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Look at the statements below and at the five extracts about different mergers from newspaper articles on the opposite page.
Which extract(A, B, C, D or E)does each statement(1-8)refer to?
For each statement(1-8), mark one letter(A, B, C, D or E)on your Answer Sheet.
You will need to use some qf these letters more than once.
There is an example at the beginning(0).
Example:
0 A small store horizontally merges with another one, the effect on the market may be little.
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A
You probably need to reduce the number of people. Cost savings through combining redundant tasks is a common goal for mergers. The trick is to release the individuals least well equipped to contribute in the new organisation and to hold on to the best people. Make sure the evaluation of “best“ looks at both companies’ people equally. After all, you don’t want to lose a great person from Company B so you can keep a mediocre person from Company A.
B
But signing a deal to join forces is only the beginning. The crucial next step requires knowing how to merge fast and well. In the Internet economy, that means more than changing a logo or reconciling two chief executives’ egos to the fact that they can’t both be boss. A successful merger requires an unflinching commitment to what the new strategy will be, along with a focus on making sure that vital but fragile assets-customer lists, engineering-talent pools, and so on—don’t get trampled by the deal.
C
A horizontal merger is when two companies competing in the same market merge or join together. This type of merger can either have a very large effect or little to no effect on the market. When two extremely small companies combine, or horizontally merge, the results of the merger are less noticeable. These smaller horizontal mergers are very common. If a small local drug store were to horizontally merge with another local drugstore, the effect of this merger on the drugstore market would be minimal. In a large horizontal merger, however, the resulting ripple effects can be felt throughout the market sector and sometimes throughout the whole economy.
D
Impact of mergers and acquisitions on top level management may actually involve a “clash of the egos“. There might be variations in the cultures of the two organisations. Under the new set-up the manager may be asked to implement such policies or strategies, which may not be quite approved by him. When such a situation arises, the main focus of the organisation gets diverted and executives become busy either settling matters among themselves or moving on. If however, the manager is well equipped with a degree or has sufficient qualification, the migration to another company may not be troublesome at all.
E
How your company deals with merger issues such as communication, employee retention and/ or layoffs, customer notification and reassurance, consolidation of staff and integration of systems will play a huge role in determining the overall success or failure of the merger or acquisition. Don’t wait until the deal is finalized to think about these issues. Assemble a team of stakeholders and experts to analyse the challenges and risks of integrating the two companies and have an action plan in place long before the official merger date.
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Read this text about effective banking supervision.
Choose the best sentence from the opposite page to fill each of the gaps.
For each gap(9-14), mark one letter(A-H)on your Answer Sheet.
Do not use any letter more than once.
There is an example at the beginning(0).
Effective Banking Supervision
Effective supervision of banking organisations is an essential component of a strong economic environment in that the banking system plays a central role in making payments and mobilising and distributing savings. The task of supervision is to ensure that banks operate in a safe and sound manner and that they hold capital and reserves sufficient to support the risks that arise in their business. Strong and effective banking supervision provides a public good that may not be fully provided in the marketplace and, along with effective macro-economic policy, is critical to financial stability in any country.(0).G....
Banking supervision should foster an efficient and competitive banking system that is responsive to the public’s need for good-quality financial services at a reasonable cost. Generally, it should be recognised that there is a trade-off between the level of protection that supervision provides and the cost of financial intermediation.【P1】______
Supervision cannot, and should not, provide an assurance that banks will not fail. In a market economy, failures are a part of risk-taking. 【P2】______Such matters cannot therefore always be entirely the responsibility of banking supervisors; however, supervisors should have in place adequate arrangements for resolving problem bank situations.
1. Providing sound and sustainable macro-economic policies are not within the competence of banking supervisors. Supervisors, however, will need to react if they perceive that existing policies are undermining the safety and soundness of the banking system.【P3】______ Therefore, sound macro-economic policies must be the foundation of a stable financial system.
2. A well-developed public infrastructure needs to cover the following facilities, which, if not adequately provided, can significantly contribute to the destabilization of financial systems: A system of business laws including corporate, bankruptcy, contract, consumer protection and private property laws; Comprehensive and well-defined accounting principles and rules that command wide international acceptance; A system of independent audits for companies of significant size.
3. Effective market discipline depends on an adequate flow of information to market participants, appropriate financial incentives to reward well-managed institutions and arrangements that ensure that investors are not insulated from the consequences of their decisions.【P4】______
4. Sufficiently flexible powers are necessary in order to effect an efficient resolution of problems in banks.【P5】______Where they are not, the prompt and orderly exit of institutions that are no longer able to meet supervisory requirements is a necessary part of an efficient financial system. Forbearance, whether or not the result of political pressure, normally leads to worsening problems and higher resolution costs.
5. Deciding on the appropriate level of systemic protection is by and large a policy question to be taken by the relevant authorities, particularly where it may result in a commitment of public funds.【P6】______In order to preserve the operational independence of supervisors, it is important to draw a clear distinction between this systemic protection role and day-to-day supervision of solvent institutions.
Example:[*]
A In the absence of sound macro-economic policies, banking supervisors will be faced with a virtually impossible task.
B The way in which failures are handled, and their costs borne, is in large part a political matter involving decisions on whether, and the extent to which, public funds should be committed to supporting the banking system.
C Where problems are remediable, supervisors will normally seek to identify and implement solutions that fully address their concerns.
D Supervisors will also normally have a role to play because of their in-depth knowledge of the institutions involved.
E The lower the tolerance of risk to banks and the financial system, the more intrusive and costly supervision is likely to be, eventually having an adverse effect on innovation and resource allocation.
F Off-site monitoring can often identify potential problems, particularly in the interval between on-site inspections.
G While thecost of banking supervision is indeed high, the cost of poor supervision has proved to be even higher.
H Among the issues to be addressed are corporate governance and ensuring that accurate, meaningful, transparent and timely information is provided by borrowers to investors and creditors.
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Read the following article about the success of Starbucks and the questions on the opposite page.
For each question(15-20), mark one letter(A, B. C or D)on your Answer Sheet.
Starbucks
Because of rapid globalisation over recent years, the competition around the world becomes more intense, especially for the service industry with the similar products. The most critical point for business to succeed is not only the quality of products they supply, but also the atmosphere of cooperating and the amount from yield of teamwork in retail sales. The employees who always deal with customers and can realise what customers really need are first- line staff. Therefore, it turns to be essential for companies to motivate, reward and train their employees to be the best quality personnel.
Starbucks began by three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew each other in the University of Seattle. In 1971, the first name of their store is “Starbucks Coffee, Tea and Spice“ in Seattle, Washington’s Pike Place Market. Starbucks Corporation, the most famous chain of retail coffee shops in the world, mainly benefits from roasting, selling special coffee beans and various kinds of coffee or tea drinks. It owns about 4,000 branches in the whole world. Moreover, it has been one of the most rapidly growing corporations in America as well. The reasons why Starbucks is worldwide popular are not only the quality of coffee, but also its customer service and cozy environment. Starbucks established comfortable surroundings for people to socialise with a fair price, which attracts consumers of various ages to get into the stores. Besides, it is also noted for its satisfaction of employees.
Starbucks is one of the optimal business models for cooperation and teamwork. Teamwork can not only construct a small social structure in organisation for employees to socialise, but also is a composite of various kinds of members who are equipped with different background of skill and knowledge on account of the mission. Each member plays an important role in the teamwork; therefore, everyone in that team can meet his need for getting acquainted with different colleagues and learn new skill from each other. Thus the definition of teamwork is a social system including more than three people in an organisation or context. These members identify others as one member of the: team and they have the same goal.
The managers in Starbucks treat each workpeople equally and all of the staff are called ’ part-ners’, even the supervisors of each branch are so(ailed as well. In order to narrow the gap between managers and employees, they also co-work with the basic level staff in the front line. Due to this, they can maintain a good management system and create a much closer and more familiar atmosphere than other places, which makes not only employees enjoy their job but also customers affected by their enthusiasm.
Starbucks has a well-organised communication channel for employees. It places a great importance on labours. For example, managers plan the working hours per worker and arrange the schedule of time off, and meet their requirements according to their wants. There are interviews every week to see what employees’ need is. A special survey called “Partner View Survey“ is taken off approximately every two years. The managers can receive feedbacks through the event on which part should be improved or what issue should be paid more attention to.
The partners have the right to figure out what is the best policy for them, and the directors show a respect for each suggestion. Starbucks even wants every employee to join in making and developing plans, then achieving their goals all together. As a result, the policies and principles are communicated between all staff, and there is no limitation in employees’ personal opinions. For this reason, business could improve, even innovate their strategies by different ideas.
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Read the article below about the effect of the present economic recession in the United States on American women in contrast to men.
Choose the correct word to fill each gap from A, B, C or D on the opposite page.
For each question(21-30), mark one letter(A, B, C or D)on your Answer Sheet.
There is an example at the beginning(0).
The Present Recession Affects Women More Than Men
If men were the first to lose their jobs in the heart of the economic crisis in the United States, a study now shows a(0). B... trend, women,【C1】______mothers today, are suffering the collateral effects, while the American economy is back on the road to growth.
According to a report by the Joint Economic Committee of American Congress, American men were the most affected at the beginning of the crisis as over-【C2】______in most key sectors such as building and industry. Today, they are finding jobs, unlike women and especially single mothers. Between October 2009 and March 2010, women have lost 22,000 jobs while men have found 260,000 jobs, a 【C3】______ by that Committee. According to the chairwoman of this Committee, Democrat Carolyn Maloney, the conclusions of the survey show that single women were particularly affected, with an【C4】______rate that【C5】______from 8 percent to 13.6 percent between the year 2007 to 2009.
【C6】______, one third of jobs destroyed during the current recession were【C7】______by women, said Ms. Maloney. For example, it was discovered that during【C8】______ recessions, this percentage was lower: Women have been affected by 15 percent of job losses during the recession of 2001. While women are losing more jobs, their families are more【C9】______on women incomes, said Carolyn Maloney.
In 2009, 3. 3 million women worked part time for【C10】______ reasons, the report said. Either because they had not found a full-time employment or their working hours had been reduced to part time.
So let’s all hope that this trend will change soon and that the economy gets better soon in America for women as well as for men.
Example:
A obvious B reverse C reverent D opposite
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Read the article below telling about basic knowledge of shares transaction.
For each question(31-40), write one word in CAPITAL LETTERS on your Answer Sheet.
There is an example at the beginning(0).
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The Buying and Selling of Shares
The business of buying and selling shares is done in an area known(0).the floor. Scattered over the floor are positions called posts. Each post bears the names of the stocks traded at that post. A broker desiring to buy shares of a certain stock will go to the section of the post allotted to that stock. If the prevailing price of the stock is several points【B1】______from the figure the broker is authorized to pay, an order may be left with the specialist, who often acts as liaison【B2】______buyer and seller. The specialist enters the order in a book;【B3】______ the price is reached, the specialist buys or sells the stock【B4】______to the orders of the broker and reports the transaction to the buyer and the seller. If the prevailing quotations are close【B5】______the price the broker is authorized to by, however, he or she usually attempts【B6】______complete the transaction without recourse to the specialist. As soon as a price is agreed on, both brokers, the buyer and the seller, make a memorandum of the transaction, which is reported【B7】______the brokerage office at once by telephone. An exchange employee 【B8】______the post where the transaction occurs writes, on a special card, the stock symbol, the number of shares, and the price, and places the card in an optical reader. The photoelectric eye of the card reader scans the pencil marks【B9】______transmits the information to a compute. The computer records the information in its memory banks and transmits the details of the transaction【B10】______more than 25,400 electrical tickers and display devices in the U. S., Canada, and Europe.
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Read the text below about job vacancies.
In most of the lines(41-52), there is one extra word. It either is grammatically incorrect or does not fit in with the sense 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).
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Knowing Your Strengths
0 The idea that positive feedback can be as effective as negative feedback in improving
00 it performance is not the prevailing view among managers. In fact, when my colleagues
【M1】______and I who direct an executive’s attention to the data on his or her strengths,
【M2】______a typical response is, “Don’t tell me to what I’m good at. Give me something to work on.“
【M3】______It underlies the first rule: Get beyond the idea that praise is a tool to make
【M4】______the people feel good or to fortify them against the negative feedback.
【M5】______Second, don’t assume for that standout strengths that are obvious to you are as obvious
【M6】______to the individuals who possess of them. It is just as difficult for high achievers to see their
【M7】______strengths and as it is for them to see their weaknesses.
【M8】______Third, when offering up positive feed back, don’t expect people will immediately take it in.
【M9】______Just as individuals can have trouble in hearing criticisms, they can have a hard time
【M10】______accepting praise. The executives we’ve worked with cite reasons when they reject praise:
【M11】______they’re concerned it will go to their heads; they fear it will burden them with other people’s
【M12】______expectations; and they therefore worry that receiving praise only raises the bar higher.
