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2.Divide the class into two equal sized groups: L&G Consultants and Nuff

Productions.

3.Allow 5 minutes for them to read the memos, check vocabulary and discuss with each other what they need to say.

4.Divide the class into pairs of students, each consisting of a member of the L&G Consultants and Nuff Productions.

5.Allow 5-10 minutes for them to act out the conversation.

6.When most of the conversations have finished, ask a few pairs what the result of their conversation was.

Follow –up

Students, representing either of the companies in the role play or their own company, write a fax to a customer whose bill was overdue: invoice number – GT/A/00986, for

£2,500 issued 60 days ago.

Page 120. Assignment 2.

Tell the students that the aim of this task is to suggest a solution to the problem. If you are short of time set this assignment for homework.

MENHAR

This case is about a growing operator of hotel accommodation. It provides a context for talking about company expansion.

After the case study the students role-play a meeting to discuss the potential sites for a new hotel.

File 1

Page6. Exercise 2. 1)a; 2) h; 3) b; 4) g; 5) I; 6) f; 7 ) j; 8) c; 9) d; 10) e. Page 9. Exercise 4. 1) a; 2) b; 3) a; 4) a; 5) a; 6) a; 7) b.

Page 10. Exercise 6.

Thank you for your invitation to a one-day conference and gala banquet at the Menhar Hotel, New York, April 17, which I accept with pleasure.

I look forward to meeting you on April 17. Yours truly,

Page 11. Exercise 7.

I would like to thank you for your kind invitation to attend a conference, followed by a banquet in the presence of the Minister, Madame Yang Li Ying, at the Menhar Hotel on April 17.

35

I regret, however, that I will not be able to attend on account of a prior engagement. Please accept my apologies and best wishes.

Yours truly,

Exercise 1.

Prime location, lodging house, real estate, moderate prices (rates), developer, catering services, to invite tenders.

Exercise 2. 1) for, of, in; 2) -, in; 3) for, in; 4) in, for, in; 5) on; 6) to, for.

File 2

Page 15. Exercise 1. a) 4; b) 3; c) 2; d) 8; e) 7; f) 5; g) 6; h) 1.

Exercise 2.

a) feasibility; b) capacity; c) average; d) guide; e) estimated; f) employed; g) real estate; h) venture; i) duty; j) tender; k) bargain; l) foothold.

Page 16. Exercise 4. a) present, b) on behalf, c) welcome, d) compliment, e) regard, f) quality, g) tender4.

Exercise 5. 1. True; 2. False; 3. True; 4. False; 5. True.

Page 17. Exercise 6.

1.May I welcome …?

2.May I present …?

3.May I return ..?

4.May I say ..?

Exercise 8. a) state of health, b) workaholic, c) pressure, d) stressed, e) workload, f) ease up.

Page 18. Exercise 1.

To assess tender documents, to tender for, guideline terms and conditions, external funding, repatriation of profits, feasibility study, operating expenses, operating income, provision for tax, net income, rate of return, party, on behalf of, strictly confidential, land acquisition costs, to get left behind, to drive a hard bargain, to get a foothold on the market, to do oneself justice, offset, to stick around (to hang around), overworked, to ease up, to bore to death, to delegate work to smb.

File 3

Page 21. Exercise 1.

a)Room-rate policy ranging from $65 a night to $130

b)External funding – 60%

c)Zero import duty on imported fixtures and fittings for the first three years

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d)Real estate provided at zero cost

e)A management contract based on 3% of sales and 21% of profits

Page 22. Exercise 2.

a)What is the figure for related activities? $6 843 750

b)What is the figure for operating expenses? $14 371 875

c)What is the figure for corporate costs? $307 969

d)What is the figure for interest costs? $360 000 Net income = $2 842 763

Page 2. Exercise 4.

1.You were underpaid.

2.It is undermanned.

3.You are overworked.

4.You overspent.

5.It was overvalued.

Page 25. Exercise 1.

To run a luxury hotel at a profit, to follow the guidelines precisely, in terms of, in line with the requirements, joint venture, earth tremors, loophole, hard currency, tax holiday, to put smb off.

Revision

Page 26. Exercise 1. 1) b, 2) d, 3) c, 4) a, 5) f, 6) e

Exercise 2. 1) hospitality; 2) real estate; 3) operators; 4) partner; 5) moderate; 6) acquisition; 7) tender document; 8) provider, catering; 9) assessment; 10) workload.

Page 27. Exercise 3.

1) on, per, on; 2) on; 3) at, to; 4) in, by; 5) with; 6) in; 7) around; 8) to; 9) in, at, up to; 10) in, at; 11) in, for; 12) out of, on; 13) for, in; 14) to, to; 15) in; 16) at, under; 17) in, of; 18) in, with, for, on; 19) for, -, with, in, of; 20) up.

Page 28. Exercise 4.

1) keep room-rates down; 2) add up; 3) in addition to; 4) put them off, 5) notification; 6) pulled it off; 7) constitute; 8) do ourselves justice; 9) drive a hard bargain, anxious; 10) get a foothold. 11) I’ll leave the ball in your court; 12) to minimize; 13) angle; 14) ease up; 15) overworked.

38

Procedure

1.Tell the students that they are going to give presentations of potential sites for a new hotel and to choose one of them.

2.Make one copy of the worksheet for each student. Give out the worksheet.

3.Ask the students to read the newspaper article.

4.Ask some comprehension questions: What are the Bourdon Group? Are they successful? Where do they have hotels? What do they want to do now?

5.Divide the class into groups of three, or pairs if you have a small class.

6.Ask each group except one to choose a place they know well. Each group should choose a different place. None of the places should be ones where Bourdon already has hotels.

7.The groups complete the forms with what they know about their places, paying particular attention to the list of advantages.

8.The last group (or pair) are directors of the Bourdon Group. They should list the ideal qualities that a new location should have, using the same form. They will choose just one place for the next Bourdon Group hotel.

9.While they are preparing, write up some useful presentation language on the board. For example:

I’d like to talk about …

I’ve divided the presentation into (three) sections … Firstly … Secondly … Lastly …

If you have any questions, I’ll be pleased to try and answer them …

10.When they have all finished (10-15 minutes) ask the groups to present their sites to the directors of Bourdon. These can be sit-down presentations in a meeting or more formal expositions. Groups should make their presentations one at each time. Point out the useful language on the board. You may remind the students of the main rules of giving presentations. Refer to the recommendations in the case of

Can-Am.

11.When all presentations are complete, the directors withdraw (if possible) and choose the site for the next hotel.

12.Finally, the directors present their choice and explain the reasons for their decision.

Follow-up

Students write a 100 word press release giving news of the Bourdon Group decision.

39

HANSON

This case is about a medium sized boat building family concern for which it becomes increasingly difficult to compete with modern techniques and technological developments. It provides a context for doing practice in acting out meetings and writing the minutes of a meeting.

After the case study the students role-play meetings and write minutes.

File 1

Page 35. Exercise 1. a) 10; b) 5; c) 15; d) 8; e)13; f) 17; g) 11; h) 16; i) 2; j) 19; k) 6; l) 3; m) 18; n) 7; o) 12; p) 1; q) 14; r) 9; s) 4.

Page 36. Exercise 3.

a.Far from being friendly, relations between them are very difficult.

b.Far from wanting him (Barry Coutant) on the Board, they have postponed the matter indefinitely.

c.Far from wanting to stay, he has submitted his resignation.

Page 39. Exercise 5. a) 2, b) 2, 3) 1.

Exercise 6. a) aggressive/irritated; b) appeasing/diplomatic; c) coldly politely/politely angry; d) sarcastic/coldly polite; e) politely angry/coldly polite/sarcastic; f) appeasing/diplomatic; g) sarcastic/coldly polite; h) irritated/aggressive.

(NB These are suggested answers only.)

Exercise 7. a) whatever, b) however, c) whenever, d) whoever, e) whenever, f) however.

Page 42. Exercise 8.

One error: Kerry O’Connor approached Barry Coutant.

Exercise 9.

The Financial Director, Mr Blundell, objected to the proposal because it represented a major capital investment. He said the risks fat outweighed the potential return. There was no way of knowing whether the profits from extra boats sold would recoup the outlay involved. He pointed out that the company expected an internal rate of return of 35% on capital invested, and claimed that there was no way of knowing if this was achievable.

The Managing Director stressed that the company did not have the production capacity to meet the extra orders gained from promotion of this kind. He also pointed out that the company did not have the necessary funding. Mrs Sherman of CIRB argued that production capacity could be expanded in the time available before the race. The Bank would support a move of this kind as it was always looking for ways to increase its

40

marine credit and finance business. She would talk to the Sales Manager with a view to getting assistance for funding the project.

Page 43. Exercise 1.

Medium sized family concern, annual turnover, boat yard, to pay inheritance tax, ageing management, the bank’s appointee, a future successor to the manager, to accept resignation, untenable position, in the light of these circumstances, to put it bluntly, petty squabbles, in due course, in the region, to outweigh, to recoup, a non-starter.

File 2

Page 45. Exercise 1.

a) available, b) connecting, c) message, d) getting back, e) tied up, f) speak up, g) hardly, h) line, i) crossed.

Page 46. Listening

The conditions are: a) An Australian crew, b) The boat must be called ‘CIRB Australia’, c) There must be on-voyage TV reports.

Page 48. Exercise 3.

The earliest vessel leaving for Fremantle and Auckland is the SS Utopia, which will accept cargo from the 18th June until 28th June, when it sails. The vessel is due in Fremantle on the 23rd July, and Auckland on the 5th August.

Our freight rates are as follows:

Fremantle: £72 per tonne or 10 cubic metres. Auckland: £84 per tonne or 10 cubic metres.

Thank you for your letter of … enquiring about cover for a shipping of mixed boat spares and equipment to Punto del Este, Fremantle and Auckland.

I note from the details attached in your letter that the goods for your own use have many values estimated. I therefore suggest you take out an unvalued policy against all risks. We can quote 48% in respect of shipment to Punto del Este, and 68 % in respect of the other two shipments. We can issue a cover note as soon as you completed and returned the enclosed declaration form.

File 3

Page 55. Exercise 1.

All the indicators suggest that the bank’s sponsorship of “CIRB Australia” in the

Three Ks Lager Round the Word Race is one of the most successful and cost-effective

41

promotions the bank has undertaken, in recent years. During the seven months of the race, demand for our marine credit …

Awareness of CIRB has increased significantly, as these figures show: …

It goes without saying that these improvements in the bank’s position … . And for this, the Hanson Board in general … .

I would like to discuss with you, in the next day or two, how we can best show our appreciation … .

Page 59. Exercise 2. a) pro forma, b) ex gratia, c) bona fide, d) pro rata.

Exercise 3. a) That is not the point. b) I beg your pardon. c) You can’t be serious. d) valid, e) grounds, f) trivial, g) defrauded.

Exercise 4.

a.I have four appointments this morning g, not to mention the meeting with the bank.

b.The company owns the bank, not to mention several shops and two hotels.

c.My secretary speaks here European languages, not to mention Chinese.

d.We have a very large debt at the bank, not to mention the landlord and the taxman.

Revision

Page 61. Exercise 1.

1) faced with; 2) in real terms; 3) submitted; 4) role; 5) campaign; 6) extraction, headhunted; 7) submitted; 8) untenable; 9) appointee; 10) withdraw; 11) track record, extensive; 12) honoured; 13) breakdown; 14) outweigh; 15) favourably.

Page 62. Exercise 2. a) 3, b) 4, c) 2, d) 6, e) 5.

Page 63. Exercise 3.

Boat yard; in real terms; to sweep; successor; extraction; untenable position; brief; to purchase; to frustrate; alien; loyalty; implication; to take a very serious view; to put it bluntly; whizzkid; petty squabbles; to approach; coverage; target profit; consignee; consignor; bill of lading; air waybill; to allow for; a statistical sample; to deserve great credit; cost effectiveness; prime target customer; to reckon; trials; to overspend the budget; underestimate; overestimate; to be entitled; peanuts; severance terms; grounds for dismissing; petty; to defraud; second hand value; not to mention.

Exercise 4.

1) to, from; 2) to, under; 3) in; 4) in, to; 5) -; 6. in, for; 7) on, on; 8) up; 9) with, for; 10) in, - for, at; 11) in; 12) -, for; 13) at, in, with; 14) in, with, for; 15) at; 16) up, to; 17) for, by; 18) under; 19) for; 20) of; 21) to, under, in; 22) for; 23) away; 24) under, out of; 25) out.

Page 64. Exercise 5.

Craft, alien, in due course, extraction, brief, in view of, to face, consignor, consignee.

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Page 74 Exercise 1.

Sample agenda and minutes

Meeting to be held in the Managing Director’s office at 10.30 am on Friday 30 March

2006. AGENDA

1.Minutes of last meeting

2.Office security

3.Firm’s holidays

4.Updating of promotional literature

5.Any other business

MINUTES of the meeting held in Managing Director’s office on Friday 30 March

2006.

Present: Mr. Tom Jayal, Managing Director, in the chair Mr. Paul Osman, Sales Manager

Mr. Jack Lom, Production Manager Mr. Tim Hasram, Sales Assistant

The meeting was opened at 10.35 am by Mr. Jayal.

Apologies for absence

Apologies for absence had been received from Taki Kamal of the Commercial Credit Bank.

1. Minutes of last meeting

Minutes of last meeting were read, confirmed and signed. 2. Office security

The problem of office security was raised by Mr. Jayal. He suggested that all important papers should be kept in locked file cabinet. It was agreed that only three people would have the key: M. Jayal, Mr. Osman and Mr. Lom.

3. Firm’s holidays

Mr. Jayal announced the dates of the firm’s holidays. He said the factory would be closed from 8 to 23 August inclusive and over Christmas from 25 December to 3 January inclusive.

4. Updating of promotion literature

The updating of promotion literature to include the new model MP03 was suggested by Mr. Hasram. He pointed out that many small changes had been made to other models and that needed to be changed in the promotion literature. It was agreed that Mr. Hasram would update the promotion literature and that he would submit drafts at the next meeting.

5. There being no further business, Mr. Jayal closed the meeting at 11.40 am.

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Page 76 – 77. Role play Situation 1

Activity

Group work: speaking

Aim

To run a meeting deciding on employment policy for a new (imaginary) company.

Grammar and functions

Modal verbs Running a meeting

Vocabulary

Meeting vocabulary

Time

25 – 35 minutes

Procedure

1.Tell the students that they are going to talk about rules at work. Give an example of a rule you have to follow in your job: I have to hand in registers showing which students were in each class.

2.Ask them to give examples of rules people have to follow in their jobs.

3.Divide the class into groups of three to five. Each group is the board of directors

(make sure each board includes the “founder”).

4.Set up the situation and tell them that they are going to hold the meeting to decide on some aspects of company policy.

5.Let the students appoint a chairperson in each group, not necessarily the founder.

6.Write the following agenda of the meeting on the board.

AGENDA

Subject of the meeting: employment polices

1.Dress code

2.Timetable/hours of work

3.Relations with clients

4.Conduct at work

5.Holidays and booking arrangements

6.Employee participation in decision making

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The students can make some changes or additions to the agenda.

7.Write the following on the board:

The tasks of the chair

Make sure everyone gets a chance to speak. Keep speakers to the agenda.

Summarize discussions and points of view. Ensure decisions get made.

The chair should also keep notes about decisions which are made. In larger groups you may appoint a secretary.

8.Ask the chairpeople to open their meetings.

9.Allow the groups work through the agenda then ask chairpeople to report to the class on the decisions they made. This may lead to further discussion.

Follow up

Ask the students to write a memorandum to employees explaining the decisions they made in the meeting.

Ask the secretaries to prepare the minutes of their meetings.

Situation 2 Activity

Individual and group work: reading and speaking.

Aim

To read about four people in a company and decide which one is the best choice to set up a new operation in Poland.

Grammar and Functions

Past simple and continuous tenses.

Talking about experience and personal qualities in a professional context.

Vocabulary

Ethical, investment, investor, advisor, portfolio, to pollute the environment, partner, premises, publicize, capital, economist, economics, bachelor’s degree, master’s degree, MBA, PhD, fees, researcher, office junior, pragmatic, volatile, to steamroller over people, mature student, joint venture;

meeting vocabulary.

Time

20 – 30 minutes

Procedure

1. Write the words ethical investment in the centre of the board.

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2.Ask students what they understand by ethical investment. Ask for some example of unethical investments.

3.Tell the students that they are going to choose a person to set up a new office for a company.

4.Ask the students to read the information about the company and to focus on the four basic tasks.

5.Check the comprehension by asking questions (What’s the name of the company?

Where are they based? What business are they in? and so on.)

6.Write on the board:

The employee who is to go to Warsaw will need …

Ask the students for suggestions.

7.Ask the students to work in groups of four with one dictionary for each group.

8.In each group, assign to each student one of the four descriptions of people to read. Allow 2-3 minutes.

9.Ask the students to tell each other about the person whose description they read.

10.Tell them they are going to act out a meeting in which they decide how to rank the four candidates (from one to four) according to how well-suited they think they are to the task.

11.Appoint a chairperson in each group.

12.Ask them to begin.

13.When they have finished (after about 20 minutes) ask each group to present their decision, giving a short explanation of how they reached that decision.

Follow-up

Students write a letter to their first choice candidate to ask if he/she is interested in the assignment.

SAMEX

This case is about the company specializing in the design and construction of the equipment for the oil industry. It provides the opportunity to practice activities involving job applications: preparing a Resume (CV), completing an application form, writing a letter of application and preparation for the job interview.

After the case study the students role-play the situation involving activities connected with employment.

46

File 1

Page 80. Exercise 1. 1) e; 2) f; 3) I; 4) b; 5) h; 7) b; 8) d; 9) k; 10) c; 11) b; 12) j; 13) a. Page 81. Exercise 2. a) originally; b) as a result; c) depth; d) viable; e) concept; f) adapted; g) as opposed to; h) specifically; i) build up; j) peak.

Page 82. Exercise 3. By, in, and, for, the, enough, too, per, at, with, if.

Page 83. Listening. Jarman and Brownlow agree on the following points: c), f), g), h).

Page 90. Exercise 3. a) personnel, b) form, c) staffing, d) candidate, e) short, f) department, g) closing, h) position, i) head, j) curriculum.

Page 53. Exercise 5.

Urgently require, to be recognized as, vacant position, responsibilities, supervision, day-to-day work, to be in line with, applicant, fabrication and installation, knowledge of language is desirable, accident insurance, to facilitate the move, generous relocation assistance, dependent, to fill in application form, marital status.

Exercise 6. 1) in, for; 2) in, to, in; 3) for, on, into; 4) for, in, to; 5) up to, per; 6) per, at; 7) to; 8) off, for; 9) on; 10) at.

Page 98. Exercise 4.

a.They need someone they can delegate responsibility to.

b.They need someone whom they can discuss problem with.

c.They need someone whom they can leave on-site decisions to.

d.Most of all, they need someone whom they can have confidence in.

Page 101. Exercise 6.

1) threat, 2) patent, 3) patent application 4) infringement 5) oil province.

Exercise 7.

1) Can I come in here? 2) It speaks for itself. 3) Currently 4) the latest know-how.

Exercise 8.

1.It could not have arrived 10 days ago.

2. It couldn’t have produced 14 million barrels of oil last year. 3. She couldn’t have been at work when Diane Cook phoned.

47

4.He couldn’t have asked her to apply.

5.She couldn’t have visited the Leme Field before the interview.

Page 106

Role play Activity

Groupwork, pairwork: reading, speaking, writing.

Aim

To discuss a set of job offers, write CV and act out an interview with a potential employer.

Grammar and function

Questions Describing jobs

Vocabulary

Employment vocabulary

Time

50 – 60 minutes

Procedure

1.Divide the class into pairs.

2.Let the students choose one of the advertisements and distribute the roles. Tell them

that one of the students will act as the applicant and the other will act as the

employer.

3.Explain them that the student in a pair who acts as an applicant has to prepare the resume and to write the application letter, and the student whose role is to be an employer has to prepare to interview the applicant.

4.Before the students complete this task ask them some questions to check if they remember the main rules of writing resumes and cover letters.

5.When the students are ready ask them to perform their interviews in turn.

6.Tell the students they will have to assess the performance of their classmates.

The students may need more time to prepare for this activity. Let them prepare their resumes and cover letters at home.

48

RECORDING SCRIPT

CAN-AM

Page 7. Introduction

Page 8. Extract from international company handbook. Page 9. Interview with Willhite.

Interviewer: Mr Willhite, what’s your position in Can-An? Willhite: I’m International Vice President.

Interviewer: You’re responsible for export sales. Willhite: That’s right.

Interviewer: What type of company is Can-Am?

Willhite: We’re a multinational corporation. We manufacture and market sporting goods.

Interviewer: Where are your Headquarters? Willhite: In Toronto.

Interviewer: You say you manufacture sporting goods …

Willhite: Yes …

Interviewer: What are your main product lines?

Willhite: Well, we specialize in baseball and football equipment – that’s American football, of course.

Interviewer: You’re competing against US Corporations like Donzis and Wilson. Willhite: We’re seventh. There are six big American companies, and then us.

Interviewer: How important are your export markets to you?

Willhite: They’re very important. Canada is a big country but a small market. 75% of our annual revenue comes from export sales.

Interviewer: 75% - that’s very high.

Willhite: Yes, well we sell a lot in the States. Interviewer: And what about Europe?

Willhite: The European market is very important to us. Interest is growing fast over there. Interviewer: Especially in Britain.

Willhite: Yes, but also in France, Germany and Finland. Europe is a growth market.

Interviewer: You have a European distributor, don’t you?

Willhite: That’s right – Touchline Trading.

Interviewer: And are you satisfied with your sales in Europe? Willhite: They could be better – our sales in Britain are good.

49

Interviewer: We understand that your sales in the rest of Europe are not so good. Willhite: Yes, we have a problem there. But we intend to change that.

Page 12. A telephone conversation. Willhite: Hi, Annique, ca va?

Demeyer: Thomas, it’s good to hear you.

Willhite: Thank you for your report.

Demeyer: I hope it was OK. You didn’t give us much time. Willhite: It was fine, Annique.

Demeyer: That’s, Thomas. Now what can I do for you?

Willhite: You did a great job, but I need to know total European sales. That’s sales by all manufacturers. Do you have the figures for that?

Demeyer: Hold on, Thomas. Let me get the file.

Willhite: OK …

Demeyer: OK, Thomas. I have the figures here. Are you ready?

Willhite: Yup.

Demeyer: Total sales in year one were thirteen million, one hundred and seventy-six thousand.

Willhite: Is that dollars? Demeyer: Yes, US dollars.

Willhite: (writing) Ok, I’ve got that.

Demeyer: Sales in year two were fifteen million, four hundred and fifty thousand, five hundred and twenty-eight.

Willhite: (writing) Fifteen million, four hundred and fifty thousand, five hundred and twenty-eight.

Demeyer: Year three was eighteen million, twenty-five thousand, nine hundred and thirty-seven.

Willhite: Sorry, Annique, can you repeat that?

Demeyer: Ah yes … Eighteen million, twenty-five thousand, nine hundred and thirty-seven. Willhite: (writing) Nine hundred and thirty-seven.

Demeyer: Year four, the figure was twenty-one million, two hundred and twenty-five thousand, four hundred and forty-six. Have you got that, Thomas?

Willhite: Thank, Annique.

Demeyer: It’s my pleasure.

Willhite: I’ll contact you when I’m in Europe. Demeyer: I’ll look forward to that.

50

Page 14. Meeting with Touchline and Thomas Willhite.

Page 15. Nancy Lemant’s report.

Nash: Nancy’s prepared a report on Can-Am’s sales in Europe. Shall we begin with that?

Willhite: Sounds like a good idea to me.

Nash: Nancy, will you talk us through your report?

Lamont: Certainly, Colin. The report gives overall picture, and a breakdown of sales figures by year and by product range. You will find a copy in the folder in front of you.

The first chart shows total sales revenue since year one. As you can see, sales have risen dramatically in the first four years of trading: from $180 000 in year one to just over $1million in the year just ending, year four.

Table two gives sales by product range for the last four years. Notice that total sales have increased from 701 064 in year three to 1 030 564 in the current year. That’s an increase of 47%.

Finally our sales forecast for the next three years. Our sales people report that the market in Europe is growing by 17% per year. And retailers report that demand for Can-Am products look good. If you look at chart three, you will note that we forecast that sales will rise by 25% over the next two years. We expect them to reach nearly $2 million by the end of year seven.

Nash: Thank you, Nancy. Thomas, would you like to comment?

Willhite: Thank you, Colin. And thank you, Mrs Lamont, for your report. The figures you present are very impressive but I’ll be frank with you: I believe they could be better, much better.

Page 18. The meeting with Touchline Trading and Thomas Willhite continues. Page 22. Extracts from the letter.

Page 23. Exercise 2.

On behalf of CAN-AM, I would like to acknowledge the part played by Touchline Trading in establishing CAN-AM in the UK market, in the last four years. However, as you know …

Page 23. Colin Nash telephone Thomas Willhite. Operator: Touchline Trading, can I help you? Tyson: Can I speak to M Nash, please?

Operator: Hold the line, please. I’m putting you through.

Tyson: Thank you.

Secretary: Mr Nash’s office.

51

Tyson: Can I speak to Mr Nash, please? Secretary: Who is calling, please? Tyson: This is John Tyson.

Secretary: I’m afraid Mr Nash is on the other line at the moment. Will you hold on, Mr Tyson?

Tyson: No, I’ll call back later. Secretary: Right, Mr Tyson. I’ll tell him.

Page 24. The options. Page 25. Exercise 4.

“Peace was restored yesterday between Can-Am, the Canadian sporting goods manufacturer, and its European distributor, Touchline Trading UK. After several months of difficult negotiations, the two companies signed a new distribution agreement in London.

Four years of dramatic results in the UK but ‘zero progress’ in the rest of Europe was not good enough for ambitious Canadians, and Touchline has paid the price. Under the new agreement, Touchline keeps the UK, but loses continental Europe. Can-Am is looking for a new European distributor.

BODY CARE

Page 35. Introduction

Page 35. Article from “Business USA”.

Page 38. Interview with Wendy Rae.

Page 40. Extracts from the Body Care fact sheet.

Page 42. Telephone conversation between Isabella Hallberg and the Body Care Franchise Manager.

Hallberg: I read through your information pack – there is no mention of overseas franchisees.

Franchise Manager: I‘m sorry, that’s an oversight. I’ll have the relevant pages sent to you.

Hallberg: Thank you. Can you tell me whether the terms and conditions are basically the same?

Franchise Manager: Yes, basically they are – at least sixty-five per cent of revenue has to be from sales of Body Care products, and we expect to receive monthly reports,

52

and so on. But there are some differences. For example, overseas franchisees do not have to stock the full range of Body Care products.

Hallberg: That is fortunate because it seems to me that not all the items on your product list would sell on the Swedish market.

Franchise Manager: Yes, we find that problem in several of our overseas markets.

That’s why we change the condition.

Another difference is that we generally export liquid products in volume containers, to be bottled and labeled locally.

Hallberg: Yes, that makes good sense.

Franchise Manager: And a more important difference is that overseas franchisees are not charged the franchise premium or the annual franchise operating fee.

Hallberg: That’s a big saving…

Franchise Manager: It is and it costs us a lot of money. But we see profit as less important than establishing the market. We believe the profits will come from products sales once the centers are established.

Hallberg: I’m sure that’s right. Thank you for that information, and could you put those documents in the post?

Franchise Manager: I’ll see that they are mailed today.

Hallberg: Thank you.

Franchise Manager: You’re very welcome.

Page 44. Extracts from letter to Scott Ringer.

Page 46. Extra paragraph for letter to Scott Ringer.

Ms Tntz owns a chain of four pharmacies I Oslo and Bergen, in which she sells a wide range of natural products including cosmetics. Indeed, her real interest is in natural products not pharmaceuticals.

Page 46. Extracts from proposal in Isabells Hallber’s letter to Scott Ringer.

Page 47. Extracts from a letter to Isabella Hallberg. Page 50. File 3. Introduction

Page 51. Meeting between Isabella Hallberg and Margareta Tntz.

Hallberg: I’m afraid my application was turned down.

Tntz: Turned down! What did they say?

Hallberg: The letter didn’t give reasons. It simply says that as I have only recently been appointed head franchisee, they want to play it by the book this time.

Tntz: Well, what happens now?

Hallberg: I’m sorry, but I will have to ask you for the loan back.

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Tntz: That puts me in a very difficult position.

Hallberg: Why is that? You can’t have spent the money yet.

Tntz: I haven’t spent all of it. But I have signed contacts with the builders, and I had to pay twenty percent of the contract price on signing.

Hallberg: I see… what is the contract price …?

Tntz: $68 000 …

Hallberg: Well, you can pay back the balance.

Tntz: It’s not as simple as that, I’m afraid.

Hallberg: I don’t see why not. I lent you the money on the understanding that it would be spent on converting your premises into Body Care Centres. Since that isn’t possible now, I think you must repay the money.

Tntz: You have to consider my position. The fact is I’m now committed to this expenditure, and I accepted the commitment because you led me to believe that it was safe for me to do so.

Hallberg: So, you’re refusing to repay any of the money…

Tntz: Believe me, I would gladly give you your money back, if I could. But I am not in a position to do so.

Hallberg: And where does that leave me?

Tntz: Quite frankly, that is not my main concern right now. But, I can tell you this – I’m not going to be able to repay you unless I get that franchise. I suggest you contact Mr. Ringer and persuade him to change his mind.

Page 53. Meeting between Isabella Hallberg and Scott Ringer. Page54. End of meeting between Isabella Hallberg and Scott Ringer.

Ringer: An inconsistency in your letter puzzled me. You said that Flavel’s products were introduced to the Norwegian market through her stores. I happen to know that

Flavel’s products are sold exclusively by Mail Order. Hallberg: I’ve been a complete fool.

Ringer: You mustn’t blame yourself. We all make mistakes. You’re still learning. Hallberg: No, I didn’t mean that. The problem is more serious than that.

Ringer: In what way? Hallberg: I lent her money.

Ringer: How much did you lend her?

Hallberg: Seventy thousand dollars. She said she wanted to do some structural repairs to her premises so that they would be ready to be converted into Body Care

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Centres. I was so sure that she would be awarded the franchise that I lent her the money.

Ringer: And that’s the real reason you’re here now.

Hallberg: Yes, it is. Ringer: I see …

Hallberg: I’m afraid I’ve shown very poor judgment. Ringer: You haven’t been very frank either.

Hallberg: I know.

Ringer: Was the money you lent your own money or company money? Hallberg: A mixture of both.

Ringer: You are aware that’s a direct contravention of your agreement with us.

Hallberg: Yes, I am. I suppose you will want to terminate my contract?

Ringer: That’s Wendy Rae’s decision, not mine. We’d better go talk to he. Hallberg: Yes … I’m sorry, Scott.

Ringer: I’m sorry too.

Page 55. Final meeting between Scott Ringer, Isabells Hallberg and Wendy Rae. Rae: I owe you an apology.

Hallberg: You owe me an apology! Rae: Yes, I do.

Hallberg: But why? I don’t understand.

Rae: When we invited you to become our head franchisee for the Scandinavian region, you declined. You said you had insufficient business experience. I didn’t listen to you. I encouraged you to change your mind. But you were right and I was wrong.

Hallberg: Are you going to terminate my contract? Rae: Yes, I am.

Hallberg: Oh …

Rae: You do not have enough experience of business matters to be our head franchisee, and I want you to continue as a franchisee.

Hallberg: You are very generous.

Rae: And also a good business person. And I know that this company needs franchisees like you.

Hallberg: Thank you.

Rae: And don’t worry about Ms Tntz. Our lawyers will deal with her. Hallberg: I don’t know what to say …

Rae: Then don’t say anything.

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ORIENTAIR

Page 66. Introduction.

Page 67. Exercise 1. Booking a flight. Clerk: Yes, sir?

Client: I’d like to ask about flights to Hong Kong next week. I need to be there for a meeting first thing Monday morning.

Clerk: So you’d want to arrive on the Saturday or Sunday, I suppose?

Client: Yes, but I won’t be able to leave until Friday evening at the earliest.

Clerk: Let me check. One moment, please. Well, we have a daily flight at 12 noon via Bahrain, or there’s our Saturday flight 251 leaving at 10.30 a.m. via Zurich and Bahrain. Or we have direct flights on Fridays and Saturdays leaving at 6 in the evening and arriving at 2 the next day.

Client: That’s 2 p.m., is it? Clerk: Yes, that’s right.

Client: Are there seats on the flight that arrives at 2 p.m.? Clerk: Yes, there are seats on all our flights.

Client: Thank God for that. I’ve tried three other airlines. They are all booked up. Clerk: Well, I’m glad we can be of service.

Client: Could you book me on the Saturday evening flight? Clerk: One way or return, sir?

Client: Return, please.

Clerk: So that’s Saturday the 18th for the outward journey. What about the return?

Client: I’m not sure. Can we leave that open?

Clerk: Yes, of course. Do you need to make any stopovers on the way back, or can I book you on a point-to-point round trip?

Client: I’ll be getting a direct flight back, so the point-to-point round trip will be fine.

Clerk: Will you be traveling Business Class or First, sir?

Client: Business…

Clerk: Right then, just let me consult my computer…

Page 70. Management meeting with Stephen Lee, None Chan and Gary Marsh. The final part of the conversation.

Chan: The findings can be presented to Board members within a period of… say two weeks.

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Lee: Findings are very well, but we face urgent problems on these routes. Can Marketing come up with some recommendations?

Chan: Within two weeks?

Lee: Less than that. I propose to call a Board meeting on the 15th of August. Can you circulate the findings with some concrete proposals for improving and selling services by August the 3rd to all Board members?

Chan: The time is short, but I’ll see what we can do.

Marsh: And may I remind you, Tony that we’re operating within tight financial restraints at the moment. You proposals should take this into account.

Chan: Of course…

Lee: Good, that’s agreed then. I look forward to seeing your recommendations for improving services by, let’s say, August the 7th at the latest.

Page 71. Exercise 6.

Page 71. Extracts from the report on the customer survey.

Page 72. Passengers on an Orientair flight discuss the survey form. Man: Shall we do this questionnaire now?

Woman: All right, let me find my pen.

Man: What do you think of the check-in facilities? There was an enormous queue, wasn’t there?

Woman: Yes, there weren’t enough check-in desks. Man: That’s right. Let’s put down poor for that, shall we?

Woman: Yes. (Writes) What do you think of the check-in personnel? They were fine, weren’t they?

Man: Absolutely. Shall we put down excellent here, then?

Woman: Yes, let’s.

Man: How do you rate the punctuality?

Woman: Well, we left an hour late, didn’t we?

Man: So we put unsatisfactory for that, then.

Woman: Hmm… (Writes) How do you rate cabin service? The girls were very charming, I thought.

Man: Yes, but they are not very quick, are they? Woman: No, satisfactory, then.

Man: Alright. Woman: (Writes)

Man: What do you think of the catering?

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Woman: I think it’s pretty awful.

Man: I agree. Let’s put down poor for that.

Woman: (Writes) How do you rate the entertainment? The film was good, wasn’t it?

Man: Yes, I enjoyed it.

Woman: So good for this one then? (Writes)

Man: And what about seating? We seem to have a little more room than usual?

Woman: Yes, I think it’s very good.

Man: Put excellent then?

Page 75. Extracts from the Marketing Department’s report.

Page 76. Exercise 2

Page 79. Exercise 5 Meeting between Alice Kwon and Paul Tang. Tang: Hello, Alice. How are things?

Kwon: Oh, bearing up, you know. I’m suffering of overdose of meetings.

Tang: Well, this is another one, I’m afraid. I thought it essential, though, after reading the report from Marketing, and listening to the things that were said in the Board meeting.

Kwon: What’s on your mind?

Tang: You know the work-load of cabin staff as well as I do. The catering improvements will require extra staffing, and I thought you should know about that. Kwon: What are the implications for you?

Tang: I think we need to increase cabin staff from 18 to 20 on Super 747s, 17 to 19 on 747-200Bs, and 15 to17 on Super Tristars.

Kwon: You are talking about a major increase in costs. Tang: I know.

Kwon: Well, you have my support but finance will be against you and I don’t think you will convince the Board on this.

Tang: But these improvements won’t possible without extra staffing.

Kwon: I know that and you know that, the problem will be convincing the Board. If as I suspect, they want the improvements at no extra costs, I foresee the great problem with staff and unions.

Tang: Exactly – we must make the members of the Board see that.

Kwon: Hmm – it’s possible that we’ll have to offer a package to the unions as an alternative to extra staffing. I was thinking of incentive and bonus payments.

Tang: Well, you know what’s negotiable better than me, but I’m engaged at the moment in a feasibility study, and I think the extra cabin staff will be necessary.

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Kwon: Well, as I said, I’ll support you, but I think you should also be thinking of a fall-back position.

Page 81. Meeting between Jimmy Mo and Garry Marsh.

Page 85. Exercise 2

Page 82. Telephone call between Jimmy Mo and Gary Marsh. Mo: Gary?

Marsh: Speaking. Mo: Jimmy Mo here. Marsh: Oh, hello.

Mo: I received you memo, thank you. Marsh: Good, did you find it sobering?

Mo: I’m not sure yet, because I have one or two queries. Marsh: Well, I’m sure I can answer them.

Mo: Thanks… The subject of the memo is “costing of catering improvements”. Does this refer to all routes, or just European traffic?

Marsh: Sorry, it refers to European traffic only.

Mo: Thanks. (Writes) European traffic. And the figures in the memo relate to what period?

Marsh: Oh, yes, it should read “I’m pleased to submit the following initial estimates for the next twelve months.”

Mo: (Writing) The following initial estimates for the next twelve months. And finally, the figure for staffing of $2.09 million – what is it based on?

Marsh: Yes, you are right, it should say “based on two extra cabin staff, thirty-eight flights per week”.

Mo: (Writing) Based on two extra cabin staff, thirty-eight flights per week, that’s it. Thanks a lot.

Marsh: Call me if you have any more queries. Mo: Thanks.

Page 84. Final part of sub-committee meeting.

Kwon: I was thinking we might offer group discounts to families traveling together.

Mo: Why limit the scheme to Asian families? We could become the world’s first family airline with special in-flight videos for children, games and activity packs, and special menus…

Marsh: Look, I’m sorry to have to introduce a note of reality into this discussion yet again, but if we become a family airline, as you put it, we will lose our Business Class

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customers overnight. I don’t have to tell you that business customers are crucial to the success of any airline.

Chan: Gary’s right…

Mo: Not necessarily. It might be possible to introduce the family scheme in such a way that business booking goes up too…

Page 84. Exercise 5.

Page 85. Article in “Skyhigh News”.

Orientair’s Business Class bookings are up 9% worldwide, and 17% on European routes, in the last four months. In August last year, faced with on all-time low in business traffic, Orientair surprised the industry by raising Business Class fares by 5% and introducing their Executive Gold Card scheme. Sales immediately went through the roof.

So, what astonishing benefits does the Gold Card give business travelers? The answer is none. The secret of Orientair’s dramatic change in fortunes is explained by the

Capital Family Travel Club, which the airline launched at the same time. Membership of the Club gives families a very attractive deal: in-flight entertainment for children, special menus, activity packs for all ages up to thirteen, and best of all substantial discounts. If you are wondering if this should appeal to weary business travelers, rule one in the Family Club rule book will make everything clear: “Membership of the Orientair Family Travel Club is restricted to Gold Card holders”. Smart business people from Hong Kong to Houston are insisting that their companies book Orientair, and executive travel budgets the world over are paying for comics and chewing gum for young Travel Club members.

STAR LINE

Page 95. Introduction

Page 96. Extracts from economic review on Nigeria.

Page 96. John Odusanya talks about the Nigerian economy.

Odusanya: Nigeria has an area of more than nine hundred thousand square kilometers. The population is ninety-two million, and the GNP (Gross National Product) per head is nine hundred and twelve dollars. 70% of the workforce is employed in agriculture; about 10% is employed in industry and commerce. The currency is the naira.

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Page 97. Extracts from the letter to Johnson Odusanya.

Page 98. Mme Calvet’s letters.

Page 98. Extracts from a letter to Mme Calvet.

Page 103. Exercise 1

Page 104. Extracts from a letter to Johnson Odusanya.

Page 108. Conversation between Madame Calvet and Johnson Odusanya.

Page 109. The final part of the conversation between Madame Calvet and Johnson

Odusanya at the Essil d’Or spring collection.

Calvet: In that case, we might be able to reach an understanding…How soon can you clear the balance outstanding on your account?

Odusanya: As soon as we get an import license. Calvet: When will that be?

Odusanya: To be frank, I’m not sure.

Calvet: Well, can you clear the account in sixty days? Odusanya: Oh, I would hope so.

Calvet: That’s agreed then – part payment now and full payment in sixty days. And we will charge you interest on the outstanding balance at the rate of 2% per month. Odusanya: What about our April order?

Calvet: We will meet you future orders, but from now on we will supply on receipt of a confirmed letter of credit only. Is that acceptable to you?

Odusanya: Yes, it is.

Calvet: Good, when can you let me have your purchase order? We are pretty busy at the moment.

Odusanya: I’ll be in Nigeria on Wednesday. You should get it a week after that.

Page 111. Exercise 4.

Page 112. Extracts form telexes

Page 113. Exercise 6. Conversation between Johnson Odusanya and Ernest Owolowo.

Owolowo: I can’t understand it. Why has your application been rejected? Odusanya: The form I received just said “inessential imports”.

Owolowo: But Star-Line earns foreign currency.

Odusanya: I know. And in the meantime, my suppliers won’t supply me unless I have an import license.

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Owolowo: Well, you must re-apply immediately. You must indicate on your application that your company earns foreign currency. And I’ll discuss the matter with my colleagues in the Ministry of Commerce. There must be a misunderstanding.

Page 116. Reply from the Ministry of Commerce

Presenter: Ten days later, Johnson Odusanya receives the reply from the import licensing department of the Ministry of Commerce.

Odusanya: Tour application dated “27th May” for a license to import: Description of goods “Jewellery”

Value “$895 220” Origin “France” is accepted.

Reason “Goods earn foreign currency”.

MENHAR

Page 4. Introduction.

Page 4. Extracts from the company’s Annual Report.

Page 7. Extracts from the letter to the Banqueting department of the Menhar’s New

York.

Page 8. Conversation between the Menhar Social Secretary and Mr. Wang Wei Qun. Wang: Mr. Harden?

Harden: Speaking

Wang: This is Mr. Wang. I am ringing from the Chinese Embassy in Washington.

Harden: Hello, Mr. Wang. It’s nice to hear from you. Did you get my letter and the information pack?

Wang: Yes, I did, thank you. In fact that’s why I’m calling. I’ve been going through the checklist and I’d like to discuss a few points with you. Have you got a moment?

Harden: Yes, I have. Fire away.

Wang: We like the idea of having a menu on each table… Harden: That’s no problem.

Wang: But we’d like it printed in Chinese and English. Can you handle that? Harden: I’ll have to come back to you on that, but I can’t see a problem. Do you want place cards in Chinese and English, as well?

Wang: That’s a nice idea, Mr. Harden. But we’ve decided against place cards.

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Harden: I think you are wise. Place cards can be more trouble than they are worth, especially when there are large numbers.

Wang: I’m glad you agree with our decision. However, we would like flowers…

Harden: On every table? Wang: And around the room.

Harden: That’s fine – no problem. We can arrange that.

Wang: Thank you. Now the Ambassador wants the security arrangements to be thorough. Harden: What does he have in mind?

Wang: Well, he wants to be sure that there are no problems at the banquet. As you know, our Minister of Leisure and Tourism will be present.

Harden: I understand. Leave it to me, Mr. Wang. I’ll get our security advisor to contact you.

Wang: I’d appreciate that, Mr. Harden. Now, we’re having after-dinner speeches … Harden: So, you’ll need a public address system?

Wang: That’s correct.

Harden: OK, no problem. Will you need a photographer?

Wang: No, photographers from the Chinese press agencies will be present.

Harden: Fine.

Wang: I’m meeting your Executive Chef to discuss the menu next week.

Harden: If you think of anything else, you can always call me.

Wang: Now about the conference in the Roosevelt Rooms. I have a list of the equipment we will need. Shall I give it to you now, or would you prefer me to mail it to you?

Harden: Whichever is more convenient for you, Mr. Wang. But I’ll need a letter confirming your requirements in any case, so you might as well put the list in the same letter.

Wang: Yes, I’ll do that. So you’ll be hearing from me in a day or two. Harden: I’ll look forward to that.

Wang: Then, will you let me have a costing?

Harden: Yes, for sure – we do that as a matter of course.

Wang: Good. It’s been a pleasure taking to you, Mr. Harden.

Harden: Likewise, Mr. Wang. Goodbye now. Wang: Goodbye.

Page 10. Exercise 1. The reply to the letter of invitation.

Thank you for your invitation to a one-day conference and gala banquet at the Menhar Hotel, New York, April 17, which I accept with pleasure.

I look forward to meeting you on April 17. Yours truly.

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Page 14. Conversation between Madge Glickman and Hamilton Menon.

Glickman: The feasibility study looks at the position in year four of trading, when the sample hotel unit will be at full capacity and occupancy will be up to average levels. In other words it’s an accurate guide to the returns we can expect.

Menon: These figures aren’t too encouraging.

Glickman: You can say that again.

Menon: Who’s going to tender for a contract with an estimated rate of return on capital employed of 6.15%? They’d do better to leave their money on deposit at the bank and stay in bed.

Glickman: That’s right.

Menon: What’s the figure for capital costs based on?

Glickman: It’s based on a cost per room of $60 000. That’s 40% down on the figure we use in the States, but labor and raw material costs are low in China. Plus land is relatively cheap.

Menon: Does the figure include land acquisition costs?

Glickman: Yes, they’re in at $56 million. It also includes import duties on fixtures and fittings of $1.32 million.

Menon: So the capital cost per unit, net of these two items, would be … $22.68 million. Glickman: That’s right, and the estimated rate of return would rise to 8.13%.

Menon: Maybe we accept that, and state it is the condition of our tender that we expect real estate to be provided at zero cost to the venture. And that all imports will be free of duty for the first three years. Otherwise, we raise the room rate to an economic level.

Glickman: We can try that, but 8.13% is still well below our minimum return requirement for the project. It would be against company policy to go ahead as you know better that anyone.

Menon: You’re right. We have to find a way to do this. If we don’t somebody else will. Glickman Hamilton, if our competitors choose to minimize their profits, that’s their business. We don’t have to compete for the opportunity.

Menon: But it’s a huge market. We can’t afford to get left behind.

Glickman: Well, in my opinion, that’s what we are supposed to think. Look, I‘ve been working on these figures. I have considered every angle, and I believe that the Chinese know exactly what they are doing. I believe that they know they can drive a hard bargain because big western companies are extremely anxious to get a foothold in the Chinese market. And they are right, somebody will accept the offer. We will just make sure it isn’t Menhar.

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Menon: OK. This is your area of responsibility and I accept your judgment. If you’re sure we should keep out, I’ll support you.

Glickman: If these are the conditions, I’m absolutely sure.

Page 16. Hamilton Menon welcomes the Chinese Ambassodor and Madame Yang Li Ying to the Menhar Hotel.

Page 16. The final part of conversation between Madame Yang Li and Hamilton

Menon: … But we decided after careful consideration and with regret that the guideline terms and conditions proposed are not favorable enough to attract Menhar.

As you know, we provide luxury hospitality and we don’t believe we can do ourselves justice within the budget in this case.

Minister: We’re hoping that potential partners in the venture will realize that the low unit return is offset by the scale of the project and the potential of the Chinese market.

Menon: That’s the view we normally take. But I’m afraid it’s not possible in this case. We have a firm company policy which prevents us investing substantially in a market until that market has been adequately tested. We like to test the water first.

Minister: What would constitute an adequate market test in this case?

Menon: We normally begin with one medium-sized hotel, and then assess the situation.

Minister: My Government might be prepared to consider a tender for one hotel from your company.

Menon: That puts the deal in a very different light …

Minister: This has been a profitable discussion, Mr. Menon.

Menon: It certainly has, Minister. I hope you have an enjoyable evening.

Minister: Thank you.

Page 17. Conversation between Madge Glickman and Hamilton Menon.

Menon: What are you doing here? It’s nearly midnight.

Glickman: I was having dinner in the restaurant with some friends. What are you doing here?

Menon: I had to meet the VIPs from China.

Glickman: But that was at seven o’clock!

Menon: I know. I thought I’d stick around and see that everything was okay. Glickman: Hamilton, you employ people to take care of that kind of thing. It’s crazy for you to be still hanging around at this time of night. No wonder you look tired and overworked!

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Menon: I’m not complaining.

Glickman: I know you are not. You’re a workaholic. How long is it since you took vacation?

Menon: I hate vacations. They bore me to death.

Glickman: Sure they do. But maybe you need one. Everyone needs a break from time to time – even you.

Menon: Come on, we can discuss this tomorrow.

Glickman: Please Hamilton, I’m concerned about your state of health. You’re overworked, you’re under a lot of pressure, and your workload is crazy. You must ease up – take life more slowly. Why don’t you delegate some of your work?

Menon: Maybe I will. Let’s talk about it tomorrow.

Glickman: Hamilton – if it’s work, you’ll talk about it all night. If it’s not, then you haven’t got time.

Menon: Oh, by the way Madge, talking about work reminds me. I talked to the

Chinese Minister of Leisure and Tourism about the New Horizons Project …

Glickman: And …

Menon: I’ve agreed we’ll tender for one hotel.

Glickman: What! Now you’re doing my job! I thought we’d agreed not to tender for that project.

Page 18. Exercise 9. Final paragraph of memo to Head of Personnel.

It would be best if you did not mention that I have been in contact with you. The matter, as you can understand, is very sensitive. I’ll leave the ball in your court.

Page 20. Coversation between Hamilton Menon and Linda Ong. Page 21. Final part of conversation.

Ong: In what way did you change the conditions?

Menon: Well first of all, we assumed different price strategies. You can’t run luxury hotel at package deal prices. It can’t be done.

Ong: The Chinese government is trying to attract tourists so it’s keen to keep roomrates down.

Menon: Yes, but as you know, in our hotels we find people are very willing to pay luxury prices if they are getting quality service. And remember, the luxury hotels that the Chinese Government want to build are not only for tourists but for business travelers as well.

Ong: That’s true.

Menon: We’ve assumed that room-rates will range from $65 a night to $130.

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Ong: In the tender document the range is $60 - $100 – that’s quite a hike, especially at the top end.

Menon: Do you think our prices will be too high?

Ong: It’s hard to say. They are still low by international standards. What else did you change?

Menon: Well we cut the percentage of external funding from 100% to 60%. I know that the Chinese want to attract hard currency, but it’s Menhar’s policy to encourage cooperation among joint venture partners by requiring them to provide capital. In our experience, partners behave differently when they have invested their money in the project. Is this going to be a problem in China?

Ong: Not necessarily – the Chinese contribution to the venture can be in the form of labour costs, basic building material costs like cement, brick, stone …

Menon: That’s what we’re hoping.

Ong: So you want the Chinese government to provide 40% of the capital employed. Menon: Yes, we do. Plus we want to acquire real estate at zero cost to the project. If we have to buy the land at commercial rates, the figures just don’t add up.

Ong: What about tax, are you expecting concessions on tax?

Menon: Yes, we are – we’re expecting two tax concessions. We want zero import duty on all fixtures, fittings and equipment for the first three years, plus we want a three year tax holiday to cover the startup period. We expect to spend $6.6 million on imported goods for the hotel. We can’t afford 20% duty on top of that.

Ong: What about the management contract?

Menon: We’re proposing a management contract based on 3% of sales and 1% of profits.

Ong: The conditions we’ve outlined are going to cost the Chinese Government a lot of money.

Menon: Do you think this will put them off?

Ong: To tell the truth, it’s very difficult to say. A lot depends on whether they like doing business with you, and whether they regard you as a reliable business partner.

Page 23. Conversation between Hamilton Menon and Madge Glickman. Page 25. A fax arrives from the Chinese Government.

Secretary: Mr Menon, this fax arrived for you from Beijing. Menon: Thank you, Jane.

Glickman: What does it say?

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Menon: (Reads) We regret to inform you that the Government of The People’s Republic of China has not found it possible to accept your tender dated May 12 for the New Horizons Project. The contract has now been awarded to Hankook Leisure Ltd of Seoul, who have found it possible to take a much longer-term of the benefits of cooperation and investment in China. My Government thanks the Menhar corporation for the time and trouble it has taken in submitting its tender. Formal notification follows. Glickman: Wow! Near miss! So those Hankook Leisure guys were in the bidding against us all along. Well, they are welcome to all the problems that they face.

Menon: Yes, that’s the best bad news I’ve had for a long time – and do you know what? You can be quite sure their lawyers will have included a ‘force majeure’ clause. There is certainly one in our contract with them. I didn’t forget it when did that deal!

Glickman: Do you mean when we signed the contract for the management of their hotels world-wide?

Menon: Yes. I do believe luck has returned.

Glickman: You’ve pulled it off again. You really must now take that vacation.

HANSON

Page 33. Introduction

Page 34. Extracts from Mr Coutant’s letter of resignation.

Page 37. First part of the meeting between Anita Sherman, Jasper Hanson and Jervase Hanson.

Page 39. Final part of the same meeting.

Jervase Hanson: Anita, may I remind you that you occupy non-executive role on the Hanson Board?

Sherman: Of course, but you in turn must remember that I am here to protect the bank’s interest. If the bank is not satisfied with the way the company is being run, it will have to reconsider its position. I don’t have to remind you that we regularly receive offers for our shares in your company from competitors who are interested in getting into your markets.

Jasper Hanson: Now please, let’s not get carried away. The truth is that we greatly appreciate the bank’s support, and you personally, Anita, are a valued member of our

Board. Neither of these facts is in question. Could we therefore concentrate on the central issue: Mr Coutant’s future with the company?

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Sherman: I’d welcome that.

Jasper Hanson: Good. The problems seem to arise from his restricted role as Production Manager. I’m sure that if he were given a broader responsibility in the company the problem will disappear. Would that be acceptable to the bank?

Sherman: Yes, that could prove to be a very good solution. A person with Mr

Coutant’s reputation, energy and initiative would have a lot to offer in that area. What’s your view, Gervase?

Gervase Hanson: I was under the impression that the decision was out of my hands.

Jasper Hanson: For heaven’s sake, man, you must see that’s very much in our interest to find a solution that is acceptable to everyone involved.

Gervase Hanson: Very well, I’m prepared to give it a try. But I can’t say that I’m particularly enthusiastic.

Jasper Hanson: Good. We are in agreement, then. It now remains to put our proposal to Mr Coutant.

Sherman: Do you think he’ll accept it?

Jasper Hanson: Don’t worry, I’ll talk to him myself.

Page 45. First part of telephone call between Mr Coutant and Anita Sherman. Page 46. The telephone call continues.

Sherman: Good. Yes, I called to give you the news. My Board has agreed to sponsor your project.

Coutant: All of it?

Sherman: Yes, all of it.

Coutant: That’s wonderful news, absolutely great news – fantastic!

Sherman: I thought you’d be pleased. As the person most involved, I wanted to let you know immediately.

Coutant: That’s very kind of you, Anita.

Sherman: Mind you, it was a close thing.

Coutant: How’s that?

Sherman: Well, the Marketing Director made all the important points about this being cost-effective way of reaching prime target customers about boat owners being good account customers etc, etc, and nobody was interested. The general view was the scheme was too small. Then suddenly the Overseas Director noticed that Kerry

O’Connor is Australian, and everything changed.

Coutant: Why was that?

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Sherman: Well, we’ve been trying to build up our business in Australia for the last two years. We’ve tried campaign after camping and they’ve all been a disaster. We’ve spent millions. But the Overseas Director reckons that a boat with an Australian skipper and an Australian crew competing in the Three Ks Lager Round the World Race would be headline news down there.

Coutant: I think he is right.

Sherman So, they want an Australian crew – that’s one of the conditions of the sponsorship.

Coutant: That’s no problem. What are the other conditions?

Sherman: The boat has got to be called ‘CIRB Australia’, and they want you to make a deal with an Australian TV channel to carry cameras on board. They want daily on-voyage TV reports.

Coutant: That’s no problem., I was thinking along the same lines, and I’m sure Kerry won’t object.

Sherman: So, satisfy those conditions and you’re in business.

Coutant: What about the Hanson Board?

Sherman: Lave them to me. But are you sure you can deliver on this deal?

Coutant: Yes, I’m sure.

Page 48. Extra paragraph dictated for the letter to Mr Coutant.

The earliest vessel leaving for Fremantle and Auckland is SS Utopia, which will accept cargo from the 18th June until the 28th June, when it sails. The vessel is due in Fremantle on the 23rd July, and Auckland on the 5th August.

Our freight rates are as follows:

Fremantle: £72 per tonne or 10 cubic metres. Auckland: £84 per tonne or 10 cubic metres.

Page 54. Extracts from memo to Kenneth Young, Marketing Director. Page 56. Meeting between Mr Coutant and Gervase Hanson.

Page 61. Final Board meeting.

Sherman: The bank has investigated this matter thoroughly, and while it takes a very dim view indeed of Mr Coutant’s inability to control his budget, the final responsibility for financial control must be that of the Managing Director. The bank has also looked for markets for the boat elsewhere. And we understand that there is no established market value for specialized boats of this sot. They are worth purely what people are prepared to pay. And don’t forget, ‘CIRB Australia’ was surveyed before the sale and the price paid was the recommended survey price.

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Gervase Hanson: In which case why was the boat sold without consultation and why was it sold to Barry Coutant’s family?

Sherman: If it is accepted that the boat was sold for a fair price, I can’t see that it matters who it was sold to.

Gervase Hanson: Ladies and gentlemen, in my role as Chief Executive Officer of this company, I have dismissed Mr Coutant. I believe it was the right decision. If the Board is unable to support me in that decision, the Board will have to choose between Mr Coutant and myself.

Jasper Hanson: You’re sure about this Gervase.

Gervase: Hanson Yes, I am.

Jasper Hanson: I see … Well, in that case we must take a vote. Would all those who support the Managing Director’s decision, please raise your hands. I see, three in favour. And now all those against the decision, please indicate in the usual manner ... I see three against. So, we have three in favour, and three against – with two abstentions. Now I, as Chairman, have the casting vote. I must say that I am not in favour of either of the alternatives facing us. So I suggest, Gervase, that both you and Barry Coutant get together to sort out your differences. We must resolve this unfortunate situation.

SAMEX

Page 79. File 1, Introduction.

Page 79. Extract from Petrobras’ brochure.

Page 81. Interview with Red Monro.

Interviewer: Mr Monro, what exactly is Samex’s role in the development of the Leme

Field?

Monro: We are subcontracted by Petrobras to build the production platform. If you like, we are the builders. We’re not an oil company. We don’t drill, and we don’t lift oil.

Interviewer: Why are Petrobras using Samex?

Monro: Because we are experts in building semi-submersibles. Leme is a marginal field and using a floating platform saves a lot of time and money.

Interviewer: Are semi-submersibles often used in production?

Monro: Yes, more and more. In the past they were only used at the exploration stage, for drilling appraisal well. Then, you had to build a fixed production platform. But

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we’ve developed the Deep Concrete Floater (DFC) concept. This is a semisubmersible but it is big enough and stable enough to support a full production operation. The point to remember is that you can use a floating platform in deep water operations where a fixed platform would be very, very expensive – out of the question on a marginal field.

Interviewer: How marginal is the Leme Field?

Monro: Well, the forecast output is in the region of 45 000 barrels per day. A big field, like the Forties Field in the North Sea produced 500 000 barrels per day at its peak. That gives you some idea.

Interviewer: So why are Petrobras going ahead with Leme?

Monro: Because profitability isn’t the only criterion here. Brazil is developing its oil industry, because it needs to save foreign exchange. If it’s got oil, it doesn’t have to import it. Brazil is under a lot of pressure to develop its oil reserves quickly.

Interviewer: Are there penalty clauses in your contract?

Monro: Oh, sure! There are scheduled laid down in the contract, and if we don’t meet them, there will be penalties to pay. It’s my job as Project Director to see that doesn’t happen.

Page 82. Telex to Les Jarman.

Page 83. Meeting between Les Jarman and Dick Brownlow. Brownlow: Have you spoken to Garry Westwood?

Jarman: Yes, I’ve phoned him. He says Red’s got a broken back. He’ll be off work for months.

Brownlow: My God! Did you contact his family? Jarman: Yes I did.

Brownlow: I’ll write them today. What a disaster …!

Jarman: What about a replacement? Brownlow: Send someone from here.

Jarman: There isn’t anyone.

Brownlow: What about George Ansell?

Jarman: No, he hasn’t got any experience of semi-submersibles.

Brownlow: Hmm. What about Garry Westood? Could we appoint him?

Jarman: He’s a good man, but he’s never directed a project.

Brownlow: Do you think he could handle the job till we find someone?

Jarman: Oh yes, it’ll be good experience for him. But he’s too young to appoint to the job.

Brownlow: Is there anyone we can transfer from another site?

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Jarman: There’s no one available. All our teams are working at full stretch, as you know. Brownlow: Well, we have to find someone! And soon! This is a big contract. It’s going to be expensive if we don’t finish on time.

Jarman: I’ll phone around. I might hear of someone on the grapevine. Brownlow: Yes, we do that. And I think we’d better advertise the situation. Jarman: That’ll take a while ..

Brownlow: I know …

Jarman: I’ll also ring around the headhunters and see if they have anyone. Brownlow: Yes, good idea. In fact, you’d better employ one to look around on our behalf.

Jarman: Right.

Brownlow: And you’d better confirm Gary Westwood as acting Project Director till we sort something out.

Jarman: Yes, I’ll do that today.

Brownlow: OK, that’s it. Let me know how you get on.

Jarman: I will.

Brownlow: That advertisement needs to go in today. Jarman: Leave it to me.

Page 87. Extracts from advertisement for Project Director. Page 89. Extracts from letter to Diana Cook.

Page 91. Extracts from Claude Santos’ application form.

Page 94. Telephone call to Claude Santos. Final part of conversation.

Santos: Oh, that’s very good news! When is the interview? Cook: It’s on the 15th.

Santos: Of October?

Cook: Yes …

Santos: That’s tomorrow..

Cook: That’s why I am calling you now

Santos: And where is it?

Cook: In Rio …

Santos: My God! When?

Cook: It’s at 5.30.

Santos: Well I’ll check the flights, but I don’t think I can make that.

Cook: It’s Ok. I have the details here. There’s a flight from Oslo at 10.15., your time.

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Santos: 10.15 … But it’s a nine or ten hour flight to Rio. I won’t be there by 5.30… Cook: No, it’s Ok. Rio is four hours behind you. You arrive at 3.15 pm local time, that’s 7.15, your time.

Santos: And the appointment is at 5.30 …

Cook: Yes, I scheduled it late.

Santos: It’s just after midnight now … yes, I can make that. If I can get a booking, I’ll be there.

Cook: I’ve already made a booking for you. Santos: You’ve taken care of everything!

Cook: Well, that’s my job. You’ll fly SAS. You’ll have to pick up the ticket two hour before take off, that’s 8.15.

Santos: OK, I’ll be there.

Cook: Good. And good luck tomorrow…

Santos: Thanks, and thanks for calling. I’m delighted. I appreciate all the arrangements you have made.

Cook: You’re very welcome.

Santos: Now I’d better get some sleep. Cook: Yes, good night.

Page 95. Interview with Claude Santos.

Brownlow: Well, ur … that could be a problem, Claude. You were a late applicant, so your name didn’t go through our usual selection procedures. I’m afraid that the person who invited you to this interview was acting beyond her authority.

Santos: What are you saying? I’m afraid I don’t understand. Brownlow: I’m saying that your name shouldn’t be on this short-list. Santos: But you’re looking for a Project Director, aren’t you?

Brownlow: Yes, we are. But we wouldn’t consider a woman for a position. Deepwater platform construction can be very tough. I’m afraid we’ve made a mistake, and I’m sorry. We will, of course, pay all your expenses. But I’m afraid we can’t consider you for this position.

Santos: Have you read my application form, Mr Brownlow?

Brownlow: No, not in detail. I’ve only just received it. Santos: I think perhaps you should…

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Page 98. Final part of interview.

Santos: In that case Mr Brownlow, let me give you one – another one. Did you know that Proto Oil are considering taking actions against Samex Engineering for infringement of patent rights?

Brownlow: How do you know that?

Santos: I have friends in Proto Oil. Apparently, the company believes that the design of your DCF infringes their patent.

Brownlow: What rubbish!

Carvalho: I’d like to hear this, if you don’t mind, Dick. Please, continue Senhora Santos: Proto Oil argues that Samex couldn’t have produced original designs because you don’t spend enough on R&D.

Brownlow: This is complete nonsense!

Santos: I hope you’re right. But if you aren’t, it wouldn’t be difficult for me to modify your designs so that any possible infringements are clear. Of course I could only do that if I was employed by Samex …

Jarman: And if you don’t get the job? Santos: Then I will take my experience …

Carvalho: That sounds very much like a threat, Senhora.

Santos: Gentlemen, I’m simply trying to make you see that I could be useful to

Samex.

Jarman: She said she could be tough, Dick!

Brownlow: Yes … could you wait outside, please, Mrs Santos. I’d like to have a word with my colleges.

Santos: Of course…

Page 102. The Board decides.

Carvalho: Is it true that your DCF infringed Proto Oil’s patents? Brownlow: No, of course it isn’t.

Carvalho: It would be disastrous for you and for Petrobras, if work on the Leme Field was delayed at this point.

Jarman: Look Dick, she is the best applicant we’ve seen, and she wants the job … Carvalho: She’s the only serious one.

Brownlow: But she is a woman. Jarman: Come on Dick, so what? Carvalho: I was very impressed by her.

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Jarman: And if there is any dispute in the future over patent infringements, she’ll be very useful. I think we should offer her the job.

Carvalho: I agree.

Brownlow: OK, are we all agreed?

Carvalho/Jarman: Yes …

Brownlow: OK, call her in. (Door opens)

Jarman: Claude …

Brownlow: I hope we are doing the right thing.

Jarman: Come in.

Brownlow: Ah, Claude – well, we’d like to offer you the job.

Santos: Right away?

Brownlow: Yes, we’ve discussed it, and we’re agreed. We hope you will accept. Santos: I’m delighted, absolutely delighted.

Carvalho: I’d like to offer my congratulations. I’m looking forward to working with you.

Jarman: Congratulations, Claude.

Santos: Thank you, gentlemen. It only remains to discuss terms ... How about if …?

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Contents

Key to exercises and instructions to extra activities

Can-Am ……………………………………………………………………………….4

Body Care …………………………………………………………………………….16 Orientair ………………………………………………………………………………19

Star Line ……………………………………………………………………………...32 Menhar …………………………………………………………….………………….34

Hanson ………………………………………………………………………………..39 Samex ………………………………………………………………………………...45

Recording script

Can-Am ………………………………………………………………………………48

Body Care …………………………………………………………………………….51

Orientair ………………………………………………………………………………55

Star Line ……………………………………………………………………………...59 Menhar …………………………………………………………….………………….61

Hanson ………………………………………………………………………………..67 Samex ………………………………………………………………………………...70