Get Ready for the Postgraduate Entrance English Exam. Working with Texts. Часть 1. Учебное пособие

In small firms, the owner or chief executive officer might assume all advertising, promotions, marketing, sales, and public relations responsibilities. In large firms, which may offer numerous products and services nationally or even worldwide, an executive vice president directs overall advertising, promotions, marketing, sales, and public relations policies.

Managers oversee advertising and promotion staffs, which usually are small, except in the largest firms. In a small firm, managers may serve as a liaison between the firm and the advertising or promotion agency to which many advertising or promotional functions are contracted out. In larger firms, advertising managers oversee in-house account, creative, and media services departments. The account executive manages the account services department, assesses the need for advertising, and, in advertising agencies, maintains the accounts of clients. The creative services department develops the subject matter and presentation of advertising. The creative director oversees the copy chief, art director, and associated staff. The media director oversees planning groups that select the communication media – for example, radio, television, newspapers, magazines, Internet, or outdoor signs – to disseminate the advertising.

Towards the end of the 20th century, management came to consist of a number of separate branches, including:

•Human resource management

•Operations management or production management

•Strategic management

•Marketing management

•Financial management

•Information Technology management

In the 21st century we find it increasingly difficult to subdivide management into categories in this way. More and more processes simultaneously involve several categories. Instead, we tend to think in terms of the various processes, tasks, and objects subject to management. It is also the case that many of the assumptions of managerialism have been under attack from business ethics, critical management studies, and anticorporate activism.

Nature of the work

Promotions managers supervise staffs of promotion specialists. They direct promotion programs that combine advertising with purchase incentives to increase sales. In an effort to establish closer contact with

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purchasers – dealers, distributors, or consumers – promotion programs may involve direct mail, telemarketing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, in-store displays or product endorsements, and special events. Purchase incentives may include discounts, samples, gifts, rebates, coupons.

Marketing managers develop the firm’s detailed marketing strategy. With the help of subordinates, including product development managers and market research managers, they determine the demand for products and services offered by the firm and its competitors. In addition, they identify potential markets – for example, business firms, wholesalers, retailers, government, or the general public. Marketing managers develop pricing strategy with an eye towards maximizing the firm’s share of the market and its profits while ensuring that the customers are satisfied. In collaboration with sales, product development, and other managers, they monitor trends that indicate the need for new products and services and oversee product development. Marketing managers work with advertising and promotion managers to promote the firm’s products and services and to attract potential users.

Public relations managers supervise public relations specialists. These managers direct publicity programs to a targeted public. They often specialize in a specific area, such as crisis management or in a specific industry, such as healthcare. They use every available communication medium in their effort to maintain the support of the specific group upon whom their organizations success depends, such as consumers, stockholders, or the general public. For example, public relations managers may clarify or justify the firm’s point of view on health or environmental issues to community or special interest groups.

Public relations managers also evaluate advertising and promotion programs for compatibility with public relations efforts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm and make recommendations to enhance the firm’s image based on those trends.

Public relations managers may confer with labor relations managers to produce internal company communications – such as newsletters about employee-management relations – and with financial managers to produce company reports. They assist company executives in drafting speeches, arranging interviews, and maintaining other forms of public

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contact; oversee company archives; and respond to information requests. In addition, some handle special events such as sponsorship of races, parties introducing new products, or other activities the firm supports in order to gain public attention through the press without advertising directly.

Sales managers direct the firm’s sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. Managers advise the sales representatives on ways to improve their sales performance. In large, multiproduct firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and monitor the preferences of customers. Such information is vital to develop products and maximize profits.

II. Vocabulary Items

account n – счет, отчет, расчет advertising n – реклама

chief executive officer – глава корпорации, фирмы competitor n – конкурент

consumer n – потребитель coupon n – премиальный купон

customer n – покупатель, заказчик, клиент, потребитель dealer n – торговец, торговый агент

demand n – спрос department n – отдел deployment n – размещение discount n – скидка

distributor n – агент по продаже

employee n – рабочий, служащий, работающий по найму enhance v – повышать качество

executive vice president – исполнительный вице-президент goal n – цель

human resource – людские ресурсы

in-house a – внутренний, не выходящий за рамки организации intangible a – нематериальные (ресурсы)

liaison n – канал связи, связующее звено

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management n – руководство, управление, дирекция, администрация

market n – рынок

operations management – управление процессами производства

profits n – прибыль, доход

promotion n – содействие (развитию), поддержка, рекламная компания

public relations – связь с общественностью purchase n – покупка

purchaser n – покупатель rebate n – скидка

representative n – представитель resources n – ресурсы

retailer n – розничный торговец service n – услуга

sale n – продажа

sample n – образец, проба staff n – штат (служащих) stockholder n – акционер

strategic management – процесс стратегического управления subject matter – содержание

subordinate n – подчиненный supervise n – контролер wholesaler n – оптовый торговец

III. Exercises

1.Read the text.

2.Learn the vocabulary items by heart.

3.Translate the text in written form.

4.Retell the text using the following expressions and terms: human (financial, material, intellectual, intangible) resources, to adjust initial plan, to reach goal, situational management, purposive management, chief executive officer, executive vice president, public relations, media service departments, account executive managers, account services department, advertising agency, Human resource management, Operations management or production management, Strategic management,

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Marketing management, Financial management, Information Technology management, Promotions managers, Marketing managers, Public relations managers, Sales managers.

IV. Test II (1)

1. Read the text again and decide which statements are true.

1.The creative director oversees planning groups that select the communication media – for example, radio, television, newspapers, magazines, Internet, or outdoor signs – to disseminate the advertising.

2.In collaboration with sales, product development, and other managers, promotions managers monitor trends that indicate the need for new products and services and oversee product development.

3.Public relations managers observe social, economic, and political trends that might ultimately affect the firm and make recommendations to enhance the firm is image based on those trends.

4.Sales managers analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and monitor the preferences of customers.

2. Match the words given in the left column with the words in the

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Unit 2

I. Information for study

Entrepreneurship

Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship may involve creating many job opportunities.

Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators and science parks.

Business incubators are organizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies. Only entrepreneurs with feasible projects are admitted into the incubators, where they are offered a specialized menu of support resources and services. The resources and services open to an entrepreneur include: provision of physical space, management coaching, help in making an effective business plan, administrative services, technical support, business networking, advice on intellectual property and sources of financing. The incubation process is intended to last around 2-5 years.

Business incubators can be private or public. Private incubators are for-profit firms that take equity or receive a fee for the business services they provide to their clients. In essence, they are a consulting firm that is specialized in new firm creation. In the last twenty years, many developed and developing countries have started large systems of public business incubators to encourage and assist entrepreneurship. In many cases, public incubators are designed to stimulate the development of new products and services in high-tech industries. For science-based business incubators, an effective collaboration with universities and research institutions is essential to motivate researchers into taking the risk of initiating a company.

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Incubators have many partners in addition to universities. Since new firms require finance to grow, incubators have close relationships with many kinds of investors. Seed capital and venture capital funds, business angels, and banks provide most of the seed and start-up capital for incubated companies. Since business incubators are powerful economic development tools, they collaborate actively with regional and national government agencies, from which they often receive financial grants. In many countries, business incubators have national associations to represent their interests and organize meetings where best practices are disseminated.

A science park is a property development designed for a concentration of high tech or science related businesses. Prominent examples include the Cambridge Science Park in England and the Hsinchu Science Park in Taiwan.

Some notable persons and their works in entrepreneurship his-

tory

Our understanding of entrepreneurship owes a lot to the work of economist Joseph Schumpeter and the Austrian School of economics.

For Schumpeter (1950), an entrepreneur is a person who is willing and able to convert a new idea into a successful innovation. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models and eliminating others. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.

For Frank H. Knight (1967) and Peter Drucker (1970), entrepreneurship is about taking risk. The entrepreneur is the kind of person that is willing to put his career and financial security on the line for an idea, spending his time and capital in an uncertain venture.

Still another view of entrepreneurship is that it is the process of discovering, evaluating and exploiting opportunities. An entrepreneur could be defined as "someone who acts without regard to the resources currently under his control in relentless pursuit of opportunity" (Jeffry Timmons).

Pinchot (1985) coined the term entrepreneurship to describe entrepreneurial activities inside large organizations.

Howard Stevenson, of Harvard University, believes that entrepreneurship is the "pursuit of opportunity without regard to resources currently controlled".

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Entrepreneurship is often regarded as a defining characteristic of American life.

A study published by Regan Sydney and Jacob showed that the characteristics of successful entrepreneurship are perceived in different ways: investors, "entrepreneurs", and founders of young companies agree on many ideas, but have important differences, too. For example, founders tend to believe that tenacity is an important trait more frequently than investors. Investors tend to put slightly more emphasis on personal integrity than founders.

The entrepreneurial personality

Entrepreneurs have many of the same character traits as leaders. They are often contrasted with managers and administrators who are said to be more methodical and less impetuous. A vast literature studying the entrepreneurial personality has found that certain traits seem to dominate in the case of entrepreneurs:

•According to David McClelland (1961), the entrepreneur is primarily motivated by an overwhelming need for achievement. He has a strong "urge to build".

•Collins and Moore (1970) studied 150 entrepreneurs and concluded that they are tough, pragmatic people driven by needs of independence and achievement. They seldom are willing to submit to authority.

•Bird (1992) sees entrepreneurs as Mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and resourcefulness. They are cunning, opportunistic, creative, and unsentimental.

•Busenitz and Barney (1997) claim entrepreneurs are prone to overconfidence and over generalizations.

•According to Cole (1959), there are four types of entrepreneur: the innovator, the calculating inventor, the over-optimistic promoter, and the organization builder. These types are not related to the personality but to the type of opportunity the entrepreneur faces.

•Burton W. Folsom, Jr. distinguishes between what he calls a "political entrepreneur" and a market entrepreneur. The political entrepreneur uses political influences to gain income through subsidies, protectionism, government-granted monopoly, government contracts, or other such favorable arrangements with government(s). The market entrepreneur operates without special favors from government.

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Typical characteristics of entrepreneurship

•There is a leader, the entrepreneur, who is the driving force behind economic events.

•Inside the mind of this entrepreneur is a vision of a future state that is preferred to the present state.

•Through a semiconscious process of intuition and insight, rooted in experience, the entrepreneur develops this vision and a strategy of how to implement it.

•This vision is promoted diligently and passionately by the entrepreneur. The job for many provides a feeling of being "alive" or the satisfaction of serving society.

•The strategy is deliberate and the overall vision is clear, however details may be malleable, incomplete, and emergent.

•Entrepreneurial strategies tend to go along with simple centralized organizational structures that respond quickly to the entrepreneur's directives.

•Entrepreneurial strategies tend to be used in niche markets that have not been noticed by the large industry leaders.

The above list presents several ideas as to why someone becomes an entrepreneur, some of which belong to the so-called psychological theories of entrepreneurship, which basically suggests that there are a number of psychological traits possessed by the entrepreneur which allow him or her to undertake such a task. Other points of the list belong to the neoclassical equilibrium theories, that assume that markets are made up of maximizing agents and that there are no unnoticed business opportunities and that only the people who choose to become entrepreneurs do so – not because the opportunities themselves haven't been noticed by anyone else. The third school of thought is the Austrian theories-school that claims business opportunities arise due to the fact that not everyone has the same amount of information and thus are not equipped to "see" the opportunities.

II. Vocabulary Items

achievement n – достижение, успех

angel n – лицо, финансирующее какое-л. мероприятие, организацию

authority n – власть, руководство

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coach v – тренировать collaboration n – сотрудничество creative n – творческий работник destruction n – разорение

entrepreneurship n – предпринимательство equilibrium n – равновесие

equity n – обыкновенная акция fail n – неудача, провал

fee n – взнос

founder n – основатель, учредитель funding n – финансирование grant n – дотация, субсидия income n – доход, прибыль innovation n – нововведение invention n – изобретение networking n – сеть

niche n – ниша; свое, надлежащее место private n – частный

promoter n – учредитель, основатель (фирмы, акционерного общества)

property n – собственность public a – государственный raise v – добывать (деньги) security n – защита

seed capital – капитал, вложенный на самой ранней стадии проекта

service n – услуга

start-up capital – исходный капитал support v – поддерживать

survival n – выживание

venture n – дело, предприятие, фирма

venture capital – капитал, вложенный в новое предприятие, связанное с риском

III. Exercises

1.Read the text.

2.Learn the vocabulary items by heart.

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