English for Business

ASE3041
Level 3
Wednesday 20 November 2013
Time allowed: 3 hours

Information

There are 4 questions in this examination.

Total marks available: 100

All questions carry equal marks.

There is credit for correct spelling, punctuation and grammar.

Instructions

Do not open this paper until you are told to do so by the supervisor.

Answer all questions.

Write your answers in blue or black ink/ballpoint.

Please ensure your answers are written clearly.

All answers must be correctly numbered but need not be in numerical order.

You need to communicate appropriately and well.

When you finish, check your work carefully and cross out any preparatory work.

You may use an English or bilingual dictionary.

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Question 1
Situation
You are employed in the Administration Section of a company, Tobyed Services. The company has a
large suite of offices where it employs many staff.
The Company Manager, Mr Edgar Brutons, approached you earlier today and said the following:
Id like you to do a job for me, please. You know my feelings about what we do with the waste we
generate in our offices Ive been worried about this for a long time. Weve done our best to reduce the
amount of waste we produce, but we still pay for it to be collected.
Well, there could be an answer to my dreams! Ive had a letter from a new local organisation, Integrated
Waste Management, or IWM as it prefers to be called. The company tells us that it will actually pay us
for our waste. Apparently, it can recycle a great deal of material if we segregate our rubbish into different
containers you know, paper, glass, metal, plastics and the like. The company might even accept waste
food from the canteen.
Id like you to write to this company Ill give you the address and the contact details. You can say that
we are really interested in using the companys services, although youd better not promise anything.
Ive got some questions, however. Theres nothing in the letter about the length of their contracts. Im
sure there will be some sort of minimum contract length dont you think so? There are a few other
things in the letter that I dont understand. They seem to have an aerobic digestion plant, but that is not
really important. I want to know if we have to provide the waste containers, or does the company provide
them? You could also ask how often the waste would be collected.
Im quite excited about this, I must say. However, please have a word with Rita Szabo, [Office Manager];
Im sure she will have some more questions to ask. You know what Rita is like. Shes good at spotting
problems Im always the optimist.
You speak to Mrs Rita Szabo who says this:
Im not against this idea, but I can see a few difficulties. There could be some problems in keeping lots
of separate bins for different types of rubbish. I wonder if the company has any ideas on how to educate
staff to make sure they act properly. It could be more time consuming. Well need to know if the bins are
provided, of course.
I wonder if they also collect bits of broken or redundant office equipment. It would be good if this could
be recycled.
When you are writing to this company, you can stress that were always trying to cut down on the
generation of waste, so the amount the company could collect might reduce over the years. However,
lets see what they have to say.
The contact at IWM is the Marketing Manager, Mr Louis Akela, and the companys address is:
Unit 7, Northside Industrial Estate, Riverton, RT9 8BB.
Task
Write a letter as Mr Brutons has requested. You can assume that the companys headed notepaper is
used but you should include all other components of a business letter.
(Total 25 marks)

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Question 2
Situation
You are employed in the Finance Department of a company that has recently been launched. The
company has been successful in the market, but is experiencing temporary cash flow problems. It has
borrowed a large sum of money from its bank and is not able to extend the loan. The company
management is confident that once this short-term problem is resolved, the company will go on to be
highly successful as its products are proving to be popular.
The Manager of the Finance Department, Ms Eva Cole, says this to you:
Im sure you know of our current financial problems. Our longer-term future prospects look very good,
but we need some extra cash to cover us over the next six months or so. Now there might be a solution.
Theres a new organisation called Brokerlend that will give us a loan and use one or more of our movable
assets as collateral against the loan. I dont know much more about Brokerlend, but Id like you to have
a word with them and find out what you can. When youve done this, please let me have a report. Feel
free to do any other investigations into Brokerlend. If it looks promising, Ill put the report to the Finance
and General Purposes Committee. Ill add my own recommendations so you dont need to make any.
You arrange to meet a representative of Brokerlend, Mr Paul Aziz, and you record your conversation as
follows:
You:

Hello, Mr Aziz. Thank you for seeing me. I hope you dont mind if I record our
conversation.

Mr Aziz:

No, of course not. But how can I help you?

You:

Ive heard that you specialise in lending money to companies with movable assets as
collateral.

Mr Aziz:

Thats right, but not just companies. Individuals can borrow money also.

You:

So how much can people borrow? And I presume you charge interest.

Mr Aziz:

Well, theres really no limit to how much anyone can borrow. It depends on the value of
the asset. And the interest charge will vary also against the amount and length of the loan.
I would say that for a typical loan for six months we would charge something like 3% per
month. This covers all the costs of valuation, insurance and storage of the item.

You:

Right. So how does it work? Lets say we have an item which we feel is worth a certain
sum of money.

Mr Aziz:

The first thing we do is to check that you are the legal owner of the item. Then we do a
valuation. If we agree that the item is at least worth what you wish to borrow, then we give
the cash straight away. Then we take the item away to our storage depot.

You:

Ah! So we dont keep the item?

Mr Aziz:

Oh, no. But dont worry. Our storage facilities are very secure. No harm will come to your
item.

You:

And you say that we have to produce proof of ownership?

Mr Aziz:

Of course. Otherwise it would be possible for a criminal to get money for a stolen item and
then disappear.

You:

Yes, I can see that. So we then borrow the money for a certain time at a rate of about 3%
per month, you say. Then at the end of the loan period, we pay back the sum borrowed
plus the interest, and we get our item back.

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Question 2 continued
Mr Aziz:

Exactly, and unlike many banks, we dont have any penalties for early redemption. If you
want to pay back the loan early, you can.

You:

I suppose that if we cant pay back the loan, you keep the item.

Mr Aziz:

Well, yes, although it rarely comes to that. If you cant pay back the loan, we can try to
negotiate a longer period. Only in extreme cases do we keep the item.

You:

What sort of items do businesses borrow on?

Mr Aziz:

That varies. Many of our clients are just individuals who borrow on items such as cars,
jewellery, fine wines, even art treasures. Business owners can use these, of course, but
can also use vehicles, furniture, ICT equipment, machinery etc.

You:

Very interesting. Thanks for your time, Mr Aziz. We might be in touch.

You then speak again to Ms Eva Cole, Manager of the Finance Department. The notes of your
conversation are as follows:

An old way of borrowing had a bad reputation at one time but this company seems sound not all
loan applications accepted by them very quick way of getting cash worth considering. We must
decide if we have any items for collateral cant use anything that would hold up our production but
company owner might wish to use personal items we do have some things like our new delivery
vehicles. Seems like very simple paperwork no credit checks to worry about so nothing to hold up
loan.
Task
Write the report.
(Total 25 marks)

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Question 3
Situation
You work for a successful manufacturing company which is expanding its range of products. The
company feels that this might be an appropriate time to consider its purchasing policy for new materials.
You recently attended a local business seminar at which the main speaker made the following speech.
Good afternoon, everyone. Im here to talk about purchasing buying things in other words. Of course,
your companies need raw materials and inexperienced purchasing managers might think that the most
important thing is the price. When anyone buys anything, price is a very important factor, but of course,
it is not the only one. But as anybody who buys items for the home will know, it is more important to look
for the best value for money, rather than the cheapest.
Lets stay with this price consideration for the moment. As well as the price of the material you are
purchasing, you will wish to know about the payment terms. Will the company give you credit? Will you
be expected to pay cash on delivery? Is there a possible discount on the price if you purchase large
quantities, or will you be allowed to pay over an extended period? If the purchasing terms are
favourable, you might decide to go for a product that is slightly more expensive.
This leads to my next point. You really must investigate your potential suppliers, not only to look at
purchasing terms, but also for many other reasons. For example, you must be convinced that the
supplier has the capacity to supply sufficient materials. A company might be able to supply materials of
great quality at a good price, but they must be able to supply a sufficient quantity. Of course, you can
have more than one supplier, but, in general, it is easier if you deal with only one for each particular
material.
You should not forget your potential suppliers delivery record. If you need your materials now, there is
little point in dealing with a supplier who will deliver next week. A lack or shortage of materials can hold
up your production schedule and you might then lose customers because of late delivery.
Then there is the particular issue of quality. Now this is a complex area. You might not always need
materials of the highest quality. In general, the phrase you should use when considering quality is
fitness for purpose. Let me give you an example of what I mean. I used to work in the construction
industry. We always needed a lot of sand, but there was little point in paying vast amounts for the very
best quality, imported sand. Cheap stuff was fine for its purpose mainly to use in a cement mix. But
we did find it worthwhile to use good quality paint. Cheap paint often did not provide a good finish and
required several coats.
I will conclude by summarising the main point I am making your purchasing will be much more
successful if you have a precise specification of what you want. This includes all the points I have
mentioned price, delivery arrangements, quantity and quality.
But let me make one final point. Remember, there are many suppliers out there. Do not accept the first
offer that is made to you. You should, to use one of my favourite phrases, shop around for a good deal.
In fact, it does no harm to mention to one supplier that someone else has offered you a good deal. You
could be surprised that, not only are you offered better terms from this second supplier, but you might
then be offered a better deal from the original supplier!

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Question 3 continued
Task
Answer the following questions, in your own words as far as possible, to show that you have
understood what you heard in the speech.
(a)

Why should the speaker believe that only inexperienced purchasing managers believe
that the most important thing is the price of raw materials?

(b)

What is meant by the term cash on delivery, and how is this different to receiving
credit?

(c)

What is meant by you must be convinced that the supplier has the capacity to supply
sufficient materials?

(d)

What problems can be caused for you if a supplier does not deliver materials on time?

(e)

Why does the speaker say that the issue of quality is a complex one?

(f)

What point is the speaker making when giving the example of purchasing sand and
paint in the construction industry?

(g)

What is meant by the phrase to shop around for materials?

(h)

From the information given in the whole speech, say what a precise specification
should include and say why it is vital that any purchaser of materials should produce
this.

(3 marks)
(3 marks)
(3 marks)
(3 marks)
(2 marks)
(5 marks)
(3 marks)

(3 marks)
(Total 25 marks)

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Question 4
Situation
You are employed as an administrator in the Human Resources Department of a large company in the
city of Menton. The company is located on the outskirts of this large city, next to a station on a railway
system known as the Menton Metro. Many staff use the Metro system to travel to work.
The whole Metro system is now undergoing modernisation and your company has received advance
notice of Menton Metros plans for its latest developments.
The Human Resources Manager, Mr Patrice Marveux, says this to you:
Im afraid the stretch of the Metro next to our headquarters is about to experience some major
disruption. This will affect both the track and our local station, East Gosford, which hundreds of our staff
use every day. Ill let you have the details of the proposed work to be done when it is announced. The
system has not been updated for many years and it will be much better when it is finished.
Id like you to send a memo to all of our staff. I know that not all of them use the Metro, but this
development will affect most of them. I should say that Menton Metro will issue much more information
when all the dates have been confirmed, but our staff will appreciate this early notice.
Please give staff an outline of what is proposed for the Metro system and also include this information
about our car park. As you will see, East Gosford station is about to have a major rebuilding. Therell be
new and better platform roofs, better landscaping of the area around the station and the pedestrian
footbridge will be removed and rebuilt. When the station is closed, we expect many of our staff, who use
this Metro, will use cars to get to work. Please gently remind staff that they need a pass to use the car
park. Yes, I know, we havent checked passes for quite some time, but we will have to check them as
the car park could become full. Unfortunately, the station car park will be closed during the rebuild so I
think that some people who currently use it will try to park in our car park. You can reassure staff that we
will give priority to staff with passes.
Mr Marveux took these notes when he spoke to staff from Menton Metro:

Whole system being upgraded first major upgrade for 15 years needed to make system more
efficient government funding for it.
Two things affect our staff redevelopment of East Gosford station will happen in about 6 months time
at times station will be closed completely but hope this will be mainly at weekends rebuilding bridge
better roof on platforms extend small shop there improved landscaping.
In about 3 months whole line closure of stretch of line from Menton Central to East Gosford stations
to allow for track and bed renewal will take about 8 weeks replacement bus service in operation
whilst line closed will take longer to get to East Gosford Metro will notify us when all plans are
confirmed.
Some 24 hour working on system but Menton Metro have pledged to keep noise down to a minimum.
Task
Write the memo that could be sent to all members of staff.
(Total 25 marks)

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