UNIT 1 Target markets

Generation Y
All across America, a new generation of consumers are making its presence felt. Laura Achaefer, a
clerk, has been handling with returned good because kids don't like what the parents bought them.
They like brands, their parents never heard of, but brands like Levi's, Converse and Nike are over.
Lori Silverman says they went out of style. Labels that have shaped popular tastes since the Baby
Boomers were young simply aren't producing the same excitement with today's kids. pepsiCo.Inc.
has struggeled to build loyalty among teens, Nike Inc.'s sales are tumbling as the brand sinks in
teen popularity polls, while Levi Strauss &Co is fighting falling market share. Today kids arent parto
of Baby Boomers, they are Generation Y, which rivals baby boom in size and in buying power.
Generation Y i marked by a distinctly practical world view, they are raise din dual income and
single-parent families, they are given financial responsibility. They are involved in family purchases,
they expect to have careers and are thinking about home ownership. Nike is still popular among
teens, but has lost its tight hold on the market. Generation Y likes comercials with humour, irony
and the truth. This generation forms a less homogeneous market than their parents. One factor is
their racial and ethnic diversity, breaking up of media, with TV being replaced by cable channels,
the rise of Internet. Merketers whoi don't learn the interests and obsessions of Generation Y will
meet a wall of cyniyism and distrust, to break through this they are maring their camapaigns more
subtle and local. Coca Cola, Universal Studios and McDonald's are using street teams, young people
who talk to teens about everything from fashion to finance.

UNIT 2 Triumph and disaster

Santa inspires Gadget Shop founder
Jonathan Elvidge could not find a store that sold innovative presents, so he decided to open his
own. Today he runs a chain of twenty-five. He had been looking for Christmars presents, and was
trying to find a retailer that stocked a large range of innovative presents. He realized that there was
a gap in the market so after two years of research, he decided to start a bussines and opened his
first Gadget Shop. His aspiration to be an enterprenuer came after a number of diversions and
make-or-break situations. His plans for the gift shop were accelerated when he fell out with a
manager. He drew up a business plan for his new venture, spending his holidays at gift conventions.
Elvidge's persistence paid off. He remortgage his home, resizing enough money to fund his first
shop. He said that the Gadget Shop was successful from the first day. After five months he found a
partner who invested capital to help the business expand. You have to be prepared to lose
everything and remember that the biggest risk is not taking any risk.

UNIT 3 A sense of priorities

Beat the clock - Time wasters fall into a number of categories
Tomorrows cause themselves problems because they prefer to think about work rather than doing
it.Such individuals postpone decisions so that, consequently, tomorrow becomes the busiest day of
the week. Tips for this type are: breaking huge tasks into smaller jobs, drawing up a 'to do' list of all
the tasks they need to complete and etc.
Deorganized typs are immediatly recognizable by the piles of paper on their desks. They are never
on time for meetings and often spend a large part of their day hunting for files on their desks, and
for messages and telephone neumbers written on papers scattered all over the office. Tips for this
type are: plan your workload every day bay prioritizing your work, create a 'to do' list at the start of
each day, make sure all messages, telephone calls are recorded in one place and etc.
Poor delegators are individuals who waste time doing work that could easily be done by someone
else. Typically this is because they lack trust in others and the ability to say 'no' and so take on too
much. Something that might help to this people is to remember that delegation does not equal
abdication, always take time to explain what is required, avoid taking on unnecessary work.

UNIT 4 Going global

A world of beauty
L'Oreal, the French cosmetics giant, is hoping to take advantage of one of the worlds most fertile
emerging markets. There is a bathroom in Shanghai where LOreal researches have watched more
than 600 woman taking a shower. The studys purpose is to discover how Chinese consumers, use
the make-up and skin-and-care products. Paolo Gasparini, Managing Director of LOreal China, says
that pharmacies have changed a lot here. In the Peoples Republic, the use of deodorant and
perfume is very unusual and pale skin is the beauty ideal women strive for. The company with
brands that include LOreal Paris, Giorgio Armani fragrances, Maybelline New York, and Lancme
make-up is determined to be at the forefront of Chinas latest cultural revolution. LOreal can offer
Asian consumers French chic, New York attitude and Italian elegance. They believe that the market
has outstanding potential. Other western multinational corporations have been expanding
throughout China. Beijing has the largest Kentucky Fried Chicken restaurant in the world,
McDonalds operates more than 235 outlets in 41 Chinese cities and hospitality group Hyatt opened
the third tallest hotel in the world in Shanghai. Last year the Chinese cosmetics market was worth
2,7 bn pounds. The company together with Glaxo Wellcome and Siemens, has build a production
facility. The factory is the culmination of a push into China that begun in 1993, when LOreal put
together a small team in Hong Kong to test the Chinese market. The research in medical college in
Suzhou revealed that Asian hair is more porous then the European variety. Maybelline is positioned
as a mass market name available in supermarkets and department stores, LOreal Paris is on offer
in department stores only, while Lancme is sold just in the most exclusive outlets. Despite its
success, LOreal, like other western investors, is facing commercial and cultural hurdles in China.

UNIT 5 Fitting in
Follow your values
In 1975 Merck researches began research on a molecule that proved to be extremly effective
against parasites in many animals. Later it was recognized that it could be adapted to prevent river
blindness, a terrible human disease, affecting 18 million people in the developing world with a
further 126 million at risk. Merck eventually succeeded in developing an effective medicine called
Mectizan. The company's dilemma was that the people who could benefit from this medicine were
the least able to pay for it. Also, they've been asking them selves would this philantropic act prove
to be a disncintive for research against tropical diseases. About tis questions company's decision
would be based on simple yet profound belief expresed by company's president who said 'medicine
is for people'. It is not for the profits. In 1987 Merck announced that the company would donate
Mectizan for the treatment of river blindness to all who need it for as long as needed.

UNIT 6 Supply and demand

Big oil faces pump protest
A group of more than 1,500 independent petrol retailers are luncihng an assault on the government
over what they see as the unfair wholesale prices being charged by oil giants. The Garage Watch
campaigners are accusing the giants of predatory pricing. They are considering legal action to bring
prices down. Britain has around 3,500 petrol retailers, but they have been going out of bussines
since the petrol crisis last autumn for which operators blame the creation of a two.level wholesale
price structure. Independent petrol stations have always bought their fuel from one of the majors
but have been able to compete with franchises so long as everyone is charged the same price for
fuel, but now this is no longer the case. Mr Bradshaw's campaign want the right to buy at a
competitive price, also the campaign has gained widespread support and he is preparing to take
the matter to the Office of Fair Trading. A spokesman for the Petrol Rateilers Association sad that
this situation is certainly the Government's fault.

UNIT 7 Games people play

The negotiators
There was a Swiss enterprenuer, he sold merchandise to the government. He was deadlocked on
some major issues, in other words he couldn't find an agreement with a top French government
offical. He tought that if he could get the French official outside his official environment, the
negotiations might improve. So he set up a golf game. It proved to be a good idea, because either it
was the beauty of the day that made them so agreeable or their poor play that brought them
together. Anyway, at the end of the game the two man had scribble their agreement on a coctail
napkin. In conclusion, if you get people out of their usual business setting and place them in a
congenial environment for a few hours it will almost always improve a negotiation. People are more
pleased about how they negotiated an agreement than what the terms actually are. The cocktail
napkin is a testament to their negotiating skills. It's proof of the wisdom of getting away from the
'negotiating table'.

UNIT 8 Survival of the fittest

Merger most foul
Last week another marriage appeared to be in trouble when Daimler Chrysler announced
thousands of job cuts. 83 % of mergers failed to produce benefits for shareholders and more than
half destroyed value. John Thorp, head of finance at the European Business School in London says
that there was a total clash of cultures between US car group Chrysler and German giant
Daimler-benz and the communication was not good. The result is that Daimler Chrysler is now
worth less than Daimler benz alone was before the deal. Daimler Chrysler enjoyed six months of
improved share before the problems started. This usually happens when shareholders give
companies a short breathhing space to prove themselves.
Daimler-Benz believed its link with chrysler would allow it to sell more Mercedes in the USA.
Investment strategist James Montier says that succesful mergers tend to be between companies
with similar businesses. Though successes are rare, the few that prosper prove that not all
corporate celebrity marriages are doomed at the altar.

UNIT 9 Fair exchanges

Trade and technology
In teh middle ages pepper and cloves were the centre of lucrative trade. They have travelled from
Indonesia to India and after that to mediterranean port such as alexandria and than Italian
merchants carried them to other markets. In 1497 Vasco da Gamma discovered less costly sea
route to the east, round the Cape of good hope. Merchant vessels followed that route and were able
to bring spices and silk to Europe more cheaply than before.
Suez and Panama canals also reduced sailing times. Specially adapted vessels can transport
perishable goods around the world cheaply. Vessels have become bigger and safer for traveling.
Until 50 years ago they were waiting in port unloaded, but containers changed that.
In addition to maritime trade, overland routes have also been important. The most famous was the
silk road,from china to byzantium.Nowdays silk roat is metaphor to describe the far reach of the
internet. This new virtual silk road allows direct contact between suplier and customer and reduces
transaction time and cost. The internet has facilitated, rather than replaced the old economy.
Tangible goods still need to travel to the customer, but banking services, education and data
processing can be transported by internet.

UNIT 10 The right stuff

How loyal are you?
Some of employers get along just fine with their employees. They compliment them on a well done
job or they send them a birthday card, but a small number of them like an wealthy couple
remembered their staff in a will by leaving them money. Management consultant Arthur Andersen
announced that his firm is to hand out 10 000 pounds golden hellos to welcome all new graduate
trainers. He claims that the real reason they were doing this is to help the recruits pay off their
student debts, not to trap them into a job for life.
Elsewhere, companies are so desperate to hang onto staff, and they would do anything.
Personnel expert Nick Page says that bosses now have to understand that their employees are both
individuals and customers. Hilda Barret from human resources group in Microsoft says that if a boss
wants to keep staff, he has to look after them. At their headquarters there is the anarchy zone
area where employees can play pool, watch tv etc.
More and more employees spend most of the time in the office, so employers are trying to make
their office life more like home to make sure they will feel comfortable doing their job.