now
one human overseeing 30 cashier robots.
Or the hundreds of thousand baristas employed world-wide? There’s a barista robot
coming for them. Sure, maybe your guy makes your double-mocha-whatever just perfect and
you’d never trust anyone else – but millions of people don’t care and just want a decent cup of
coffee. Oh, and, by the way, this robot is actually a giant network of robots that remembers
who you are and how you like your coffee no matter where you are. Pretty convenient. We
think of technological change as the fancy new expensive stuff, but the real change comes
from last decade's stuff getting cheaper and faster. That's what's happening to robots now.
And because their mechanical minds are capable of decision making they are out-competing
humans for jobs in a way no pure mechanical muscle ever could.
3. What does the ‘working horses’ allegory stand for?

4. Why does Grey call the ‘horses’ Luddites?
Luddite Horses – Imagine a pair of horses in the early 1900s talking about technology.
One worries all these new mechanical muscles will make horses unnecessary. The other
reminds him that everything so far has made their lives easier – remember all that farm work?
226
Remember running coast-to-coast delivering mail? Remember riding into battle? All terrible.
These city jobs are pretty cushy – and with so many humans in the cities there are more jobs
for horses than ever. Even if this car takes off you might say, there will be new jobs for horses
we can't imagine. But you, dear viewer, from beyond 2000 know what happened – there are
still working horses, but nothing like before. The horse population peaked in 1915 – from
that point on it was nothing but down. There isn’t a rule of economics that says better
technology makes more, better jobs for horses. It sounds shockingly dumb to even say that
out loud, but swap horses for humans and suddenly people think it sounds about right.
5. What negative consequences is robotics fraught with?
As mechanical muscles pushed horses out of the economy, mechanical minds will do the
same to humans. Not immediately, not everywhere, but in large enough numbers and soon
enough that it's going to be a huge problem if we are not prepared. And we are not prepared.
You, like the second horse, may look at the state of technology now and think it can’t possibly
replace your job. But technology gets better, cheaper, and faster at a rate biology can’t match.
Just as the car was the beginning of the end for the horse so now does the car show us the
shape of things to come.
6. Why are white-collar jobs in peril too?
The Shape of Things to Come – It's easy to look at Autos and Baxters and think:
technology has always gotten rid of low-skill jobs we don't want people doing anyway.
They'll get more skilled and do better educated jobs – like they've always done. Even ignoring
the problem of pushing a hundred-million additional people through higher education, white-
collar work is no safe haven either. If your job is sitting in front of a screen and typing and
clicking – like maybe you're supposed to be doing right now – the bots are coming for you
too, buddy. Software bots are both intangible and way faster and cheaper than physical
robots. Given that white collar workers are, from a company’s perspective, both more
expensive and more numerous – the incentive to automate their work is greater than low
skilled work. And that's just what automation engineers are for. These are skilled
programmers whose entire job is to replace your job with a software bot.
You may think even the world's smartest automation engineer could never make a bot to
do your job – and you may be right – but the cutting edge of programming isn't super-smart
programmers writing bots. It’s super-smart programmers writing bots that teach themselves
how to do things the programmer could never teach them to do. How that works is well
beyond the scope of this video, but the bottom line is there are limited ways to show a bot a
bunch of stuff to do, show the bot a bunch of correctly done stuff, and it can figure out how to
do the job to be done. Even with just a goal and no example of how to do it the bots can still
learn.
Take the stock market which, in many ways, is no longer a human endeavor. It's mostly
bots that taught themselves to trade stocks, trading stocks with other bots that taught
themselves. Again: it's not bots that are executing orders based on what their human
controllers want, it's bots making the decisions of what to buy and sell on their own. As a
result the floor of the New York Stock exchange isn't filled with traders doing their day jobs
anymore; it's largely a TV set.
227
So bots have learned the market and bots have learned to write. If you've picked up a
newspaper lately you've probably already read a story written by a bot. There are companies
that are teaching bots to write anything: Sports stories, TPS reports (A TPS report (Testing
Procedure Specification) is a document used in software engineering and electronic
engineering, in particular by a quality assurance group or individual, that describes the testing
procedures and the testing process.), even say, those quarterly reports that you write at work.
Paper work, decision making, writing – a lot of human work falls into that category and the
demand for human mental labor in these areas is on the way down. But surely some
professionals are safe from bots? Yes?
Professionals – When you think 'lawyer' it's easy to think of trials. But the bulk of
lawyering is actually drafting legal documents predicting the likely outcome and impact of
lawsuits, and something called 'discovery' (юр. обязательное представление документов
суду) which is where boxes of paperwork gets dumped on the lawyers and they need to find
the pattern or the one out-of-place transaction among it all. This can all be bot work.
Discovery, in particular, is already not a human job in many firms. Not because there isn't
paperwork to go through, there's more of it than ever, but because clever research bots sift
through millions of emails and memos and accounts in hours not weeks – crushing human
researchers in terms of not just cost and time but, most importantly, accuracy. Bots don't get
sleeping reading through a million emails. But that's the simple stuff: IBM has a bot named
Watson: you may have seen him on TV destroy humans at ‘Jeopardy’ (an American
television game show which features a quiz competition) — but that was just a fun side
project for him. Watson's day-job is to be the best doctor in the world: to understand what
people say in their own words and give back accurate diagnoses. And he's already doing that
at Slone-Kettering, giving guidance on lung cancer treatments.
Just as Auto don’t need to be perfect – they just need to make fewer mistakes than
humans, the same goes for doctor bots. Human doctors are by no means perfect – the
frequency and severity of misdiagnosis are terrifying – and human doctors are severely
limited in dealing with a human's complicated medical history. Understanding every drug and
every drug's interaction with every other drug is beyond the scope of human knowing ability.
Especially when there are research robots whose whole job is to test 1,000s of new drugs at a
time. Human doctors can only improve through their own experiences. Doctor bots can learn
from the experiences of every doctor bot. They can read the latest in medical research and
keep track of everything that happens to all his patients world-wide and make correlations
that would be impossible to find otherwise. Not all doctors will go away, but when doctor bots
are comparable to humans and they're only as far away as your phone – the need for general
doctors will be less. So professionals, white-collar workers and low-skill workers all have
something to worry about. But perhaps you're still not worried because you're a special
creative snowflakes. Well guess what? You're not that special.
Creativity may feel like magic, but it isn't. The brain is a complicated machine – perhaps
the most complicated machine in the whole universe – but that hasn't stopped us from trying
to simulate it. There is this notion that just as mechanical muscles allowed us to move into
thinking jobs that mechanical minds will allow us all to move into creative work. But even if
we assume the human mind is magically creative – it's not, but just for the sake of argument –
artistic creativity isn't what the majority of jobs depend on. The number of writers and poets
228
and directors and actors and artist who actually make a living doing their work is a tiny, tiny
portion of the labor force. And given that these are professions that are dependent on
popularity they will always be a small part of the population. There is no such thing as a poem
and painting based economy. Oh, by the way, this music in the background that your listening
to? It was written by a bot. Her name is Emily Howel and she can write an infinite amount of
new music all day for free. And people can't tell the difference between her and human
composers when put to a blind test. Talking about artificial creativity gets weird fast – what
does that even mean? But it's nonetheless a developing field. People used to think that playing
chess was a uniquely creative human skill that machines could never do right up until they
beat the best of us. And so it goes for all human talent.
7. What are some examples of professional fields where robots are used? + Services: a
barista robot
Automobiles – Self-driving cars aren't the future: they're here and they work. Self-
driving cars have traveled hundreds of thousands of miles up and down the California coast
and through cities – all without human intervention. The question is not if they'll replace cars,
but how quickly. They don’t need to be perfect, they just need to be better than us. Human
drivers, by the way, kill 40,000 people a year with cars just in the United States. Given that
self-driving cars don’t blink, don’t text while driving, don’t get sleepy or stupid, it easy to see
them being better than humans because they already are. Now to describe self-driving cars as
cars at all is like calling the first cars mechanical horses. Cars in all their forms are so much
more than horses that using the name limits your thinking about what they can even do. Let's
call self-driving cars what they really are.
Autos – the solution to the transport-objects-from-point-A-to-point-B problem.
Traditional cars happen to be human sized to transport humans but tiny autos can work in
ware houses and gigantic autos can work in pit mines. Moving stuff around is who knows how
many jobs but the transportation industry in the United States employs about three million
people. Extrapolating world-wide that’s something like 70 million jobs at a minimum. These
jobs are over. The usual argument is that unions would prevent it. But history is filled with
workers who fought technology that would replace them and the workers always lose.
Economics always wins and there are huge incentives across wildly diverse industries to
adopt autos. For many transportation companies, the humans are about a third of their total
costs. That's just the straight salary costs. Humans sleeping in their long haul trucks costs time
and money. Accidents cost money. Carelessness costs money. If you think insurance
companies will be against it, guess what? Their perfect driver is one who pays their small
premium but never gets into an accident. The autos are coming and they're the first place
where most people will really see the robots changing society. But there are many other
places in the economy where the same thing is happening, just less visibly. So it goes with
autos, so it goes for everything.
8. Whom does Grey call ‘the new horse’? Why?
Conclusion: Right: this might have been a lot to take in, and you might want to reject it –
it's easy to be cynical of the endless, and idiotic, predictions of futures that never are. So that's
why it's important to emphasize again this stuff isn't science fiction. The robots are here right
now. There is a terrifying amount of working automation in labs and ware houses that is proof
of concept. We have been through economic revolutions before, but the robot revolution is
229
different. Horses aren't unemployed now because they got lazy as a species, they’re
unemployable. There's little work a horse can do that pays for its housing and hay. And many
bright, perfectly capable humans will find themselves the new horse: unemployable through
no fault of their own.
9. How does Grey prove that new kinds of work won’t solve the problem of job scarcity?
But if you still think new jobs will save us: here is one final point to consider. The US
census in 1776 tracked only a few kinds of jobs. Now there are hundreds of kinds of jobs, but
the new ones are not a significant part of the labor force. Here's the list of jobs ranked by
the number of people that perform them - it's a sobering list with the transportation industry at
the top. Going down the list all this work existed in some form a hundred years ago and
almost all of them are targets for automation. Only when we get to number 33 on the list is
there finally something new.
Don’t think that every barista and office worker lose their job before things are a
problem. The unemployment rate during the great depression was 25%. This list above is 45%
of the workforce. Just what we've talked about today, the stuff that already works, can push us
over that number pretty soon. And given that even our modern technological wonderland,
new kinds of work are not a significant portion of the economy, this is a big problem.
10. How does Grey see the aim of the video?
This video isn't about how automation is bad – rather that automation is inevitable. It's a
tool to produce abundance for little effort. We need to start thinking now about what to do
when large sections of the population are unemployable – through no fault of their own. What
to do in a future where, for most jobs, humans need not apply.
FOOD FOR THOUGHT
Page 363
Emily Howel, Watson, Handy, Baxter, Thespian, Uber, Airbnb, Google Now, Cortana, Siri,
Lyft, Instacart, the Kiwi startup Xero are some of the IT devices, software, platforms or bots
that are expected to change the nature of work in future and are already doing it. With your
peers, exchange information about them and other smart machines that you know. Speak
about their impact on the world of work.
KEY:
Emily Howell is a computer program created by David Cope during the 1990s. Emily
consists of an interactive interface that allows both musical and language communication. By
encouraging and discouraging the program, Cope attempts to "teach" it to compose music
more to his liking. The program uses only the output of a previous composing program called
Experiments in Musical Intelligence (Emmy) as a source database for its musical choices.
Handy is an online two-sided market place for residential cleanings and other home services.
Founded in 2012, it operates in United States, United Kingdom, and Canada.
Thespian RoboThespian, Теспиан, человекоподобный робот, изобретенный
англичанами, считается одним из самых современных и эмоциональных роботов в
230
мире. Он умеет общаться, копировать жесты, петь, танцевать, смеяться и плакать, а
также читать Шекспира.
https://biz360.ru/materials/lyudi-i-mekhanizmy-kak-ustroena-korporatsiya-robotov/
https://www.engineeredarts.co.uk/robothespian/
Uber Technologies Inc. is a transportation network company headquartered in San
Francisco, California, United States, operating in 570 cities worldwide. It develops, markets
and operates the Uber car transportation and food delivery mobile apps. Uber drivers use their
own cars, although drivers can rent a car to drive with Uber. The name "Uber" is a reference
to the common (and somewhat slangy) word "uber", meaning "topmost" or "super", and
having its origins in the German word über, meaning "above". Uber has been a pioneer in the
sharing economy and the changes in industries as a result of the sharing economy have been
referred to as "Uberification" or "Uberisation".
Siri (pronounced /ˈsɪәri/) is a computer program that works as an intelligent personal assistant
and knowledge navigator, part of Apple Inc.'s iOS operating systems. The feature uses a
natural language user interface to answer questions, make recommendations, and perform
actions by delegating requests to a set of Web services.
Lyft (similar to Uber) is a transportation network company based in San Francisco,
California. It develops, markets and operates the Lyft car transportation mobile app.
Launched in June 2012, Lyft operates in approximately 300 U.S. cities, including New York,
San Francisco and Los Angeles and provides 18.7 million rides a month. Less popular than
Uber.
Instacart is an Internet-based grocery delivery service.
the Kiwi startup Xero is a New Zealand-based software company that develops cloud-based
accounting software for small and medium-sized businesses. The company has offices in New
Zealand, Australia, the United Kingdom, the United States and Singapore.
TaskRabbit (CASE STUDY text B, page 372) is an online and mobile marketplace that
matches freelance labor with local demand, allowing consumers to find immediate help with
everyday tasks, including cleaning, moving, delivery and handyman work.
HOW TO SAY IT
Page 393
2. Use the following collocations and phrases with ‘future’. Give the Russian translation.
KEY:
bright, great, promising, rosy, secure future cветлое, великое
многообещающее, надежное
блестящее
bleak, dire, gloomy, grim, uncertain future
мрачное, страшное, печальное
зловещее, неопределенное
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будущее
remote / distant future далёкое будущее
unforeseeable future непредсказуемое будущее
foreseeable/mediate/near/not-too-distant future обозримое будущее
in the near future в ближайшем будущем
to face the future смело смотреть в будущее
there is no future for sth у ч/л нет будущего
to look into the future заглядывать в будущее
foretell/predict future предсказывать будущее
plan for the future планировать на будущее
look to the future смотреть в будущее
determine, shape one's future определять свое будущее
invest in one's future инвестировать в будущее
What will the future bring? /What does the future Что день грядущий (нам)
hold? готовит?
a vision for/of the future видение будущего
a question mark over the future of sb/sth ч/то под большим вопросом
no future/great future in (one’s work) у ч/то или кого-то большое
будущее, нет будущего
из него выйдет, его ждет
have a (very promising) future as a (musician)
будущее великого музыканта
Page 394
‘Avoid Being Outsourced. Make yourself an essential employee’. Watch the video and
answer the questions.
Script
• Journalist Computer engineers and closet(ed) workers [working from home,
having offices in their closets] are not the only who are now sent oversees these days:
lawyers, journalists and even financial analysts are vulnerable as well. What can
you do to protect your lob from going offshore? This week we see writer Steve Ham
who tackles this problem in the magazine’s current double issue. He joins us in this
studio. Steve, thanks so much for being our guest today. The articles talks not only
about the present but also about the future of this problem which seems to be like an
232
over expanding beast out there. How would you describe where we stand with
outsourcing in American jobs?
• Steve Ham I’d say we are in the early phases. This has been going on for a few
years, really for half a decade primarily involving software engineers and also
closet employees. But there has been the first influence on other kinds of occupations
being outsourced. You mentioned a couple of them: financial analysts or lawyers,
reporter you don’t like to hear about that but that’s true. Also on medical staff like
X-ray technicians, things like that.
• J And the driving force behind that is of course economics because in India and
some other outsourcing placed, Mexico, the wage earner they can do the same job as
somebody in America for far less money. Is this a (wage) gap that will always exist?
• Steve Ham Well, it has already started to close. When India started being an
outsourcing location in the late nineties and early thousands it was five to one, 20 % of
the pay in India you’d get in the US. So it was a very attractive proposition for a
company to take. You move your labour oversees, you get a lower rate. India has had
inflation it has had labour wage inflation because it is in such a demand. It has come
up. In addition, there are some costs involved with shifting labour over there,
with all the communications kind of overhead(s) [накладные расходы] with
communications and also the quality issues that should be cared as one of the cost
elements.
• J That’s one of the things I found the article interesting… It’s happening and it’s
moving at an aver expanding rate but fairly slowly and if you are smart now as a
college student or a young person in your field you can protect yourself from being
outsourced. What are the keys to doing that?
• Steve Ham What is to do is to be aware of what the situation is not just in your
profession but in your company. Some companies…Most companies don’t tell their
people what is going on. The best of them do and they do because they think people
are going to hear about that any way. Why not be open and aboveboard and
transparent, tell them what’s happening, give them an advanced warning, tell them
which jobs are going, which are going to stay so that they can adjust. So the first
thing is if the company informs you – listen. The second - if the company is closed
and here is the funniest thing I’ve heard. One person told me I said : Oh, so many
talk in your bank about jobs being outsourced to India. Oh, no…nothing at all. They
did offer a course about communicating with Indians. So clearly they are thinking
about it. So the key is: be aware, know what is happening, know how vulnerable
you are, if you have a kind of job that is vulnerable. The second level of
understanding is to be very sophisticated one. Let’s say certain parts, certain
kinds of work may be transferred, not the whole job but part of the job. So look
at your job and say what part of your job could be transferred?
• J And face-to-face contact with a client being key to keeping your job in the
States.
• Steve Ham A lot of jobs like brain surgeon, plumber, things like that. A lot of
jobs are not going because it’s impractical. A job that either requires face-to-face
communication or it has great benefit, great value is a safer job.
• J Thank you for coming by.
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LANGUAGE FOCUS (2)
Page 398
1. Match the phrasal verbs 1-5 with their meanings a-e.

KEY: 1-d, 2-e, 3-a, 4-c, 5-b
2. Translate from English into Russian.
KEY:
1. Что обещали умные люди – не случилось, а что предрекали глупцы –
произошло.
2. Эта победа ознаменовала новую эру в компьютерных шахматах.
3. Его собственные утверждения, поддерживаемые его братьями, доказывают его
жизнерадостный и самостоятельный характер, помогающий справляться с его
слишком эмоциональной реакцией на окружающий мир.
4. Украшения из кованого железа, характерные для особняков и загородных
усадеб русских аристократов, увлекавшихся модернизмом, стали снова
популярными.
5. Актеры всегда опираются на свой жизненный опыт.
6. Мрачные предостережения о нехватке ресурсов в мире не оправдались.
7. Оркестр так нуждался в музыкантах, что прибегал к помощи студентов.
8. Из-за высокого курса фунта эти вина сейчас можно купить по очень
привлекательной цене.
9. Если он обвинит ее, то она все будет отрицать, а уж если так случится, что
больше отрицать нельзя, то она бросит ему правду в лицо и пусть он делает что
хочет.
10. Болдуин был многогранным писателем.
11. Его утверждения были такими расплывчатыми, что было непросто понять, что
он имел в виду.
12. Она всегда может опереться на свой преподавательский опыт.
13. Объявление о слиянии приведёт к резкому росту цен на акции.
14. Технология экспертных систем позволяет специалистам передавать свои знания
компьютерным системам, обеспечивая тем самым эффективное средство
распространения обширных знаний.
15. Они не перестают говорить о так называемых беспрепятственных,
"бесшовных" поездках, что означает, что вы можете доехать из пункта А в
пункт В и С без каких-либо проблем.
3. Fill in the blanks with suitable words and phrases from READING (2).
1. Your body draws on its reserves of fat during the times when you are fasting.
2. Resilience or capability of regaining its original shape or position after bending,
stretching, compression, or other deformation is a very valuable property of this new
material.
3. Versatility of functions is a selling point of this gadget.
4. Life on earth may have been disseminated from space.
5. The company has become large and diffuse. –– Плохо, нечетко организованной.
6. The cure for diffuse sclerosis has not yet been found.— рассеянный склероз.
234
7. We've had to ramp up production to meet demand.
8. She felt that the birds coming back home after a long winter were the harbinger of
coming spring and new life.
9. The central government in Russia can't pursue a nationally parochial self-interest
policy.
10. UK-based companies are going all out to secure overseas contracts.
11. We're going all out for a big win in Saturday's game.
12. The roof tiles need to overlap a little more.
13. The convict soon got used to the seamless procession of days and lost track of time.
14. Being in a position to take important political or economic decisions is an onerous
responsibility.
15. Mundane activities, tasks or matters may be as onerous to some as any others if you
don't like them.
16. Major spending is required to bring about substantial improvements in housing.
4. Translate the sentences from Russian into English using the Active Vocabulary.
KEY:
1. Avoiding a direct answer a politician always fell back on joking.
2. Most customers are looking for value for their money rather than cutting-edge
fashion.
3. What Captain Butler had anticipated, actually came to pass.
4. To be sacked on the spot, or with inadequate notice, is likely to distress even the most
resilient of businessmen.
5. In changing situations with many unknown factors resilience is the main quality for an
employee.
6. AT&T’s working practice is a harbinger of new employer employee relationships.
7. Dissemination of work is likely to become a popular method of work organization/
8. All candidates without exception tried to demonstrate their versatility.
9. Doctors sometimes fall back on old cures when modern medicine does not work.
10. Cameron Dias is considered to be one of the cinema's most versatile and sought-after
actresses.
11. Plans to ramp up production to 15,000 units per month were undermined by the
recession.
12. The University of Bradford is developing its system to disseminate information of an
orientational nature to the new library user.
13. The geology and geography courses tend to overlap.
14. In theory the age of the seamless network and paperless office has arrived.

Page 402
Watch the video ‘Freelancers, start-ups fuel co-working space trend’: in CBS This Morning
show reporting on a shared workspace for individuals.
Get ready to speak about the new trend in class.
235
Script
Some of us work in a cubicle all day. We work right here round our clear round table.
A new trend is turning a day at the office on its head. Ben Tracy reports on a shared
workspace for individuals and small startup firms where a handful of employees choose
to share the space rather than work from home or Starbucks. Ben Tracy shows us the
idea that has roots in the past.
It was one of the most legendary places to work in Hollywood;
Ben Tracy: Who would you come here to see?
Christy McAvoy: Jack Benny, Lucille Ball, Bing Crosby.
Ben Tracy: Historian Christy McAvoy says there was nothing quite like the CBS Columbia
Square radio studios on Sunset Boulevard. Opened by CBS pioneer William Paley in 1938,
it quickly became a place where artists gathered to collaborate and create.
Christy McAvoy "It was always a place where creative people came together to do really
interesting things and push the envelope, and it's going to be that again," Historic Resources
group founding principal Christy McAvoy said.
Ben Tracy: This piece of workplace history is being transformed into the office of the
future.
Ben Tracy:
What will this place become?
Joshua Abram: Studios.
Ben Tracy: Joshua Abram runs a shared work-space company called NeueHouse. He is
converting the old CBS site into its first location outside of New York.
Joshua Abram: "I think most of us want to feel that the place that we work has the
comforts of our homes in many ways," Abram said. "We wanted this to be, not an office,
but a house of entrepreneurs."
Ben Tracy: The New York NeueHouse opened in 2013 and now has 1,000 dues-paying
members: individuals and small start-up firms with a handful of employees choose to share
this space rather than work from home, or Starbucks. A decade ago, telecommuting was all
the rage; it was about how one day we all could just work from our living rooms in our
pajamas.
Joshua Abram: "I think we learned that it was a bankrupt idea. I think we learned that
people are social, and that work, no surprise, is social."
Ben Tracy That social component was missing for fashion consultant Julie Gilhart when she
went to work for herself three years ago. Now she's a NeueHouse member.
Julie Gilhar: "If you're in an isolated office space, or if you're working at home, you're not
interacting, and I used to always say, everything happens outside of the office," Gilhart said.
236
Ben Tracy: Shared, or co-working spaces are popping up all over the country -- around
800 of them so far, with more than 50,000 members. There are so many co-working spaces
popping up, the industry has its own publication.
Melissa Mesku: "People are starting to realize that they're looking for community," New
Worker magazine editor Melissa Mesku said. "A lot of people find themselves getting into
freelancing because of the economic situation". "Those are some of the most common
workers that you'll find in co-working spaces. So as those grow, so will co-working."
Alan Murray: "For many of our members, the heart of why they're here, is to meet people
outside of their industry," NeueHouse co-founder Alan Murray said.
Ben Tracy: He makes sure there are opportunities for social interaction and networking.
Whether it's in the kitchen and cafe or at events inspired by the creative industries in
which these folks work.
Ben Tracy: You see people on these cushions with their glasses of wine and something to
eat.
Alan Murray: Absolutely. This is how it looks like.
Ben Tracy: Can you get it done in my office?
Alan Murray: We can try.
Ben Tracy: Unlike some co-working spaces, membership at NeueHouse is by invitation only,
and none of this comes cheap. Monthly dues range from several hundred to several
thousand dollars, but those who choose co-working are paying for more than Wi-Fi and
a copier.
Joshua Abram: "We're not in the real estate business; we are in the business of creating the
ideal environment for today's creative entrepreneurs," Abram said.
Ben Tracy: And in Hollywood, they're about to share the space of the creative entrepreneurs
of yesterday.
GROUP WORK
Page 405
1. Read the article ‘The Future of Knowledge in the Coming Era of Intelligent Machines’
and hold a group discussion on the ways education should morph under the influence
of the changing nature of work. Get ready to speak on the following questions.
2. Explain the difference between the notions of ‘just-in-time learning’ and ‘just-in-case
learning’.
KEY: Just-in-time= just before sth is needed; just-in-case = to be prepared for something
that may happen
3. Explain how standard entrepreneurial advice ‘failing fast, failing cheap’ can be
applied to education.
KEY: Fail-fast is a property of a system or module with respect to its response to failures. A
fail-fast system is designed to immediately report at its interface any failure or condition that
237
is likely to lead to failure. "Fail fast" has become standard entrepreneurial advice. Startups
and small businesses are told they shouldn't worry about messing up, because it's better to
quickly realize that something's not working and move on. Fail cheap “It’s the risk associated
with those failures that gets you into trouble. In other words, failure would be fine, if it
wasn’t so darn expensive.”
Page 407
In a depressed economy nobody is guaranteed from getting ‘a pink slip’. Listen to a talk by
Mark Jeffries, communications expert and executive coach, giving advice on job-searching
(‘Survival Strategy’) when unemployment is high.
Script
•Host Today’s topic is survival after losing a job. Tough world out there these days. Many
people are out of work. So how do you put your work life back together again? Mark Jeffries
is a communications expert and the author of What‘s wrong with your handshake? Is our
guest today. Mark, good morning. Nice to see you. If I get a pink slip tomorrow I’m going
to cry, I’m going to worry, I’m going to feel sorry for myself. What’s wrong with it?
•Mark Jeffries There’s nothing wrong with it. It’s part of the acceptance, You’ll
have to go through with it. The hardest thing is to sit at home thinking you are on your
own. No, you are not. This is happening to so many people now.
• Host And after that initial stage of crying… By the way how long does it last?
•Mark Jeffries It’s fair to say it lasts about two weeks but if you do something about it. If
you sit at home doing nothing it can go on for months.
• Host So you get a piece of paper, a pen or get on your computer, the realistic job you have
always wanted, what your strengths are and how much money and time you have. Get me
through it…
•Mark Jeffries This is a good point to start your search for a new job. You have to focus your
mind. But what you also have to do is to give yourself some time off. But in that time off you
need to have your mind thinking. What am I thinking about? What is the realistic job I
can go for, not a crazy job I wish at the stage. How much money I’ve got left. In other
words, my runway…You also have to think about every aspect of how you’re going to go
ahead in search of a job. What are my strengths?
• Host By the way, searching for a job is a full time job. So for the people who get up in the
morning stay in their pajamas until noon, it’s not going to work.
•Mark Jeffries. It’s not. In sales as well. If you are based at home and try to do your sales in
your pajamas you won’t sell anything. You need to be at work in your mind.
• Host So nine to five.
238
•Mark Jeffries Nine to five. Full day. You start in the morning researching industry
you’re going for. You are contacting, networking, you are very busy and at 5 your day is
done.
• Host It’s okay doing that period of time. May be make time a little longer, lunch time, a
little training, a workout…something like that…
•Mark Jeffries Yes.
• Host Find the silver lining, this is important. As you make known properly, there
are a lot of people who are being laid off right now who didn’t like their job in the first place.
•Mark Jeffries No one is brave enough to leave their job especially in this economy
because they didn’t like the job, they stayed. This is a golden opportunity. “I’ve got to stop
work, I had to stop years ago. I remember thinking to myself. Panic, totally panic. Then I
thought: Hold on. This is a great opportunity. Why not try something totally different? I did. I
changed my industry, I reinvented myself.
• Host You were one of those people who had some severe money worries. May be
it’s logical to say “Wait a second, I don’t have time to reinvent myself, I have to go back to
what I know, and what I can be hired for right now.
•Mark Jeffries There’s nothing wrong with that. You may change your approach to
that job. Because in the past you had a full time job, may be a part time job would be a good
start as you continue to search what your dream job is.
• Host Every tip you have. I find it helpful when you say “Follow the stimulus”. It’s
something what we talk about in this show every single day. What is involved in this stimulus
package? Because the whole intent is to put people back to work.
• Mark Jeffries What you are going to do is to listen to Obama. Where is he sending
the money? It’s going to be the green industry, it’s going to be a lot of start-up firms that
already have funding. It’s also going to be health and education. Anything mentioned in the
stimulus package is a great place to start. By the way, where is firing there is hiring. Go to
your last employer.
• Host Yes, because although they fired you from a full time job they may need to
replace you with a part time job.
• Mark Jeffries Because they know you and they know you good and they just can’t
afford to keep you for a full time job.
• Host Use traditional connections like friends and family. But make sure you are
hipped to this new system of social networking. Though a lot of people are laid off right
now that is still lacking to them
• Mark Jeffries And you have to learn very quickly. Steep learning curb. Get into
the lines of Facebook, onto Twitter, Link-in. Because you need to have both on -line and
off -line presence. When people search for you because they are going to. What does the
Internet say about you? Make sure you have staff out there.
239
• Host An estimated 6 mln people are getting unemployment benefits, may be 9% of
the population unemployed by the end of the year how does the person who get the pink slip
right now set himself apart from all those people out there looking for a job?
• Mark Jeffries It’s a tricky thing. There’s a temptation to send thousands resumes,
everybody. Instead, to get noticed, finely target people. Know what you are going for,
notice what they want and reshape your résumé each time to suit the needs of that
organization. And also if you really want to be noticed you should conduct what I call a
sandwich resume.
• Host It is very effective and very annoying.
• Mark Jeffries It’s a fine line. You should be very smart. You announce your email
coming with a phone call, then send in your email. You call me…“Mat, I just want you
to know. I have no time and you are very busy, I’ve sent you an email. Let’s chat next
week. That’s the first layer of the sandwich email. Then I send an email how great I am.
And then I call you again may be within two days. And say again ‘I know you are still
very busy, I want you to know I’ve sent an email. Have a look. Let’s chat next week.
• Host You may run up against annoying me.
•Mark Jeffries There’s a fine line between being persistent and annoying.
• Host Thanks for the advice. We appreciate it. There are unfortunately many people
who need it at this particular time.
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UNIT 11.

What methods are common to academic and marketing research?

How can academic research skills enhance marketing research skills?

LANGUAGE FOCUS (1)

4. Translate the following sentences into English.

5. Render the article in English using the following vocabulary.

1. Make a list of research philosophies, approaches and methods mentioned in

2. Read the article and think over the following questions:

h. Why can Questionnaires be associated with both positivism and interpretivism

RESEARCH SKILLS (1)

3. Research proposal assessment.

Stages of the Research Process

b) level the playing field

2. As soon as a paper is vetted for cut-and-paste plagiarism, it joins a database.

b) at odds with each other

LANGUAGE FOCUS (2)

УНИВЕРСИТЕТЫ ПРОТИВ ПЛАГИАТА: КТО КОГО?

LISTENING AND VIEWING (2)

LANGUAGE FOCUS (1)

1) novelty 2) novel 3) novel 4) innovative/innovatory 5) inventive 6) invention 7) discovery

LISTENING (1): What is Change Management?

FOOD FOR THOUGHT

LISTENING AND VIEWING (2)

(2) Mad Men

(3) Tucker, the Man and His Dream

(4) The Aviator

(5) The Pursuit of Happyness (as in the original)

(10) Lorenzo’s Oil

2. Answer the questions

LANGUAGE FOCUS (2)

Change Management 101: How Businesses Win With Innovation

Internet business Advantages

4. Write out all IT-related words. Visit http:// www. wordspy.com or

crowdsourcing - the act of taking a function traditionally performed by an employee and

social media - the collective of online communications channels dedicated to community-

5. Find words or expressions in the text that mean the following

to succeed in discovering something difficult, to tease out

someone who does something because they dabbler/amateur

1.Explain what is implied by:

LISTENING AND VIEWING (1)

So on Christmas morning, my 20-year-old son, Alex, decides he’s going to create a

• STEVE SINGER: I’ll bet.

6. Give examples of successful mass collaboration/crowdsourcing projects in

READING AND SPEAKING (2)

We should all be professionals in whatever role we have in life, whether as an athlete,

Three basic attributes that separate professionals from amateurs.

1. A Commitment to Outcomes. Professionals are compensated for positive results. A

LANGUAGE FOCUS (1)

Ex. 1. Match the following words to their synonyms

Ex.2. Suggest the Russian for the following word combinations.

nascent suspicion (зарождающееся подозрение) / industry (новая отрасль, на стадии

latent energy (потенциальная энергия) / reserves (неразведанные запасы/скрытые

shallow mind ( неглубокий ум) / argument (неубедительный довод) / stream (мелкий

smart money (выгодные инвестиции) / company (успешная/предприимчивая

superficial glance (беглый взгляд) / knowledge (поверхностные знания) / pastimes

defunct company (обанкротившаяся/расформированная компания) / species

Email campaigns that failed

LANGUAGE FOCUS (2)

Go to http:// www. wordspy.com to check your answers.

an important person, a leader big cheese

e) _ agenda __________

f) _ seam __________

g) _ reticent _____________