-
Look at the statements below and the advice of four market analysts about a company’s future strategy on the opposite page.
Which analyst’s advice(A, B, C or D)does each statement(1-7)refer to?
For each statement(1-7), mark one letter(A, B, C or D)on your Answer Sheet.
You will need to use some of these letters more than once.
Example:
0 It would be inadvisable for Dexter to extend its range of products at this time.
[*]
What next for Dexter?
Dexter’s new shaving cream is a hit in the UK. The company’s next challenges
are to branch out into new products and to succeed in America. Four top
analysts give their advice.
A Joe Hutchinson
For Dexter, the hardest part is yet to come. Many British companies fail in the U.S. and Dexter is, unsurprisingly, finding it tough. And what’s the sense in seeking cash for expansion into new product areas while having to support a loss-making American operation? There are more important things to do with the money, for example dealing with the company’s low profitability - a 2% return on sales. It might well be time to look at a few cost headings.
B Dan Valero
Breaking out of the shaving cream market should not be impossible for Dexter, but raising the money to launch the products is the real challenge. Dexter might seek a partner with the promotional skills needed for mass marketing, or focus on product development and franchising. They ought to consider whether they should continue to attack the American market, and, if so, they should seek a local partner. If control is a priority, the European market may be worth a look instead.
C James Sunderland
Dexter’s entrepreneurship, which has helped it get a share of a market previously dominated by two players, will be the key to further growth. The American market is particularly challenging, but a possible strategy is to target distributors to American retailers or a British-based subsidiary of an American parent. Another approach may be to form alliances with like-minded cult fashion or sports outlets and attract a slice of the US market open to trying new products.
D Melanie Laconte
Dexter intends to increase its market share, and one way of doing this is to introduce new products, perhaps aimed at women, into its existing range. However, its managers must be aware that the women’s grooming market is crowded, and that to extend here they must remain loyal to the values of their existing range while still proving attractive to the new sector. They need to take a hard look at how to generate demand; so far it’s worked well through word of mouth but the average American buyer expects a huge advertising campaign.
-
Read the article below about the differences between chief executives and entrepreneurs.
Choose the best sentence from the opposite page to fill each of the gaps.
For each gap(8-12), mark one letter(A-G)on your Answer Sheet.
Do not use any letter more than once.
There is an example at the beginning(0).
Analysing the Entrepreneur
The ever-increasing attraction of undergraduate courses in business studies demonstrates that many young people begin their working lives determined to be a success in business. Many of them will have ambitions of becoming bosses.(0)___G___That should be the question which all ambitious young business people ask themselves.
Some graduates learn how to run a business in someone else’s time, and then in their early thirties, start out on their own. That course of action is relatively common and straightforward.【P1】______Often, however, their business flair comes at the expense of more mundane business skills such as team building and maintaining harmony.
A recent study, in which seventeen successful entrepreneurs took part in in-depth interviews, as did a similar number of chief executives, concluded that honesty and strong moral principles are important characteristics of entrepreneurs who achieve lasting success. According to the various tests and self-assessment questionnaires used in the interviews, seventy per cent of entrepreneurs have these characteristics, as opposed to only twenty-eight per cent of chief executives. 【P2】______ It would seem that most entrepreneurs deserve more credit than people generally give them.
This ethical style of leadership fosters a culture in which expectations are uncompromisingly high and in which people believe they will be properly rewarded for their individual contribution. 【P3】______ Employees often complain that the worst kind of bosses are the ones who own the business, as they can be very intolerant of others who make mistakes.
Entrepreneurs are passionate about their work but they have not worked their way up through the organisation and tend to lack the people management qualities that chief executives have developed over long careers.【P4】______Of course, it could be argued that the single-minded approach of entrepreneurs is what makes them successful; it certainly enables them to put extraordinary effort into what they do.
The study indicates that generally chief executives can match entrepreneurs in terms of drive and determination. There is one exception and that relates to taking risks.【P5】______The chief executive can, on the other hand, always move to another company.
But in the end, if there are no entrepreneurs, there is no work for chief executives. It is the people that start businesses who are the original wealth creators.
Example:[*]
A However, it can also result in entrepreneurs being profoundly disappointed when others fail to live up to their high standards.
B They need to have the confidence to make everyone in the organisation believe that this is no ordinary place and no ordinary job.
C Given the common perception that entrepreneurs are only in business to make money, this very positive finding was perhaps the most surprising.
D They are less likely to promote teamwork and co-operation than chief executives, who are much better at reading and understanding those around them.
E After all, if it is your own company, you cannot walk away, and you will do anything either to keep it afloat or to help it prosper.
F But true entrepreneurs do not necessarily wait until their business knowledge has improved or until the time is right - they have always been driven to achieve.
G But is it best for them to become entrepreneurs and start their own business or work towards running someone else’s?
-
Read the article below about Marc Hooper, CEO of the confectionery group Spartan Ketley, and the questions on the opposite page.
For each question(13-18), mark one letter(A, B, C or D)on your Answer Sheet.
Marc Hooper, CEO of Spartan Ketley
Marc Hooper, not long promoted to CEO of confectionery giant Spartan Ketley(SK), is very different from his predecessors. He is a corporate lawyer by training, and his background has clearly shaped his management style. He was taught that no work should go unchecked and that no statement can go out without everything being fully defined. The legal world teaches you to think in a synthetic way, to take contrasting ideas and thread them together to form a strategy’ Hooper, with little marketing experience, was not at the top of market observers’ lists for the job. But here he is, just over a year into the role and seemingly on top of things.
Educated at Harvard University, Hooper started his career with well-known New York consultants Cox & Leight(C&L), and became a specialist in mergers and acquisitions. ’It was a tremendous training ground and I could have stayed in mergers and acquisitions - I found the work interesting.’ But another opportunity presented itself: SK offered him a job as general advisor. Hooper knew SK well because C&L was its main New York consultancy firm and Hooper looked after its account.
Hooper liked SK and when they came calling, several factors weighed on his mind. ’I admired SK and thought it would be a great place to work. C&L had told me I was only five years through a ten-year journey to become a partner. Also, for three years in a row my pay at C&L had stayed the same. Finally, I was working very long hours in a large, impersonal office and it seemed like an intelligent lifestyle decision to take a job with a different company.’
Hooper became established at SK, and soon felt ready for a higher position, but was told that no one could get on at SK unless they had been in sales and marketing. ’I had to make a move,’ says Hooper. ’I took a risk; I became head of marketing in Europe.’ In fact this was a sideways move - not for more money but to add to his knowledge and to further his career. The first challenge was that he found himself in charge of 25 bright young marketing people. ’I had to work hard to keep up,’ he admits.
Throughout, he has remained focused, his eye always on the main prize. His elevation to CEO, he says, is proof of SK’s inclusiveness. ’We are always open to people with fresh ideas. As CEO I support anyone who is willing to take a chance and who wants to stretch themselves. If you are keen to develop and prove you can succeed, this company will provide the challenge you need.’ And in line with this philosophy, Hooper is not an autocratic leader: his style is to consult, to seek advice, then to act.
SK has grown quickly, mostly by acquisition. Hooper sits at the head of an empire that employs 50,000 people in 130 factories. His chief mission is to reduce waste in the company, to bring down costs, and to produce funds to reinvest - all the time keeping ahead of competitors. ’We must generate growth on a consistent basis. We’ve also got to generate more cash for investment in marketing.’ The latest development, the purchase of a chocolate manufacturer for $42 billion - a deal managed by Hooper - has made it one of the largest confectionery groups in the world.
-
Read the extract below from the annual report of a company with manufacturing interests around the world.
Choose the best word to fill each gap from A, B, C or D on the opposite page.
For each question(19-33), mark one letter(A, B, C or D)on your Answer Sheet.
There is an example at the beginning(0).
Manufacturing Strategy
During the last year, we announced the significant(0)___B__.of our plastic sheeting plant in Malaysia, which, together with the acquisition of the Javanese factory, will approximately double the Group’s manufacturing【C1】______The cost of this development is within【C2】______and will be approximately $5.6m, of which $2.7m was incurred during the previous year. It is on schedule to【C3】______increasing volumes from October 2009.
Following the【C4】______of plastic tubing manufacture from Germany to Thailand, we have effectively doubled the capacity of this facility at an【C5】______cost of $12m. The project is set to cost less than the original【C6】______and is on target for increased production by June 2010.
In February, we announced our【C7】______to sell our factory in Ireland. This decision is in line with the Group’s strategy of【C8】______on our core categories of branded products.
In June, we announced investment in a new state-of-the-art UK manufacturing facility for specialist plastic components. This facility will be【C9】______by mid 2009 and will increase the Group’s capacity to manufacture products efficiently in-house. At the same time it will【C10】______about 200 new jobs in an area of high unemployment. The factory is to cost approximately $24m, towards which government【C11】______ of up to $4m are already available. Sadly, as part of this move, we announced the 【C12】______of our Blackburn facility, which is due to take place in the early part of 2010.
As part of our commitment to effective external communications with all our stakeholders, in October we【C13】______the corporate website, which is now providing up-to-date information on the Group and we look forward to receiving 【C14】______from users of the site. Existing product websites are now in the 【C15】______of being redesigned as part of the global rebranding strategy.
Example:
A extension B expansion C accumulation D inflation
[*]
-
Read the book review below.
In most of the lines(34-45), there is one extra word. It is either grammatically incorrect or does not fit in with the meaning of the text. Some lines, however, are correct.
If a line is correct, write CORRECT on your Answer Sheet.
If there is an extra word in the line, write the extra word in CAPITAL LETTERS on your Answer Sheet.
The exercise begins with two examples(0 and 00).
Examples:[*]
Advertising for the Small Business by Nick Daws
0 Good communication with existing and potential customers is at the heart of
00 successful business. That is one reason why advertising should, and does, play on such
【M1】an important role in so many organisations itself. However, for the small business, unfamiliar
【M2】with or inexperienced at using advertising, the investment can seem uncertain. Unlike
【M3】to their counterparts in larger companies, with sizeable marketing departments and
【M4】professional advertising agencies, no managers in smaller firms often find themselves
【M5】facing a range of decisions about which campaign objectives and strategy, creative
【M6】content, budgets and media choice. The list goes on. That is why I was pleased about to read
【M7】Nick Daws’ guide to the world of marketing communications. I use this phrase rather than
【M8】advertising because the book goes beyond of the weekly display advertisements in the local
【M9】paper. It also covers sales promotion, direct mail, point-of-sale and PR, all whose components of
【M10】the marketing mix that can be easily overlooked, but which are in fact resulting highly effective.
【M11】It also provides clear and comprehensive advice on the development of strategy, thus ensuring
【M12】that careful readers will succeed avoid the costly mistake of rushed or ill-considered decisions.
