preview Choosing a strategy Which of the following factors do you think a company considers when it undergoes the strategic planning process? Put them in order of importance. product development economic forecasts competitors technology human and financial resources fashions and trends current sales Listening 1 Gf David Drexler is a professor of economics. Listen to him explain one approach to the strategic planning process and draw the diagram he describes. i The Quadrant corporation has prepared a SWOT analysis. Some of the different points that appear in the analysis are listed below. Under which heading would you put them? 1 Our prices are higher than the competition but our margins are lower. 2. Planned EU legislation will force us to invest in new equipment. 3 We have a highly-skilled young staff 4 We have a strong internet presence. 5 We have discovered a new and potentially cheaper source of supply. 6 Our brands are not recognised internationally. 7 New companies are entering our industry, 8 Analysis shows our products could be successfully introduced in Asia. Reading The Nike strategy i Read the text on the opposite page and complete the SWOT analysis with the different elements of Nike’s strategic position. What three changes has Nike had to make in its effort to appeal to a female audience?NT a8 Goddess CORSET Peeing resp ur ra eR challenge behind Nike CCCs kere reo a ts CR CCL ee sold to and communicated Pa n its 30-year history, Nike had become the undisputed leader in sports marketing. But beneath the success was an Achilles’ heel. Nike is named after a ‘woman — the Greek goddess of victory — but for most of its history, the ‘company had been perceived as being mostly about men. Could Nike do more to realise the full potential of female customers? And how could it afford not to, given the threats to its future with Air Jordan running out of air and brands like Skechers digging into the teen market with shoes inspired by skateboarding, not basketball. That was the huge question at Nike HQ. The launch of Nike Goddess was the makings of an answer. Just Doing It Differently For much of its history, Nike's destiny was controlled by its founders, Phil Knight and his running buddies, who signed up athletes in locker rooms end made the executive decisions. But by throwing together a diverse team of people with different backgrounds and different levels of seniority, Nike has found that it can keep many of its core attributes while adding new sources of inspiration Take the combination of star designer John Hoke and newcomer Mindy Grossman, vice president of global apparel. Hoke designed the look and fee! ofthe fist Nike Goddess store. Then Grossman, whose career has included helping make Ralph Lauren into a retail icon, pitched the design ideas to Nike's top retailers as stores within stores. Now it looks like Nike has a chance to reach a crucial objective: double its sales to women by the end of the decade, How to Sell to Women Nike Goddess began as a concept for a women-only store, and there's a reason why. Many of the retail settings in which the company’s products were found were a turnoff to female customers: dark, loud, and harsh ~ in a word, male. In sharp contrast the Nike Goddess stores have the comforting fee! of a woman's own home How to Design for Women Designing a new approach to retail was only one element in Nike's campaign. Another was redesigning the shoes and clothes themselves. Nike's footwear designers worked ‘on 1&month production cycles - which made it hard to stayin step with the new styles and colours for women. The apparel group, which worked around 12-month cycles, was better at keeping up with fashion trends, But that meant that the clothes weren't co-ordinated with the shoes ~ a big turnoff for women. How to Talk to Women \When Jackle Thomas, Nike's US brand marketing director for women, first heard the phrase ‘Nike goddess she wasn't impresses. I don't like talking to women through ‘gender, she says. Nike Goddess had to mean something to women and it was her job to make that happen. ‘Women don't need anybody’ permission. We are at our best when we are showing women a place where they didnt think they could be’ For John Hoke, the real power of Nike Goddess is not about traffic at stores. i's about changing minds inside the company, knew that Goddess could galvanise us, he says, ‘I was an opportunity to redefine and re-energise our entire brand around a market that was taking off? Glossary pitch sales argument _ turnoff demotivating factor galvanise shack into finding a solution Unit 3m 25Ey Read the text again. Who was responsible for the following? Nike being seen as a male brand taking market share away from Nike creating a new style of Nike retail outlet 4 persuading Nike retailers to accept the Nike Goddess concept 1 2 3 5 putting sports celebrities under contract 6 communicating more effectively with women Vocabulary 1 [| Replace the italicised words with one that has a si meaning 1 Nike's destiny was controlled by its founders a designers b_ sponsors © creators 2. The company had an Achilles’ heel. a strongpoint secret weapon © hidden weakness 3... a collection of people with different levels of seniority. a knowledge b rank © performance 4 Nike has found that it can keep many of its core attributes 2 origins b qualities © aspects 5. vice president of global apparel . 2 clothing b equipment © designs 6 Footwear designers worked on 18-month production cycles. a shifts, b delays © periods 7 ‘I knew that Goddess could galvanise us’ 2 motivate b surprise © renew Mario Moretti Polegato is the ! of Geox footwear, Inthe early 19905 he created a new footwear?____ sa special ‘membrane that could be used in shoes to prevent perspiration. He approached Nike, Adidas, ‘Timberland,the>___ of the footwear market. But nobody was interested. So he decided to go it alone and set up his company with five employees. Today the company has 2,800 ‘employees and sales of $350m, Mario thinks the company’s next 4 will come from the clothing market and he plans Beto produce a range of clothes incorporating the same patented material. The only 5 Geox faces is the same forall fashion businesses: a sudden shift in consumer that i Complete the text with the following words. leaders trends threat founder opportunity concept 26m Unit 3| Vocabulary 2 Speaking Language check Suffixes Look at the words from the text on page 25 and how they are formed. How do the suffixes change the form of the word? 1 active [adj] - activist noun /person 4 custom [n] - customer 2 misery [n]- miserable 5 resident [n] residential 3 senior [adi] - seniority 6 energy (n] - energise What affixes can you attach (o the following words? How do they change the form of the words? Use a dictionary to help you. diverse inspire opportune design public commerce revolution repute comfort retail 1 Look at the MP3 player that has been specifically designed to appeal to women. Whaat features make it appeal to women? Bi Choose one of the following. How do you think they could be made more appealing to women? computers video games MP3 players football Future forms We use different verb forms to talk about the future: The marketing department is launching the new campaign this spring. We start the visit with a tour of the Indonesian factory. Ill forward the report to you by email. There is no doubt in my mind. We will succeed. We're going to target a new customer profile. enor Which future forms are used to: make a prediction describe a timetabled event talk about a personal intention talk about an event arranged for a certain time make a spontaneous decision or offer wenn more information, see page 158. Unit 3 27r I I ' 1 1 ' 1 1 1 I 1 1 I I ! 1 I! 1 ' 1 1 I ' ere 28 m@ Unit 3 “Taming the tiger — Strategy and Risk in the Asian market’ tze Garden Conference Center, Shanghai. qust, Registration fee: $ 1,650 Listening 2 © J Bruce Hector is organising an ‘Asian Strategy and Leadership’ conference in Shanghai. Listen to his conversation with Naomi Wang, the regional conference manager for Asia and make any hecessary changes to the programme details below. Speaker Dr Alasdair Summerville Present, Orient tomato Systems ‘Alasdair Ross Riki — Foros Intligence uit Professor Giuletta Bertoni Milan Univesity Signy Tan Presiden, Puc Asses Dr Summerville, Alasdair Ross, Professor Berton, Jimmy Tan future Naomi Bruce Naomi Bruce Naomi Bruce Naomi Bruce Title Downturn to Danger? Narket olay and growh —on sessment Risk Radar Napging and measuring skin Asia No Brond’s Land Building brond identity inthe Chinese market Enstern Promise? Lberlsation andthe single sian currency bloc Panel discussion and review i Complete Bruce and Naomi’s conversation with the appropriate forms. Then listen again and check your answers. Hi, Bruce. I's Naomi here. I'm calling about the conference in Shanghai. We (! have to) make some changes. Hi, Naomi. OK, hang on, let me get a pen. Right, fire away. I don’t think the Yangtze Garden (2 be) big enough: We (3 need) a centre that can seat at least 600. ‘That many? Any suggestions? ‘The Mandarin Palace Center (*be)__——_ free that day. I've already spoken to them and I (® meet) the conference manager tomorrow. It (6 mean) increasing the registration fee by $50 though. That (? not /be) a problem. Anything else? Alasdair Ross can’t do the morning session as his plane (8 not / land) until 930, so I've arranged things with Jimmy Tan and they (switch) slots. Also, Milan University say they (10 send) Carla Marisco because Professor Bertoni can’t make it. But the talk (1! be) the same, Fine. Make those changes and I(!2 inform) everyone at my end. Speaking Work as a class. Prepare a diary for the weekend and write in any arrangements you have. Then try to make more arrangements with as many other people in the class as possible.Career skills Practice Culture at work The ability to make a short presentation of your ideas is a key business skill that enables you to communicate statistical information, present ideas and persuade people of the strengths of your argument. To do this effectively you need to prepare. 41 Make a plan of your talk. This should include at least three sections: = introduction = development = conclusion 2. Write detailed notes of what you will say, showing = key points and keywords transitions between the different sections = visual aids you will refer to the action points you will stress | 3 Practise your presentation to make sure that | = you use simple and clear language = your talk does not go over the time available ~ you will not need to read from your notes El Look at these expressions. In which part of a presentation would you expect them to be used? 1 Finally Pd like to remind you that we If you have any questions I'l be happy to answer them at the end. On this next slide you can see how our results have improved Before | start my talk I'd just like to thank ... This brings me to the next point Tl discuss each point briefly and then give you my recommendations. Thope you have found my comments useful and ... This chart gives a comparison of potential returns on investment... Bi Work in groups. Group A turn to page 145. Group B turn to page 137. Use the information to prepare a three-minute presentation ‘on each company. Practise your presentation. Then make your presentation to the other group. Attitudes to timing Some cultures place a lot of importance on events starting and finishing on time. Others believe things should take as long as they need and are flexible with itineraries and schedules. What effect could this have on meetings, presentations and appointments? What is normal in your country? Unit 329Dilemm Ei ecision Dilemma: Harley's Angels Decisioi Brief Jefftey Bleustein, CEO of Harley Davidson, was thinking about the future. fen to Laurence Bayerling, He had already pulled the motorcycle manufacturer back from the brink professor of management, of bankruptcy, but now he was thinking of the serious problems that lay explaining how Harley ahead. And top of the list was the fact that Harley Davidson customers were definitely ageing. The black leather Angels were getting greyer every day. From an average age of 36 ten years ago the customer was now edging closer to 46, But what to do? Bleustein decided that he would put the question to his team of advisors at the next meeting of the strategic leadership council. In fact, maybe hed better tell them what he wanted them to do right now - that way at the meeting they could present their ideas directly. Bluestein reached for the phone. Davidson approached this dilemma, —— Task 1 I Company and market information on Work in groups. Prepare a SSN Dest ease eel proposal for the leadership Rags = council. Decide whether your nied Masada veal approach should be marketing, Aces, pos, elthing 20% product, acquisition or Demearaphics 91% casera ale distribution based. Tum to page fae eey 143 for some suggested ideas. haa is 0 Task 2 Prepare a three-minute presentation to the council. Write a structure for your presentation and make notes under key headings. Then write an introduction and conclusion. Remember « include any helpful visual aids and stress your action points Task 3 Practise your presentation until it sounds natural aiid lasts three minutes. Make any necessary changes. Then present your proposal to the rest of the class. Write it up Write a formal memo to Jeffrey Bleustein outlining your proposal and its recommendations. (See Style guide, page 22.) Useful phrases Td like to start by Til discuss This brings me to the next point This chart Finally, I'd like to ... ives a 30m Unit 3Language check Present simple and continuous Complete the sentences with the appropriate form of the present simple or continuous. 1 She is the director of a company which (manufacture) biotech drugs. 2 Her day (start) at 8am. 3 She usually (not / finish) until late in the evening. 4 Right now the company (look) __ for a new CEO. 5 It(take) longer than they thought it would, 6 They (know) that choosing the right person is critical, 7 The company (go) through a difficult time at the moment 8 We (not / move) into our new offices until next year. Articles Complete the text with either a definite or definite article or no article at all (@). )___ ‘Learn to Lead! seminar and workshop provides ?____serior excellent management staf with? opporiuniy o learn and apply \otest leadership techniques: techniques that have been developed and tested in? wide variety of challenging business environments ond which have yielded * ‘exciting insights into business leadership. Sa very Future forms Complete the sentences with an appropriate future form. 1 The press launch (take) 930 on Friday morning. 2 I've tried reconnecting the computer but I'm afraid it just (not / work) place at 3. Jane has just told me that she (leave) the company. 4 Can help you with that? | (sort) out in no time. 5 We (have) lunch at the Thai restaurant. Why don’t you join us? 6 [don't care whose fault itis. | just want to know what you (do) about it. 7 We (launch) the new corporate identity on 27 May. 8. Leave it with us. We (get) you as soon as we can. back to Consolidation Underline the correct forms of the words in italics. PHILIPS ) Philips, with almost $306n in annual sales, is | one of! 9 /the Europe's biggest corporations. It } not only? is producing /produces billions of » light bulbs and lamps every year but it also ? is supplying /supplies TV tubes to almost 20 per cent of * @ /the world’s TV manufacturers. But | there is one thing the Philips consumer products group § isn't doing / doesn't do: and that’s make a /the profit. Gerard Kleisterle, + the newly appointed CEO, is about to change all that. Kleisterlee has introduced? the /a | series of changes to streamline the way the company operates; centralising business Processes, selling off unprofitable subsidiaries | and focusing research on ® g /the innovative |, new products, In the USA he ? delivers /is delivering an ultimatum: either its consumer division " starts /is starting to make money or it" will /is going to have to be closed. In + Europe Philips ” builds /is building a new hi | tech HO, which it hopes ® is going to /will © facilitate flexibility and networking. All of this + will be essential if the company * is going to / ? will produce the results that its shareholders, expect. But Kleisterlee is optimistic; he believes } his vision of Philip's future ¥ will /is going to guide the company back to profitability. ene tan tee ttt 3mVocabulary check BD Put the words in the correct groups. forecasts delegate threat shareholder hierarchy opportunity entrepreneur subordinate authority producer supervise growth planning task subsidiary companies: leadership strategy Bi Now use the words to complete the text. Viviane Rowland is the managing director of a small company, Tristar Laminates, which she founded with a group of fellow ! n June 2000. Together they had successfully identified a business ? to produce fibreglass components for the marine industry. Initially the dee founders were the only in the company but it soon became clear that they would need extra capital. They eventually managed to convince a local businessman to invest £50,000 in exchange for 20 per cent of the company. Since then Tristar's has been spectacular and Viviane now? a staff of 18 people and an operation with half a million pounds in sales. for the future is the immediate problem that the company has to face. At the moment production is carried out in a factory that has become too small but finding an alternative site is not an easy? industry is a dangerous one for small 5 like ourselves who only have limited resources; Viviane says, ‘and when we make a strategic decision like this we can’t afford to get it wrong? = This 32 Career skills Talking about your job Match the sentence halves. She reports to ... I'm responsible for... My job involves J work for ... a team of five sofiware developers. a lot of planning and negotiating a small consulting firm. the director of human resources. aooe Getting things done Put the dialogue in the correct order. Oa Oa Pm really getting behind with that new proposal. I'll never get it done on time. Pve got too many other things to do. 1 don’t suppose you could give me a hand with it? Itd be great if you could have a look at the prices and check my figures. That's fine. I'll do that today. Anything else? Sure, what exactly can I do to help? Is that the one for the Spanish office? What seems to be the problem? Oa Ob Ob Ob Short presentations | Match the sentence halves. Finally I'd just like to say ... On this next slide . Til discuss .. ‘That brings me... eune | a you'll see how this has affected our | performance, b_ each of these points in more detail later. to the last part of this talk. how much I've enjoyed making this presentation. ae