INTRODUCTION INTO BUSINESS ENGLISH

Read the text about business and answer the questions below:

Business is an organized approach to providing customers with the goods and

services they want. The word business also refers to an organization that provides
these goods and services. Most businesses seek to make a profit - that is, they aim
to achieve revenues that exceed the costs of operating the business. Prominent
examples of for-profit businesses include Mitsubishi Group, General Motors
Corporation, and Royal Dutch/Shell Group. However, some businesses only seek to
earn enough to cover their operating costs. Commonly called nonprofits, these
organizations are primarily nongovernmental service providers. Examples of
nonprofit businesses include such organizations as social service agencies,
foundations, advocacy groups, and many hospitals.

Business Operations

A variety of operations keep businesses, especially large corporations, running

efficiently and effectively. Common business operation divisions include (1)
production,(2) marketing, (3) finance, and (4) human resource management.

Production includes those activities involved in conceptualizing,designing, and

creating products and services. In recent years there have been dramatic changes in
the way goods are produced. Today, computers help monitor, control, and even
perform work. Flexible, high-tech machines can do in minutes what it used to take
people hours to accomplish. Another important development has been the trend
toward just-in-time inventory. The word inventory refers to the amount of goods a
business keeps available for wholesale or retail. In just-in-time inventory, the firm
stocks only what it needs for the next day or two. Many businesses rely on fast,
global computer communications to allow them to respond quickly to changes in
consumer demand. Inventories are thus minimized and businesses can invest more
in product research, development, and marketing.

Marketing is the process of identifying the goods and services that consumers
need and want and providing those goods and services at the right price, place, and
time. Businesses develop marketing strategies by conducting research to determine
what products and services potential customers think they would like to be able to
purchase. Firms also promote their products and services through such techniques
as advertising and personalized sales, which serve to inform potential customers and
motivate them to purchase. Firms that market products for which there is always
some demand, such as foods and household goods, often advertise if they face
competition from other firms marketing similar products. Such products rarely need
to be sold face-to-face. On the other hand, firms that market products and services
that buyers will want to see, use, or better understand before buying, often rely on
personalized sales. Expensive and durable goods - such as automobiles,
electronics, or furniture - benefit from personalized sales, as do legal,financial, and
accounting services.

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Finance involves the management of money. All businesses must have enough
capital on hand to pay their bills, and for-profit businesses seek extra capital to
expand their operations. In some cases, they raise long-term capital by selling
ownership in the company. Other common financial activities include granting,
monitoring, and collecting on credit or loans and ensuring that customers pay bills on
time. The financial division of any business must also establish a good working
relationship with a bank. This is particularly important when a business wants to
obtain a loan.

Businesses rely on effective human resource management (HRM) to

ensure that they hire and keep good employees, and that they are able to respond to
conflicts between workers and management. HRM specialists initially determine the
number and type of employees that a business will need over its first few years of
operation. They are then responsible for recruiting new employees to replace those
who leave and for filling newly created positions. A business’s HRM division also
trains or arranges for the training of its staff to encourage worker productivity,
efficiency, and satisfaction, and to promote the overall success of the business.
Finally, human resource managers create workers’compensation plans and benefit
packages for employees.

Discuss the following questions:

1. Give definition to the word ‘business’.

2. What is the difference between for-profit and non-profit organizations? Support
your answer with relevant examples.
3. What is production?
4. What is marketing?
5. What does the HRM involve?

WRITING CV AND LETTER OF APPLICATION

 Work in pairs. Discuss these questions:
 What impression do you try to give in an application letter?
 Should an application letter be handwritten, typed, or laser-printed?
 Do you always tell the absolute truth in application letters?

Writing application letter

A letter of application should create enough interest to make the potential employer want
to look at your application in greater detail by reading your CV and hopefully invite you for
an interview. Your application letter, however, should not contain too much detail about
your experience and qualifications because that is the job of the CV.

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Layout and style

The letter should be limited to one page and a few paragraphs will normally be sufficient. It
is better to address a letter to a specific person, e.g. Dear Miss Chan, rather than to Dear Sir
or Madam. However, in some job advertisements the name of the person you are writing to
is not given. It is good practice to try to find out the following information before you write
your letter:

 the full name of the person you are writing;

 their title - Mr., Mrs., Miss, Ms, Dr, Professor, etc, and;
 their position - Personnel Manager, Human Resources Manager, etc.

All this information can be obtained by a quick phone call to the company. Remember,
never write Dear Miss W. Chan. It should be Dear Miss Chan. Do not use the initial except in
the address. If you start with Dear Sir/Madam, it is accepted practice to finish with Yours
faithfully. Whereas, if you start with Dear Miss Chan, you may finish with Yours sincerely.
Your letter should be neat and free from careless mistakes. You can follow the blocked and
open punctuation style. Whichever layout style you choose to use, you should use it
consistently throughout the letter.

Structure of the letter

Paragraph 1
It should state clearly why you are writing and where you saw the job advertised.

1. I would like to apply for the post of ... as advertised in today’s issue of..
2. With reference to your advertisement in ... on .., I am writing to apply for the position of ...

Paragraph 2
It should give a little information about your qualifications and experience. Make sure the
information you give is relevant to the job that you are applying for.

1. As you can see from my enclosed CV, I have worked in my present position for five years.
During this time I have gained invaluable experience in ...

2. I am currently a student at TPU studying ........ I am due to graduate in.......

Although I have been studying full time, I have had a number of summer jobs which have
helped me to gain experience in ...

3. My experience over the past two years has been at the managerial level, where I have had
responsibility for ...

Paragraph 3
It should say why you believe you are suited to the job and what you can offer the
company. Those currently employed can state the reason for wishing to change their
present job. However, you should not sound critical of your present employer.

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1. I am currently working as a receptionist in ...The reason for my seeking a new position is
that I wish to pursue a secretarial career. Unfortunately, there are no openings for
advancement in my present employment.

2. For the last two years I have been working as a receptionist in ...Unfortunately the
company is moving its main offices overseas and I have therefore decided to look for a new
position. I believe that the experience I have gained in ... has given me the qualities you are
looking for ...

3. I believe I would be an asset to your company. I will be able to bring with me my

experience of ... which I believe would be useful in this position…

4. I feel that my ability to ... will help/enable me to ...

Paragraph 4
It should tell the reader when you are available for an interview and how to contact you.

1. I would like to have the opportunity to talk to you further about my application. I am
available for interview at any time and I can be contacted at/on ...

2. I am available for an interview at any time but would appreciate two days notice. I can be
contacted on/at ... I look forward to hearing from/meeting you soon.

3. As requested in the advertisement, I enclose a copy of my resume together with a recent

photograph. I look forward to meeting with you to discuss my application further. I am
available ... and can be contacted on/at ...

Remember you might have to give a bit more detail than in the above examples. You can
also combine the language in these examples. Also, it is sometimes useful to gather
information about the company so that you know more about its background and policies.
This may help you present yourself in the best light.
Read the following information about CV writing:

Format for a Curriculum Vitae (CV)

A Curriculum Vitae, commonly referred to as CV, includes a summary of your educational
and academic backgrounds as well as teaching and research experience, publications,
presentations, awards, honors, and affiliations. International employers often expect to
read the type of personal information on a curriculum vitae that would not be included on a
resume. When writing a CV for graduate school or academia the personal information
included in this curriculum vitae template would be omitted.

The following curriculum vitae template will give you an example of what to include in your
CV and show the appropriate format for a curriculum vitae.

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 Sample Curriculum Vitae Template

CONTACT INFORMATION
Name
Address
Telephone
Cell Phone
Email
PERSONAL INFORMATION
Date of Birth
Place of Birth
Citizenship
Visa Status
Sex
Optional Personal information:
Marital Status
`Spouse’s Name
Children
EMPLOYMENT HISTORY
Work History
Academic Positions
Research and Training
EDUCATION
High School
University
Graduate School
Post-Doctoral Training
PROFESSIONAL QUALIFICATIONS
Certifications and Accreditations
Computer Skills
AWARDS
PUBLICATIONS
PROFESSIONAL MEMBERSHIPS
INTERESTS

Having a well written, effective resume at one’s disposal is an excellent tool in today’s ever
changing job market. A strong resume may be the sole difference in getting a call for an
interview or simply having your resume tossed into the proposed employer’s sludge pile.
Simply put, an effective resume may win you a job interview. In the world of academia, a
strong resume, known as a curriculum vitae (CV) may open the door towards a tenured
position.

Rewrite this letter in a suitably formal style. Some sentences may have to be left out
altogether. Check your version with another student:

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11 Oakwood Road
Stanhope, Birmingham
8th October

Dear Mr. Scott,

I am writing because you said you wanted a Service technician in The Evening Mail of 7th
October. I’ve put my life story in with this letter. If you look at it you’ll see I know a lot about
engineering because I’ve been a maintenance engineer for six years. So I’ve learnt a lot
about servicing manual and electrical systems. I took a conversion course the other day, all
about pneumatic, hydraulic and electrical systems. It was pretty easy. Now I’m going to
evening classes in the same things, and I hope I’ll pass the exams at the end!

I liked your comment in the ad about “good prospects” because I’m not just in it for the
money. I want a job that’ll mean something. I’m sure you’ll understand. Get in touch if
there’s anything else you need to know. Give me a ring at work, it’s 423419. In the evenings,
you can always get me at my mother’s in King Oak. I can come and see you at any time
except Tuesdays, which are a bit awkward.

Best wishes,
Richard Walters

MONEY MATTERS

THE FUNCTIONS AND CHARACTERISTICS OF MONEY

American businesses produce, market, and distribute goods and services. Money
makes it possible for businesses to obtain what they need from suppliers and for
consumers to obtain goods. Money is defined as anything customarily used as a
medium of exchange, a unit of accounting, and a store of value. The basis of the
market economy is voluntary exchange. In the American economy, the exchange
usually involves money in return for a good or service.

The Functions of Money

Most Americans think of money as bills, coins, and checks. Historically, and in other
economies, money might be shells, gold, or even goods such as sheep. Economists
identify money by the presence or absence of certain functions. Anything that is used
as a medium of exchange, a unit of accounting, and a store of value is considered
money. For example, Native Americans used wampum - beads made from shells.
Fijians have used whales’ teeth.

There are three functions of money.

1. Medium of Exchange.
To say that money is a medium of exchange simply means that a seller will
accept it in exchange for a good or service. Most people are paid for their
work in money, which they then can use to buy whatever they need or want.

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 Without money people would have to barter - exchange goods and service for
other goods and services.

Suppose you worked in a grocery store and were paid in groceries because money
did not exist. To get whatever you needed, such as clothes and housing, you would
have to find people who have the goods that you want. In addition, those people
would have to want the exact goods - in this case, groceries - that you have. Barter
requires what economists call a double coincidence of wants. Each party to a
transaction must want exactly what the other person has to offer. This situation is
rare. As a result, people in societies that barter for goods spend great amounts of
time and effort making trades with one another. Bartering can work only in small
societies with fairly simple economic systems.

2. Unit of Accounting.
Money is the yardstick that allows people to compare the values of goods and
services in relation to one another. Money that is a measure of value functions
in this way as a unit of accounting. Each nation uses a basic unit to measure
the value of goods, as it uses the foot or meter to measure distance. In the
United States, this base unit of value is the dollar. In Japan, it is the yen; in
France, the franc. An item for sale is marked with a price that indicates its
value in terms of that unit.

Using money as the single unit of accounting provides a simple and convenient way
to compare the values of various items. By using money prices as a factor in
comparing goods, people can determine whether one item is a better bargain than
another. A single unit of accounting also allows people to keep accurate financial
records - records of debts owed, income saved, and so on. Businesspeople can
better calculate their profits and losses over the years by using a single money unit
of accounting.

3. Store of Value.
Money also serves as a store of value. You can sell something, such as your
labor, and store the purchasing power that results from the sale in the form of
money for later use. People usually receive their money income once a week,
once every two weeks, or once a month. However, they usually spend their
income at different times during a pay period. To be able to buy things
between paydays, a person can store some of his or her income in cash and
some in a checking account. It is important to note that in periods of rapid and
unpredictable inflation, money is less able to act as a store of value.

The Types and Characteristics of Money

Anything that people are willing to accept in exchange for goods can serve as
money. At various times in history, cattle, salt, animal hides, gems, and tobacco
have been used as mediums of exchange. Each of these items has certain
characteristics that it better or worse than others for use as money. Cattle, for
example, are difficult, to transport, but they are durable. Gems are easy to carry, but
they are not easy to split into small pieces to use.

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The table below lists the major characteristics that to some degree all items used as
money must have. Almost any item that meets most of these criteria can be and
probably has been used as money. Precious metals, however, particularly gold and
silver, are especially well suited as mediums of exchange, and have often been used
as such throughout history. It is only in more recent times that paper money has
been widely used as a medium of exchange.

Mediums of exchange such as cattle and gems are considered commodity money.
They have a value as a commodity, or good, aside from their value as money. Cattle
are used for food and transportation. Gems are used for jewelry.

Representative money is money backed by - exchangeable for - some commodity,

such as gold or silver. It is not in itself valuable for nonmoney uses, but it can be
exchanged for some valuable item. Like commodity money, the amount of
representative money circulation, or in use by people, is limited because it is linked
to some scarce good, such as gold. At one time the United States government
issued representative money in the form silver and gold certificates. In addition,
private banks accepted deposits of gold or
silver and issued paper money, called bank notes. These were a promise to convert
the paper money into coin or bullion on demand. The banks were supposed to keep
enough gold or silver in reserve - on hand to redeem their bank notes. Often, they
did not.

Today all United States money is fiat money. Its face value occurs through
government fiat, or order. It is in this way declared legal tender.

Characteristi Description
c
Durable Money must be able to withstand the wear and tear of being
passed from person to person. Paper money lasts on the
average of only one year, but old bills can be easily replaced.
Coins, in contrast, last for years.
Portable Money can be carried around easily. Though paper money is
not very durable, people can easily carry large sums of paper
money.
Divisible Money must be easily divided into small parts so that
purchases of any price can be made. Carrying coins and small
bills makes it possible to make purchases of any amount.
Stable in value Money must be stable in value. Its value cannot change
rapidly or its usefulness as a store of value will decrease.
Scarce Whatever is used as money must be scarce. That is what
gives it value.
Accepted Whatever is used as money must be accepted as a medium of
exchange in payment for debts. In the United States,
acceptance is based on the knowledge that others will
continue to accept paper money, coins, and checks in
exchange for desired goods and services.

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Characteristic Description

Durable Money must be able to withstand the wear and tear of being passed from
person to person. Paper money lasts on the average of only one year, but old bills
can be easily replaced. Coins, in contrast, last for years. Portable Money can be
carried around easily. Though paper money is not very durable, people can easily
carry large sums of paper money. Divisible Money must be easily divided into small
parts so that purchases of any price can be made. Carrying coins and small bills
makes it possible to make purchases of any amount. Stable in value Money must be
stable in value. Its value cannot change rapidly or its usefulness as a store of value
will decrease.
Scarce Whatever is used as money must be scarce. That is what gives it value.
Accepted Whatever is used as money must be accepted as a medium of
exchange in payment for debts. In the United States, acceptance is based on the
knowledge that others will continue to accept paper money, coins, and checks in
exchange for desired goods and services.