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and find them in the text.

A)Lower-grade technology; in large amounts; negative impact; quality check; to keep up with; capital budgeting process; to a significant degree.

B)Технология низкого качества; в значительной степени; составление расчета рентабельности капиталовложений; проверка качества; отрицательное влияние; в больших количествах; не отставать от.

35.Match the words to form a synonymic pair:

36. Read the text more carefully and complete the words (one point is one

37. Find the English equivalents of the words below. Then working in pairs, think of a word, explain its meaning in English to your partner and let him guess the word.

Сталкиваться, обстоятельства, предлагать, относительно, превышать, основной, определять, остаток, дополнительный.

Can you use the words above in the sentences of your own?

38.Match the words to form an antonymic pair:

39. Open the brackets to know what decisions managers of Pizza U.S.A., Inc. make concerning the products and services.

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Pizza U.S.A., Inc., a company, which (to produce) and (to market) pizza pies, faces a series of decisions (to relate) to the maximum level of output. First, when the initial location and process decisions (to make), the corporate staff fixes the physical capacity of each facility. Individual store managers then (to plan) for annual, monthly, and daily fluctuations in service capacity within the available physical facility. During peak periods, they (to employ) part-time help, and advertising (to use) in an attempt to raise demand during slack periods. In the short run, individual personnel must (to schedule) in shifts to meet demand around the clock.

40. The following sentences make no sense. Try to correct them beginning

your answer according to the model.

Model: They say that profession of manager is doing nothing.

I know for sure the profession of manager to be interesting and useful.

1.They say that determining the mix and kinds of products and services to be offered is a natural ending point in designing operations systems.

2.It is known that the capacity decision is truly a low-risk one.

3.Everybody knows that a key consideration in determining capacity is supply.

41. Fill in the suitable preposition and compare the completed sentences

with those in the text. If they differ from each other, try to correct them.

1.Layout is the way in which the parts of something are arranged according … a plan. (with, from, to)

2.The company that relies … roads to transport raw materials needs to be located close to rail facilities. (on, in, for)

3.General Electric invested … automating five plants. (for, in, at)

4.Benetton uses only one distribution center … the entire world. (in, for, of)

5.The choice … facilities is far related to decisions on product or service line, capacity, and location. (about, to, of)

42.Express surprise at the following statements.

Model: I am reading a book on technology. What book are you reading on?!

When a person buys a thing he concentrates on the performance characteristics. Many people buying a TV set are interested in the cost. Each company must make decisions about the technology it will use. Managers as well as technologists have to deal with technological choices. Technological choice depends on production costs. New technologies are widely used by organizations.

43.What questions can you put to the following answers?

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1.The United States has the highest level of productivity in the world.

2.In 1986, each worker in America produced goods or services worth $37,600.

The second-best productivity was achieved by Canada ($35,700).

3.General Electric’s dishwasher plant in Louisville has cut its inventory requirements by 50 percent, reduced labor costs from 15 percent to only 10 percent of total manufacturing costs, and cut product development time in half.

4.In 1980 the average American plant was almost 15 years old and its counterpart in Japan was less than 10 years old.

44. Match the English word combinations with their Russian equivalents and find them in the text.

A)Noticeably higher; advanced products; to complete the agreement; exchange-rate fluctuations; to be worthwhile; data processing; industrial controls.

B)Заметно выше; иметь смысл; промышленные системы управления; колебания биржевого курса; обработка данных; новейшая продукция; заключить соглашение.

45. Work in pairs. Read the statements. Tell your partner wrong

information and let him correct it. Use the model.

Model: In the United States Siemens has seventy sales representatives.

-In the United States Siemens has seventeen sales representatives.

-I can’t agree with you. I know for sure Siemens to have seventy sales representatives.

1.Siemens built an electric railway in 1879.

2.Siemens wanted that Japan’s Toshiba Corporation sold its technology.

3.At Regensburg plant the air is filtered and recirculated thoroughly.

4.They spend a lot on research and development.

5.Siemens is Europe’s largest electrical products company.

46. Can a preposition change the meaning of a verb which it follows? To prove the answer, match the verbs without prepositions with their synonyms from the box, and then match the verbs + prepositions with their synonyms from the box. Consult a dictionary. Read the text on page 93 and find these verbs. Use as many verbs as possible in one sentence.

to meet unexpectedly; to stop, to abandon; to propose; to move at a speed faster than a walk; to place; to move or make something move round a central point; to result; to cause somebody to receive something

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1.Standards of conduct rise from general norms and values of society.

2.Managerial ethics may different among individuals.

3.Archie B. Carroll notes that are there three major levels of ethical judgment characterize managers.

4.Nearly three quarters of the major U.S. corporations have wrote codes of ethics.

5.Many companies say that the codes are helpful in maintain ethical behavior among employees.

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PART IV

TEXTS FOR ADDITIONAL READING

Text 24

You are a manager of the largest Russian company. You got training in the Marriott Corporation in England. Share your impressions concerning the efficient management of the corporation.

MANAGEMENT PROMOTES EFFICIENCY

AND EFFECTIVENESS AT MARRIOTT

The Marriott Corporation started out as a root-beer stand in Washington, D.C., in the hot summer of 1927. When business fell off that winter, the founder, J. Willard Marriott, responded with a plan to convert the root-beer stand into a “Hot Shoppe,” which would serve chili con carne and tamales based on recipes from the Mexican embassy. The plan was so successful that he expanded to other locations. Soon there were Hot Shoppes all over the Washington area. In 1937, the firm again responded to its environment by entering the airline catering business with an Eastern Airlines contract. Success there led to further expansion of catering services.

Not until 1957 did Marriott develop plans to link its success in restaurants and catering to hotels. In 1989, the Marriott Corporation was rated the top major hotel chain for business travelers and meeting planners for the fourth year in a row. Marriott’s lodging business continues to grow, too.

J. W. Marriott, Jr., the current chairman of Marriott Corporation, is the son of the founder. He is a perfectionist when it comes to cleanliness and attractiveness. Marriott employees must follow a carefully defined, 54-step procedure in making up a room, doing each step in proper sequence. Bill Marriott also believes in keeping in touch with operations and personnel. He travels over 200,000 miles each year to visit all parts of his firm as well as his competitors’ business.

The Marriott Corporation does over $6 billion in sales. It is organized into three primary areas: lodging, contract services, and restaurants. Lodging accounts for about 40 percent of sales but about half of profits.

Marriott’s lodging operation includes nearly 103,000 guest rooms in over 360 hotels and resorts located throughout the United States, Bermuda, Canada, Central America, Europe, and the Middle East. Those units are organized by location and by the type of market served. For instance, the Fairfield Inn group serves the economy or lower end of the market; Courtyard By Marriott serves the middle of the market; and Residence Inn and Marriott Suits serve the high end of the market.

The contract services part of the firm consists of several groups. One is the Marriott Business Food and Services group, with over 1,000 accounts providing

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employee cafeterias, executive dining rooms, and conference centers. Another is the airline catering service group, Marriott In-Flight Services. The Host International, Inc., group provides airport and non-airport services and shops. The Marriott Health Care Services group serves about 400 healthcare accounts in hospitals, retirement centers, and nursing homes. The Marriott Education Services group serves nearly 600 college and secondary education clients in student and faculty dining facilities, stadiums, and sports arenas.

Restaurant operations include several groups, too. Hot Shoppes currently exists as 16 cafeterias and service restaurants in the Washington, D.C. area. Bob’s Big Boy restaurants have over 200 units. About 150 Howard Johnson units are also operated by Marriott. The Roy Rogers chain operates or franchises over 550 restaurants. And Travel Plazas by Marriott operates over 100 restaurants, gift shops, and related facilities on numerous highway systems.

The Marriott Corporation, as a major aspect of its control function, monitors its environment closely. It has been highly effective in responding to and taking advantage of the changing and expanding role of women in business. Marriott is considered to be one of the most effective organizations in the United States in what is known as competitive intelligence or the art of legally spying on competitors. For instance, before launching its Fairfield Inn chain, Marriott sent a team of six employees around the country for six months. The team stayed in every expensive hotel chain in existence, gathering information about such things as the quality of room service provided, the brands of soaps and towels used, and the construction and soundproofing of walls. Using that information, Marriott’s Fairfield Inn was able to become the number 1 chain in the economy market in its first year of operation.

The Marriott family owns 21 percent of the stock of the firm and seems destined to control the company for some time. Bill Marriott is the CEO; his mother is a vice president and director; and his brother is vice chairman. In addition, his sons and a son-in-law hold managerial positions in the firm, having worked their ways up from menial jobs that helped them learn the business. This home-grown approach to staffing in management enables the firm to respond quickly to opportunities but also can discourage nonfamily members in their quests for top spots in the firm.

Text 25

Yesterday you heard by radio that the Kellogg Company had gone bankrupt. Refute the statement explaining the situation, which could cause appearing of such information.

KELLOGG: CHAMPION OF BREAKFAST CEREALS

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While trying to make foods healthier and more appetizing for his sanitarium patients, Dr. J. H. Kellogg accidentally discovered how to make wheat flakes. The discovery radically changed the breakfast-eating habits of Americans. His brother, W. K. Kellogg, purchased the commercial rights to wheat flakes, expanded the offering to include corn and rice flakes, and began operations in 1906. Using shrewd coupon advertising, the company was soon dominating the market; by 1909 the company was selling over a million cases of cereal a year. In the 1920s and 1930s, Kellogg expanded to include overseas operations.

The health-food origins of the Kellogg company are enabling it to be immensely successful in growth and market share in an industry often described as having peaked or as having become saturated. In the early 1980s, Kellogg had about a third of the market in ready-to-eat cereal. By the late 1980, Kellogg’s portion had risen to over 40 percent, and the target was to control 50 percent or more. Kellogg’s nearest rivals are trailing far behind and have little or no prospect of catching up. As of 1987, when Kellogg had nearly 42 percent of the market, General Mills had just over 20 percent, General Foods under 15 percent, Quaker Oats less than 10 percent, and Nabisco and Ralston Purina about 5.5 percent each.

During the 1970s, Kellogg was so successful that it began to take things for granted and its market share slipped. At about that time, growth in the breakfastcereal market began to slow down. Competitors began to take away market share through effective advertising and new-product introductions, and they began to diversify to offset the slowdown in market growth. Kellogg acquired Mrs. Smith’s pies and Eggo Nutri-Grain waffles but resisted pressure to diversify further, except in limited areas closely related to its main line (Whitney’s Yogurt and Salada caffeine-reduced tea, for instance). Instead, Kellogg decided to take advantage of its strengths as a leader in the field and of its reputation for making healthy products in order to concentrate on the cereal business instead of becoming a conglomerate as some of its competitors appeared to be doing.

The birthrate may have fallen and the amount of cereal children can eat may have peaked, but the baby-boom generation represented a substantial potential adult market. Baby-boomers may have given up the sugar-coated cereals of their youth, but they could be interested in the convenience and nutritional value of breakfast cereals. That idea was the basis of Kellogg’s strategy during the 1980s, and it worked. Consumers in the 25 to 49 age bracket were eating 26 percent more cereal by the late 1980s than they had been eating in the early 1980s, and total retail sales rose to $5.4 billion in 1988 from $3.7 billion in 1983.

The effort has been not merely to use advertising to inform the babyboomers about existing market, but also to continually introduce new products designed specifically to appeal to those adults rather than to children. Raisin Squares, for instance, consists of a nugget of toasted wheat surrounding a small

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amount of raisin puree. That and similar products have enabled Kellogg to move into the shredded-wheat market long controlled by Nabisco. Likewise, Crispix let Kellogg move into the spoon-sized cereal segment of the market long dominated by Ralston Purina’s Chex group of products.

Kellogg has moved into a superpremium, upscale market, too. Müeslix, which combines fruits, nuts, and grains into a nutritional cereal, was developed from European traditions and so was able to win customers both in the United States and abroad. The European muesli was a mushy, oat-based porridge. When the idea of bringing it to America was brought up, Kellogg’s researchers, marketing specialists, and even its advertising agency were opposed. However, the idea appealed to Kellogg’s CEO, William E. LaMothe. He authorized development work. Working closely with researchers, Horst W. Schroeder, the executive in charge, developed Müeslix. Müeslix is a toasted flake product that looks very little like its European predecessor but has had enormous appeal to consumers.

Kellogg’s new plant in Memphis, Tennessee, will increase its production capacity in the United States by over a third and will be the most expensive food-processing plant ever built. The technology is so automated that human operators are virtually nonexistent. Operations are continuous, monitored by computer, and controlled all the way from mixing the basic ingredients to packing the boxes in cartons for shipment. Evidence from experimental installations suggests that the quality of products produced in automated facilities is approximately 25 percent more consistent than the quality of products produced in other facilities.

Text 26

Form a circle. Every student writes two special questions to the following text and gives them to his partner on the right. The student writes the answers at the bottom of the paper, turns up the edge and passes the sheet of paper to his partner on the right. Then he receives another list of questions. All the students work simultaneously receiving, answering, turning up and passing the sheets of paper. Then all the answers are discussed.

WAYS TO REINVENT MANAGER’S OPERATIONS

If you want to be on the leading edge, you have to transform your operations quickly, thoroughly, and creatively. Focus on four areas:

Process improvement. First, reinvent your processes (operations). Begin by reorganizing into small “businesses within a business. “ Such entrepreneurial units within larger organizations eliminate bureaucratic inefficiencies. A good example: Lee Memorial Hospital in Florida created a special orthopedic unit

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with its own dedicated services like laboratory and pharmacy. Care improved considerably – and the hospital reduced support staff 37 percent. Next, reorganize functional operations into work cells. A cell inside a product-focused, entrepreneurial business might enter a customer’s order, configure it, check customer credit, issue shipping paperwork, and ship the order all within the same day.

Technology. Use computer and telecommunications know-how – after you’ve reinvented operations.

People. As author John Whiteside has written, “Workplace transformation requires participants committed to action. The future does not exit as foreordained. It is created.” People are integral to any improvement effort. Don’t, however, focus on empowerment programs at the expense of the other three ingredients for success. “Happiness programs” can bloat overhead costs.

Vision/strategy. Vision is more than an extension of present and developing trends. It’s about a future that doesn’t yet exist. But however grandiose your vision, you must translate it into practical action strategic and tangible, quantified improvement targets.

Text 27

After reading the text form 3 – 4 groups. Each group writes a letter describing a problem with its dairy business. They exchange their letters and write the answers how to improve the situation. Then all the answers are discussed and the best decision is made.

BORDEN’S PLAN FOR GROWTH

Gail Borden founded the New York Condensed Milk Company in 1857. At first it grew relatively slowly. But then, because of government orders arising out of the need to supply the military during the Civil War, the company underwent a period of rapid expansion. By the beginning of the twentieth century, Borden was operating in seventeen cities in the United States and in one city in Canada. It continued to grow and soon was the largest dairy business in the United States. Borden remained basically a dairy business until after the 1950s, when a plan to reduce its dependency on the dairy industry was made.

For over a quarter of a century, Borden has maintained a consistent long-term plan not to be overly dependent upon any one business or product line. Indeed, Borden has at times seemed to be more of a trader of companies than a company itself. Consider its recent purchases and sales. In 1988 it bought Illinois-based Crane Brand potato chips, several snack-food firms in Britain and West Germany, and a wall-covering organization in Britain. It also got rid of several lines, including women’s sportswear, cosmetics, fertilizers, and bulk cheese and sugar.

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