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Chapter 1 No Hiding Place

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Title: Chapter 1 No Hiding Place


1
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2
Chapter 1No Hiding Place
  • Theme The protection of privacy will be a huge
    problem for the internet society.
  • Reading A cookie is a small file that a company
    can send to your computer when you visit the
    companys website. It tells them a lot about
    your browsing habits. Using the web without them
    is nearly impossible. DoubleClick, an
    advertising company, has agreements with over
    11,000 websites and maintains cookies on 100
    million users

3
Chapter 1 (cont)
  • How do companies collect information about people
    who visit websites?
  • How can organizations find out where we go?
  • What are some of the new developments in
    surveillance technology.
  • What four advantages of surveillance technology
    are mentioned?
  • What do most people think about having so much
    surveillance?

4
Chapter 2Fashions Favourite
  • Theme The high cost of fashion shows is worth
    every penny to the industry.
  • Reading What is the point of top-end fashion?
    An haute couture dress can cost more than
    100,000. Not surprisingly, there are no more
    than 2,000 haute couture customers in the world.
    The commercial point is that haute couture is the
    fashion houses loss leader. It creates the
    image of the brand.

5
Chapter 2 (cont)
  • Why are there only 2,000 customers for haute
    couture?
  • Do fashion houses make a profit from haute
    couture?
  • What is the main advantage of a fashion show?
  • Why is Paris the true capital of fashion?
  • Why is the fashion industry good for France?
  • Which city competes with France as a centre of
    fashion?

6
Chapter 3Arabias Field of Dreams
  • Theme One of the worlds most successful
    business ventures is a small city-state that
    learned lessons from Singapore and Hong Kong.
  • Reading A tropical sun sets behind the palm
    trees and white sand of Jumeirah beach. Here,
    machines are building houses on one of the
    worlds largest man-made islands, designed in the
    shape of a palm tree. Englands soccer

7
Chapter 3 (cont)
  • What are they building on the large man-made
    islands off the coast of Dubai?
  • How long will Dubais oil production continue?
  • What attractions does the city-state have for
    tourists?
  • What is the population of Dubai? What percentage
    of the people are originally from the city-state?
  • What kinds of companies are setting up business
    in Dubai?

8
Chapter 4The Oneline Job Market
  • Theme How Jeff Taylor changed the way the labour
    market works.
  • Reading Monster.com, the worlds biggest online
    job-search site, shows how electronic
    marketplaces reach more people and can offer more
    efficiency than physical markets. It also shows
    that money can be made in such markets Monster
    has a long record of profitability. Jeff Taylor,
    who launched.

9
Chapter 4 (cont)
  • Does Monster.com make a profit?
  • What two advantages does Monster.com offer to
    job-seekers?
  • Find two advantages for employers of using the
    Mosnter.com site.
  • Which two kinds of business are losing money
    because of Mosnter.coms success?
  • What advice does the article give to people who
    want to use the site to find a job?

10
Chapter 5Make It Cheaper and Cheaper
  • Theme How technology pushes down price.
  • Reading Prices have fallen in the food business
    because of advances in food production and
    distribution technology. Consumers have
    benefited greatly from those advances. People
    who predicted that the world would run out of
    food were wrong. We are producing more and more
    food with less and less capital. Food is
    therefore more plentiful

11
Chapter 5 (cont)
  • Are the statements true or false?
  • It costs less to produce large quantities of food
    than ever before.
  • Big supermarkets can offer food at lower prices
    because they can buy in large quantities.
  • Some food producers have reduced their range of
    products.
  • To meet supermarket demands, Cadbury employs more
    workers than before.
  • Shoppers will buy large quantities when there is
    a special price.

12
Chapter 6Getting Better Service
  • Theme The failure to complain is everywhere.
  • Reading Australians call the British whingeing
    Poms because they complain so much. But a new
    study suggests that Brits should hinge more, not
    less. A team led by Chris Voss of the London
    Business School found that service quality is
    Britain is typically worse than in America. One
    reason, the research suggests, is that ..

13
Chapter 6 (cont)
  • Are these statements true or false?
  • Australians are correct when they say that the
    British complain too much.
  • The British arent very direct when they make
    complaints.
  • Americans only complain when there is a big
    problem.
  • British companies dont spend much on service.
  • The Marriott Hotel Group trains is staff to
    follow a fixed routine when handling complaints.
  • Complaining about bad service in Britain doesnt
    bring any results.

14
Chapter 7Revolution in the Car Industry
  • Theme Car factories of the future will be
    smaller and cleaner, and not all owned by car
    companies.
  • Reading The car business has a serious problem
    it is producing too many cars. This
    over-capacity is resulting in fierce competition.
    Each manufacturer is competing in ever segment
    of the market, with a huge range of models to
    attract different consumers..

15
Chapter 7 (cont)
  • Are these statements true or false?
  • Car manufacturers cant produce enough o meet
    customer demands.
  • Models need to be updated more often.
  • Each car factory can only product one model.
  • Productivity is very high.
  • It takes too long to deliver finished cars to the
    customer.
  • Sales forecasts are accurate.

16
Chapter 8The Kids Are All Right
  • Theme Young people at work can now expect
    opportunity, responsibility, respectand fun.
  • Reading Youth is a time for fun. In one
    American playground in Florida, there are
    basketball courts and volleyball nets. Inside,
    there are bright colours. Nerf guns and a games
    room with pingpong. This is not a school, but
    the offices of CapitalOne, one of Americas
    largest credit-card firms. ..

17
Chapter 8 (cont)
  • Which of the following things were generally true
    in the past (P) and which are true today (T),
    according to the article?
  • Office culture is formal.
  • People only become top managers after years of
    loyal service.
  • Companies can grow rapidly and also fail suddenly
  • Workers have to show respect for their superiors.
  • Companies prefer workers who understand
    e-business.
  • People work for the same company all their lives.
  • Young people have many opportunities to show
    creativity.

18
Chapter 9A Matter of Choice
  • Theme That reliable workhorse of a
    capitalismthe joint-stock company looks
    surprisingly durable. But pressure on it is
    increasing.
  • Reading In 1967, John Kenneth Galbraiths The
    New Industrial State argued that the USA was run
    by a handful of big companies who planned the
    economy in the name of stability. These were
    hierarchical and bureaucratic

19
Chapter 9 (cont)
  • What were the characteristics of US corporations
    in the past?
  • What changes have occurred to those corporations?
  • What is meant by shifting from high-volume to
    high-value?
  • What different types of future companies does the
    author mention?
  • Why does he believe there is not one definite
    type of future company?
  • What does he believe to be the key to survival
    for companies in the future?

20
Chapter 10When to Terrorise Talent
  • Theme The football dressing room remains the
    last refuse of old-style management techniques.
  • Reading The nation was in shock. David Beckham,
    Britains most beautiful (and skilful) footballer
    emerged from his house on photograph a would
    above his left eye. Sir Alex Ferguson, Manager
    of his then team Manchester United, .

21
Chapter 10 (cont)
  • Are these statements true or false?
  • A photographer witnessed the manager kicking
    David Beckham.
  • The manager lost his temper because the team lost
    the match.
  • Management tactics are easier to identify in
    business than in sport.
  • Patterson encouraged his employees to make
    themselves indispensable.
  • When business is good, fear is used less as a
    management tactics.

22
Chapter 11The Rewards of Failure
  • Theme The trouble with the GlaxoSmithKline pay
    package was its reward for failure.
  • Reading When the public mood changes, the
    realisation can take time to sink in. Behaviour
    that was once acceptable can overnight come to be
    seen as outrageous. The board of
    GlaxoSmithKline, a big pharmaceutical company,
    has found itself at the sharp end of such a mood
    change. Its

23
Chapter 11 (cont)
  • Who refused to approve GSKs remuneration
    committees report?
  • The board of directors
  • The shareholders
  • The chief executive
  • 2. The company is now in a difficult position
    because
  • It had already agreed to the new pay packages.
  • It has to decide whether to approve the report or
    not.
  • Jean-Pierre Garnier will take legal action.

24
Chapter 12Gas for Peru v Green Imperialism
  • Theme Where should the balance between
    development and the environment be struck? And
    who should strike it?
  • Reading After nearly two decades of contract
    negotiations, natural gas from the Amazon jungle
    looks finally set to teach Perus capital, Lima,
    by next August. However, US environmentalists
    are making a final attempt to stop the 1.5
    billion project, which if it

25
Chapter 12 (cont)
  • Which of the following will happen if the Camisea
    project goes ahead?
  • Peru will again become an exporter of fuel.
  • The IDB loan could release further finance for
    the scheme.
  • The Peruvian government will be able to give
    financial assistance to some of the poorer areas
    in the country.
  • Peruvian companies will be able to reduce some of
    their costs.
  • A road will be built through the Peruvian jungle.

26
Chapter 13Money Can Buy You Love
  • Theme Are we being manipulated into buying
    brands?
  • Reading Brands are accused of all sorts of
    evils, from threatening our health and destroying
    our environment to corrupting our children.
    Brands are so powerful, it is said, that they
    force us to look alike, eat alike and be alike.
    This grim picture has been made popular by many
    recent anti-branding ..

27
Chapter 13 (cont)
  • Are the statements true or false?
  • It was relatively easy in the past to create a
    new brand.
  • Buying a branded product did not cost customers
    more.
  • Brands were developed for the international
    market.
  • The government closely controlled the markets at
    home.
  • Brands deterred other companies from entering the
    market.

28
Chapter 14Europes Enron
  • Theme The Ahold financial scandals should shock
    Europe into accounting and corporate governance
    reform, just as the Enron scandal did in the USA.
  • Reading It may seem an exaggeration to describe
    the scandal overwhelming Royal Ahold as Europes
    Enron but in many ways it is true enough.
    Certainly, the worlds third-biggest food
    retailer, after Wal-Mart and.

29
Chapter 14 (cont)
  • What are the similarities between Enron and
    Ahold?
  • What should European companies do?
  • Why did the shareholders admire Cees van der
    Hoeven?
  • Which of Aholds acquisitions is mentioned in the
    text?
  • What did Europeans believe about corporate
    wrong-doing in the past?
  • How did Foodservice overstate its sales?

30
Chapter 15Imitating Property Is Theft
  • Theme Counterfeiting is on the increase.
    Companies ignore it at their peril.
  • Reading The most people, counterfeiting means
    forged currency. But counterfeiters are copying
    an every-widening range of products. For some
    time they have been churning out imitation
    designer fashion, software and CDs. Now they are
    copying medicines, mobile phone, food and drink,
    car parts

31
Chapter 16Of Celebrities, Charity and Trade
  • Theme Charities are not yet free-traders, but
    some are halfway there.
  • Reading In the energy-sapping heat of Uganda,
    women bend double to grow flowers for export to
    Europe. According to Bono, singers of Irish rock
    band U2, this scene represents globalisation at
    its best. He is right, of course. Growing
    flowers is hard work, but no more so than
    ..

32
Chapter 17Dilemma Buy it now!
  • eBay, the online auction site, wants to expand.
    The best way is to set up operations in other
    countries like India. It has over a billion
    people and could be the biggest market in the
    world in the future. But how many people there
    have access to the internet? Are they ready for
    online shopping? Are there other online auction
    companies? How easy is it for a foreign company
    to enter the market?

33
Chapter 18Dilemma A workplace bully
  • Elizabeth works for a computer company. At
    first, she liked the job and believed that she
    could do it well. But now she has a problem her
    team leader, Valma, is a bully. Valma seems to
    dislike Elizabeth. She always finds problems
    with her work. If Elizabeth makes a small
    mistake, she shouts at her in front of her
    colleagues Whats wrong with you? Are you
    stupid? She doesnt talk to the other team
    members in this way. She gives Elizabeth all the
    most boring and difficult tasks to do.
    Elizabeth

34
Chapter 19Dilemma Volkswagen bugs
  • A few years ago, VW had two problems. 1) It was
    Europes largest car manufacturer, but its best
    selling cars the Goof, Jetta and Passat were
    beginning to look old. VWs competitors had new
    models, but VW had nothing new. 2) The VW brand
    was based on value for money, middle-priced cars.
    VW customers wanted a more luxurious brand image
    when they go older and richer. VW didnt have
    any cars to offer them.

35
Chapter 20Dilemma Organic Growth
  • Sunshine Foods is a large dairy food producer,
    specialising in milk, butter, cream, yoghurt, and
    ice cream. There is a lot of interest now in
    healthy food products and many consumers want to
    buy organic food, produced in a traditional way
    without the use of chemicals. Sunshines
    directors want to have a share in the organic
    food market and they believe that the best way to
    enter the market is to take over a firm that
    already produces organic products. They plan to
    create a new subsidiary which, they hope, will..

36
Chapter 21Dilemma Risky ventures
  • You represent a firm of venture capitalists. You
    have funds to invest in an exciting new venture
    in a technological field. Your main interest is
    to see a good return on your investment with a
    minimum of risk. You are going to consider three
    ventures, which require about 500,000 each as
    start-up capital
  • Celf Cure a biotech solution for curing diseases
  • Space Travel Inc. a new spacecraft for sending
    tourists into space
  • Fingertip using fingerprints instead of keys
    to

37
Chapter 22Dilemma A New Location
  • Whiterose is a group of hotels, restaurants and
    leisure companies which operates mainly in the
    UK. It is planning to expand its international
    operations but the head office in London is no
    longer big enough so the company is planning to
    relocate the Hotel Division.
  • You belong to a team that is responsible for
    identifying a new location for this division,
    which has 1,000 employees. You are looking for
    a town where it will be easier to find a spacious
    office building at a lower cost than in London.
    You are considering ..

38
Chapter 23Dilemma For love or money?
  • Kate Gray is in a happy position she has two job
    offers. The problem is to choose the job that
    will suit her best. Kate is a new graduate in
    geography and wants to work in the travel
    industry. She would like a job that includes
    travelling and working with people. Two
    different travel companies are offering her a
    position. She has the chance to work in the
    marketing department of Wide World Tours, a big
    company with 3,000 employees and regional offices
    around the world. Or she could.

39
Chapter 24Dilemma Guerrilla marketing
  • Virgin Mobile is a phone operator that provides a
    wide range of mobile communication services to
    its customers in the UK. Competition between
    mobile phone operators is strong and winning a
    large market share in the student market is
    vital. Students use their mobile phones a lot
    to call friends and family, and also to get
    information and play games. There are 2.5
    million students in the UK, and 96 per cent of
    them own a mobile phone. But it is difficult to
    market to students because they are hard to reach
    and are ..

40
Chapter 25Dilemma A fair decision?
  • You are members of the Financial Ombudsman
    Service an independent organisation that helps
    to settle disagreements between companies and
    their customers. You have been asked to look at
    the following dispute between a car owner and an
    insurance company following the theft of a car.
  • Jane Buxton was at a restaurant in the city
    centre when her handbag was stolen. Inside the
    bag were her house keys, car keys, wallet and
    driving license with her home address on it. She
    reported

41
Chapter 26Dilemma Service not included
  • You are the senior manager at House Home, a
    chain of warehouse-style stores selling furniture
    and fittings for the home. The company is
    suffering. Competition from other similar stores
    is strong and sales are falling. You think that
    the main reason for the loss of sales is poor
    customer service. To find out more about the
    problem, you asked your customers for feedback.
    The following complaints were the most
    common.

42
Chapter 27Dilemma Gold rush
  • Goodcorp is a company that mines gold in Canada.
    The company owns the Red Lake mine, which is not
    productive. In 50 years of production, only 3
    million ounces have been extracted and the
    quality of this gold is low grade. The mines
    costs are high and the company is losing money
    fast. Rob McEwen, the CEO, believes there is
    more gold on the site. Other mines in the area
    have produced high quality gold one mine has
    produced more than 10 million ounces., Perhaps
    this source of gold also runs into the ..

43
Chapter 28Dilemma Hot-desking
  • You are the senior managers of Sirius, a company
    selling network solutions B2B. You employ 115
    staff 40 sales consultants, 50 technical staff
    (programmers, software designers) and 25
    administrative staff (accountants, lawyers, etc).
    Because of a recent downturn in your business,
    together with a rising cost of office rent, you
    now have to move to a smaller office. This means
    that each member of staff will have less work
    space. However, the sales staff are out of
    .

44
Chapter 29Dilemma The virtue of necessity
  • A serious safety problem is threatening the
    future of Transal, a pipeline company. Hundreds
    of yearly accidents have led to high absenteeism,
    causing lost time, low morale, unsatisfactory
    efficiency levels, falling profits and a falling
    share price. Press articles about the companys
    lack of concern for its employees are having a
    very negative effect on customers, shareholders
    and staff. If the company is to survive it must
    develop a safety conscious culture. The
    question is how?

45
Chapter 30Dilemma Mission Impossible?
  • Louis Schweitzer, the 59-year-old CEO of the
    Renault group, has just received the latest
    results for Nissan, the Japanese car manufacturer
    in which Renault has a 37 per cent stake. The
    situation looks bad. Nissan has lost money for
    the sixth consecutive year, the companys debts
    have now soared to a record 19 billion and they
    are now losing 1,000 dollars on every new car
    they produce. Clearly something needs to be done
    to return Nissan to profit and quickly. The time
    has come to ..

46
Chapter 31Dilemma Harleys Angels
  • Jeffrey Ableustein, CEO of Harley Davidson, was
    thinking about the future. He had already pulled
    the motorcycle manufacturer back from the brink
    of bankruptcy, but now he was thinking of the
    serious problems that lay ahead. And top of the
    list was the fact that Harley Davidson customers
    were definitely ageing. The black leather Angels
    were getting greyer every day. From an average
    age of 36 ten years ago the customer was now
    edging closer to 46. But what to do? Bleustein
    decided that he would.

47
Chapter 32Dilemma Success at what price?
  • Better Prices, a large UK supermarket chain, is
    in financial difficulties. The departing CEO,
    Mark Crawley, had promised that dramatic
    transformations would lead to higher returns and
    rising share price. However, he began by signing
    a disastrous merger deal and since then the share
    value has halved! In spite of this, he awarded
    himself several bonuses on top of his 790,000 a
    year salary and leaves with a golden parachute
    worth over 2m. The outraged shareholders have
    decided to work closely with the board in
    choosing his successor from the following short
    list of candidates.

48
Chapter 33Dilemma A Scent of Risk
  • Bellissima is an Italian perfume and cosmetics
    business. The company has a highly successful
    range of products in the luxury cosmetics market.
    It is planning to launch a new fragrance and
    extensive market research has produced detailed
    profiles of two potential target markets as
    described below. Bellissima now has to decide
    whether to expand its current market base or risk
    branching out and reaching a new client.

49
Chapter 34Dilemma Going Offshore
  • InterState, Inc. is a New York based company
    specialized in providing domestic insurance for
    private individuals and small corporations.
    InterState is currently considering outsourcing
    all or part of its 150-person call centre to an
    overseas location in order to reduce its
    operating costs. The call centre currently
    processes calls from both insurance agents and
    enquiries from members of the public within the
    USA. Several groups of managers have been asked
    to research different host countries in order
    to..

50
Chapter 35Dilemma Counting the costs
  • MultiBrands is a globally successful consumer
    products company, which has built up a reputation
    based on Honesty, Quality and Innovation.
    Since it started operating ten years ago, it has
    launched at least two new, high-quality products
    in different markets every year. However,
    managers are currently reviewing company policy
    because of a recent dramatic fall in profits and
    share price performance. Shareholders believe
    that this is due to over-diversification, rising
    costs and failing consumer confidence as a result
    of .

51
Chapter 36Dilemma The Bellagio Interview
  • You are members of the HR team that is
    responsible for the recruitment drive at the
    Bellagio. You have been asked to design the list
    of questions for the behavioural interview that
    will be used b y all the hiring managers. This
    interview will last a maximum of 30 minutes and
    will contain six questions designed to evaluate
    the behaviour of the candidates. After each
    question the hiring manager will enter an
    evaluation of the quality of the candidates
    response directly into a computer. The HR
    team.

52
Chapter 37Dilemma The Golden Couple
  • Hollywoods golden coule, Catherine Zeta-Jones
    and Michael Douglas, sold the exclusive rights to
    their wedding photographs to the celebrity
    magazine OK! For 1m. Three days afte OK! had
    published the exclusive images, a rival
    celebrity magazine Hello! published an issue
    featuring pictures of the couple taken in secret
    at their wedding. The couple decided to sue
    Hello! For intrusion of privacy for the sum of
    50,000, comparing the distress of seeing the
    unflattering photos to that of being burgled.
    .

53
Chapter 38Dilemma Closing the deal
  • Watermark plc, is a specialist supplier of
    quality stationery and writing accessories, which
    it distributes in European markets. At present
    the sales of the companys leading products are
    not growing. Hal Garnett, the newly appointed
    CEO, is in a hurry to reorganize the companys
    sales strategy and to introduce a new online
    sales channel. Since Watermark does not have the
    in-house expertise to develop such a site itself,
    it has decided to outsource the
    work.

54
Chapter 39Dilemma Selling up or selling out?
  • Milton S. Hershey founded Hershey Foods, the
    USAs biggest chocolate maker, in 1903. Mrs.
    Hershey was a model employer who built a town for
    his employees with comfortable homes, inexpensive
    public transport and good schools. In 1909 he
    established a school for disadvantaged children.
    Many of the companys managers, including a
    former chief executive, are graduates from the
    school. In 1918 he gave the school his entire
    fortune of Hershey company shares. He put a
    ..

55
Chapter 40Dilemma Spinning the truth
  • PR Vision is a communication agency that
    specializes in protecting reputations and
    corporate image in a time of media crisis. Their
    company motto is When dealing with the media,
    whoever tells the best story wins. PR Vision
    has helped companies to successfully handle news
    stories about product recall, job losses and
    scandals by responding in the press with news
    stories of their own which
  • Quickly address issues and recognize when the
    company is at fault

56
Chapter 41Dilemma Is grey the new black?
  • Many producers of branded goods refuse to
    distribute through supermarket chains, fearing
    that price-cutting could damage their brand
    image. They distribute exclusively through
    selected retailers. Grey marketers challenge
    this by obtaining branded goods through
    alternative supply routes and selling them at
    much cheaper prices. Best Value is a leading UK
    supermarket chain that has been offered a grey
    consignment of genuine branded jeans at a very
    heavily discounted price..

57
Chapter 42Dilemma Prize pitch
  • TechStart is a European business association that
    promotes emerging technology and new business
    ventures. Originally founded to help young
    university graduates to gain access to funds.
    TechStart today offers future entrepreneurs a
    comprehensive one-year program of assistance,
    advice and training in order to turn creative new
    ideas into fully operational business ventures.
    Every year TechStart organizes a competition
    where graduates can submit their proposals for
    new business.
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