IMeetings 6 Leading meetings

Either lead, foilOW Or get OUt Of the way. Sign on the desk of Ted Turner, founder of CA/W

1 How much influence do you have at the meetings you participate in? When itcomes to meetings, would you rather lead, follow or simply get out of the way?

Discussion 2 Think about a regular meeting you attend and consider the following:

• Who is the most powerful person in the room? Does he/she actually lead themeeting?

• What are the seating arrangements - fixed or flexible?• Does anyone tend to dominate the discussion? Is that ever a problem?• Are there people who hardly speak at all? If so, why are they there?• Who, if anyone, is the most 'dangerous' person in the room?

Explain to a partner how the meeting works. A simple diagram may help you.

Collocations 3 Combine one word from each box to make ten common problems encounteredin meetings. Do you have similar problems in your meetings?

communication communicationtime point- hidden pullinginadequate late over group-

1

2

3

4

5

barriers wasting preparationbreakdowns agendas rankscoring runs think starts

6

7

8

9

10

Which of the above mean:

misunderstandings? LH

failing to finish on time? LJ

competition between colleagues? I I

the need to agree at all costs? LH

secret intentions or objectives? I I

using your status to get what you want? LJ

things which make people reluctant to talk? LH

4 Read the suggestion below. Does it strike you as a good idea? Which of theproblems in 3 might it help to solve? Which would it probably make worse?

The power tableSuppose you removed the table from your conference room and replaced the

seats with armchairs. Suppose you turned it into a living room. How much would

this affect your meetings?

That's how much your meetings are about power, not communication.

David Weinberger, The Cluetrain Manifesto

1J

30 6 Reading meetings

Five alternative approaches successful companies have taken to the problem ofmeetings are listed below. What do you think they might involve?

a the non-stop meeting d the democratic meetingb the mobile meeting e the virtual meetingc the recreational meeting

6 IUI 6.1 Listen to an extract from a business news programme and match theapproaches in 5 to the companies that have adopted them.

Federal Express LJ another.com U Xerox Corporation LJ

Michaelides & Bednash Media LJ St. Luke's Advertising CH

7 Could any of the ideas in 6 work in your company? Would any be thoughtridiculous?

Discussion 1 Complete the following and compare with the other members of your group.

A meeting without a chairperson is like (a) >- without(a) .

Collocations 2 Complete the collocations by writing the nouns and noun phrases in theright-hand boxes. They are all things the leader of a meeting might do.

the agenda points of viewthe final decision the main goalsthe participants the meeting

I ;/•".'-':: -'-"/SI: . . ' •_ ' . " . '.'..:.".:

»«eih-

i|5 flfKBBHsBlrlllliilHm IBBHaBBBBBBB

•; :' • ' : ; ' '

1"ask" for ••/: - ' . .,' ' 'vr

-e;::;; •.•;,,.••.;.

1establish i - - ~ :define?::;-:'^r;:.t:Y

I del:. •er";V'takeC ' ; V;"-:."-.': "^'."--

areas of conflict follow-up tasksan action plan the key issuesother speakers troublemakers

1 -'tv :i

explain

Which of the skills above are mostly about managing• the content of the meeting? • the people present?Write C or P.

6 Leading meetings 31

What, in your opinion, is the single most important task of a chairperson? Readthe article below. Does the author agree with you?

10

is

20

You have to startmeeting like this!

W e work, therefore we meet. Butwhy do so few of our meetingsmeet our expectations?

Michael Begeman is a leading authority on one ofthe business world's most universal rituals: themeeting. An anthropologist and computerscientist by training, he is manager of the 3MMeeting Network.

So what's the most effective meeting thatBegeman has seen lately? He says that it didn'ttake place in a high-rise office building or at acutting-edge chip factory. In fact, it took place in atepee - in a scene from 'Dances with Wolves', theOscar-winning film featuring Kevin Costner.The_ scene takes place after a group of NativeAmericans discover Costner not far from theircamp. Between 20 and 30 members of the tribegather around for a meeting. There's one bigquestion on their agenda: what should they dowith this mysterious white man?

What follows, claims Begeman,is a masterclass ingood meetingbehaviour.

25

30

35

40

45

'People actually listen to one anotKat-5' He marvels.

'There are some genuine disagreements, but

everyone recognises merit in everyone else'sposition and tries to incorporate it into histhinking. The chief spends most of his timelistening. When the time comes to make adecision, he says something like 'It's hard toknow what to do. We should talk about this somemore. That's all I have to say.' And the meetingends! He is honest enough to admit that he's notready to make a decision.'

How does Begeman compare that with whattakes place inside most conference rooms today?'Do you want to know the truth?' he asks. 'Here'smy mental image of what happens at mostbusiness meetings: you could take the people outand replace them with radios blaring at eachother, and you would not have changed verymuch. That's what most meetings are like. Peoplewait for the person who's speaking to take abreath, scrthey can jump into the empty spaceand talk. The quality of communication in mostmeetings is roughly comparable to the qualityof the arguments that you used to havewith your ten-year-old brother.'

T3ffi

Glossary

tepee tent used byNative Americans

tribe ethnic orcultural group

4 How do you think Michael Begeman would describe the ideal meeting? You maywant to refer to some of the terms in the box.

listening patience decisions consensus diplomacydisagreement teamwork respect authority

~1

5 With a partner, work out the meaning of the words and phrases in italics.

Discussion 8

Diplomaticdisagreement

In the article, Begeman points out that although 'there are some genuinedisagreements' in the meeting, 'Everyone recognises merit in everyone else'sposition and tries to incorporate it into his thinking.' How can you avoid

upsetting people you disagree with? How important is it in your Culture forpeople to 'save face?

7 Match the examples on the right to the disagreement strategies they exemplify.

1 Band D 2 D and D 3 D and D 4 D and D 5 D and D

Disagreement strategies1 Show support before

you disagree

2 Disagree but ask for more

detail

3 Check you've understoodcorrectly

4 Be specific about your

disagreement

5 Disagree but offer an

alternative

Examplesa I think I'm going to go with Janine's idea, but tell me more about your idea first,

b That's not quite how I see it, but how about looking at this a different way?

c I'm not so sure, but maybe I'm missing something here. Run me throughit again.

d I'm not against your whole idea, just the part about pricing.

e While I agree with a lot of what you say, I think you may be exaggerating the

problem.

f I don't quite agree with you there. However, you've given me another idea,

g I'm not so sure I'm going to agree with this. I'd like to hear more about it,though.

h Before I answer that, let me just check I understand what you're saying,

i I can understand exactly how you feel, but at the moment it's just not

an option.

j It's not so much your actual plan I have a problem with as how you intend toimplement it.

for more on linking &contrasting ideas seepage 108

In informal meetings with people you know well, you can use simpler expressionsto show you disagree, but if there are problems it is usually better to be moreformal and explicit. Match the informal expressions below to the strategies in 7.

Go on. I'm listening. LD Yeah, but ... CH

Hm, well, how about this instead? LJ I'm not with you. LH

OK, but just one thing. EH

Lexis l ink- ; SPllSKfflff

for the language ofcompanies & capital seepage 108

6,2 A venture capital firm is discussing the start-up company it had talks withlast week. Listen to three extracts from their meeting and answer the questions.

a Who's absent from the meeting and why?

b What are the main goals of the meeting?

c What's the main area of conflict in the meeting?

d Who do you think the main troublemaker is?

e What follow-up tasks are assigned?

f Does timeofyourlife.corn's business plan sound good to you?

g In your opinion, how effective was the chairman of the meeting?

Chairing 2 The following expressions are all useful in chairing meetings. Complete them byfilling in the missing letters.

a O_, le_'_ g_t st d, th , sh w_?b Th_ _k_ f c_m_ _g, ev_ . Jo y.

Opening the meeting

Setting the agenda

Managing the discussion

Managing other speakers

Assigning follow-up tasks

Closing the meeting

c A_ I s d i_ m_ e-m 1, th_ p p_se o_ th m t g i_ t_ ...d B_ th_ e_d o_ th m_ __t_ng I'_ l_k_ s_m_ ki o_ d__c_s n o_ th_

e P_ _h_ps w_ c_n c_m_ b k t_ th_s l_t_r.f Le_'_ m_v_ o_ t_ th_ n_x_ it o_ th_ ag a.g W_ s m t_ b_ g_tt g s_d_-tr_ck_d h_r_.h C_n w_ g_ b k t_ wh_ _ w_ w_r_ d_s ss g e_rl r?i P h_ps w_ c Id sp d th g_ u_ a l_tt .j O_, s_ j_s_ t_ s_mm s_ w t w_'v_ s d s_ f_r.k M_yb_ w_ sh d t_k_ a sh_ _t br k a_ th p t.

I Luis i_ g g t_ f_ll u_ i_ o_ th_ b_ckg d. Luis?m Jack, c Id Luis j_s_ f sh w t h_ w_s s_y_ _g?n H d o_ a m_n_te, Jack - y '11 g_t y r ch e i_ a m_m t.o O_, O_! Le_'_ a j_s_ c_lm d n, sh w_?p D s a_yb y h_v_ a_yt_ g th '_ l_k_ t_ a ?q Tania, wh 's y r p_s_t n o_ th ?r Luis, I th k wh Tania i_ t_y_ _g t_ s_y i_ ...

s Luis, c_n I 1_ _v_ tli o w h~y_ _?t Tania, c_n y g_t b k t_ m_ o_ th ?

u I th k th 's ab a_ f_r a_ w_ c_n g_ a_ th st .

v I' af w ' h v t st i th e.

3 Listen to the meeting in 1 again and tick the expressions as you hear them.

Which two are not used?

In theFluency 1 Work in groups of three. Take it in turns to lead three short meetings. Prepare

for each meeting separately by reading the information at the back of the bookand the related article below. Speaker A see page 131. Speaker B see page 132.Speaker C see page 134.

10

Meeting 1Should genetic tests decide job prospects?

What if you were faced, at a job interview, with atest that would tell whether you could expect todevelop Alzheimer's or Parkinson's disease? Whatif you were turned down because of that tiny bitofyourDNA?

This scary scenario is coming closer to realitywith the development of a technology that willallow employers to carry out genetic tests and getthe results in the time it takes to stroll to thecanteen and have a cup of coffee.

Would it be ethical? Would it be legal? Would itbe acceptable to recruiters, let alone society at

large? The moral debate lags behind the scientificadvances. A technology that will identify DNA

is electronically has been developed by Dr JohnClarkson and his colleagues at the companyMolecular Sensing. They plan to miniaturise it andbuild a hand-held device that will produce resultsin less than 30 minutes.

20 Simon Barrow, chairman of The RecruitmentSociety, opposes such genetic screening forillnesses, but would welcome tests for behaviour.And Professor Robin Plomin of the MaudsleyHospital's Institute of Psychology confirms that

25 genetic associations have been reported for readingdisability, hyperactivity, personality and drug abuse.

a I

II

• . - • • •

Meeting 2Employers spy on workers

Big Brother is watching. And it's increasinglylikely to be your boss.

She might be recording the casualconversations between you and your co-workers

5 or tracking e-mails on your company computer,or watching the goings-on in the staff lounge.

Sounds like an invasion of your privacy?Think again. Most employee monitoring in theworkplace is perfectly legal, and it happens more

10 than most people realise.Two-thirds of US businesses eavesdrop on

their employees in some fashion - on the phone,via videotape and through e-mail and Internetfiles - according to a survey by the American

is Management Association International.In fact, employers can trace everything from

deleted e-mails and voice mails to the exactcomputer keys a worker strikes. Special softwarecan follow employees' paths across the Internet

20 and high tech employee badges even let bossestrack their workers' movements within an officebuilding. Wireless video cameras are small enoughto fit in pagers.

Businesses have lots of good reasons to25 monitor workers: to deter workplace crime, to

protect business secrets and to make sureemployees aren't calling Timbuktu! Those worriedabout the Internet sites that employees are surfingcan buy software that watches employees' screens.

Adapted from Knight Ridder Newspapers

Meeting 3Creative way to better management

From Chopin to Schubert and jazz to jive, music,along with theatre, film, drawing and painting, isnow widely used in UK business schools to helpexecutives improve their management skills.

5 It may all be great fun, but does it work?Opinion is divided. Strongly against is DavidNorburn, director of Imperial CollegeManagement School, London. He says that aftera few drinks he could probably make a case for

10 any human activity having managerial relevance.'Weber's clarinet concerto and emotion; jazz andchaos theory; sex and timing.'

His argument is that when executives andMB As invest time in business school programmes

15 they want rigorous and relevant training.But staff at many of the UK's leading business

schools, such as Patricia Hodgins at the LondonBusiness School, disagree. 'The key to creativity isbeing relaxed and being able to think laterally.

20 Using arts, music and theatre helps us to findthat.'

Gay Haskins, head of executive training atLBS, defends the techniques. 'We are highlygeared towards capitalist values,' she says.

25 'Everyone in business needs to understand thatthere are other ways of seeing the world.'

Adapted from the Financial Times

Grammar and Lexis links

6 Leading meetings

Linking

Practice Read the meeting extracts below. For each ofthe words or phrases in bold, underline the word orphrase in brackets that is similar in meaning. Don'tchange any grammar or punctuation.

Well, in spite of all these problems, I'd say we'restill on target for a January launch.(despite/even though)What, even though we've hardly completed phaseone trials?(in spite of the fact that/despite)Yes. Although obviously I'd have liked us to befurther ahead by now, I'm confident we'll be readyin time.(However/Whilst)Well, I admire your optimism, Sergio, butnevertheless, I think we should make some kindof contingency plan.(all the same/however)

B

B

B

BA

I'm afraid that, because of the strong euro, exportsare down again this quarter.(consequently/owing to)And as a result our share price is falling.(consequently/owing to)Quite. Now, whereas we've been able to sustainthese losses .so far, we clearly can't do soindefinitely.(despite/although)

Right, well, as nobody seems to be in favour of thisproposal, I suggest we just scrap it!(due to/seeing as)It's not that we're against it, Jakob, although it is anunusual idea.(though/whereas)Yes, I'd like to support you on this one, Jakob, butI can't help feeling you're rushing things.(whilst/and yet)Well, how much more time do you need? In orderto put this before the board, I have to have yourapproval.(To/So that)

Now, I don't want to spend a lot of time on thesenew European guidelines. I do think we should gothrough them briefly, however.(though/although)The guidelines do affect all of us, Renata.Even so, we have more important things to discuss.(Whereas/Nevertheless)

A Well, everybody, thanks to all your hard work, thecampaign has got off to a great start.(as a result/as a result of)

B And while it's too early to say exactly howsuccessful it will be, it's looking very good indeed.(whilst/as)

A Yes. So as to give you a clearer idea, I've preparedcopies of our sales projections for year one.(so/in order to)

B The figures are broken down by country so thatyou can get the full picture.(since/in order that)

A And, since we're celebrating, I brought along somechampagne!(seeing as/because of)

SummaryYou can use the following words and phrases• to make contrasts and contradictions:

while/whilst though althougheven though even so and yet howevernevertheless all the same despitein spite of (the fact that) whereas but

to express purpose or intention:

in order to/that to so as to so (that)

to link cause and effect:

because of owing to as a result (of)consequently as since seeing asthanks to

capital

Crazy times call for crazy organizations.Tom Peters, management guru

1 Group the following verbs according to meaning.

expand streamline start up sell offfound delayer wind up build upestablish buy up grow liquidatebuy into rationalise acquire

set up.

take over

restructure _

develop

close down

2 A manager is comparing business in the past withbusiness now. Complete what he says using thewords in the boxes.

1-8economy vision customer stakeholdersvalue global flatter outsourced

9-16flexibility effectiveness layers learningfunctional total empowered networked

'Well, the most important difference, obviously, is

that nowadays we're all operating in a

(1) market, rather than simply a

national one — the so-called borderless

(2) . And the increased amount of

competition means that this company, at any rate,

has gone from being product-driven to much more

(3) , -oriented. And whereas we used

to focus on price, now we focus on customer

(4) . And where we used to set

goals, we now have something called a corporate

(5) . A lot of it is just a change in

terminology but it certainly looks like we're doing

something new!

'A company's chief responsibility used to be to its

shareholders, but these days we prefer to talk about

(6) - not just the people with a

financial stake in the company, but everyone who

has an interest in the way it's run. A big change in

the organisation of this company is that we now

have a much (7) structure, instead

of the old hierarchy. Everything used to be kept in-

house. Now a lot of work is (8) .

So, we're a (9) company now, with

fewer (10) of management. For the

most part, we work in cross-(ll) .

teams, which gives us much greater

(12) . And we aim to have an

(13) rather than simply loyal

workforce. That means we give training and

development top priority. In fact, we like to think

we're a (14) company. For us, now,

(15) is a much more important

concept than efficiency and we see product quality

as just one part of a (16) quality

mindset.'

The financial

1 Match the heads (a-h) and tails (1-8) of thefollowing headlines.

a Disappointing pre-b Venturec $500m rightsd Kagumi plan ¥200b stocke Fears of another rise in basef Contex reject hostile takeover9 Government crackdown on offshoreh Record fourth-

1 rates hit housing market2 investments3 tax profits for Kovak4 bid from Avalon5 quarter earnings tipped to top €90m6 capital dries up7 market flotation8 issue to finance acquisition

IIIJ

a b c d e f 9 h

2 Find words and phrases in 1 which mean:

a attempted acquisition by predator company

b exceed

c rate of interest charged oy banks

d predicted

e strict new laws or measures

f profits for the period October to December

g badly effect

h money invested in a foreign country with lower

tax

i when a company goes public and issues shares

J runs out

3 Divide the following into good (/) and bad 00news.

deepening recession CH cash bonanza CU

downturn in demand I I sales boom I I

economic slowdown CH market meltdown U

windfall profits I I housing slump I I

upswing in the economy I I

i Communication

WritinLinking

ideas

Study the following examples.

1 Despite his good sense of humour, he often finds it difficult to respond tohis audience.

2 In spite of his shyness, he is a good speaker.

3 Although he generally explains his ideas clearly, I sometimes find it hard tofollow him.

4 Even though I'd put them in the picture, they didn't seem to grasp what Iwas on about.

Cross out the two explanations which are not correct.

The words in italics are used to

a) express the cause of something, the reason for something

b) reinforce an idea, add information

c) contrast ideas

Tick the three sentences in which the linkers are used correctly.

1 I managed to follow their conversation, although my mind had drifted away. •

2 Even though she had something very relevant to add, she interrupted thespeaker.

3 Despite I knew 1 was wrong, I refused to admit it.

4 In spite oftheir criticisms, I didn't lose my confidence.

5 I was unable to express my disagreement, although I am generallyassertive.

6 I remained alert throughout the meeting, although my tiredness.

Re-write the three sentences in exercise B in which the linkers are not usedcorrectly.

a Even though sho had oomothing very relevant to add, oho interrupted thespeaker.

6ven though she- bad nothing very relevant to add, she interruptedthe speaker.

Use your knowledge of linkers to guess the meaning of the words andphrases in italics.

1 Although Tim is usually very direct, this time he was really beating aboutthe bush.

2 Despite the market's bearish trend, he was optimistic about share pricesgoing up again soon.

3 Although he often tends to waffle, today he made a presentation that wasclear, concise, and to the point.

4 Their new product sold quite well even though the advertising campaignwas a complete flop.

5 They managed to find a huge site for the new factory in spite of the scarcityof land in that part of the country.

Communication j

Editing 0 Read the excerpt below about the importance of communication skills atschool.

• In each line 1-13 there is one wrong word.

• For each line, write the correct word in the space provided.

We need better teachers but we also need to free a teachers

we had got right now. It is time to deindustrialise schooling,

allow children to follow their own intellect passions and stop

constantly scoring, ranking and tabling those activity various

'experts' deciding are the important ones.

Unlest we rethink schooling, education will serve to reinforce the

class divide in the workplace. Employer may tolerate a potentialrecruit who can't add up, but they are very likely to complaint

about one who can't talk to customers with confidence. This

'soft' skills, such 'communication or presentation skills, are

acquired natural in middle-class households. If schools don't

nurture these no-academic skills, the life-chances of children

from disadvantaged backgrounds will be worst than ever andthe divide between rich and poor will grow.

have

A memo You work in the Personnel Department of a modern, forward-lookingorganisation. You are very interested in the course advertised below.Write a short memo (70 - 80 words) to your Head of Department, including:• a request to go on the course

• why you think the course would be useful

• some details of the course

• an enquiry about the possibility of financial support towards the course fee

BRENTFORD COLLEGE

BUSINESS AND ADMINISTRATION TRAININGAutumn - Winter CoursesCommunication & People Skills[Course Ref. No. 23-D]

The aims of this one-week seminar are to:• improve participants' speaking and listening skills• analyse common communication problems and explore

ways of resolving them• give participants opportunities to experiment with

conflict resolution strategies• help participants deal with defensiveness and

aggressiveness.

This seminar will be of interest to all professionals whohave to deal with people and work out problems withothers.Facilitator. Patricia McGovern, PhD, President ofSchroders Consultants in Geneva, author of the bestsellerHow to Listen to Others and Resolve ConflictsCourse fee (including manual): £520Date: October 7 - 15Venue: Brentford CollegeFor further details, contact: Martin Lowles, BATPBrentford College, 27 Burrard Street, Brentford TW9 OAKEmail: mlowles@BATP.ac.uk

MEMO

From:Date:

To:

Subject:

12 Management styles

WritingLinking

ideas

Editing

Complete the following sentences with the best linker.

1 Our manager never shows any understanding if we let the work get on top

of us and never encourages us. .^*<?f$?#y#?f{)f.. we don't rate him very

highly as a manager.

a) In addition b) Since c) Consequently

2 Sales have been going down for over a year, a new policy isurgently required.

a) as b) although c) so

3 Many staff were unhappy with the way they were being managed., they were sent a questionnaire inviting them to assess

their managers.

a) As a result b) Owing to c) Besides

4 The different management styles within the team blended really well.the project was completed to everybody's satisfaction.

a) Therefore, b) Due to c) Whereas

5 the project manager was off sick, there was little chance ofachieving much that week.

a) Consequently b) As c) In addition

6 The staff's high morale is the manager's empowering style.

a) therefore b) due to c) owing to

Cross out the two explanations which are not correct.

The six correct linkers in exercise A are used to

a) reinforce an idea, add information

b) contrast ideas

c) express the cause or the result of something

Read this short text about conflict resolution.

• In most of the lines 1-15 there is one extra word which does not fit. Somelines, however, are correct.

• If a line is correct, put a tick (•) on the appropriate line.

• If there is an extra word in the line, write that word in the space provided.

It is generally very useful for Human Resources and managers to

distinguish between the 'emotional' and the 'concrete' aspects of

conflict. The emotional components also include feelings such as

distrust, anger, fear, or the resentment. The concrete issues, on

the other hand, they often involve disagreements over company

policies and our practices, or conflicting conceptions of roles and

uses of resources, for an instance.

For conflict resolution to be as effective, it is strongly advisable

to deal with the emotional aspects of conflict at first. When

feelings are high, people are usually unable to examine rationally

and creatively like the concrete issues over which they are

never at odds.

That is the reason why approaches to a conflict resolution which

emphasise the importance of rationally and tackling specific

issues at the outset so often fail to.

.59 I

12 Management styles

Letters Ofenquiry

Reat| the letter of enquiry below, and cross out the one sentence which doesnot fit in.

TransChem Ltd

Dunakeszi ut 127. H -1810 Budapest, Hungary

The Principal,

Vernon Morgan College of English

1 1 Buccleuch Avenue

Edinburgh EH4 7BG

30 August

Dear Madam or Sin

Our company is one of the leading suppliers of speciality chemicals to a wide range of industries in Eastern and Central Europe,

where we have 12 branches. We therefore employ staff of many different nationalities.

With a view to increasing the efficiency of our operations, we wish to send a group of middle managers on executive language

courses in the UK. We would like our staff not only to improve their communication skills, but also to further their knowledge of

the kind of English needed in management and in the chemical industry.

One of our business colleagues has recommended your College as one of the best. Could you please let us have full details of

your executive courses, such as term dates, fees and accommodation with host families. Good management looks after its

existing clientele superbly and goes after markets offering the largest sales. Any other relevant details would be appreciated.

As we envisage sending 10 to 15 managers a year, we will naturally be looking for competitive offers and a lasting business

relationship.

We look forward to your reply.

Yours faithfully,

Fekete Ferenc

Hungary Manager

Write a suitable reply, following the guidelines below.

• thank TransChem for their enquiry, and express interest

• briefly introduce the Vernon Morgan College of English (founded 20 yearsago / high quality tailor-made language training for executives / etc.)

• mention the trainers and consultants (highly qualified / enthusiastic andprofessional / experienced in the field / etc.) and mention clients(AGROCHEM in Milan and Petrosur in Valencia)

• mention social programme (opportunity to mix with local business people)

• refer to enclosed prospectus

• offer 20% discount on course fees for first group (12% on subsequentgroups of min. 10)

• close on an encouraging and optimistic note

HULL

- ' > . « • 3. *M

Raising finance

I

I

O V E R V I E W T

a ListeningGetting a bank loan

~~j Vocabulary"•""* Idioms~1 Reading

^—•* Raising financej Language review

—J DependentprepositionsSkillsNegotiatingCase studyVision Film Company

44143

a SkillsNegot

I | Case study

333-01

$3-01

Lend only that whichyou can afford to lose.

I

I

1

I

I

What are the advantages and disadvantages for a private individual ofborrowing money from the following sources?a) a bank d) a loan sharkb) a friend or colleague e) a credit card company

c) a member of your family f) another source

I If you needed to raise money for the following, which source of finance wouldyou use?• to buy a car

• to buy an apartment or house

• to go on an exotic holiday

• to finance your children's education

• to buy your partner an expensive present

> What do you think these sayings mean? Do you agree with them?a) The love of money is the root of all evil.b) Time is money.c) Money talks.d) Money can't buy you love.e) Don't throw good money after bad.

I

9 Raising finance

Raising financeBefore you read the article choose the correct word for each sentence.1 The group's of twelve stores in Bordeaux was successful.

a) acquisition b) property c) overdraft

2 They are financing the acquisition through rather than debt.a) cash flow b) equity c) assets

3 Our state-of-the art machinery is our major

a) possession b) asset c) equity

4 The rate on the loan was 12%.

a) fee b) charge c) interest5 They could not pay their debts and faced

a) bankruptcy b) warranty c) overpayment6 Sorbat has gone into with debts of about £20 million.

a) indemnity b) investment c) administration

Read lines 1-64 of the article and answer these questions.1 What does the article say about cash flow?2 What is really important when looking at raising new business finance?

3 What are the key differences between equity and debt?

4 What is the main aim when raising finance?

Read lines 65-133 of the article and match the words 1-7 and phrases totheir meanings a)-g).

a) Lending a business a sum of money equal tothat owed to the business by its suppliers orcustomers

i venture capital

2 grant

3 invoice discounting

4 hire purchase

5 leasing

6 loan

7 overdraft

b) Buying expensive goods by making regularpayments over a period of time

c) Money lent to start a new business

d) Allowing customers to take out more moneyfrom their bank than they had in it

e) Money borrowed on which interest is paid

f) Giving someone the right to use somethingfor a period of time in return for payment

g) Money given to an organisation for aparticular purpose, often by a government.

Q Which source of finance described in the second part of the article is mostappropriate for each of the following situations? Explain your decisions.1 a company in a high-technology industry which does not wish to purchase

all the expensive equipment it needs

2 a new company in a depressed area which will create a lot of new jobs

3 a company that has already borrowed a lot of money but cannot pay itscosts until slow-paying customers pay their bills

4 a successful company wishing to engage in a high risk but potentiallyprofitable new enterprise where the owners are willing to give up part oftheir equity in order to expand

V Do you agree with the following. Why? Why not?1 People with overdrafts are bad money managers.

2 It is good business practice for a company to pay its bills late.