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Is as good as it gets for America






The wreckage of the financial crisis is producing many warnings that globalization is dead, as trade and investment slow. Nothing could be further from the truth. In fact, global companies have rarely been in a stronger position, and if you want to get a sense of where such businesses are heading, look no further than IBM.

The company was a titan of American industry in the 20th century, an innovator in computer technology, and an icon of efficient sales. Today, it is radically different. No longer primarily a hardware maker, the company, still officially known as International Business Machines, ought to be renamed IBS – International Business Services. Over the past decade, and in the past two years in particular, IBM has become global services company that helps multinational businesses to focus more on international markets and to depend less on any one country, including the United States.

Those changes began out of necessity in the 1990s as IBM lagged behind New Economy tech upstarts. But only in the past few years, under the leadership of CEO Samuel Palmisano, has that transformation really taken hold. He has articulated a vision of a world that is becoming more connected and smarter. The role of IBM is to be a "globally integrated enterprise" that, in turn, helps other companies become smarter and better able to seize opportunities. What that means is that IBM no longer conceives of companies as a series of units defined by their geography but as a series of units defines by their purpose (sales, research and development, production) and located anywhere on the planet where those tasks can be done most efficiently.

IBM's world view has meant that hardware is an increasingly small portion of its revenue. It no longer makes personal computers, having sold its ThinkPad division to China's Lenovo; higher-end servers now constitute only a quarter of its business. The rest is in software and consulting, which are increasingly based outside the US, making IBM less sensitive to the US economy even as it remains – technically – an American company. IBM remains highly profitable. In the first six months of 2009, it earned nearly $6 billion in profits, even as the US economy contracted sharply. This past quarter, about two thirds of its revenue came from outside the US, and that percentage is growing.

Some of the effects are undoubtedly negative for the US. Thousands of IBM employees have recently been offered a choice between losing their jobs in America or moving abroad to stay employed. Companies that once were icons of American power – like IBM and General Motors – will thrive only if they become more wedded to the world and less to the US. GM itself is a perfect example of what works and what doesn't, with a US division that failed and a Chinese division that is wildly successful. A world with more strong foreign markets means less money spent on labor and operations in the US, and more spent elsewhere. Companies like Intel and Microsoft are investing billions in R&D facilities in China because they believe that is where their future is.

But some consequences are more positive. For instance, IBM has been a leader in green business practices for the simple reason that if you're a global business dealing with a labyrinth of different environmental regulations, it pays to harmonize your supply chain to take those different regimes into account. And to the extent that a corporation domiciled in the United States profits because of global business, some of that will bolster the domestic American economy. The fact that IBM is headquartered in Armonk, New York, matters much less than it did, but it still contributes. The company employs more than 100,000 people in America, close to 30 percent of its workforce, though that is down from 35 percent two years ago.

This is the new world of global business, one in which the US becomes simply a market among markets, and not even the most interesting one. IBM is one of the multinationals that propelled America to the apex of its power, and it is now emblematic of the process of creative destruction pushing America to a new, less dominant, and less comfortable position.

 

Exercise 16. Say if these statements are true or false. Correct the wrong variants.

1. Globalization is dead.

2. IBM used to be one of the most prosperous companies in the 20th century.

3. The company retained its strong position on the high-tech market in the 1990s.

4. IBM has turned into a truly international company due to the leadership of its chief executive officer in the 21st century.

5. At present the company's main sector is production of personal computers.

6. IBM is conducting a wise personnel policy.

7. The company is not concerned with environmental protection.

8. The economic position of the USA in the world is becoming weaker due to the process of globalization.

 

Exercise 17. Work in pairs. Speak about commercial activities of a company. Use the model and list of word combinations below.

Model. A: How can a company increase sales?

B: Their products must meet the demands of customers. They should put new products on the market.

To improve quality and design of articles, promote goods, to improve quality and design of articles, to put new products on the market, to introduce new technologies, to do market research, to make a market analysis, to have an intuition for the market.

 

Exercise 18. Find information about a company which remains prosperous during the current recession and analyze the reasons for its success.

 

Exercise 19. Role-play.

1. Roles: a company owner, a department manager.

A company owner talks to a manager about his work. The owner is dissatisfied with the way the manager treats his / her subordinates. He wants him / her to improve his / her communicative skills. The company owner advises the manager to take a management course and read books and magazines on management. The manager promises to do it.

2. Roles: a company owner, a sales manager.

A company owner talks to a sales manager about his/her work. The owner is dissatisfied with the sales reductions last month. He wants the department to do market research, make a market analysis and advertise products better. He says that he will fire the manager if he / she doesn't change his / her sales techniques. The manager promises to do his / her best and increase sales figures.

3. Roles: a company president, a department manager.

A company owner talks to a manager. He is satisfied with his / her work and wants to promote him / her to a higher position. The president tells the manager to take part in a corporate management-improvement program. The manager thanks the president and promises to do it.

 

UNIT 8. PERSONAL GROWTH

8.1. Recipe for Success in Business

 

Exercise 1. Focus on the topical vocabulary.

recipe ['resIpI] n рецепт

high-ranking ["haI'rxNkIN] a высокопоставленный

official [q'fISql] n должностное лицо, чиновник

to count [kaVnt] v считать; иметь значение

to drop out of college бросить колледж

expertise ["ekspE:'tJz] n специальные знания

to discourage [dIs'kArIG] v не поощрять, мешать, препятствовать

to design [dI'zaIn] v предназначать; проектировать

material well-being [mq'tIqrIql "wel'bJIN] материальное благополучие

three-piece suit ["TrJ 'pJs 's(j)Ht] тройка, мужской костюм с жилетом

briefcase ['brJfkeIs] n портфель

businesslike ['bIznIslaIk] a деловой, деловитый, практичный

pumps [pAmps] n туфли-лодочки

gadget ['gxGIt] n разг. (новое) приспособление или устройство; техническая новинка

fitness ['fItnIs] n здоровье, хорошая физическая форма

law-abiding ['lLq"baIdIN] a законопослушный

innovative ['InqveItIv] a новаторский, передовой

lounge suit ['laVnGs(j)Ht] пиджачная пара, повседневный мужской костюм

Exercise 2. Try to understand the meaning of the derivatives.

Desire, desirable; win, winner; educate, educated, education, self-education; advice, advise, adviser; courage, encourage, discourage; fit, fitness; honest, honesty; profit, profitable; promote, promoter, promotion; expert, expertise; learn, learning; program(me), programmer, programming; influence, influencial; repute, reputed, reputable, reputation; popular, popularity; project, projection; prestige, prestigious.

 

Exercise 3. Guess what these international words mean.

A personal computer, a computer programmer, to finish college, to start a company, a diploma in management, real expertise, information technologies, a technical college, a course in economics, leadership training, an author, to communicate effectively, effective leaders, to form a manager's image, imagemakers, imagemaking, reputation in business, professional reputation, social status, contacts, manners, an energetic person, a credit card, a mobile phone, a pager, a notebook computer, clubs, cocktail parties, a stylish lady, a fitness club, a solid firm, innovative ideas, progressive methods.

 

Exercise 4. Read the words with the prefix micro- ['maIkrqV] and say what they mean.

Microclimate, microprocessor, microcomputer, microcopy; microfilm, microelectronics, micrometer, micro-organism, microphone, microgram, microscope, Microsoft, microstructure, microwave.

 

Exercise 5. Model the words with the negative prefix dis- and say what words they derive from.

Model: to discourage (мешать, препятствовать) ← to encourage (поощрять)

Disability, disable; disadvantage, disadvantageous; disagree, disagreement; disappear, disappearance; disapprove, disapprovement; disarm, disarmament; disclose, disclosure; discomfort; discover, discovery.

 

Exercise 6. Read the following word combinations and give their Russian equivalents.

To depend on abilities, to become rich and famous, to attend a good school, to get a job as manager, to send messages by e-mail, to send e-mail, to e-mail a message, to ask for advice, to drop out of college, to get broad education, a bright student, a part-time programmer, to work full time, to get specialized knowledge, to find information on the Web, to surf the Web, to surf the Internet, to surf the Net, to take a course in management, to deliver leadership training, to communicate with people, to look stylish.

 

Exercise 7. Complete the sentences with the proper forms of the verbs.

1. The parent said that he wanted his son to get the best education he ___ (can give) him. 2. The director was aware that all the employees ___ (to be doing) their best. 3. Some parents ask Bill Gates how they ___ (can steer) their child toward success. 4. Many people wonder why Bill Gates ___ (to drop) out of college. 5. The man is not sure if he ___ (to be able) to find a good job in the future. 6. Do you know that Bill Gates ___ (to be) at Harvard? 7. I asked the girl if she ___ (to be) good at accounting. 8. I doubt whether my son ___ (to take) a deep interest in computers. 9. Jane replied that she ___ (not to choose) a specialty yet. 10. The employee claimed that the manager had made a mistake. 11. I knew that Mr. Brown ___ (to have) a reputation of being a tough manager. 12. I understand why some businessmen ___ (to want) to improve their image.

 

Exercise 8. Open the brackets using the proper verb forms to express future actions in object clauses and clauses of time and condition.

1. I'm sure if I ___ (to get) a college diploma I will be able to get a well-paid job. 2. I wonder when my son ___ (to come) home from work. 3. When you ___ (to finish) typing the letter, the manager will sign it. 4. Mr. Brown wants to know if you ___ (to finish) your work by 4 o'clock. 5. Write to me if you ___ (to have) time. 6. If you ___ (to work) hard, your efforts will be rewarded. 7. The secretary knows when the delegation ___ (to come). 8. Phone me when you ___ (to come) home. 9. The visitor asked if the director ___ (to receive) him. 10. We shall stay in a hotel when we ___ (to come) to Moscow.

 

Exercise 9. Read these sentences and express the same in Russian. Consult the model.

Model: The better people do at university, the better job they get after graduation. Чем лучше люди учатся в университете, тем лучше работу они получают после его окончания.

1. The more difficult was the task, the more interested he was. 2. The higher are the prices, the less people buy. 3. The warmer is the weather, the more people are on the beach. 4. The better is advertising, the more goods are sold. 5. The bigger is the city, the heavier is the traffic. 6. The better people do at university, the better job they get after graduating. 7. The harder he worked, the better were the results. 8. The more you practice your English, the more fluently you speak. 9. The older is the school, the higher is the standard of teaching. 10. The more you learn by heart, the better you can speak.

 

Exercise 10. Work in pairs. Speak about clothes different people wear at work. Use the model and lists of words below.

Model. A: What clothes do managers wear at work?

B: In big companies they wear a lounge suit.

Workers, doctors, managers, teachers, bankers, bank clerks, shop-assistants, businessmen, waiters.

A uniform, jeans, a shirt, trousers, an overall, a business suit, a three-piece designer suit, a lounge suit, a dress, a skirt, a blouse, casual clothes.

 

Exercise 11. Read the text about the traditional approach to achieving success in the world of business. Do you find it justified?







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