CASE STUDY
методическая разработка по английскому языку на тему

МИНИСТЕРСТВО  ОБРАЗОВАНИЯ  И НАУКИ РФ

ГОУ  ВПО «Тюменский государственный университет»

Нижневартовский экономико-правовой институт  (филиал)

Кафедра иностранных языков

CASE STUDY

методические указания и задания по организации

самостоятельной работы студентов I – II курсов

экономических специальностей

Нижневартовск  2008

Рекомендовано к печати учебно-методической комиссии и утверждено Советом Нижневартовского экономико-правового

 института (филиала)

 ГОУ ВПО «Тюменский государственный университет»

Составители: Гофман Оксана Валерьевна, кандидат филологических наук, доцент; Кобенко Татьяна Михайловна, старший преподаватель  кафедры иностранных языков Нижневартовского экономико-правового  института (филиал) Тюменского государственного университета.

Рецензенты: Василькова Е.В. – зав. кафедрой иностранных языков, кандидат культурологии, ст. преподаватель Нижневартовского экономико-правового института (филиал)  ГОУ ВПО «Тюменский государственный университет»;

Колесник Л И  – кандидат педагогических наук, доцент кафедры иностранных языков Нижневартовского  государственного гуманитарного университета

Сase Study: Методические указания и задания по организации самостоятельной работы студентов I – II курсов экономических специальностей / Сост. О.В. Гофман, Т.М. Кобенко. –  Нижневартовск: Изд-во Нижневартовского гуманитарного университета, 2008. – 28 с.

Методические указания и задания предназначены для самостоятельного изучения и решения деловых ситуаций  студентами I – II курсов экономических специальностей.

Сборник может быть также использован в качестве дополнительного материала на занятиях по английскому языку.

© Гофман О.В., Кобенко Т.М.,

     составление, 2008

                                           © Издательство НГГУ, 2008

СОДЕРЖАНИЕ

Пояснительная записка                4

Методические указания        5

CASE 1                6

CASE 2        6

CASE 3        7

CASE 4        9

CASE 5        11

CASE 6        11

CASE 7        14

CASE 8        15

CASE 9        17

CASE 10        19

CASE 11        20

CASE 12        20

CASE 13        22

CASE 14        23

CASE 15        24

CASE 16        26

CASE 17        28

CASE 18        30

CASE 19        31

CASE 20        33

CASE 21        35

CASE 22        37

CASE 23        39

CASE 24        40

CASE 25        42

REFERENCES        44

ПОЯСНИТЕЛЬНАЯ ЗАПИСКА

В настоящее время в высшей школе достаточно широко применяются различные активные методы обучения иностранным языкам. Одним из наиболее прогрессивных, используемых для организации самостоятельной работы студентов, представляется метод кейсовых исследований, который основан на разборе проблемных ситуаций.

Настоящая методическая разработка содержит деловые ситуации (case study) для самостоятельного изучения и задания для их решения и обсуждения студентами I – II курсов экономических специальностей.

Данный метод направлен на совершенствование навыков чтения, письменной и устной речи, расширение словарного запаса, закрепление изученного грамматического материала. Также студенты учатся решать проблемные ситуации и находить решения.

В данной методической разработке использованы современные материалы и задания, отвечающие требованиям курса делового английского языка.

МЕТОДИЧЕСКИЕ УКАЗАНИЯ

Кейс – это взятая из практики ситуация (чаще проблемная), направленная на изучение того или иного предмета с целью отработки методики анализа, разработки и принятия решений, а также метод, призванный ускорить процесс обучения путем привлечения студентов к анализу, открытому, свободному обсуждению и принятию окончательного решения относительно рассматриваемой ситуации. Данный метод обучения широко распространен в европейских и американских школах бизнеса и университетах. Он не просто позволяет студентам получить какие-либо знания, он позволяет получить опыт в решении реальных проблемных ситуаций. Кроме того, студентам необходимо проанализировать, презентовать и обсудить в группе или с преподавателем свое видение проблемы и ее решение, что значительно мотивирует к использованию иностранного языка.

Настоящая методическая разработка содержит 25 деловых ситуаций (или кейсов) и задания к ним. Кейсы содержат самые разнообразные проблемные ситуации для самостоятельного изучения, решения и обсуждения студентами I – II курсов экономических специальностей.

Для решения кейса студенту необходимо:

1. внимательно изучить ситуацию;
2. выделить основные факты, например: a) тип компании; товары или услуги, которые она производит; основные цифры; b) люди, которые описываются в ситуации (их имена, должности и т.д.)
3. поставить основную проблему ситуации;
4. предложить пути решения проблемы.

Вопросы или задания после кейса служат помощью для решения ситуации. Отвечая на вопросы, студент должен по возможности использовать всю предложенную в кейсе информацию. Решение ситуации может быть предложено студентом как в письменной, так и в устной форме. В заключение необходимо обсудить представленную ситуацию в группе под руководством преподавателя (отношение студентов к героям кейса, их поведению, к решению проблемы).

Кейсовый метод позволяет совершенствовать английский язык, применяя знания в решении реальных деловых ситуаций.

CASE 1

Designer Knitting

Alice and Jean were two friends who met at a local knitting class. Alice soon found she was a skilled knitting machine operator, while Jean discovered she had a talent for designing knitting patterns.

When the course was over, each found time on her hands, but already they had received several enquiries from other friends and acquaintances for cardigans and jumpers, and from time to time they got together to help each other out. One day, Jean said 'Look here, Alice, why don't we organize ourselves on a regular basis and try to make some extra cash as well as helping our friends out?' Alice was a bit doubtful. 'It's true,' she replied, 'I'm quite good at machine knitting, and you've quite a flair for designing knitting patterns but what about keeping accounts, and VAT? And there's another thing, if we're going to do this properly I'll need a new knitting machine.'

Jean was now less confident: 'I hadn't thought of that - and what do we do when we've run out of orders - I don't see myself as a sales assistant. We'd need help.

1. Where did Alice and Jean meet?
2. Who was a good knitting machine operator?
3. Who was talented at designing knitting patterns?
4. Were they very busy at the end of their course0
5. What sort of garments did they produce?
6. What did Jean suggest to Alice could earn them extra cash?
7. To get their business started what extra help would they need?
8. Where would they advertise their products0
9. How would they organise the marketing and sales distribution?
10. In your opinion will it be a success?

CASE 2

Peter Jones, the enthusiastic, newly-appointed production manager al Jones Furniture Factory, looked somewhat disturbed as he went for lunch last Friday. "1 can't understand it", he told Betty Smith, his personal assistant, "three people gave in their notice this morning".

"What's it about then?" asked Betty anxiously - her future depended on Peter's success.

"You remember, Betty, that we saw those management consultants last week. They told me on Monday that all this 'hand-made' furniture was a load of rubbish, really. We could turn out a great many more chairs at lower cost -they might look alike, but that's a risk I'm prepared to take.

"Well, we got this expert to time the staff when they weren't looking and he thinks we can halve the times. I sent him down on Tuesday to show the workers exactly how to do the job, so they don't make a mistake. We must keep up the quality as well as quantity. Tony Harris, who's been here donkey's years gave his notice in first. I rather thought he would - the "craftsman" type, but what shook me was Frank Watts and Dick Morris - both young lads!"

"You'd better have a stiff drink, now," advised Betty.

1. What is the case study about?
2. Describe Peter Jones.
3. Why is Peter Jones worried?
4. How many people have given in their notice on one morning?
5. Who told Peter that the hand-made furniture was "a load of rubbish"?
6. What did the management consultants advise him to do?
7. Who timed the workers? In his opinion, were the workers working fast enough?
8. What happened when the workers were shown how to do the job in half the time?
9. Who gave in his notice first? and second?
10. If you were Peter Jones, what would you do? What advice should Betty give him?

CASE 3

Animal Rights

Suzanne had always believed in animal rights, though she had never been a member of any animal-rights organisation.

As she was walking along the high street one day, she saw a poster announcing that a circus which used performing animals was coming to town. She felt upset at first, and then angry.

As the days passed, her anger grew. She decided to do something about it. That evening, she wrote a short letter to the local paper criticising the use of performing animals in circuses.

When her letter was published, she was astonished by the response. Her telephone never seemed to stop ringing. Apart from one person, all her callers were against the circus visit.

She also received a number of letters of support, including one from the secretary of an animal rights organisation in London, inviting her to form a branch.

One-Woman Campaign

Suzanne was so encouraged that she decided to continue her one-woman campaign.

The circus was being held on a common which was owned by the council. She wrote a letter to the council, asking it to ban the use of animals in the circus.

In its reply, the council said that a contract had already been made with the circus, and it had no power to alter it now, even if it wished to do so.

Suzanne was determined not to be put off. She sent a circular letter to all the local people who had contacted her, telling them what had happened. She invited them to a meeting at her home to discuss what further action they could take.

Nineteen people came to the meeting. They decided to write to the circus owners asking them not to use performing animals. If they refused, they threatened to organise a massive protest campaign.

Circus Options

When the circus owners received the letter, they discussed all the actions they might take. They decided their options were:

• to ignore the letter;
• to reply, stating why they thought there was no harm in using animals:
• to write a letter to the local paper, explaining their point of view;
• to invite representatives of the protesters to visit the circus to see how well the animals were treated;
• to ask for police protection;
• to employ a security firm to keep the protesters away from the common;
• to withdraw all the animal acts, apart from the horses;
• to take out all the animal acts;
• to cancel the visit altogether.

1. What is the case study about?
2. Do you believe in Animal Rights?
3. What did Suzanne do to support Animal Rights?
4. What was the attitude of the local council to the circus.
5. To whom did Suzanne address her circular letter?
6. How many attended her meeting?
7. What was-the attitude of the circus owners?
8. Which of the circus options would you advise the circus owners to choose?
9. Should the circus be cancelled? Give your reasons for or against.
10. What is your attitude to circuses and performing animals? Is there a problem in your country?

CASE 4

Finding a Shop

Karawan is looking for premises for a launderette. Dave, the commercial manager in a local estate agent's, is taking her to look at two shops. They visit Wellington Road first.

"As you can see." said Dave, "the premises are in really first-rate condition. They've been very well maintained. I must say there's a great deal of interest in the shop. In fact, just after you rang, two other people phoned about it."

"What was it used for previously?" "It was a boutique"

"Would I have to get permission for change of use?"

Dave consulted some papers. "No, there'd be no problem about that."

"I see the next rent review is in two years' time," said Karawan. "Have you any idea what the new rent will be?"

"It's far too early to say yet." said Dave. "The commercial market is a little fluid at the moment. But, the owners have always been pretty reasonable with their rent increases."

"There's one thing that bothers me," said Karawan. "I notice there are double lines outside the shop."

"That's no problem. There's a car park just off Stiles Road. In any case most people walk to launderettes, don't they?"

Real Bargain

They then went on to Newman Road.

"This is a real bargain," said Dave. "It's a very low rent for a shop just off the high street and the next rent review is five years away. It could be just what you're looking for. As you can see. it was used as a launderette before. The plumbing's all in place, so you've only got to hire the machines and you're in business."

"What happened to the previous owner?"

"I'm not quite sure. My assistant handled these premises. I think the owner retired," Dave added, rather vaguely. "He must have done quite well anyway. There are lots of young families in flats around here. They must have been pleased to have a launderette so handy. And there's no problem with parking. There are no yellow lines in the little streets off Newman Road."

1. What sort of shop does Karawan want to run?
2. How many shops does she go to see?
3. What was the first shop used as before?
4. What was the second shop used as before?
5. Where was the first shop situated?
6. Could customers park outside the shop in Wellington Road?
7. Why was the Newman Road shop a real bargain?
8. Is there any problem with parking in Newman Road?
9. Is there a high demand for a launderette in Newman Road? Why?
10. Which of the two shops is most suitable for Karawan's business? Why? (State your reasons.)

CASE 5

Dead men tell tales

The storm arrived from nowhere. Neither the captain nor the crew had an inkling of the horror about to engulf them. The first hint of danger came at 9pm on September 7, 1842. The Caledonia was rocked by a huge squall. Moments later, the seas grew wild and the crew were battling for their lives. As their ship broke its back on the rocky north Cornish coast, they found themselves flailing around in the foaming surf. One exhausted survivor made it to the shore, where he was saved by the local vicar. His eight shipmates were not so lucky. They were battered to death by monstrous waves, their corpses eventually being washed ashore. They were buried by that same clergyman. That, at any rate, was the vicar's version of events. But an eyewitness to the tragedy hotly disputed his claims. He accused the parson of fabricating his account in order to boost his standing in the community.

Jeremy Seal's book investigates the mystery that surrounds the Caledonia's last voyage. It is a lively and colourful narrative that jumps effortlessly from history to travelogue to genealogy. What really sets it apart, however, is his decision to weave fact with fiction. Cracks and holes in the narrative are plugged, sometimes to dazzling effect, with imaginative e-constructions.

1. Where is the storm said to arrive from?
2. What rocked the Caledonia?
3. On what did the ship break its back?
4. Who saved the exhausted survivor?
5. Who were not so lucky - not being saved?
6. Who buried the dead seamen?
7. Who disputed the clergyman's version of events?
8. How is Jeremy Seal's narrative described?
9. What is woven with fiction?
10. How are the reconstructions described?

CASE 6

The height of success

If you are tall, handsome and slim, you will be paid more

Tall men are better paid than their shorter colleagues, according to researchers.

And fat women are penalised by being paid less than thin ones. Overall, the message is that beautiful people do better at work than their less attractive colleagues.

The results emerged from a survey of more than 1 1,000 people aged 33 carried out by London's Guildhall University.

It suggests that looks matter both for men and women.

If average earnings are £20,000, an unattractive woman will lose 11 % of her salary - £2,200. An unattractive man can expect to lose 15% or £3,000.

The researchers claim that employer prejudice over appearance is widespread throughout the economy, but they suggest that there is massive variation depending on occupation.

Ugly women suffer the largest pay penalty if they are in clerical and secretarial jobs. Small, fat secretaries earn 15% less than their slim, beautiful female colleagues.

Attractive or tall men in sales jobs earn more than other people, including women.

Tall men earn up to a quarter more than colleagues while attractive men can earn 13% more. Tall women also have an advantage in sales, earning 15% more than their colleagues.

The survey's authors say ugly people are penalized far more than good-looking people are rewarded. They argue that the Government must review anti-discrimination laws so they cover other prejudices, including appearance, which affect careers.

Economist Barry Harper, one of the report's authors, said: "Although there is some variation between jobs, the effects of appearance are generally widespread suggesting that they arise from prejudice and in particular, employer discrimination."

"There us an urgent need for business and Government to review their equal opportunities policy to address the issue."

The Guildhall research was backed by the findings of an American research project.

University of Michigan statisticians who examined data on more than 7,000 American men and women in their 50s and 60s found that the average pay of an overweight middle-aged woman is half those of her slimmer counterparts.

The findings, presented to the Gerontological Society of America in Washington DC, took into account health, marital status, and a number of other factors, but still demonstrated that weight was a key factor in earnings.

The older the woman, the more discrimination there is on the grounds of weight, the experts said.

However the effects of obesity were far smaller for men and not so significant, they added.

The study is the first to examine the effects of obesity on the earnings of the mature woman.

"Much of the previous work on the economic effects of obesity has focused on young adults who are just beginning their careers." said Dr Nancy Fultz, the social scientist who led the research.

"That an effect of obesity on net worth remains even when we consider other factors is consistent with the notion that obesity is economically burdensome for women."

"This may be due to cultural norms of attractiveness, which stigmatize obese women in a variety of ways."

The study is the latest in a growing amount of evidence suggesting that bosses tend to see overweight people as greedy and lazy, and that our increasingly image-conscious society tends increasingly to make judgements on physical appearance alone.

More than half the British male population and two in five women-some 20 million adults - are over-weight. Six million are classed as obese and the numbers are rising.

1. What is the Case Study about?
2. Would you prefer to be slim and tall? Why/why not?
3. Have you noticed that beautiful people get better jobs and receive higher salaries?
4. If average earnings are £20,000 per annum, how much does an unattractive woman lose? How much will an unattractive man lose?
5. In sales who receives the highest pay?
6. Why must the Government review anti-discrimination laws in the workplace?
7. Does it affect the Government's equal opportunities policy? How?
8. What did statisticians at the University of Michigan reveal about 7,000 American men and women?
9. How do bosses tend to see overweight people?
10. Are there many overweight people in Britain t»day?

CASE 7

Belt Up!

Eighteen months ago, two young sisters opened a small shop selling belts of all kinds for men and women - fashion accessory and trouser belts, money belts, key belts and sports belts.

Karen and Julia spent a long time choosing the name of their shop. They were both very pleased with the name they chose - Belt Up1 - as it seemed to attract just the right kind of customer.

Expansion Plans

Their business partnership has done so well that they have decided to expand. They plan to move to a much bigger shop n the high street, and open two other branches elsewhere. After that, they want to print a direct-mail catalogue which will be sent to targeted consumers through a mailing list service.

They have worked out all the details of their expansion plans. All they need now is the money to finance it - £300,000.

They have already asked their bank manager for a loan. He would only lend them enough money to open the high street shop, because he thought they were trying to expand their business too fast.

However, a number of people whom they have met through their business have been far more enthusiastic. Some of them have already said they might be interested in investing in the business- if it became a Limited Company.

Limited Company

"There's nothing else for it," said Karen. "We'll have to form a company if we want to raise the money."

"Oh, 1 wouldn't like that at all. We haven't got enough money to buy 51 % of the shares. We'd be minority shareholders."

"That's right, but we'd still be running the business from day to day."

"It wouldn't be the same, Karen. If we had outsiders in the business, we'd never know what they might want to do."

"They wouldn't interfere as long as we were making good profits. In any case, Julia, if we remain a partnership, we're personally responsible for all debts if anything does go wrong."

"That's never bothered us up to now."

Valuable Asset

"It might do if we expand. There's another thing, too. At the moment, anyone can open a shop and call it 'Belt Up!'. Once it's registered as a company name, no one else can use it. Our name is too valuable an asset to lose."

"Oh. I don't know," said Julia, who was always far more cautious than her older sister. "Maybe the bank manager was right after all. Perhaps we are trying to expand too fast. What if we formed a company and just opened the high-street shop. We could raise enough money then to buy the majority of the shares, so we'd still be in full control."

1. What is the Case Study about?
2. What sort of goods did Julia and Karen sell?
3. How do the sisters plan to expand their business?
4. How much money will they need to expand?
5. Was the bank manager helpful? Why/why not?
6. What did he think they were trying to do?
7. Were both sisters in favour of making their business a Limited Company? Why/why not?
8. What is a Limited Company?
9. WЪat did Julia think was their best plan?
10. What, in your opinion, is their best plan for expansion? Should they keep full control and buy the majority of company shares themselves?

CASE 8

Job Vacancy

An expanding firm of insurance brokers wants to recruit a customer services assistant for its front counter. It has put the following display advertisement in a newspaper.

CUSTOMER SERVICES ASSISTANT

Young customer service assistant needed for front counter in friendly insurance broker's office.

You will be the sort of person who likes a varied and busy day. You will find yourself handling telephone and personal enquiries and our electronic terminals; advising customers on the range of services we offer; and handling cash and cheques. In addition you will carry out routine office and general word processing duties.

We are looking for someone who is 18+, with a good educational background in English and Mathematics, and accurate Keyboarding. Full training will be given in our word processing and database systems - Word and Access. You will need to have a pleasant, outgoing personality and be capable of working as a member of a team whose work load can be quite hectic at times.

In return, we provide an attractive salary, a yearly bonus, free life insurance, profit-sharing pension scheme, and 20 days annual holiday.

We are an equal opportunities employer. The firm received three replies.

Amanda Johnson

Age: 18

Education:

Comprehensive School

Qualifications:

GCSE English В

GCSE Maths С

Keyboarding speeds:

30wpm

Hobbies:

Swimming

Carpentry

Singh Anand

Age: 20

Education: College of Technology

Qualifications: A level English BTEC Diploma in Business and Finance

Keyboarding speeds: 60wpm

Hobbies: Computers, Volleyball

Natalie White

Age: 19

Education: Private Schools

Qualifications: GCSE English С GCSE Maths F

Keyboarding speeds: 40wpm

Hobbies: Horse riding, scuba diving

All three applicants were called in for an interview. During the interviews, the owner of the firm made the following notes:

Amanda Johnson: Very hesitant. Never looks you straight in the eye. Dirty fingernails.

Natalie White: Very pleasant manner, smiles a lot, expensive clothes.

Singh Anand: quiet, but confident, rather serious.

1. What is the Case Study about?
2. What sort of a person is a customer services assistant?
3. Is his/her pleasant outgoing personality and ability to work as a team more important than his/her educational background? Why?
4. What is meant by the words 'we are an equal opportunity employer"?
5. What are the advantages and disadvantages of the first applicant. Amanda Johnson'.'
6. What are the advantages and disadvantages of the second applicant, Singh Anand?
7. What are the advantages and disadvantages of the third applicant, Natalie White9
8. In your view which applicant (if any) should be given the job? Give your reasons.
9. Should the post be re-advertised? Explain why?
10. If a temporary appointment were made for front counter work, which applicant would be best suited to deal with the clients?

CASE 9

Change of Ownership

Martin worked as a fork-lift-truck driver in a small distribution firm. His basic wage for a 40-hour week was £4 an hour. Except when he was on his annual three-week holiday, he also worked an average of three hours overtime a week. The rate for overtime was time and a half.

When a much bigger company took over the firm, the workers feared that some of them would lose their jobs and be made redundant. Rumours swept through the firm that wages were going to be cut.

Management Proposals

Nothing happened for a while, but then the new management called a meeting with the shop stewards. Management explained their proposals for a new wages structure.

Shortly after that, all workers received a letter describing the new scheme. Further details were given in the works newsletter that had just been started.

Martin found that he would now be paid an annual salary of £8,300 a year for a 40-hour week. No overtime would be worked.

In addition, he would receive a guaranteed bonus of 10 per cent, and even more if he exceeded his productivity target.

There would also be a company-wide productivity bonus, linked to the company's total performance. This bonus ranged from £50 to £250 a year in the new owner's other branches.

All the workers had been asked to vote on the new proposals. Martin didn't want to vote just as his union told him. so he decided to work out for himself how the wages offer would affect him.

1. What is the case study about?
2. What sort of a job did Martin have?
3. How much was his basic wage for a 40 hour week?
4. Did he work overtime9 How much overtime, on average, did he work?
5. What was the rate of pay for overtime?
6. When a much bigger company took over the firm what fears did the workers have?
7. What sort of rumours swept through the firm?
8. Under the new system what was Martin's new annual salary for a 40 hour week?
9. Would he be able to work overtime in future?
10. Under the new system how much bonus was he guaranteed? Could he get even more if he exceeded his productivity target? Would you advise Martin to vote for the new system?

CASE 10

Things were certainly going wrong at Kenby Electrics. There had been a thunderstorm, water had leaked through the roof, and was dripping slowly but steadily on a junction box. Fred Fox was busy replacing a fuse in the box (there had been a surge of the power during the storm, the fuse had blown and work had stopped in the workshop), with a great deal of haste as production needed to restart quickly.

John Jones, the Safety Officer, entered the shop just as Fred pulled the lever over to 'ON', and the machines started. "Just a minute" he shouted. "Switch that thing off again at once!" Fred obliged. "Now," continued Jones. "Leave your machines, and organise someone to get into the roof to plug the leak. Come on, you're wasting time!"

At that moment Len Wilson, the supervisor, entered the department. "What are you playing at, Jones?" he shouted. "These are my men not yours ".

"They're on safety work now, and that's my responsibility," Jones replied.

1. What is the case study about?
2. What had gone wrong at Kenby Electrics'?
3. What was Fred Fox busy doing?
4. Why had work stopped in the workshop?
5. What is the role of Jones the safety officer0
6. What action did Jones take in the workshop0
7. What did Jones instruct Fred to do?
8. Why did Jones instruct someone to go up in the roof?
9. What is the role of the supervisor in the department?
10. Should the instructions of the safety officer take precedence over those of the supervisor? Why?

CASE 11

Hobson and Walker, a medium sized insurance broking firm in the city, had a season ticket loan scheme for their staff. No one was entitled to a loan until they had completed one year's service.

The personnel manager, Fred Garstang, was approached towards the end of a long hard day by Maurice Smith, the overseas manager, who asked for a concession for one of his staff, who had only been with the firm four months but badly needed a season ticket loan. Smith emphasised that the individual concerned was invaluable and would leave if she were not given a loan.

Although Garstang had recently turned down several requests from other departments to give loans to staff with less than a year's service, he allowed himself to be persuaded by Smith that this was a special case. Smith promptly told his subordinate that she could have the loan and the latter equally promptly filled up her application form.

Garstang woke up very early the next morning with the nasty feeling that he had made a bad decision which could create a dangerous precedent. The more he thought about it the worse it became.

1. What is the case study about?
2. What sort of work is carried on at Hobson & Walker's?
3. What kind of a staff loan was in existence there?
4. How long did you have to work there to get a loan?
5. Were any exceptions made to this rule?
6. Who requested an exception be made to the rule?
7. On behalf of whom was the request made?
8. Was this a special case? Why?
9. Why did Garstang feel that he had made a bad decision?
10. In your opinion, should Garstang maintain his position and insist that this was a special case - or should be reverse his decision?

CASE 12

Harry Hall was a little surprised when Peter Robinson, the Chief Draughtsman of the company, sent for him. Hairy was a quiet, hard wok-ing rather self-effacing young man, but he had had an idea about a problem that had been worrying the designers of the new centrifugal pump for .some time. 'Sit down Harry' said Robinson in a kindly fashion, 'take the weight off your feet lad'.

Robinson shuffled the papers in front of him. 'First I'd like to sax-how pleased I was to read that piece about you in the Advertiser last week. Anyone who could swim thirty lengths for charity deserves a real pat on the back, arid I'm glad the company's name got mentioned as well. Reflects great credit on you.' Harry blushed and got up to go. 'Just a moment! Robinson added, 'there's just this matter of this piston ring. I hear you have been over to Design about this one.'

'We're a happy team in this department Harry, all working together, but there's one rule I like my team to follow: we all pull together, and everything we do I want to know about - after all you wouldn't like me to talk about you behind your back. It's something I'd never do. If changes are needed to that position, Design will come to us, and I will decide who'll tackle the job. Naturally, in view of your interest, I think I'd get you to look at it, and then talk it over with me, and we'll put it up as a departmental idea, under my signature, to give a stamp of authority as it were. How's that?'

Harry was upset, although he did not show it. After all, he thought, this idea of his could save the company money, and it was his idea.

1. What is the case study about?
2. What sort of a person was Harry Hall?
3. Describe the Chief Draughtsman, Peter Robinson.
4. In what way had Harry supported local charity recently?
5. Had his name appeared in the local press? Was his company mentioned?
6. What sort of an idea had Harry got about the new centrifugal pump?
7. Was his boss Peter Robinson pleased that Harry had already approached the Design Department on his own initiative?
8. When Robinson suggested that Harry should talk it over with him and they could put it up as a departmental idea why was Harry upset?
9. If Harry ignored Robinson's advice could he put his idea up through the company suggestion scheme?
10. What would Robinson's reaction be if Harry did not comply with his advice? How could this matter be best resolved?

CASE 13

Adriano in place to beef up Salisbury's empire

Roman emperors used to like appointing sons and generals to rule parts of their Empire alongside them. It often caused more problems than it solved - and the Empire still crumbled away.

Sainsbury chairman David Sainsbury is trying the same approach-and may find the same results. After intense City pressure, he is abandoning the role of chief executive, but remains full-time chairman.

Deputy chairman Tom Vyner is to become joint chief executive, concentrating on the UK supermarkets. He will work alongside rising star Dino Adriano, who will run Homebase and the US operations.

As expected. Adriano. 52. will move over to run the UK supermarkets when Vyner retires at the end of next year.

Sainsbury's will then appoint someone to take over Homebase. Is this all just musical chairs0 Apparently not. Adriano is no newcomer- he joined Sainsbury's in 1964. But he has been atop executive at Homebase since 1981 and is credited with making it the most successful DIY chain.

Vyner, by contrast, has been blamed by the City for the supermakets' recent plodding performance. Asda, Tesco and even Safeway have steadily raised their standards to match Sainsbury’s and, at the same time, have launched noisy price promotions.

Meantime, Sainsbury's has hardly reacted, behavirg as if it still had a commanding lead.

Its share price tells the story. In the-last two years, it has fallen 20pc against the stock market, 40pc against Tesco and 75pc against Asda. Can Adriano stop the rot?

The shares fell another penny to 388p on his appointment. Brokers respect his record, but want to see results. Will chairman David really become 'hands-off ? The City hopes so.

1. The Roman emperors used to like appointing sons and generals to rule parts of their Empire. Was it a good idea? What happened to the Roman Empire?
2. What does Sainsbury's Empire consist of?
3. Who is the chairman?
4. Is he using the same approach as the Roman Emperors0 Will he find the same results?
5. Who is taking over the position of joint chief executive and on what will he concentrate?
6. Who is the company's rising star? How old is he?
7. What is his present position? What will he run at the end of next year when Vyner retires?
8. Is Adriano new at Sainsbury's? Is he a successful top executive?
9. Has Vyner been equally successful?
10. Does the fall in the sales of Sainsbury's shares on the stock market reflect the company's recent plodding performance? In your opinion will Adriano stop the rot if chairman David becomes 'hands-off ?

CASE 14

The Board of Directors are meeting to discuss the appointment of a new Overseas Sales Manager. The incumbent, Larry Wells, has been invited to the Board as Sales Director, and this is his first Board meeting. There are two names which have been put forward for the post:

Wolfgang Schwartz-11 years with the Corporation - present position Maintenance and Components Division Manager - 49 years of age -previously with General Motors.

Jim Lazarus - 6 years with the Corporation - present position Personal Assistant to Overseas Sales Manager (Larry Wells until now) - 32 years of age-previously in the RAF - helicopter pilot-short service commission.

Geoff Daly supports Jim Lazarus for the position and mentions that his nominee personally designed the modified skirt on the military version of (the hovercraft which is now in production. Jim was Daly's PA before he was transferred to Larry Wells.

Tim Feather, one of the founders of the firm, favours Wolfgang Schwartz. This comes as no surprise to the other directors. Schwartz is his son-in-law. Feather only owns 10% of the voting shares now but his children own another 15% through a trust he has set up in their favour.

Larry Wells takes to his directorial role like a duck to water.

"My vote would go to Wolfgang too, Mr Chairman," he says. "I admit he's less of an ideas man than Jim but he's developed a good team on the Maintenance side and 1 know my boys would get on well with him."

Daly has not given up by any means.

"Yes, but what about Wolfgang's health," he asks, "after that heart attack last year0 Will he be fit enough to travel all over the world0 No one knows better than you Larry how much traveling is involved."

1. Do you believe in internal promotion at work?
2. What job did Larry Wells do before his promotion to Sales Director?
3. How many candidates have been put on the short-list for the post of Overseas Sales Manager?
4. What are the candidates' names?
5. What age difference is there between the candidates?
6. Generally do you prefer the older candidate or the younger candidate? Why?
7. Why does Tim Feather favour Wolfgang Schwartz?
8. Do you believe in nepotism?
9. What sort of a health problem does Wolfgang Schwartz have and how would this affect his work as Ova-seas Sales Manager?
10. Why does Geoff Daly support Jim Lazarus for the post?

CASE 15

Gamma Furniture Ltd

The company grew out of a one-man business established by Louis Steiner at the turn of the century. Even between the Wars (1918-1939) the business was operating on a comparatively small scale, with Louis, his two sons, and a handful of workers producing handmade furniture of high quality.

Louis died during the early postwar period and his son Morris took over the reins. His first step was to form a limited company. Next, he borrowed heavily from the bank, using as security:

1) assets of the new company;

2) the personal guarantee of his brother-in-law.

He was then able to sell the rather small workshop in which his either had started the business, and buy a modern factory on the outskirts of London. The company prospered sufficiently to go Public in the early 1960s. Morris and his immediate family retaining approximately 40% of the voting shares.

At this stage, when everything seemed well set, there was a period of disappointment. The company found itself in the doldrums largely as a result of rising costs of production and intensive competition. For three successive years profits were insufficient to warrant payment of a dividend. Morris demonstrated his business acumen by discovering a talented young designer on his staff who was able to change the fortunes of the firm. Danny Schaffer produced a succession of very distinctive and highly successful designs for interlocking furriture units which found a ready market. These were sold under the description of Unit Five Furniture.

Gamma became revitalised. The demand for Unit Five Furniture was so great that a new factory was opened up at Reading 2 years ago and another is under course of construction on the outskirts of Bristol.

All this is history. This morning Danny Schaffer has sought an audience with Morris Steiner.

"I'm going into business on my own", he tells his boss. "I've been able to put my hands on a bit of capital and 1 want to try a few ideas out for myself.

Morris ponders. He has never failed to appreciate Danny's value to the firm and his loss could be a blow to Gamma's Plans for expansion.

1. What is a one man business?
2. When was the Louis Steiner business launched?
3. How long did it remain a small family business?
4. What did Morris do to expand the company?
5. When the company went Public, what proportion of the voting shares was retained by the family?
6. Why did the company find itself in the doldrums?
7. Who was Danny Schaffer and what did he do?
8. When Gamma became revitalised, where were the new factories sited?
9. What news had Danny Schaffer to tell his boss one day?
10. In your opinion, should Morris endeavour to retain Danny? What would be the consequences of Danny's sudden departure?

CASE 16

Background

Fast-Track Inc., based in Boston, US, sells corporate training videos and management training courses. Fast-Track is looking for а new Sales Manager for its subsidiary in Warsaw, Poland. Fast-Track advertised the vacancy only inside the соmpanу as it believes in offering carееr opportunities to its staff.

The subsidiary's recent sales results were рооr. Sales revenue was 30% below target. The reasons аrе:

• Sales representatives аге not motivated and staff turnover is high.
• The previous manager had по clear strategy for developing sales in the аrеа.
• Vеrу few sales contracts were made.

А new appointment

There аге three candidates for the position. They all already work for Fast-Track either in Boston оr in Poland. Неге is аn extract from the job description for the position.

The successful candidate will bе responsible for:

- developing sales, achieving results and increasing customer numbers

- managing the sales team so that it is more motivated, dynamic and effective

He/She will bе:

- а natural leader

- energetic, confident and outgoing

He/She will have:

• strong sales ability
• organisational and interpersonal skills
• а good academic background  
• suitable experience
• numeracy skills and the ability to handle administration
• linguistic ability

The position will involve frequent travel throughout the region.

Profiles of the candidates

1. Ваrbarа Szarmach

Polish, aged 30 Education Finished secondary school. Diploma in Marketing.

Experience: Has worked for Fast- Track as а sales representative since leaving school. Has а good knowledge of соmрuting.

Achievements: Has had the best sales results of the team during the last fivе years.

Languages: Excellent Polish and Russian. English - good vocabulary but not very fluent.

Interviewer's comments: Very strong personality. Energetic and confident. Sometimes appeared aggressive during the interview. Will she bе а good team player?

2. Tadeusz Vajda

Polish, aged 52 Education University degree (Engineering)

Experience: Wide experience in а variety оf industries. Joined Fast-Track Буе years ago as Regional Manager for the south оf Poland.

Achievements: Has been fairly successful, increasing sales bу 12% over the five-year period.

Languages: Fluent Polish and English. Interviewer's comments Very calm and relaxed, he moves and talks slowly. А hard worker. Not creative but happy to get ideas from the creative members оf а team. Current staff  think he is practical and reliable.

3. Eva Rheinberger

German, aged 42 Education University degree (History)

Experience: Over 15 years as а sales representative in Germany, the US and Poland. Joined Fast- Track а year ago.

Achievements: А good sales record in all her previous jobs. In her first year with Fast- Track her sales results have been satisfactory.

Languages: Fluent German, English and Polish. Interviewer's comments Quiet but knows her own mind. Rather nervous at the interview. Might bе good at team building but would probably depend too much оn other people. Likes administration. Didn't seem to have many ideas about the future of the company.

TASK

1 Work in groups. You аге members of the interviewing team. Discuss the strengths and weaknesses of each candidate. Decide who to select for the vacant position. Note down the reasons for the choice.

2 Meet as оnе group. Discuss уour choices. Decide who should fill the vacant position.

Writing

Complete this e-mail from the head of the interviewing team to Liz Steiner, Sales Director of Fast-Тrасk. Write about at least three strengths of the candidate уоu have chosen. Then explain how these strengths relate to the job description.

Dear Liz,

We recently interviewed three candidates for this position. We have decided to appoint ...

I will briefly describe the candidate's strengths and explain the reasons for our decision ....

CASE 17

Clippers

Karen left school at sixteen and went to the local College of Further Education where she took a course in hairdressing. At the end of the course she was taken on part-time at large hairdressers in the town. She gained some useful experience and eventually got a full-time job at a small shop near where she lived. After two years of working she was becoming bored and felt that there were few promotion prospects. She wanted to set up on her own but was unable to raise enough finance to buy or rent a shop. She then had the idea of cutting people’s hair in their own houses. Many old people in the area found it difficult to get to the hairdressers and other people, such as mothers with young children, found it hard to get out of the house during the day.

Karen had managed to save enough out of her wages to buy the basic equipment, such as razors and driers, as well as a small stock of shampoos, conditioners and other materials. She was also the proud owner of a small car which she had bought after passing her test.

She started off by working in the evenings cutting the hair of friends and relatives and worked full time at the shop during the day. After six months she had managed to build up enough business to give up her job at the shop and to work just for herself.

After a year Karen is still in business. She finds it very hard work because she needs to work the hours that suit her customers. Business also varies and some weeks she is left with less money than her earnings at the shop. Despite this, Karen likes working for herself and hopes that she can eventually make enough money to get her own shop.

1. Is Karen’s business a service or a manufacturing business?
2. How did Karen raise enough money to start her own business?
3. What was the market for Karen’s business? (Who were her customers?)
4. Why do you think Karen has been successful in staying in business so far?
5. Karen often works longer hours and takes home less pay than she did working at the shop. Why do you think she wants to work for herself?
6. Suggest three ways in which Karen could possibly improve her business in the future.
7. Businesses need to use the essential equipment. Think of all the items Karen would need in her business.

CASE 18

Intel

Intel is the world's leading maker of silicon chips. A chip consists of a huge number of transistors of tiny transistors. The chips are vital to computers. Without them computers could not process. The Internet has become a big part of our way of life. Without chips, we would not be able to access it. Intel has been working to make the transistors smaller. The drawback was that this also made them hotter. In 2007, Intel developed cooler chips. The transistors are so small that you could fit 2,000 of them on a full stop. Intel uses 'Moore's law' to focus its plans. This was set out by its founder Gordon Moore. It says the number of transistors on a chip will double roughly every two years.

A business can follow two routes for development:

• Product-orientated. Make the product and then market it.
• Market-orientated. Find out what customers want, and then produce it. Intel responds to both of these routes.

Research and Development (R&D) leads to better products and better methods of making them. It also brings more market opportunities. Intel conducts research into both manufacturing and materials. It has research laboratories all around the world. It looks into what opportunities technology can offer. It also considers what customers want. The result is products that customers want and that Intel can produce. Before making a product, It asks key questions about how it will work and what it will do. Intel then produces a 'blueprint'. This shows what a chip will be expected to do. To answer these questions, Intel works with customers, software companies and its own staff.

Manufacturing

Intel can develop a product and bring it to market faster than any other similar company. It locates its manufacturing plants close to skilled labour markets and customers. Its production process uses robots. Plants are built identical to each other no matter where in the world they are. They also have to be super-clean. Intel sets the highest standards in super-clean plants. Intel does not outsource any of its work. It completes all stages from R&D to manufacturing. This ensures quality.

Competitive advantage

This means that a business does something better than its rivals. Intel uses what it calls the 'tick-tock' strategy to maintain its leadership. In 'tick' years it will introduce a new product or process. In 'tock' years it improves a product design. Intel brings together ideas from all areas. It completes everything in-house. It both designs quality products and makes them itself. This makes it competitive on all fronts.

Intel is a driving force in the world of computers. This makes it vital to business and leisure. It makes sure personal computers are faster and better. It helps to give everyone the fastest Internet perfomance. It takes new products from drawing board to market. It ensures quality by carrying out all processes itself.

1. Identify three key steps (innovations) in the development of microchip technology. In each case explain how the innovation has transformed people's work, life and/or leisure.
2. What is meant by a) market-led and b) product-led new product development? Give two examples to show how Intel has combined market-led and product-led approaches.
3. Show how research and development has enabled Intel to develop a new product that is aimed at a specific group of users.
4. Why is it so important for businesses like Intel to invest in R&D? Explain with examples how R&D has enabled Intel to gain competitive advantage.

CASE 19

Asos.com

Asos.com is the UK's leading online fashion store. There are over 9,000 products online. The site attracts 3.3 million shoppers a month. It is aimed at young men and women aged 16-34. Asos.com has 250 employees and over 32,000 square meters of storage space. The company has had large growth since it was founded in 2000.

Asos.com is a plc (public limited company), quoted on the AIM (Alternative Investment Market) part of the London Stock Exchange. AIM is not as strict in its rules as the main market. This helps smaller companies to raise money through the sale of shares; asos.com is run by a board of directors. Two non-executive directors are there to provide advice and expertise.

Most businesses seek to grow so they can buy and sell on a bigger scale. Growth can come from within the business. This is called organic growth. An example is finding new markets for products. Firms can also grow by merging with other firms. This is called integration. There are different kinds of integration. If the merger is:

• at the same level of production, this is horizontal integration - for instance, the merging of two fashion stores
• at a different level of production, this is vertical integration. This can be backwards to a previous part of the supply chain, for instance, a manufacturer buying a raw material supplier. Or it can be forward integration to a later level, for example, a chain of shops.

Asos.com has gone for organic growth. It has increased its customer base. It offers a wider range of brands and products. It has also grown rapidly without having the problems that this often brings.

Asos.com looked at where and how it might grow. Research showed that online sales have been growing faster than any other sector. Around 20% of online shoppers are young people. Asos.com made these its target group. To attract them it offers a diverse range of brands and products. Above all, it offers online shoppers a good shopping experience. It makes sure that the website adds value, by providing more than a customer would expect from a shop. The site provides a wider choice, good prices, new styles and, above all, convenience.

As it has grown, asos.com has developed a more complex structure of departments. It also has to work hard to keep up with changes in technology. For instance, customers expect to be able to track orders online. The website is kept current by constantly adding new products and lines. Asos.com has increased the size of the images used to give customers a clearer picture of what they are buying. It also uses other communication channels to drive growth. These include:

• a monthly magazine of 116 pages
• an email newsletter that goes out to 1.8 million users each week
• PR pieces in other publications

•        promotion to encourage people to recommend the brand to friends.

Asos.com has achieved fast growth since 2000. Part of its success is due to it growing organically. Part is due to its high investment in both people and technology.

1. In what ways can a company benefit from growth?
2. What do you feel might be potential disadvantages of very rapid growth?
3. Describe, using examples, what is meant by horizontal and vertical integration.
4. What do you feel are the key things that asos.com did in order to achieve managed and successful organic growth?

CASE 20

UNISON

In a workplace, it is not easy for every individual employee to discuss issues with management. This is why workers may need representation. Issues at work include things like health and safety, working conditions and fair treatment. A trade union provides this help and support. The largest public services trade union in Britain is UNISON, with over 1.3 million members. Public services include local authorities, hospitals, schools and colleges. It also represents workers in utility companies like those that provide water and gas. UNISON aims to help improve the work environment and at the same time tackle climate change. One challenge is the way businesses affect the environment. To do this UNISON has proposed new ways of working. It is focusing on two approaches to make workplaces 'greener'. It has talked to both government and employers to raise the issue.

UNISON has set targets for its members to help them combat climate change. It has shown ways to reduce energy use, reduce waste and recycle more. Unison wants its green targets to fit in with its overall aims. It wants to support UNISON members to focus on environmental issues and tackle climate change. It has put together a set of key objectives to reach these aims. These show it to be a 'green' organisation. This has helped relations with employers and put UNISON in a better position to drive change.

UNISON has developed a long-term strategy. This set of plans involves both the government and its members. Most of UNISON'S members work in the public sector, a large part of the UK economy. Big organisations can have a big effect on the environment. They may have higher carbon emissions. UNISON has shown the government how its plans could reduce these. UNISON has developed shorter-term plans called tactics to help it reach each target. These include training materials, courses and events to promote increased environmental awareness in the workplace.

SMART targets are:

• Specific
• Measurable
• Achievable
• Realistic
• Time related.

UNISON has added to these 'understandable' and 'challenging'. SMART targets help organisations to know when they have achieved the results they want. UNISON'S targets relate to three key areas:

• reduce UNISON'S own carbon footprint. It is changing power suppliers, recycling more and changing UNISON staff cars to hybrid vehicles
• make workplaces more environmentally friendly

•        run campaigns focused on environment issues like reducing carbon emissions.

UNISON's stakeholders include its members, the government and the managers of the organisations its members work in. UNISON wants to communicate its message about the environment to all its stakeholders. To do this it has held conferences, produced publicity materials like posters and hosted events.

UNISON is having a positive influence on workers and the environment. It has been praised for showing real leadership over climate change issues.

1. Describe the purpose of a trade union.
2. Explain the difference between aims and objectives.
3. Identify the benefits that an organisation receives from using the SMART framework to set objectives.
4. Using an example, evaluate how an organisation's strategies differ from its tactics.

CASE 21

The Davis Service Group

The Davis Service Group employs 17,000 people across the UK and Europe. Its turnover is over £820 million. Its main business is in textile services. This includes hospital, laundry, hotel linen and workwear. In 2001, the Group had three parts. These were:

• Sunlight -textile services;
• Elliott - temporary modular buildings;
• HSS - tool hire.

Each of these was the UK market leader. This meant that none could grow significantly in the UK. The Group therefore decided to expand into Europe.

A good way for a business to grow is to expand abroad, especially within the European Union (EU). The EU is a single market of 27 countries and 500 million people. Goods and services can flow freely within the EU -there is a common currency and a skilled workforce. Businesses that expand abroad have to take into account certain factors. These include:

• language -English is the main global business language;
• currency - most countries in the UK use the Euro. Britain still uses sterling.
• culture - to succeed, you need to know the correct way of doing things, for instance, greeting someone for the first time
• different laws and other systems;
• skill levels - may vary between countries.

A business can grow by joining with other businesses. This is called inorganic growth. This can either be by agreement (a merger) or by a takeover. This is when one business buys more than half of the shares in the other. Another way a business can expand is by horizontal integration. This is when two companies are at the same level of production. If two businesses join and are at different stages of production, it is known as vertical integration.

This is when one business buys the other. In 2002, Davis bought Berendsen, a market leader in textile services in Northern Europe. This company had local experience and a very broad customer base. Berendsen was not, at the time, performing as well as it should. Davis reduced costs, put in stronger management and trimmed back support functions. The two businesses were able to learn from each other. This is one of the benefits of horizontal integration. The factors that could have caused problems were with language, culture and currency. Berendsen solved these problems by:

• using English across its operations
• being based in countries where customers have similar buying habits to those in the UK
• working in Euros and comparable Scandinavian currencies.

Groups can grow from within by increasing turnover (sales x price). The new Group has grown by gaining more customers. It has also shared best practice to become more efficient. Growth in the EU is possible as it gets bigger and has more wealth. New EU laws also provide opportunities, for instance, the need to provide protective clothing for certain workers.

The Davis Service Group grew by expanding its textile services expertise into Europe. This is called horizontal integration. It sold its other businesses to concentrate on growing its textile maintenance business. This allowed it to re-invest any profits and expand the business further.

1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
2. Businesses grow when they have the resources to expand and opportunities exist for growth. Explain how the acquisition of Berendsen provided such a good opportunity for the Davis Service Group.
3. What aspects of European Union markets have particularly encouraged:

• horizontal growth of the Davis Service Group?
• organic as opposed to inorganic growth?

4.        If the company were to expand into new areas of the globe, where would you recommend and why? What factors might encourage or discourage this choice?

CASE 22

NIVEA

NIVEA is a well-known brand made by Beiersdorf, a global company specialising in skin and beauty care. Beiersdorf aims to delight its consumers with new skin and beauty products. This focus has helped it to grow NIVEA into one of the largest skin care brands in the world. Market research showed there was a gap in the market for a beauty range aimed at young women aged 13-19. NIVEA VISAGE Young helps girls into a proper skin care routine to keep their skin looking healthy. NIVEA VISAGE Young was launched using a balanced marketing mix (the 'four Ps'). This is a mixture of the right product, price, place and promotion.

Beiersdorf used market research to understand what its target market wanted. It used:

• focus groups;
• direct contact with the market
• product testing.

It found that teenage girls wanted face care that was not medicated. They wanted a beauty product, not one for skin problems. The product connects the teenage and the adult market. After research, the product and its packaging were improved. In line with Beiersdorf' Corporate Responsibility programme, some changes reflect a concern for the environment. This approach aims to:

• reduce packaging and waste by using larger pack sizes
• use more natural products like minerals and sea salts
• make containers more recyclable.

Pricing may include:

• cost-based price - covers costs plus profit
• penetration price - set low to ensure a high volume of sales
• skimming price - set high for a new, unique product.

On re-launch the price was slightly higher than before due to the improved range. The price needed to be attractive to the target market and give value for money. Retail outlets also use other pricing strategies:

• loss leader: selling at less than cost to attract volume sales
• discounts: sales and special offers.

Place is where a product is sold and how it arrives there. The main channel for NIVEA products is retail outlets. 65% of sales come from high street shops such as Boots and Superdrug. The other 35% comes from large chains, such as ASDA and Tesco. Many buyers are mums, buying for teenage daughters while out food shopping. Beiersdorf uses a central distribution point in the UK to reduce transport effects. This helps the environment.

This is how the business tells customers about products and persuades people to buy. It is:

• above-the-line - directly paid for, such as TV adverts
• below-the-line - using other methods like events, trade fairs, direct mail and the strength of the brand. NIVEA decided not to use above-the-line routes, but to talk straight to the target market. It used newer channels to help teenage girls identify with the product:
• product samples, giving a million away at events or through its website
• its own online magazine (FYI - Fun, Young and Interactive)
• pages on social network sites such as MySpace, Facebook and Bebo.

NIVEA VISAGE Young is designed to enhance the skin rather than being medicated to treat skin problems. It has a clear position in the market. To bring the range to market, Beiersdoef put together a balanced marketing mix.

1. Describe what is meant by a business being 'consumer led'.
2. What are the key parts of the marketing mix? Explain how each works with the others.
3. Explain why the balance of the marketing mix is as important as any single element.
4. Analyse the marketing mix for NIVEA VISAGE Young. What are its strongest points? Explain why you think this is so.

CASE 23

Siemens

Siemens is one of the top three electronics companies in the world. It employs more than 20,000 in the UK. It designs and makes products for three main sectors:

• industry, for instance, traffic monitoring systems and trains
• energy, for instance, power transmission and distribution
• health care, for instance, medical scanners.

Siemens is involved in every aspect of life. Nine out of ten cars contain Siemens products, as do other household products like toasters and kettles. Siemens also makes car parking and traffic systems. Even the Hawkeye electronic 'eye' used in cricket and tennis matches are built by Siemens. To stay as leader in its field, Siemens needs the best people.

Siemens needs the right people with the right skills. Workforce planning helps it to plan for the future. It looks at the skill sets it already has and plans how to fill any gaps. People with the right skills can either be recruited from outside or trained within the organisation.

Training involves teaching new skills or techniques. Training may be either:

• on-the-job - training whilst working
• off-the-job - training takes place outside the firm.

Siemens has three main training programs at 'Entry Level':

• Apprenticeships. These are for school leavers who want to 'earn as they learn'. Most start their working life from their home town. They work at their local Siemens site. Siemens believes apprenticeships are vital for its future growth.
• Siemens Commercial Academy. This launched in 2005. The program focuses on students who have a keen interest in Business and Finance. It lasts four years and is an alternative to going to university.
• Siemens Graduate Programs. These recruit into three core areas of the business - engineering, IT and business.

A business needs to retain good staff. This is because the costs to recruit new staff are high. Siemens needs well-trained staff with good key skills. In particular, they need good communication and team working skills. Trained staff help Siemens to compete. Staff are more flexible and able to change. They may also be more creative and innovative. Employees also feel that the company values them. This makes them want to work harder. This is called motivation.

Siemens uses an appraisal system to see how effective its training is. This is called the Performance Management Process. Staff and their managers agree objectives. Managers then help employees to work towards them. Each year, the process sees how far people have developed. It also provides a way to find out and plan future training needs. This benefits the individual and the business. The process keeps staff up-to-date and involved. It also gives them the chance to air their own views.

Training and development are key factors that help Siemens to grow. Siemens focuses on achieving well-trained staff. These workers are assets to the business.

1. Identify four benefits to Siemens of its in-depth training and development of workers.
2. Explain how an appraisal system can help to motivate employees.
3. Using your understanding of the work of Herzberg, which motivators can you see in action at Siemens?
4. Analyse how Siemens uses training and development to ensure growth in its business.

CASE 24

UK IPO

New ideas are vital to business. They can lead to new products and services. They may come out of research and development in a business. They can also come from entrepreneurs. The person with a new concept may need to protect it through intellectual property (IP) rights. IP registers the creator of the concept as the sole owner. It means no one else can use the new idea without licence or permission. The UK Intellectual Property Office (UK IPO) helps owners to protect new ideas.

An entrepreneur is someone who takes the risk on a new business venture. In return, he or she takes the rewards if it is a success. Entrepreneurs need to have a good understanding of the markets. They

• develop new products
• check that ideas really are new. They need to search for what products are already in the market
• raise finance for the business, both long term and short term. Long-term finance comes from owner's own funds, loans or grants or from the sale of shares. Short-term finance may come from a bank, for example, through overdrafts and credit cards.

A business can be set up in a number of different legal formats. The main types are:

• sole trader - a single person owns and runs the business
• a partnership - between 2 and (usually) 20 people own and run the business
• a company - this is a separate legal body from the owners. The owners hold shares in this body.

The first two types of businesses have unlimited liability. This means that the owners' own money is at risk if the business needs to pay debts. A company's liability for debt is limited to the amount each person has put in.

Registering protects ideas and prevents other people copying them. This means only the owner benefits from any sales or income for a period of time. This is important as new ideas often cost money to turn into products. IP rights are an asset to the business and have value. They help businesses to stay competitive. The right to use a concept can also be licensed - this is how a franchise works.

There are four main types of IP rights:

• Patents are for new inventions like products or processes used in industry.
• Registered designs prevent competitors from copying the physical appearance of a product.
• Trade Marks distinguish goods and services from those of other traders. They include logos, lettering, pictures or brand names, for example.
• Copyright protects written and recorded work, including pictures, films and music.

Often more than one IP applies to a single concept. For example, Harry Potter books are protected by copyright, Harry Potter clothes and scarves have design protection and toys and games have trade mark protection.

Entrepreneurs need to protect their new ideas and concepts to make sure that they alone get the benefit from their ideas. They can register patents, trade marks and designs through the services of the UK Intellectual Property Office. Copyright is an automatic right upon creation of the work.

1. What is enterprise? Using an example of any entrepreneur mentioned in this case study, explain three ways in which they are enterprising. What risks would they have taken in setting up their business?
2. Identify the three main forms a small enterprise can take. In each case, identify who are the owners of the business and who makes the controlling decisions.
3. Businesses are often created on the basis of new ideas. Why is it so important for entrepreneurs to protect their ideas? What benefits will they get from protecting these ideas?
4. Suggest a new business enterprise based on a new design, idea or published work. Discuss the various alternative ways in which intellectual property rights could be protected in setting up this proposed business.

CASE 25

Should we privatise the National Health Service?

In the US there is very little public enterprise. Many of the jobs done by the public sector in the UK are carried out by the private sector in the US. Rubbish collection, electricity and water supply are very often in the hands of private companies in the US. There is no National Health Service in the US. The patient is charged a fee when s/he visits the doctor and all medical care has to be paid for. A stay in a hospital costs about £100 a day, and that does not include any treatment! A broken limb could cost £1000 or more and major operations could easily cost £10000. To help pay for this, Americans take out insurance cover. This is expensive and increases with the age of the person and their medical record. As with car insurance, there is a no-claims discount for people with good medical records.

Some people in the UK would like to see a system for health care similar to that of the US. They argue that taxes would be lower and health care would be more efficient, with less waiting time and a better standard of service.

1. Make a list of arguments both for and against having only private medical care.
2. How is the National Health Service paid for in the UK?
3. How is medical care paid for in the US?
4. Do you think a totally private medical system would be cheaper or more expensive than the National Health Service? Explain your answer.
5. Would a private medical system be more efficient than a public one? Explain your answer.
6. Who might benefit and who might suffer if the National Health Service was abolished and replaced by a totally private system?

REFERENCES

1. Деловые ситуации с системой заданий для обсуждения на английском языке / Сост.: Е.В. Зубкова, Е.В. Ростовцева. – М.: Изд-во Рос. экон. Акад., 2003. – 64 с.
2. John Rogers. Market Leader. Pre-Intermediate. New Edition Course Book. Pearson education Limited, 2007, 96 p.
3. David Butler, business studies. Oxford University Press, 1994, 234p.
4. http://www.thetimes100.co.uk