7. People

What characteristics can help people to succeed in business and in life? A positive attitude, intelligence, perseverance and self discipline all help. Are the personality traits that contribute to success or failure genetic? Or do we learn these characteristics as we grow up? Experts still disagree as to whether nature or nurture is more important.

Can personality and intelligence be measured? IQ and psychometric tests remain popular, and the latter are still used by many companies as part of the selection process. However, in recent years the idea that only one type of intelligence exists has been criticised. Howard Gardner developed the theory of multiple intelligences. This said that people have a number of different types of intelligence that they possess to varying degrees. These are linguistic, musical, logical-mathematical, spatial, body-kinesthetic, intrapersonal (e.g. insight) and interpersonal (e.g. social skills and the ability to understand and motivate other people). Gardner noted that teaching and learning should focus on the dominant intelligence of each person.

In business it is important to recognise that not everyone perceives the world in the same way. This is particularly true in negotiations. At work and home we negotiate all the time, whenever there is a problem with two or more solutions. No progress can be made without respecting the fact that the other party may have an alternative viewpoint to our own. An effective negotiator needs good communication skills and an ability to adapt to situations. In a negotiation it is useful to consider the following:

• Be prepared. Know what you want and what the other side wants. Think about how to present your case and how the other side may respond.

• Adapt your negotiation style to the situation and the people involved. Be aware of cultural, generational or personality differences that might affect the negotiation,

• Remain flexible and explore options. Listen to the other person's ideas and concerns, even if they are different from your own. You can respect the other person's point of view even if you don't agree with them.

• A successful negotiation arrives at a solution that is acceptable to all parties involved.

• If there is no hope of a compromise, be prepared to politely end the negotiation.

8. Markets

If a company wants to sell a product or service successfully, it must identify the target market. There are many different types of market to choose from. The mass market aims to sell to as many people as possible, crossing age and income groups. In contrast, a niche market focusses on a narrowly defined group of customers. It often caters to need that has been overlooked by those suppliers who cater to markets which deal in more mainstream products or services. Focussing on niche markets can be cost effective as marketing campaigns can aim budgets directly at potential customers, for example through advertising on local radio or in magazines targeting special interest groups.

Two European countries lead the luxury market. Italy has 30 percent of the market and France 25 percent. Luxury product categories include art and antiques, cosmetics and fragrance, jewellery and cars. One of the most successful companies in this market is LVMH (Louis Vuitton, Moe: Hennessey) with over 13 percent of the global market for luxury goods.

Before a new product or service is launched on a particular market, it can be tried on a test market to see if people are likely to buy. If a seller corners the market, they own or produce most of the goods or services on sale and can therefore set prices. In a buyer's market there is more supply than demand, so buyers are at an advantage and prices are low. When these conditions are reversed, it is a sellers’s market.

Economic blocs are countries that have official trading agreements with each other in a variety of markets. Some of these include:

APEC-Asia Pacific Economic Cooperation forum

ASEAN -Association of Southeast Asian Nations

Central American Common Market

ECOWAS - Economic Community of West African States

EU - The European Union

NAFTA --• North American Free Trade Area

The World Trade Organisation aims to promote open markets worldwide, where foreign competitors are allowed to trade.

Financial markets is the general term for the buying and selling of shares, bonds (tradable documents promising to pay a sum of money - often government loans), and commodities (e.g. oil, metal, agricultural products). Stocks and shares are traded on stock

markets (or stock exchanges) around the world. Generally a stockbroker will buy and sell on your behalf. Investments fluctuate depending on a variety of factors such as news from the company, national/international economics and media reports. In a bear market prices fall and in a bull market prices rise, usually over a long period of time.