Part One. Questions 1 to 12. Conversation One. Man:
Hello. Could I speak to Bob Cole in Purchasing, please?
Woman: I’m afraid he’s out of the office for the day. Can I take a message? Man:
Yes, please. It’s Alex Parker from Pilton Engineering.
Woman: Oh yes. We ordered some packaging machines from you, didn’t we? Man:
That’s right, but I’m going to have to postpone the delivery date. We’re having problems finding the right lifting machinery for them.
Woman: I see. Man:
Now, under the terms of the contract I signed, there is a penalty clause for late delivery. But I’m hoping Bob will waive that, since I also agreed to a very good bulk discount.
Woman: I’ll check for you. Man:
Thanks. I’ve decided that, as we’re doing the maintenance, I won’t charge for installation.
Woman: OK. I’ve got that. Man:
Oh, and one more thing - I can’t find anything in the contract about who’s dealing with insurance while the goods are on the road.
Woman: I’ll check that.
Conversation Two. Man:
Hi, Julie, it’s Mike, with the information you asked for. Webster’s press conference has just finished, and this is what the new Managing Director said about their plans. They’ve built up healthy profits, which they’ll spend on opening new outlets over the next five years. Next, he admitted that they’re concerned about their product image, so they’ve established the new post of Brand Executive reporting to the Marketing Director. They want someone with fresh ideas, who’ll make a big difference. Thirdly, since Webster was taken over by
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the Chilcott Group, they’ve made savings by centralising logistics, and they’ll now apply that process to purchasing. They’ve examined the feasibility of centralising property operations, but decided against it, at least in the short term. And finally, they plan to increase spending per customer by starting a loyalty card. Experience in the rest of the Chilcott Group shows that customers who join schemes like this spend a third more than other customers. OK, that’s all, Julie. Hope it’s clear.
Conversation Three. Man:
Oh hello, Jan. It’s Mark Hill here, the Accommodation Officer. I’ve just got back from looking at fifteen Lemmington Road, another possible building for our training courses. This one looks very promising. It’s in excellent order, and although we might need to adapt some of the rooms, we wouldn’t need to upgrade it, unlike some of the other buildings I’ve seen. The seminar rooms are spacious and airy, and the accommodation is modern and well laid out. The overheads are cheaper than most of the other buildings I’ve looked at, probably because it’s new and well designed. Also on the plus side - it’s slightly out of town, so that means less property tax. The downside of that is that it’s further from Head Office than some of the other possibilities. The only real problem I can see is its size. It’s not a huge building, and during our peak months, it may not be sufficiently large to accommodate all our trainees.
Part Two. Questions 13 to 22. Section One. [pause] Thirteen
I’m the company’s recruitment specialist, and we’ve moved heavily into using the internet. It’s virtually eliminated the sorts of applications that don’t stand a chance. We have an online application system that works well, because it elicits the vital information at the
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outset. For instance, there might be something like ‘Do you have hands-on experience of the latest technologies in this field?’ People who can’t give the answers are immediately advised not to continue with their application. [pause] Fourteen
It’s astonishing that, while nearly all British businesses use the internet in one way or another, most of them just use their websites as shop windows for advertising jobs - then expect people to send in paper-based applications. They’re simply not using the technology to its best advantage. There are so many refinements that the internet makes possible, so every recruitment officer ought to be looking at making optimal use of it and cutting out as much paper as they can. [pause] Fifteen
Many companies think they’re up to date if they advertise vacancies on their website and send emails to applicants instead of letters. But that just isn’t enough. These days, lots of people send text messages, so businesses should follow suit, for instance when inviting someone to interview: it shows that the firm has joined the twenty-first century. And although the phone is much more traditional, it’s still a valuable form, because you can talk to applicants in person. [pause] Sixteen
Companies sometimes get the wrong idea about online recruitment. They focus on the fact that it can reduce administration, but forget that it takes specific skills to manage the online process. After all, the recruitment section of the website needs to be organised, applications dealt with quickly and effectively, and so on. People who are used to circulating details of vacancies internally, planning newspaper advertising, acknowledging applications, etc. may not have the abilities required for dealing with online recruitment. [pause] Seventeen
So often, people apply for jobs they know very little about, because positions with the
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same title can vary considerably in different organisations. So when you’re recruiting, you should use your website to list projects and assignments of the post and give case histories of people in similar posts in the company, perhaps with a personal statement from them. It doesn’t affect the procedure you follow, but it helps potential applicants to decide if it’s a job they really want. [pause]
Section Two. [pause] Eighteen
Some people tell you that what a dissatisfied customer really wants is to have the opportunity to spend his money again. You may have to resort to this - a refund or perhaps some form of credit. However, this may lose a customer and will certainly lose that particular deal. Try a bit of persuasion -remind your customer why he chose your product in the first place, give him a new one and save him the trouble of making further decisions. [pause] Nineteen
It’s often the case that a complaint about faulty equipment really means the customer is doing something wrong. Of course, considerable tact is called for when this happens - don’t make them feel foolish. What they need is some guidance - and this should be provided without further cost. Make sure any damage done has been put right, and then set up the familiarisation session. Problem solved, customer happy, equipment saved from any more misuse. [pause] Twenty
When a customer complains, it’s important to be sympathetic, but business-like as well. Do apologise, of course, and then, taking a personal interest in the way the equipment will be used, suggest a newer, more recent model rather than simply replacing the original one. This is often a good solution, because it not only deals with the complaint, but also the client feels they’ve got away with a bit extra to make up for the inconvenience.
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[pause] Twenty-one
I don’t think all complaints can be dealt with in the same way. Basically, you’ve got to solve the immediate problem to try to keep the customer’s confidence. Sometimes guaranteeing your product for a longer period can be a good way to do this. Fix what’s wrong as quickly as possible and show you’re prepared to do so a second time if necessary. Point out that the customer won’t have any worries, at least not until they need an upgrade. [pause] Twenty-two
It’s a good idea to let the customer know why there’s been a problem - it shows you are prepared to be honest, and you might win a bit of sympathy. They realise that things don’t always go right for the supplier either. But the most satisfactory thing to do is to offer a refund. Then, of course, they are more likely to deal with you again when they need a replacement. [pause]
Part Three. [pause]
Woman: The big clothing retailer Sangra is currently in the news, and here to talk about
its difficulties is retail analyst John Sergeant.
Man:
Hello.
Woman: John, why have Sangra’s sales fallen so much? Man:
Well, they’ve started using top designers, but it takes too long to get the designs from the drawing board into the shops. Sangra haven’t realised that fashion trends are moving faster than ever, and they need to react much more quickly. As a result, they aren’t attracting younger shoppers. It really makes little difference who designs their clothes or what the stores look like if people don’t feel like going in.
Woman: They’ve been very short-sighted, haven’t they? Man:
That’s right. Sangra’s strength is in the middle market, but shoppers now want
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either expensive designer labels or low prices. At the same time, other stores have started to compete for the same customers, but are offering lower prices. Sangra’s response to these dangers has been an advertising campaign which was right off target, and which actually seems to have lost them customers. And amazingly, they’re still running it.
Woman: The last Chief Executive was thought to be responsible for many of the mistakes,
wasn’t he?
Man:
Throughout the nineteen nineties, the company was managed by Denis Howard, who was a strong leader. He decided on the policy of acquisition, and to be fair to him, he managed to persuade the Board. But when sales fell, Howard was forced out. If he’d already got somebody in position to take over, everything might have been fine, but as it was, a boardroom argument broke out. That’s when the company’s problems started.
Woman: So what s happening now? Man:
The new management’s started a high-cost policy of introducing what they call the ‘lifestyle’ idea into the stores, grouping merchandise according to the target customer. For example, instead of dresses in one area, shoes in another, they have one section aimed at active adults, another at teenagers, and so on. The staff seem to be behind them, but they’re finding that most of the stores just don t have the floor space for it.
Woman: Is this the solution to the company’s problems? Man:
Not really. They re also trying to make savings, like cutting the number of higher-paid staff to improve productivity; but the effect is minimal. The fact is that margins in retailing are being cut, and Sangra will have to do the same if they’re to succeed. I’m sure this will be their next step. Or else they’ll have to start shutting poorly performing stores, but that means shutting all of them.
Woman: Do you think it’s suffering from its old- fashioned, top-down style of
management?
Man:
Yes, but they’re beginning to change. They’re going to have to take much more notice of what shoppers want, but at the moment, they’re working to reduce the
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time it takes for new products to be manufactured, so for the first time they and their suppliers are co- operating to make improvements. To be honest, if the management were less autocratic, they could also learn a lot from their staff.
Woman: What would be your advice to Sangra? Man:
They need to remember that their years of success came from supplying a broad range of ordinary clothes. They’ve made too many mistakes recently, like moving into designer items. They should stop playing with new ideas and just do what they’re good at. There isn’t really a safe alternative.
Woman: How is the company likely to change in the next few years? Man:
Their main activity will still be the same, even if they decide to follow the trend into big out-of-town stores. Their venture into financial services and food halls, both of which are due to start this year, will have a considerable effect, though whether for good or bad remains to be seen. And we may well find Sangra stores opening abroad, and my guess is that it’ll be through acquisition.
Woman: John Sergeant, thank you very much. Man: [pause] TEST 2
Part One. Questions 1 to 12. Conversation One. Man:
Hi, Tom here. Could I speak with Bill? Thank you.
Woman: Sorry, he’s out. Can I take a message? Man:
Thanks. It’s about some queries Bill had about the balance sheet I prepared.
Woman: Which balance sheet exactly? The one for the last financial year? Man:
Actually, it was the one for the last quarter.
Woman: OK, got that. Man:
There were several things Bill wanted to check. Firstly, he asked about the
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liabilities figures. He thought the figures in column A might be for current liabilities, but in fact those figures indicate the long-term ones.
Woman: OK, I’ve got that. What next? Man:
The assets figures. He wondered exactly what they cover. Actually, I’ve put the current assets there, but I’ve still got to work out the fixed assets and the intangible assets before I include them.
Woman: Thanks. Anything else? Man:
One last thing. Also about assets. Bill wasn’t sure what the figures in brackets in section four refer to. He thought they might represent average figures for the last two years or something like that. In fact, they show losses over that period.
Woman: Thanks. I’ll pass all that on. [pause]
Conversation Two.
Hi, George. This is Kristoff calling from Australia. It’s about the contract negotiation for constructing the factory in Melbourne. Our client doesn’t want to agree the date for the completion of the second stage, even though it was accepted when we put in our tender. We specified that we couldn’t complete in less than six months. Now they’re saying they want it brought forward a month. This is a problem, because they want to put in a penalty clause which states that for every week we are late, we have to pay three per cent of the total cost. I can’t agree to this at all. We’re already using our best technical employees, and the only way we can complete in five months is if we use more unskilled staff right from the beginning, which’ll mean a substantial investment which we hadn’t budgeted for. There’s one incentive, however; instead of the usual bonus, we’ll be awarded the contract for their next project if we can meet their new deadline. [pause]
Conversation Three. Man:
Hello. Joe Fischer speaking.
Woman: Joe, it’s Wilma here. Can I have a word with you about the e-commerce
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website?
Man:
Of course. How did the interviews go?
Woman: Well, we recruited an excellent business analyst this morning - he’ll join the team
in a week or so. There’s still a gap for a software engineer, though, and we’ll have to fill that as soon as possible.
Man:
I’ll ask around and see if anyone is able to transfer from other projects.
Woman: Thanks. Also, do you think you could produce a report for senior management
by the end of the week? They’d like an idea of the timing of the project.
Man:
No problem. What else should I include?
Woman: Let us know exactly what hardware you’ll need. The budget already allows for
that.
Man:
OK - anything else?
Woman: Yes - when you describe the project, would you make sure you spell out the
objectives in clear, straightforward language? Certain members of the Board have their doubts that it will bring about the results we promised.
Man: [pause]
Part Two. Questions 13 to 22. Section One. [pause] Thirteen
We all forget how hard interviews can be. Applicants walk into a strange room and face what can be a long line of unknown people who fire a lot of tricky questions at them. It’s not surprising that their minds go a complete blank. If you’re the interviewer and you make an effort to put the interviewees at their ease, then they’re more likely to express their opinions coherently and give you a chance to assess them properly. [pause] Fourteen
OK.
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Interviews are often too theoretical. You get the applicant’s views on, for example, the principles of marketing and then throw in some tough questions to see if they’re up to speed on the latest developments. But introducing a hands-on activity can be more telling, because then you can assess how they approach everyday activities. I know some people argue that at senior level it’s a waste of time and you should be checking how they deal with clients and colleagues, but I’m not convinced. [pause] Fifteen
You have perhaps thirty minutes to assess an applicant. I think considerable work needs to be done beforehand with the CVs - checking if they have appropriate qualifications and so on. What you can’t get from the application, though – except from references, and I don’t find those very reliable - is an idea of how people act in the workplace. I focus on that, by asking questions which should reveal how they’d react in different circumstances and with a variety of colleagues. [pause] Sixteen
Interviewing isn’t something I’m good at, I’m afraid. I don’t trust my own judgement for such important decisions. That’s why I usually have about five other people with me, not necessarily from the particular department, though. I realise this prevents me from making the interview seem like an informal chat, but I’m not sure of the overall benefit of that - perhaps it provides an insight into how the applicant thinks and behaves outside work, but that’s not crucial. [pause] Seventeen
One’s trying to assess so many different aspects of potential employees. Time’s limited, and you can get bogged down in asking challenging questions relevant to particular duties in the job description. It’s easy to forget to allow time for applicants to find out things that are relevant to them. It’s sometimes seen just as a courtesy or a way of making them feel comfortable, but it can give you real insight into how they think and react to the post. [pause]
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Section Two. [pause] Eighteen
Well, we’d put together what we thought was an excellent team for the project - that is, until we hit technical problems and realised that we needed staff with a wider range of specialised technical experience than the people we’d recruited. So we had to advertise again to replace some key members of the team; we were lucky that we just about managed to cover the extra costs within the budget. Our customers were very satisfied with the outcome. [pause] Nineteen
Although we had minor problems with suppliers from the start, these were easily overcome. Initially, I thought we’d underestimated the cost of the project, as it was so tight most of the time, but we managed to avoid an overspend. It was a very stressful time. However, it was the breakdowns which really upset the staff, and I wouldn’t have blamed them if they’d walked out on strike the fifth time it happened in a week. [pause] Twenty
Generally speaking, we have an excellent project-management team, trained to deal with any unexpected problems - you know, like when the money runs out or the client wants something different from the original agreement. Unfortunately, we hadn’t anticipated the component manufacturer going out of business. The Purchasing Manager was furious, because there were so few companies who produced exactly what we wanted. However, finally we found a replacement that enabled us to keep within the limits of our budget. [pause] Twenty-one
We’ve done several projects in this country, and the best thing about working here is that suppliers are very helpful. If you are unhappy with anything, they immediately try and sort
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it out. If, for example, a digger broke down, they’d replace it within hours and at no extra cost. Another thing is there is no shortage of suitably qualified workers, but we had an expensive delay on our last project, because we’d miscalculated the size of the workforce we needed. [pause] Twenty-two
We spent so much time making sure that our employees would be comfortable working in such difficult conditions. We warned them about what to expect, as well as checking that they had the right qualifications and experience. We thought we’d anticipated every possible problem. This time, we were proved wrong when the supplier sent us different trucks from the ones ordered. Although they coped well with the extreme conditions, they were too small for our needs. [pause]
Part Three. Man:
Next week, Healthway plc, the health and beauty chain, gets a new Chief Executive. Here’s our reporter, Lynne Trencher, to tell us why many people regard the job as one of the most difficult in retailing. Hello, Lynne.
Woman: Hello. No, it isn’t an enviable position. Robert Henlow, Healthway’s new CEO, is
taking control of a company which may have been a well-loved and trusted retail brand for many years, but its core business is mature, and successive managements simply haven’t come up with a winning formula to deliver dynamic sales growth. And the shareholders see Henlow as Healthway’s last chance.
Man:
The company faces stiff competition, doesn’t it?
Woman: That’s right. In fact, most town-centre health and beauty chains are feeling the
pinch, with few planning to expand. Unlike food, it’s a high-margin business, which gives supermarkets, particularly those on out-of-town sites, scope to sell similar products for considerably less. Even the development of online shopping hasn’t yet outweighed the convenience of out-of-town sites.
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Man: Robert Henlow is coming from a company with a very different sort of culture from Healthway, isn’t he?
Woman: Yes, he’s moving from a firm that’s very open, with plenty of staff coming in from
other companies, or indeed industries. Healthway, on the other hand, has a culture where people join the group and either leave quickly, or not until they retire. It’s famous for breeding its own managers, and outsiders have traditionally not been welcomed.
Man:
Healthway’s financial strategy has been criticised in recent years, I believe.
Woman: Under the last Chief Executive, Charles Hamilton, Healthway concentrated on
the bottom line, with the aim of supporting the share price. Even the one acquisition that the company made had that same goal. But this strategy had its downside: very few improvements were made within the business, so their IT, for instance, is now several years out of date.
Man:
Wasn’t it Charles Hamilton who started Healthway’s beauty treatment centres?
Woman: Yes, almost his first major action as Chief Executive was to set up a separate
chain of stores that, in addition to selling health and beauty products, provided massage and other treatments. This ran alongside the existing stores. But even at the outset, few investors were taken in by his over-optimistic forecasts, and the doubters were proved right. Just before he left the company, he closed the centres and admitted his mistake.
Man:
Hamilton also made drastic staffing changes, didn’t he?
Woman: He certainly did: he slimmed down the head office, he undertook a complete
overhaul of the top management team and tidied up the company’s international operations. Of course, there was a danger that in changes on that scale, mistakes would be made and the company would lose individuals, or even whole departments, that it needed. He managed to avoid that, but he was quite unable to communicate the reasons behind the changes, so he created an enormous amount of ill will.
Man:
Hm. Has Robert Henlow announced any plans yet?
Woman: When he starts work next Monday, he’ll find a report from consultants, advising
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the disposal of several underperforming stores that are too small ever to do well. However, they do think the current total should be maintained, which would be achieved by ploughing money into more profitable large-store formats. Even though this means adding to the payroll, the consultants say the increased profitability will make it worthwhile.
Man:
So, all in all, it’s quite a challenge for Robert Henlow.
Woman: It certainly is, not least because he’s never run a quoted company of this size
before, and he’s one of the youngest chief executives of a business like this. He’s taking a huge step from his previous position, though at least the health and beauty sector isn’t entirely new to him. He’s not going to find it at all easy to tackle all Healthway’s problems.
Man: [pause] TEST 3
Part One. Questions 1 to 12. Conversation One. Man:
Hi, Jane. Barry here. Sorry this is a bit rushed, but I need you to fax me a document urgently.
Woman: No problem. What do you need? Man:
That report I’ve been writing on recruitment. I haven’t printed it off, but you’ll find it on my computer. I called it ‘jobsplan’, all one word. OK?
Woman: No problem. Which folder is it in? Personnel? Man:
That’s right. No, no, hang on, um, I created a new folder called Current Reports - it’s in there.
Woman: OK. I’ve made a note of that. If I can’t locate it, I’ll call you back. Man:
Fine. It’s quite a long document by the way. So don’t bother sending the appendix. We don’t really need that. But include the contents page - that’d be Lynne, thank you.
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quite useful.
Woman: Shall I send it to you there at Head Office? Man:
Um... let me think. It might be better to fax it to my hotel. Er, no, you’re right. Send it here.
Woman: OK. Man: [pause]
Now listen to the recording again. [pause]
Conversation Two.
Woman: Hello, Mike, have you got a moment? Man:
Sure, what is it? The location? Thanks very much. Bye.
Woman: Yes, we can’t put it off any longer. Man:
Hm, especially as we chose the site for the new warehouse last night. We need to get organised.
Woman: Exactly. We need a decision today. Where should the discount shop be, then? Man:
Well, not too close to our existing branches, that’s for sure. I think it’d better be in the out- of-town retail centre.
Woman: I know that’s easier for customers, but the business park, which is the other
out-of- town site, would be better for deliveries, which is important.
Man:
But the trend is towards more and more people using the retail centre, isn’t it?
Woman: Well, the survey we did shows people will visit the business park if we open
there.
Man:
Really? I wasn’t expecting that. Is it because we produce specialist goods? Does that make a difference?
Woman: Yes. Man:
Are there any local grants available?
Woman: Not as such, but there are tax benefits if we take on premises in the business
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park.
Man: [pause]
Conversation Three.
Hi, it’s Emily Parker in Marketing. I was at the Carlton Hotel yesterday for a sales training meeting. I thought it would be a very suitable place to hold the shareholders’ meeting you’re arranging. I heard you’re still looking for somewhere. They’ve recently refurbished all their meeting rooms. I was in a seminar room - it was too small for your event, but I looked at the conference hall and the VIP lounge and either would be perfect - oh, except the conference hall’s booked on the twenty-fifth of October, so it doesn’t leave us any choice. Anyway, they’re both large rooms with comfortable seating, and it’s possible to have a sound system at no extra cost. We’d have to bring a display stand of our own if we wanted one. Assuming you want to go ahead with the twenty-fifth, I mentioned to the Events Manager there that we might want to book, so you’ll need to talk to him, rather than the General Manager in the bookings office. The number’s three-five-seven-two-oh-nine. Bye. [pause]
Part Two. Questions 13 to 22. Section One. [pause] Thirteen
No matter how much confidence you have in the person you’re entrusting a task to, I think there’s a crucial element to delegating that’s often forgotten. There has to be a framework in place of where and who to go to if they get stuck and need help. I know, as a manager, I’m used to dealing with tasks all by myself, but when I’m delegating to juniors, I always remind myself that not everybody is as independent as me. [pause]
Right. That’s settled, then. How about...
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Fourteen
If you’ve ever delegated to someone else and spent more time on the task than if you’d done it yourself, then it’s time to review where you’re going wrong. If your motivation for delegating is thinking that the other person can do it better than you, or it’ll free you up to do something else, that’s great. But delegation isn’t an easy way out, so if you’re just being lazy or the task seems too small to concern yourself with, always do it yourself. [pause] Fifteen
Once you’ve selected someone to delegate a task to - assuming you do have a choice of personnel - there’s something you need to do that’s too important to leave till the job’s finished. It’s a mistake if you don’t make it clear to staff what they’re doing well and what they could improve on. Some managers think it’s a form of interfering and doesn’t give people space to get on with the job, but I find some constructive suggestions are usually helpful. [pause] Sixteen
When you give someone a task to do, there’s not much point in simply listing the particular difficulties involved in carrying it out. You really need to check they understand what challenges they can expect to face and how they might deal with them. So you should sit down with them and explore possible solutions. If they simply say ‘I understand’, it’s not a guarantee that they do. [pause] Seventeen
Once you become an effective delegator, you’ll be talked about by those who see what you and your team can achieve. And, as for team members, well, they’ll appreciate the trust you place in them and the support they’ve received from you. But until you reach that point on the learning curve, keep telling yourself not to give up whenever it doesn’t go to plan. I’ve certainly had some disastrous attempts at delegating in my time. [pause]
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Section Two. [pause] Eighteen
Our last campaign was the most successful ever. Always worried about the cost, we were on a tight budget, but the results were fantastic. Research had shown our rivals’ products were more attractive, but while the ad was running, one of them had some bad publicity about their products, and we picked up a lot of their trade. Sometimes, it’s not how much you invest or who you use, but just being in the right place at the right time. [pause] Nineteen
Last year’s TV campaign took the market by storm. In the past, we’d depended heavily on sending out samples to customers - it was a cheap and, we thought, effective way of targeting our core customer base. But last year, we had the good fortune to recruit a dynamic young Marketing Manager who brought with him a group of people who are changing the way we do things. We’re looking to produce another even more successful series of TV commercials next year. [pause] Twenty
Spend money to earn money! That’s been the philosophy of our organisation for years. The directors liked expensive-looking TV commercials, which appealed to our core customers in the old age bracket. However, our last campaign proved that you don’t always have to go over budget to win new customers. We thought of a new approach, which our agency developed, and it turned out to be cheaper and, to our delight, brought us to the attention of a new, younger market. [pause] Twenty-one
Successful TV campaigns can be costly, and good market research is absolutely vital. We’ve always researched thoroughly before a campaign, but there’s something else which was the key to last month’s success. Although some people attribute it to our main rival’s bankruptcy, it was the fact that we found a management group who we brought in to
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recommend ways of improving our marketing that really helped. A suggestion to use a TV campaign to advertise in-store promotions and mail-order facilities paid off handsomely. [pause] Twenty-two
Consultants recommended hiring a whole new marketing team for the company, but I rejected this. We’ve got a good experienced team in the company. It would’ve been an unnecessary expense. We decided we should put more effort into the groundwork for the campaign. Our team carried out a more detailed customer survey, and on the basis of that, our production company was able to create a commercial that was more accurately targeted. [pause]
Part Three.
Woman: ... and today we’re talking to Brett Porter, whose company developed the hugely
successful all-weather maps called ‘Rainaway’. These are waterproof maps that can be used by people who ride motorbikes. Brett, welcome to the programme.
Man:
Thanks.
Woman: You actually invented Rainaway - how did that come about? Man:
Well, anyone, like me, who rides a motorbike, understands the problem of ordinary maps falling to pieces when it’s raining or windy. There are three million bikers just in the UK, who I knew would be willing to pay for a solution to this problem. Nobody had ever produced something like Rainaway - I’d assumed it couldn’t be done.., that the costs were too great.., but I was disappointed that my needs as a consumer weren’t catered for, and people I knew kept encouraging me to develop and produce it as a business.
Woman: Was establishing the company difficult? Man:
In fact, I already had my own company - a motorcycle courier firm - but this was completely different and involved setting up a new business. What I’d learnt about pricing didn’t seem to apply - I’d never dealt with a ‘product’ as such. But I
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knew I understood the market better than most. If I could make the product, I’d be meeting a demand. However, knowing where to sell and how to get it into the shops was another matter!
Woman: I see. Man:
But I was convinced the business would grow fast. I even entered the European Awards Scheme for ideas for business start-ups. It had a first prize of one hundred thousand euros’ worth of software from Croner Consulting. The awards were sponsored by Alliance Business Bank - and because I made the final shortlist, I was offered a two-per-cent interest loan from them if I needed it. They organised a dinner for everyone on the shortlist, and I happened to get chatting to their senior business consultant, who gave me some invaluable financial advice. It really helped get me started.
Woman: Did you do any trial production of the maps? Man:
Yes. I knew what they should look like - a strong cover and small enough to flick through quickly. But trials took six months. The difficulty was we had to use a really tough kind of plastic for the cover, and this had to be fed into the printer sheet by sheet - fine for a small output, but absolutely no good for large-scale production.
Woman: Did you have any trouble persuading a printing company to make Rainaway? Man:
I thought I would - it wasn’t really in a printer’s interest to make a long-lasting product. The real difficulty, though, was my lack of a track record. They thought I was just planning a one-off print run or a very small-scale operation, which wouldn’t be very profitable for them. Once I’d persuaded the boss of one firm that wasn’t the case, he seemed willing to take a chance.
Woman: Do you use someone else’s maps to make Rainaway from? Man:
Yes, we use Herne Publishing’s. Of course, given they know they’re a crucial supplier, there’s a danger in a few years they might want to buy us out. But in the meantime, I have a protected trademark, and the people at Herne Publishing realise it’s better for them to let me use my knowledge and contacts to establish the business. The alternative for them would involve spending money on
20
producing a rival product, which I know they would be reluctant to do.
Woman: You must be pleased with Rainaway’s performance? Man:
Absolutely. We launched Rainaway in September two thousand one, and sold two hundred thousand maps in the first year alone. In the last couple of years, the company turned over in excess of seven hundred thousand pounds, our best result so far, which isn’t bad when you consider our maps retail at ten to twenty-four pounds each.
Woman: Very impressive! What’s next for Rainaway? Do you plan to extend your range? Man:
I already have plenty of other ideas for the longer term, but that’s all I can say for now. I’ve been devoting a lot of time recently to facilitating expansion by setting up a call centre to deal with mail-order sales. That’s just opened, with a staff of twenty-five. I now need to concentrate on our advertisements - they’ve been very popular so far, but it’s tough coming up with new ideas to continue to attract attention.
Woman: I wish you luck. [pause] TEST 4
Part One. Questions 1 to 12. Conversation One. Man:
Hello. Can I help you?
Woman: My name’s Sue Bentley. Is Amy Johnson there? Man:
I’m afraid not. I’m her assistant. Can I take a message?
Woman: I’m running a seminar in Amy’s department next Thursday. The provisional title
was ‘Dealing with Overseas Clients’. Could you please tell Amy I’ve changed it to ‘International Communication’ instead?
Man:
Certainly. Anything else?
Woman: Yes. I’ve seen the rooms Amy recommended... I like the presentation room best,
21
but it’s too small for all twenty participants, so I’d better have the boardroom. One more thing: I can deal with photocopying the slides myself, but if Amy could provide photocopies of the feedback form for everyone, that’d be great.
Man:
OK. Got that.
Woman: And could you also mention that she’s welcome to keep hold of one of the books
I’ve lent her - Working Overseas - but I do need the other one back in time for the seminar - it’s called Global Partnerships. That’s all! Thank you for your help.
Man: [pause]
Conversation Two. Man:
Sarah Williams, please. You’re welcome.
Woman: I’m afraid she’s not available right now. Man:
Ah, can you ask her to call me back? Brian Jones - it’s urgent.
Woman: Of course. Can I ask what it’s about? Man:
You tell her there’s been a mix-up yet again. Instead of plain paper, we’ve got headed paper. Last month, we even got lined paper!
Woman: I do apologise. I’ll ask her to phone you as soon as possible. She’s at lunch at
the moment, and then she’ll be in a training session, but I’ll make sure she contacts you when that finishes.
Man:
Ah, we need the goods by Thursday, otherwise our production line will be held up, and we’ll miss our deadlines. If you can’t sort it out, we’ll have to change supplier. We can’t afford to wait around.
Woman: Of course. Man:
And another thing - the amount owing on the invoice is given in full - that’s not right. I’d thought we’d agreed I’d settle the bill by instalments. I could pay half now, but I’m not prepared to.
Woman: I’m sure she can sort something out. [pause]
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Conversation Three.
Woman: New Vision, Conference Department, Janet Edwards speaking. Man:
Hello. This is Nick Brown from Business News. I hear you’re running a rather special conference in Newcastle.
Woman: You mean our event on the tenth of October? Man:
Yes. Can you tell me something about it, so I can mention it in our paper?
Woman: Certainly. The name should give you a clue - we’re calling it ‘Innovations’. Not
the usual ‘Better Sales Techniques’, etc.
Man:
That sounds very forward-looking. I assume it’s about new developments in technology?
Woman: We thought there were too many seminars on that. We’re focusing on human
resources instead.
Man:
New ways of approaching it, I suppose. Interesting! So, who have you got to lead it?
Woman: Well, this is a little different, too - Daniel Christie. Man:
Is he the man from Cambridge Business School who’s just written that book on incentive schemes?
Woman: I believe teamwork is actually his field. Man:
So, for example, the way people interact... Any other special features?
Woman: We’re planning some practical and very unusual workshops about motivation. I
think that’ll cause a few surprises.
Man:
How ‘unusual’?
Woman: Come and see for yourself. I’ll send you a complimentary ticket. Man: [pause]
Thank you. I will.
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Part Two. Questions 13 to 22. Section One. [pause] Thirteen
Sure, the relocation plan is attractive, but just look at the costs! And this just isn’t a good time to be spending that sort of money. Why not make the most of what we’ve got, instead of starting from scratch? Keep our present location, strip it down, and completely redesign and redecorate our existing workspace. I think we could be far more efficient without such a huge outlay. [pause] Fourteen
Well, I feel that we’re just not making enough profit to sustain the kind of growth we need. Obviously, production costs have increased, and I don’t think we’ve taken that into account nearly enough. Introducing a competitive pricing strategy wouldn’t mean that we couldn’t take inflation into account, and we should certainly consider this before the end of the year. Otherwise, we’ll find ourselves selling at below cost! [pause] Fifteen
Time equals money, and you just have to look at the amount of time we spend - well, waste - travelling from place to place to realise that this is costing us too much. We’re duplicating a lot of services and systems, which we wouldn’t have to do if we streamlined our offices. Operating from one location instead of four would lead to greater control, considerable reduction in costs and increased efficiency. Staff would appreciate it, too. [pause] Sixteen
I think that there’s a danger - we’re over-diversified and, instead of looking at our production processes and ways of automating them even further, what we should be doing is targeting our most successful lines and focusing on them, even if it means abandoning some lines altogether. What I’m talking about is specialisation - concentrate on what we know we do well and what we know will make money. And that’ll bring down
24
costs, too. [pause] Seventeen
We’re relying too heavily on past success, without thinking about where we go from here. You can’t just rely on maintaining productivity. Prices of raw materials are rising, and our overheads are enormous - look at what we’re spending on buildings alone. In this business, you have to run just to stay in the same place. We’ve go to constantly improve, and that means getting more produced faster, and better. [pause]
Now listen to the recordings again. [pause]
Section Two. [pause] Eighteen
I’m afraid we really need to finish the project as soon as possible. If we don’t keep to the schedule, the delay could lose us our external funding. Losing that could lead to various problems, including salaries not being paid on time. Don’t forget as well that the budget depends on us finishing by the end of the summer. No, we need to keep to our original plans and keep that money coming in. [pause] Nineteen
As you can see, the figures speak for themselves - our model EXG surpassed all forecasts in its first year. Because of our competitive pricing policy, it has been selling extremely well. However, we want to extend this trend and build on it. We now need to come up with a campaign to make sure we increase the number of models we sell abroad, not just on the domestic market. Japan is our main target. [pause] Twenty
Right, let’s see where we’ve gotten to. We’ve agreed to recognise when staff have worked
25
hard and achieved their goals. Sales need to have done reasonably well in their area - ideally better than the forecasts while keeping within budget. And, if we feel a person is worth substantial investment, we can go with a five-per-cent pay rise, as well as offering a bonus in exceptional circumstances. [pause] Twenty-one
The figures show quite clearly that we didn’t reach the target we set last year. If anything, I think we ought to cut back on spending, at least for the next few months. If sales pick up in the new year and we manage to add new clients to our base, maybe we can think about buying more estate and equipment then. If I may say so, we have to be realistic. [pause] Twenty-two
What were last year’s figures? Hm. Not too good, I see - sales in the US were down, but it looks as though they were more or less constant in Asia. However, the worldwide market’s pretty buoyant at the moment, forecasts do seem more optimistic, and our investment looks sound, so yeah, let’s go along with that - we’ll allocate four hundred thousand dollars for the first quarter. That’s an eight-per-cent increase on last year - we should be able to keep within that. [pause]
Part Three.
Woman: Ah, Gareth, do sit down. Man:
Thank you.
Woman: Now, presumably you’ve considered this case study about Trident Appliances? Man:
Yes.
Woman: Good. Well, let’s start with the present situation. Trident manufactures
photocopiers, which they sell in bulk to retailers and large organisations. Now, why do you think they’re having trouble selling them?
Man:
It’s strange, because there’s a big demand for photocopiers, and Trident’s are competitively priced. But the specifications just don’t compare with what’s
26
expected these days. It’s a shame, because they’ve got plenty of technical expertise in their engineering support team.
Woman: OK. Now, the company is owned by a large multinational. How do they see
Trident?
Man:
Well, the group is largely in the mining sector, and Trident doesn’t fit in with that, so you’d expect the parent company to want to sell it. Or alternatively to be active, say by helping it to expand its markets. But really it seems quite content to take a hands-off approach, as long as Trident is generating some income.
Woman: Hmm... There’s clearly poor morale among the employees. Why do you think
that is?
Man:
Well, weak line managers are often a reason, but I can’t find any evidence for that here. And even the recent changes, like the cut in bonuses, have been accepted fairly calmly. I think it reflects people’s uncertainty about their long-term prospects with the company.
Woman: What would you say about the sales staff? There’s a lot about them in the case
study.
Man:
They’re doing the best they can in the circumstances. There’s a system for helping them to develop their selling skills, and that’s working. The way customers are allocated to each salesperson could be improved maybe, to reduce unnecessary travel. But they’re getting contradictory signals about what they’re supposed to be doing: just responding to enquiries, or going out looking for new business.
Woman: Uh-huh. And what about the service engineers: what’s the main weakness in
that department?
Man:
They seem to miss a lot of opportunities. When they visit a customer to install or repair a photocopier, it’s their chance to look at all the equipment there and suggest how Trident could supply the company’s needs better. Then there’s their problem with spares, the Parts Services Department keeps stocks low, for financial reasons, but that means the engineers often can’t get the parts they need for call-outs, and the customer has to wait.
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Woman: Now, what about communications within the company? I’m sure you’ll agree
they’re not as good as they could be. Why do you think that is?
Man:
Well, was bit surprised, because, in fact, middle managers hold regular meetings with their departments. But that’s because they’re given information by the top management about policy issues and plans, for instance, which they have to pass on. But I have to say that some of them don’t seem to think their staff can have anything to say that’s worth hearing. And, of course, this creates ill feeling.
Woman: OK. Now, if you think about the Chief Executive’s problems for a moment.., what
do you think he needs to tackle first?
Man:
There are so many problems! Something needs to be done about the workforce, because some departments employ staff without the necessary training. In the long term, of course, they need to develop the photocopiers themselves. But the priority must be to reverse the fall in revenue, even if it means cutting prices, in order to increase the sales volume. Unless they do that, they’ll go out of business very soon.
Woman: And what about their advertising? Man:
Well, they’re using modern media, like the internet, and targeting their advertising more than they used to, for instance by moving from magazine ads to direct mailshots to companies. But these have an old-fashioned feel to them; the layout and graphics don’t seem to have changed for twenty years.
Woman: Right. Now, let’s go on to... [pause]
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