Business English Review Test 1: The Business Chapters 1 and 5 - VERSION A On your answer form, write in block letters:

- your name - student ID number - course name (Business English) - course code (Group A-H) - exam date (01-11-2010) - version (A or B written at the top of your test above) * PLEASE DO NOT WRITE ON THIS QUESTION SHEET. * YOU MUST RETURN THIS QUESTION SHEET AT THE END OF THE TEST.

Part 1: Reading- Topic information, Scanning (main ideas), Skimming (specifics) (The Business, articles pages 6-7 and 58-59) Instructions: Read the following extract from an article about strategic market planning. For each question choose a, b, c, or d as the correct answer. What is strategic marketing planning? Strategic marketing planning addresses the companys long-term goals and objectives rather than just tactics for marketing products and services. Of course tactical marketing planning is just as essential, but it comes at a later stage in the overall process. The strategic planning stage comes first and involves taking a comprehensive overview of all the companys sales and marketing activity. It starts with three questions. Where is the company now? Where does management want the company to go? What should the company do to improve its objectives? A good approach to take to the strategic planning process is to separate it from the distractions of the day-to-day decisions about marketing and sales activities, and to perform an annual comprehensive review of markets and opportunities, matching this against the overall direction of the company and its long-term strategic goals. Strategic market planning involves looking at the company from the customers point of view. You need to keep coming back to the particular needs or problems that cause customers to purchase the companys goods and services. You can then set this against the improvements or benefits to the customers personal or business life the companys products can bring. Can these benefits be enhanced or improved? You need to make a detailed study of those segments of the market that are attracted to your companys products and services. In order to get as much information as possible his should involve segmenting the market in different ways: for example geographically, demographically and psychologically. To build up a psychological profile of your customers in consumer markets factors such as their overall lifestyles and attitudes need to be considered. What are the values and motivations that lead people to decide to purchase your products? When you have some kind of a grasp of this kind of information, you can step back to consider the bigger picture with questions, such as which social, economic and cultural trends are affecting or might affect the customers general interest or attraction to products like yours. For business-to-business markets, you will need to look at industry-sector segmentation and

other factors related to purchase decisions in large enterprise-size purchases. An example of the latter would be the trend for big companies to out-source certain types of service provision to low-cost countries. Obviously, it is not enough just to gather information; you need to know how to interpret it and to understand its possible implications. For example, if you see and understand the trend for business process out-sourcing early enough, you can decide what the consequences for you might be as a provider of certain types of services and make decisions accordingly. To take another example, the aging population bubble creates a general increase in demand for a wide range of products for this age-group and profile. It creates market niches for specialized products that are large enough to make new product development and marketing worthwhile. The same shifts can also reduce demand for other products. These long-term shifts in markets are frequently misinterpreted as short-term competitive pressures or fluctuations in the economy. Without a strategic marketing plan a company could waste resources or miss an opportunity. Its difficult to estimate the cost of missing an opportunity at the time it happens; it usually only emerges several years later when a competitor opens a new factory or enters a new market and their revenue starts to accelerate and overtake that of its competitors. In such situations it is easy to conclude that the annual cost of a strategic marketing plan review is miniscule compared to the revenue, market share, and profitability it can generate. Once you have established a profile, you can see how this information fits with the overall vision of where management wants the company to go. Your strategic marketing plan will be the map of how to get there. It will normally be the job of the companys executive team to establish the overall production, promotion and pricing strategy, before the marketing team step in to take the next step of creating a tactical marketing program and the projects needed to implement the plan. This top-down process of developing a strategic marketing plan helps to ensure that all tactical marketing programs support the company's goals and objectives, as well as convey a consistent message to customers. This approach improves company efficiency in all areas, which helps improve revenue and market share growth and minimizes expenses, all of which lead to higher profitability. 1. What is the relationship between strategic and tactical market planning described in the first paragraph? a) Tactical market planning occurs before the strategic planning process. b) Tactical planning is less concerned with detail than strategic planning. c) Strategic planning comes before tactical planning and involves taking a comprehensive overview. d) Strategic planning is more important than planning tactics. 2. What is the most effective way to undertake a strategic market plan? a) You shouldnt separate strategic market planning from decision-making related to sales. b) You should undertake your annual view as a separate process from day-to-day sales and marketing decision making. c) You shouldnt let the annual review distract you from day-to-day sales and marketing activity. d) You should link your annual review to the day-day decision-making process.

3. How should companies construct a psychological profile of their customers? a) By segmenting the market geographically and demographically. b) By considering the particular need or problem which causes customers to purchase the companys goods and services. c) By analyzing the particular benefits the companys products and services can bring to customers personal or business life. d) By looking at customers, lifestyles and attitudes, including their values and motivations. 4. What is the trend to outsource services to low-cost countries an example of? a) A trend that companies involved in B2B marketing need to take into account. b) An economic trend that helps psychological profiling. c) A new economic trend that companies often fail to take into account. d) A cultural trend that particularly affects consumer marketing. 5. In what ways are long-term shifts in markets frequently misinterpreted? a) There is so much competitive pressure that people dont notice them. b) People believe they are caused by short-term fluctuations in the economy. c) People always believe that they will create new markets for niche products. d) People are so worried about missing opportunities they dont analyze them properly. 6. What does the author suggest might be the secondary effect of the ageing population bubble? a) To create new markets for niche products for other sectors of the population. b) To increase the demand for niche products globally. c) To reduce demand for certain other types of products. d) To make new product development and marketing more worthwhile. 7. In the final paragraph of the text, what does the author say a successful strategic marketing plan should do? a) Replace the production, promotion and pricing strategy. b) Support the long-term goals of the company and convey a consistent message to customers. c) Establish the production, promotion and pricing strategy. d) Replace the tactical marketing program.

Part 2: Grammar- Verb Tense and Aspect (example: have done / are doing) (The Business pages 8-9) Instructions: Read the following professional biographies from your classmates. Although there may be more than one possible answer, select the best, most appropriate verb tense to express their accomplishments, experience, present work, and future goals. For each question choose a, b, c, or d as the correct answer. 8. This German-Czech IBA student ________ interested in learning new languages; as a child, she learned English, French and Latin and even participated in a school exchange program in France. She is now learning Dutch. a) was always b) is always c) has always been d) had always been 9. Prior to traveling to the Netherlands to attend the IBA program, this student ________ a diploma in business administration at The Makerere Institute for Social Development for two years. a) pursued b) had pursued c) had been pursuing d) was pursuing 10. This IBA student ________ as a sales manager for a leasing company after graduating from a private secondary school of economics. a) was working b) had worked c) worked d) works 11. This German-born IBA student plans to own her own restaurant in Cape Coral, Florida, where she ________ for 2 months. a) has been living b) had been living c) lived d) has lived 12. This IBA student from Apeldoorn ________ establishing a network of potential future business contacts at his current part-time job at EasyWay. a) already began b) already begins c) has already begun d) already is beginning

13. This Rotterdam native ________ to graduate with honors and cum laude from the IBA program. a) wants b) is wanting c) has wanted d) will want 14. This IBA student and tennis player still ________ near the German border in Doetinchem. a) is living b) lives c) living d) has been living Part 3: Grammar- Prepositions Instructions: Complete each sentence using the most appropriate preposition. For each question choose a, b, c, or d as the correct answer. a. b. c. d. of about by for

15. The nickel world market is characterized __by__ rising demand and constrained supply. 16. Government budgets should account __for__ long-term debt obligations. 17. Governments around the world are still arguing __about__ the causes of the Financial Crisis of 2008. 18. Monetary policy limitations increase the importance __of__ fiscal policy.

Part 4: Vocabulary (The Business pages 10-11; articles pages 7, 9, 59; review page 30; Ex. 6, 7 page 69; wordlists pages 148 and 151-152) Instructions: Complete each sentence using the most appropriate word. For each question choose a, b, c, or d as the correct answer. a. b. c. d. initiative biodegradable recognition analytical

19. One goal in brand ___ recognition _____ is the identification of a brand without the name of the company present. 20. The Landfill Directive 1999/31/EC obliges Member States to reduce the amount of ____ biodegradable ____ waste that they landfill to 35% of 1995 levels by 2016. 21. A new ___ initiative _____ to standardize cancer stage data across the country will help provinces use their precious health care dollars more wisely. 22. With his economics education, Pierce believes he will be well prepared for the ____ analytical ____ thinking used in the legal world. --------------------------------------------------------------------------a. b. c. d. innovation accountable analyze prioritize

23. The survey found that ____ innovation ____ is a priority for 74 per cent of entrepreneurs. 24. ___ analyze _____ sales figures and forecast future sales volumes to maximize profits. 25. The unions are asking the government for two things: first, to enforce the Fair Labor Standards Act (FLSA) inside the warehouses, and second, to hold the big-box retailers ____ accountable ____. 26. 43% of Americans say the US should ___ prioritize _____ the development of energy supplies over environmental protection. ---------------------------------------------------------------------------

a. b. c. d.

measurable appraisal insight record

27. I will ask my personal assistant to type up a written ____ record ____ of our conversation 28. Based on your audience analysis and context, you now have to define ____ measurable ____ and realistic objectives 29. We need to track performance ____ appraisal ____ statistics to measure the success of the management development system. 30. Companies from throughout the north-east received valuable ____ insight ____ into business growth at the latest Grampian Food Forum this week. --------------------------------------------------------------------------a. SMART [Specific, Measurable, Achievable, Realistic, Time-bound] b. prerequisite c. commendable d. transient 31. BSL is doing ___ commendable _____ business by providing its valued guests with high-quality facilities and services. 32. A good marketing plans objectives need to be ___ SMART _____. 33. Experience has revealed the ___ transient _____ nature of money, and the companys management program helps its customers to do away with this nature by making their wealth more permanent. 34. Broadband is also a ___ prerequisite _____ for increased competitiveness and economic growth through the full development of eBusiness and distance working. ---------------------------------------------------------------------------