Top Banner
Script Sodmann - Business English - Winter 2013 - Semester 3 1. Multi-brand strategy 1 2. Aldi - marketing mix 3 3. Primark case 8 4. Managing the corporate brand - Primark 11 5. Online retailing - Amazon and Zalando 12 6. Globalization 16 7. International HRM 19 8. B2B 22 9. Employee motivation in retail 24 10. Apple from a marketing perspective 26 11. Attitude and Manners at a job interview 29 12. Strategic analysis of Zara Fashion (Porter) 31
32

Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Jun 23, 2018

Download

Documents

dangkhanh
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Script

Sodmann - Business English - Winter 2013 - Semester 3

1. Multi-brand strategy 1

2. Aldi - marketing mix 3

3. Primark case 8

4. Managing the corporate brand - Primark 11

5. Online retailing - Amazon and Zalando 12

6. Globalization 16

7. International HRM 19

8. B2B 22

9. Employee motivation in retail 24

10. Apple from a marketing perspective 26

11. Attitude and Manners at a job interview 29

12. Strategic analysis of Zara Fashion (Porter) 31

Page 2: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Multi-brand strategy

Brand awareness

Brand awareness refers to customers' ability

to recall and recognize the brand under different conditions and link to the brand name,

5 logo, jingles and so on to certain associations in memory. It consists of both brand

recognition and brand recall. It helps the customers to understand to which product or

service category the particular brand belongs and what products and services are sold under

the brand name. It also ensures that customers know which of their needs are satisfied by

the brand through its products. Brand awareness is of critical importance since customers

10 will not consider your brand if they are not aware of it.

Brand elements

Brands typically are made up of various elements, such as

C Name: The word or words used to identify a company, product, service, or concept.

C Logo: The visual trademark that identifies the brand.

15 C Tag line or catch phrase: "The Quicker Picker Upper" is associated with Bounty paper

towels. "Can you hear me now" is an important part of the Verizon brand.

C Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

C Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle

are trademarked elements of those brands.

20 C Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

C Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a

famous example.

[...]

What is MULTI-BRAND STRATEGY?

25 Under different and unrelated brands two or more similar and competing products are

marketed by the same firm. Multi-brand strategy has some advantages as a means of (1)

holding more shelf space, leaving less for competitors’ products, (2) filling all price and

quality gaps, saturating a market, (3) catering to brand-switchers users who like to

experiment with different brands, and (4) generating internal competition, keeping the

30 firm’s managers on their toes. Meanwhile these brands eat into each others’ sales.

Once again, Procter & Gamble is a leading exponent of this philosophy, running as many as

ten detergent brands in the US market. This also increases the total number of "facings" it

receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very

different parts of the business separate — from Sara Lee cakes through Kiwi polishes to

35 L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget

chain (and Ramada uses Rodeway for its own cheaper hotels).

Cannibalization is a particular problem of a Multi Brand Strategy approach, in which the new

brand takes business away from an established one which the organization also owns. This

1

Page 3: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may

40 be the price the organization is willing to pay for shifting its position in the market; the new

product being one stage in this process.

The onliness statement – for

positioning statement

What: The only (category)

45 How: that (differentiation

characteristic)

Who: for (consumer)

Where: in (market geography)

Why: who (state need)

50 When: during (underlying

trend)

Example SEB Group

Our multi-brand strategy enables us to :

C better respond to the many expectations of our consumers throughout the world

55 C ensure a vast international presence by combining global and local strategies

C implement an offensive sales policy vis-à-vis retailers – organising in-store events,

optimising shelf presentation and generating growth for themselves and the Group.

Each brand has a well-defined identity with specific values that are reflected in the product

offering, features and design, as well as in a radical and consistent language. With this in

60 mind, Groupe SEB applies coherent brand systems that are both differentiated and

complementary and that fit long-term and transnational consumer behavioural trends.

Groupe SEB manages 6 separate and complementary brand systems, corresponding to its

international brands (Moulinex, Tefal, Rowenta, Krups, Lagostina, All-Clad).

These 6 brands guide the Group’s policy for innovation and product development – each

65 brand is allocated product innovations that embody its own particular, differentiating values.

In this way, brands can address different consumer behaviour.

Questions:

C Which companies have a multi-brand strategy?

C Are there sectors/industries that do not know this strategy?

2

Page 4: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Introduction

In increasingly competitive markets, consumers have a greater

choice over where they buy their goods and services. For an

organisation to meet its business objectives, it has to find out

what consumers require and then identify the best way in which it

can satisfy these needs and wants. Creating a competitive

advantage can be difficult. A unique marketing strategy with clear

objectives is vital to ensure effective promotional activity.

Since opening its first store in 1913, Aldi has established itself as

one of the most reputable retailers in the global business market by

providing great value and quality. Aldi’s goal is simple; ‘To provide

our customers with the products they buy regularly and ensure that

those products are of the highest possible quality at guaranteed

low prices.’ Aldi’s products are sourced from hand-picked suppliers

whose products are sold under Aldi’s own brand labels.

Aldi’s main marketing objective is to grow its market share within

the UK grocery market. With the economic crisis came an

increased demand for value for money. Market research identified

that 80% of Aldi’s customer base also shopped at other

supermarkets. These customers spent around £20 billion per year

in the other stores. Aldi’s marketing strategies therefore focus on

generating customer loyalty. Aldi focuses its marketing efforts on

encouraging customers that are already familiar with the brand to

shop at Aldi more often.

Another key focus of Aldi’s marketing strategy is on demonstrating

that Aldi brands are of equal quality to well known brands such as

Heinz and Fairy Liquid. To do this Aldi ran blind taste tests

amongst a cross section of shoppers. These confirmed that the

majority of consumers that liked the famous brands also liked

Aldi’s brands. These findings formed the basis to Aldi’s ‘Like

Brands’ marketing campaign. This provided Aldi with a platform to

communicate its quality and value messages effectively.

Aldi’s immediate challenge for the ‘Like Brands’ campaign was to

increase market share from 2.3% to 2.5%. Although this sounds

very little, the retail grocery market is very large. A single 0.1% is

worth an extra £65 million revenue.

This case study focuses on the marketing strategies used by Aldi

to increase its market share and encourage loyal customers.

The marketing mix

The Chartered Institute of Marketing describes the term marketing

as the process ‘The process responsible for identifying,

anticipating and satisfying consumer requirements profitably.’ This

places consumers at the heart of every organisation. The

marketing mix is often referred to as the four Ps. It involves

creating a unique blend of the right product, sold at the right price,

in the right place, using the most suitable methods of promotion.

A marketing mix is a complex set of variables. The marketing mix

of every business will be different. Aldi’s mix focuses on providing

high quality products that are cheaper alternatives to famous

brands. Aldi’s marketing mix therefore focuses on:

• Product – high quality ‘Like Brands’.

• Price – Aldi offers lower prices than its competitors without

compromising on quality.

• Place – Aldi outlets are expanding globally.

• Promotions – Aldi uses a combination of above-the-line and

below-the-line promotions with a focus on its ‘Like Brands’ and

‘Swap & Save’ campaigns.

Creating value through the marketing mix

MA

RK

ET

ING

Curriculum topics covered: • Marketing mix • AIDA model• Above-the-line promotion • Below-the-line promotion

ALDI CASE STUDY 18/9/13 12:52 Page 2

3

Page 5: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

www.businesscasestudies.co.uk

The AIDA model can be used to demonstrate the aim of any

promotional activity:

• Initiate awareness amongst customers.

• Generate interest for and desire to have the product(s).

• Leading to customers taking action to purchase.

Aldi uses a variety of communication methods and channels to

increase the impact of its promotional activity and meet the aims

of AIDA.

Balancing the mix

Organisations need a balanced marketing mix to meet the needs

of its customers. Aldi’s focus is on offering the best possible

quality products at the lowest possible prices. Every buyer for Aldi,

from fresh fruit and vegetables to meats and electronics, is an

expert in their field. They look for products from around the world.

This enables them to get the finest quality products that Aldi then

sells under its own brand labels.

Selecting the prices is one of the most difficult considerations

when developing a marketing mix. Different pricing strategies that

are commonly used include:

• Market penetration – charging lower prices for new products to

help them enter the market and gain market share quickly.

• Competitive pricing – pricing at a slightly lower prices than

competitors.

• Strategic pricing – emphasising the quality or brand positioning

of a product to allow a higher price to be charged.

Competitive pricing is a key strategy for Aldi. Aldi is able to offer

quality products at low prices as it buys in great volume. The fact

that Aldi buys such large quantities of these products allows great

leverage for negotiating the best possible prices with its suppliers.

This is called economies of scale. Buying large quantities of each

product allows Aldi to pass these savings to its customers.

The place element of the marketing mix involves identifying where

the product or service will be sold. Aldi keeps its store layouts

simple to limit waste and keep costs down. This means Aldi can

focus on offering its customers the lowest possible prices for its

products. When considering new store locations, Aldi takes

into account:

• the number of people visiting an area as well as the

demographic of the area – for example, the population of the

area should be more than 30,000 people

• the position of store – Aldi focuses on edge of the town centre

locations with good visibility from a main road and not too

much competition

• the accessibility of the store and its public transport links

• the number of parking spaces available.

Above-the-line promotion

For Aldi to achieve its objective of increasing its market share, it

had to ensure its promotional activity demonstrated the balance of

its marketing mix. For example, to increase customer loyalty it had

to communicate its key quality and value messages. Promotion

helps to:

• increase awareness and improve brand recognition

• increase demand for products

• improve brand image

• highlight the superiority of products and services.

a

i

d

a

awareness

interest

desire

action

ALDI CASE STUDY 18/9/13 12:52 Page 3

4

Page 6: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Above-the-line promotions are paid-for advertising aimed at a mass

audience. These include the media such as television, radio,

magazines and newspapers that reach a large number of people.

This form of promotion can be costly. It can also be difficult to target

specific audiences. Aldi uses a range of above-the-line methods to

reach its customers and potential customers. These include:

• Advertising on TV. The ‘Like Brands’ campaign features 20

second TV adverts which focus on a particular product. The

adverts show a famous brand as a benchmark for quality

side-by-side with an Aldi brand product. They use the slogan

‘Like Brands. Only Cheaper’. This reinforces the message that

Aldi products are cheaper than leading brands but equal in

terms of quality. The adverts provide personality to the Aldi

brand. They use humour which helps to build trust and an

emotional connection with target audiences.

• Printed leaflets are distributed within stores (1 million copies

printed per week) and also to customers living in areas

surrounding stores. These leaflets help to reinforce the ‘Like

Brands’ campaign. They also showcase products with limited

availability and seasonal offers available in stores.

• Newspaper adverts extend the ‘Like Brands’ campaign and

help to showcase a variety of product categories. They also

communicate Aldi’s ‘Swap and Save’ message. This campaign

demonstrates the amount that shoppers could save if they

swapped their weekly shop to Aldi. They compared Aldi

products to famous brands to demonstrate Aldi’s value for

money message.

• In store posters are also used to highlight the ‘Swap and Save’

message.

Below-the-line promotion

Below-the-line promotion uses different ways to engage with

customers. These methods can be more easily targeted to

specific audiences than above-the-line methods. They offer

organisations a greater level of control over their communications.

Aldi uses a range of below-the-line methods. These include:

• social media

• targeted e-mails to customers

• 3rd party endorsement and awards

• public relations and media relations.

Aldi’s Facebook and Twitter pages encourage two-way

communication with customers. These social media channels

provide a platform through which Aldi can interact with customers. It

can then assess their opinions about the brand. One objective of

this form of promotion is to create ‘Aldi Advocates’. These are

consumers who recommend Aldi to others, through stimulating

interactions about the high quality and low prices of Aldi products.

For example, the ‘I Love Aldi’ campaign asked fans to send a virtual

Aldi Valentines card to a Facebook friend. This was encouraged by

providing rewards. The campaign gave consumers the chance to

win a £10 voucher. They could also win a box of Aldi chocolates for

their Valentine. The campaign also encouraged consumers to

complete the sentence ‘I love Aldi because...’ directly onto Aldi’s

Facebook page to encourage positive brand feedback.

www.businesscasestudies.co.uk

Below-the-linepromotion

3rd partyendorsements

Public andmedia

relations

Twitter

Facebook

ALDI CASE STUDY 18/9/13 12:52 Page 4

5

Page 7: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Aldi also uses direct e-mails. These e-mails allow Aldi to

communicate a variety of messages to target customers. For

example, they can convey the ‘Swap and Save’ message as well

as promote seasonal messages such as products associated with

Pancake Day.

Aldi’s website is an integral part of its below-the-line promotion. It

features all of Aldi’s key promotional messages as well as

additional content to engage consumers. Examples include recipe

ideas and weekly offers. Aldi developed the www.likealdi.co.uk

micro-website to further encourage brand engagement with the

‘Like Brands’ TV campaign. The site provides consumers with the

opportunity to upload their ideas for the next Aldi TV campaign.

Aldi also uses a dedicated recruitment website to promote its

employer brand messages and career opportunities.

A further below-the-line method used to highlight the quality of

Aldi’s products is positive 3rd party endorsements. Aldi has entered

over 1,000 of its products into awards such as Grocer Golds, Pizza

and Pasta Awards (PAPA) and the British Frozen Food Federation

Awards. In 2012 Aldi was awarded ‘Best Supermarket’ by

consumer Watchdog Which? It beat competition from Marks &

Spencer and Waitrose. Further positive endorsements for products

on TV and in the press reaffirm the message that Aldi products are

of the highest quality as well as being great value for money. For

example, Aldi’s Christmas pudding was awarded runner-up and

acknowledged as a ‘bargain’ in a taste test comparison in Good

Housekeeping magazine.

Effective public and media relations help to create positive press

exposure. Aldi has secured record coverage through hard working

and innovative media relations. Journalists from newspapers such

as The Grocer, The Financial Times and The Times were invited

for exclusive interviews with Aldi’s Group Managing Directors. They

discussed record breaking sales results.

Further coverage was gained through targeting key media at

specific times with seasonal promotional messages. The ‘Swap &

Save’ campaign highlighted the savings available through

shopping at Aldi at times when value for money is high on the

agenda. This was particularly relevant with its ‘Back to School’

and Christmas products.

Conclusion

Aldi has a distinct approach to retailing that has given it a

competitive advantage in a crowded marketplace. Aldi’s unique

balance of the marketing mix enables it to provide high quality,

own branded products at the lowest possible price. Aldi’s

innovative ‘Like Brands’ and ‘Swap & Save’ marketing campaigns

are improving brand perceptions. They are aiding the achievement

of Aldi’s marketing objectives. The campaigns have increased

Aldi’s sales per store by +100% over 3 years through creating

more loyal customers. Its multi-channel promotional activity is

engaging consumers and creating positive feedback.

Aldi | Creating value through the marketing mix

Exam

-style qu

estion

s

www.aldi.co.uk

1. Describe what is meant by the term marketing.

(2 marks)

2. Explain why it is important to balance the marketing

mix. (4 marks)

3. Analyse the factors that might affect the location of a

new Aldi store. (6 marks)

4. Evaluate how Aldi has identified a unique position

within a competitive marketplace. (8 marks)

ALDI CASE STUDY 18/9/13 12:52 Page 5

6

Page 8: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Introduction

Rapid changes in media, transport and communications

technology have made the world economy more interconnected

now than in any previous period of history. Nowhere is this more

evident than in the world of textile manufacture and clothing

distribution. Consumers want fashionable clothes at affordable

prices. Much of high street fashion is produced in various

countries across the world. Businesses source clothes from

countries like India, China, Bangladesh and Turkey because of

lower material and labour costs in these countries. In order to

meet consumer demand, Primark works with manufacturers

around the world.

Primark is part of Associated British Foods (ABF), a diversified

international food, ingredients and retail group. Primark has almost

200 stores across Ireland, the UK, Spain, Netherlands, Germany,

Belgium and Portugal. Primark’s annual turnover accounts for a

significant proportion of ABF’s revenues and profit.

Primark’s target customer is fashion-conscious and wants value

for money. Primark can offer value for money by:

• sourcing products efficiently

• making clothes with simpler designs

• using local fabrics and trims

• focusing on the most popular sizes

• buying in volume

• not spending heavily on advertising.

Primark’s business growth comes from meeting these customer

needs whilst continuing to expand stores and move into

new markets.

This case study shows how Primark sources the clothes it sells in

its shops in an ethical and fair way, often at added cost to itself.

What are business ethics?

Business has a responsibility to society. Business ethics are rules

of conduct and principles and patterns of behaviour in business

dealings that involve ‘doing the right thing’. Part of this

responsibility is to look after the wider community involved in the

business process, including employees, across the globe.

Primark works with many third party suppliers and has a key

concern to source ethically. Primark is very clear about where it

stands on business ethics. ‘As an international brand with a global

supply chain we have a responsibility to act ethically. We embrace

this responsibility as an opportunity to be a great force for good.

Primark is committed to providing the best possible value for our

customers, but not at the expense of the people who make

our products.’

Curriculum Topics

• Business ethics

• Corporate Social

Responsibility

• Ethics in practice

• Costs of ethical behaviour

www.thetimes100.co.uk

EDITION

15 www.thetimes100.co.uk Primark | Providing consumers with ethically sourced garments

Providing consumers with ethically sourced garments

PRIMARK STUDY 21/9/11 12:01 Page 1

7

Page 9: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

In other words, this means making sure that, throughout the

supply chain, Primark’s goods are manufactured under good

conditions and the employees in those factories are treated well.

Primark shares its values with its parent ABF. These values shape

Primark’s relationships with its stakeholders. Stakeholders are

individuals and groups who have an interest in or are affected by a

business. They may be internal, such as shareholders or

employees, or external, such as government or the community.

Important business principles for Primark include respecting

human rights and setting guidelines for appropriate conditions of

employment in its suppliers’ factories. Primark has over 600 major

suppliers in 16 countries. These companies provide employment

for over 700,000 workers in three continents. Primark is

committed to making sure that its partners, both factories and

suppliers, also act responsibly towards their employees.

Typically, textiles are manufactured in low-wage/high manual skill

economies such as are found mostly in the developing world.

Factories in countries such as India or China may supply a range

of retailers and brands, producing goods according to each

individual retailer’s specifications. In these circumstances, the

factory sets the same wage rate to employees, regardless of

which retailer the goods are for. At least 95% of the factories

supplying Primark also produce for other high street retailers.

Primark works to ensure ethical sourcing in a number of ways. It has

an Ethical Trade Director, whose role is to make sure Primark goods

are sourced ethically and who leads a team of ethical managers and

executives based in the key sourcing countries. Primark is a member

of the Ethical Trading Initiative (ETI -www.ethicaltrade.org). The ETI is

an international alliance of companies, trade unions and non-

governmental organisations (NGOs) working in partnership to

improve the lives of workers across the globe.

Primark is able to offer value and low prices because its business

model is based on high sales volumes and lower retail margins

with minimal advertising. The company keeps costs down by

buying large quantities of items and enjoying the economies of

scale resulting from buying in bulk. In addition, retail prices are kept

low through lean production and efficient operational practices.

For example, using off-season factory time for production means

that the costs are lower than at peak time. This is good for Primark,

but it also means factory employees get work and pay when they

might not otherwise have been needed. Therefore, its practices are

both efficient and ethical at the same time.

Ethics in practice

A company needs to be constantly alert to the challenges of

operating ethically. It needs to develop ethical practices and

principles that are supported and adopted throughout the

business and to work in partnership with the many industry and

international bodies seeking to secure ethical practices and

protect the rights of employees. Primark bases its Code of

Conduct on the International Labour Organization’s (ILO) Code.

The ILO is an agency of the United Nations. It brings together

representatives of governments, employers and workers to shape

policies and programmes. This unique arrangement enables the

ILO to incorporate 'real world' knowledge about employment and

work. The ILO code describes a set of standards for international

labour. These promote opportunities for women and men to work

in freedom, equity, security and dignity.

GL

OS

SA

RY

Supply chain: Sequence of linkedtransactions that carries a product fromits origins as raw materials orcomponents through its manufacture toits receipt by the final consumer.

Values: Set of ethical or operatingprinciples that guide decision-making.Non-governmental organisations(NGOs): Non-profit makingorganisations that aim to influenceopinion, e.g. Oxfam.

Retail margin: The proportion of aselling price that is profit. Measured asprofit/retail selling price X 100.

Economies of scale: Reductions inlong-term average costs that arise fromoperating on an increasing scale.Lean production: Organising anyproduction process to minimise wasteand inefficiency.

EDITION

15www.thetimes100.co.ukPrimark | Providing consumers with ethically sourced garments

www.thetimes100.co.uk

Using fabricsproduced locally

to the manufacturer

Using off-seasonfactory time for

production

Producingon a large

scale

Minimaladvertising

Reducing packagingand extensive use ofmulti-pack product

Focus on keygarment sizes

Efficientoperatingprocess at

Primark

Taking care of our people(Employees)

Fostering ethicalbusiness

relationships(Partners)

Being goodneighbours

(Community)

PrimarkValues

PRIMARK STUDY 21/9/11 12:01 Page 2

8

Page 10: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Primark’s Code of Conduct is translated into 26 languages, all

published on its website, to ensure clear communication on

standards. The Code of Conduct sets out the company’s policy

and is part of its legal terms and conditions. See the full Code

and additional detailed information on the 11 points of the code at

www.primark.co.uk/Ethical/Values/Code_of_Conduct

The code states that within its supply chain:

1. Employment is freely chosen

2. Freedom of association and the right to collective bargaining

are respected

3. Working conditions are safe and hygienic

4. Environmental requirements - Primark shares its commitment

with suppliers

5. Child labour shall not be used

6. Living wages are paid

7. Working hours are not excessive

8. No discrimination is practised

9. Regular employment is provided

10. No harsh or inhumane treatment is allowed

11 Legal requirements - Primark is commited to compliance of all

countries’ laws.

Primark works closely with the suppliers and factories that produce

its goods. It provides training for suppliers, factories and its own

buyers so that they understand ethical issues. For example, it offers

guidance on issues such as child labour and home working in Asia,

as well as immigration and right to work issues in the UK. The role

of Primark buyers is important in helping to support ethical business

practices. When selecting new suppliers and factories, Primark

requires them to go through a selection process. This enables

Primark to establish if working conditions are appropriate or if

improvements are necessary before the supplier can be approved.

All Primark suppliers are also subject to thorough independent

audits and follow-up visits to make sure that the supplier is

maintaining ethical practices. This involves an audit of labour

standards. An auditor is someone that checks factories to ensure

that Primark’s code of conduct is being implemented within the

factory. This includes, for example, checking that the factory has

the appropriate fire safety equipment and that staff have been

trained how to use it, to ensuring that all employees receive the

wages and benefits they are entitled to.

Primark seeks to work collaboratively with its suppliers when

auditors identify issues of non-compliance against the code of

conduct. Often factories need support and training to implement

changes to their factories that are permanent and effective.

Why take an ethical approach?

As with most businesses, Primark’s main objective is to be a

profitable and sustainable business. Consequently, it is always

seeking opportunities for profitable growth to ensure these primary

objectives are achieved year-on-year. At the same time, Primark is

committed to acting as a responsible corporate citizen. The term

Corporate Social Responsibility (CSR) describes this approach.

When a company operates in a responsible way, for example,

through conducting ethical audits and working in collaboration

with its suppliers to address issues, it helps to:

• build confidence in the brand. The reputation of the business

grows; stakeholders are pleased to be associated with it.

• reduce risk to the business, for example, from poor publicity

about ethical issues.

Good business practice involves being sustainable over the long

term. A business is sustainable when it is able to make profits for

shareholders, offer good employment opportunities for its staff, pay

taxes to the governments of countries in which it operates, and at

the same time give consumers what they want (e.g. products that

represent good value for money at affordable prices). A business

that makes a profit is able to make an important contribution to

society and to look after all of its stakeholders.

EDITION

15 www.thetimes100.co.uk Primark | Providing consumers with ethically sourced garments

www.thetimes100.co.uk

GL

OS

SA

RYAudits: A systematic check and

evaluation relating to any variable -typically finance, skills or environmentalperformance, usually based onconformance against criteria laid out in acode of conduct.

Corporate Social Responsibility:Responsibility of a company to be a fairand positive force for good in the localcommunity and wider society.

PRIMARK STUDY 21/9/11 12:01 Page 3

9

Page 11: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

The costs of ethical behaviour

Operating in an ethical way may incur additional costs to a

business when compared with other retailers and companies who

may not do business in the same way. For example, Primark

bears the cost of carrying out all audits. Then there are its costs

associated with working with ethical partners. An example of this

is Primark’s partnership with Nari Uddug Kendra (NUK). This is an

organisation supporting women’s rights and health in Bangladesh.

See more information and read an interview with NUK at

www.primark.co.uk/Ethical/External_Partnerships

NUK has more than 20 years experience in addressing

women’s rights and labour issues in the ready-made

garment sector in Bangladesh. Through this partnership,

Primark seeks to identify and address key issues around

equal rights, opportunities for growth and career

enhancement, as well as training needs within some of its

key suppliers in Bangladesh. NUK's expertise in this area

helps Primark provide employees and middle management

at factories with more intensive support and training on

ethical issues.

Costs to Primark of working in an ethical way include:

• the employment of the global Ethical Trade team

• training its buyers on all ethical trade issues

• managing and paying for external audits

• helping suppliers put right issues raised by audits, through

training and support from the Primark Ethical Trade team.

However, rather than seeing these activities as costs, Primark

believes that they enable the business to operate in a sustainable

and well-managed way. Through its remediation programme,

Primark’s team of ethical managers work with factories to help

them find ways of putting issues right and developing sustainable

practices. This provides a benefit to the supplier but also in the

long term to Primark, who gains from having suppliers all working

to its standards.

Transparency is an important part of this process. Transparency

means the business is open to people seeing how it manages its

relationships with suppliers. In turn, suppliers’ practices also need

to be transparent. The alternative would be for an organisation to

ignore ethical behaviour. However, this would rapidly lead to a

decline in brand reputation and consumers could move to

purchasing from competing retailers behaving more ethically.

Operating in the ‘right way’ is therefore not just appropriate for

ethical reasons, but is also good business practice.

Conclusion

Primark is an exciting, growing brand that provides consumers

with value-for-money fashion items. The company has an effective

supply chain, bringing together manufacturing units in China,

India, Turkey, Bangladesh and other countries, with retail outlets in

Ireland, the UK and other parts of Europe.

A key principle of Primark’s business practice is to make sure that

it provides its consumers with value-for-money garments, whilst

maintaining ethical manufacturing standards. This involves paying

for independent audits of all its factories and working with

suppliers to address issues in a sustainable manner.

By working with external agencies such as the International

Labour Organization, the ETI and independent auditors, Primark

helps to set and maintain standards. Its auditors work with

suppliers over a period of time to help them meet the exacting

standards set out by the Ethical Trading Initiative. This enables the

supplier to become approved. Primark sees this as a programme

of continuous improvement.

By making its Ethical Trade processes transparent, Primark aims

to demonstrate its commitment to responsible manufacturing. This

helps to assure its customers that the goods they are purchasing

are not only fashionable and good value-for-money, but also that

they are ethically produced by workers who are fairly treated.

EDITION

15www.thetimes100.co.ukPrimark | Providing consumers with ethically sourced garments

QU

ES

TIO

NS

1. What are business ethics?

2. Give two examples of ways in which Primark is

operating in an ethical way. Provide two additional

examples of ethical practices or behaviours in a

business not associated with retailing or clothing.

3. Why is it so important for businesses to operate in an

ethical way? Explain your answer by referring to the

fashion industry.

4. In what ways could ethical business practices incur

costs to the business? Evaluate the extent to which

the benefits to a business of operating in an ethical are

likely to outweigh the costs.

www.thetimes100.co.uk

The

Tim

es N

ewsp

aper

Lim

ited

and

©M

BA

Pub

lishi

ng L

td 2

010.

Whi

lst

ever

y ef

fort

has

bee

n m

ade

to e

nsur

e ac

cura

cy o

f inf

orm

atio

n, n

eith

er t

he p

ublis

her

nor

the

clie

nt c

an b

e he

ld r

espo

nsib

le fo

r er

rors

of o

mis

sion

or

com

mis

sion

.

www.primark.co.uk

PRIMARK STUDY 21/9/11 12:01 Page 4

10

Page 12: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Managing the Corporate Brand: The Reputation of Primark Retailer (extracts)

In 2008, many articles in UK newspapers revealed what had been discovered about

Primark’s supply chain. A documentary by the BBC found out that the brand had three

suppliers that used child labour in India’s sweatshops, aged 11+ and paid about 60p/day,

5 even working at night in candle light. An undercover investigation called “Fab and Fabric”

made about one of Primark’s Indian suppliers found that at least one supplier was

subcontracting to other manufacturers employing children.

Therefore, customers protested in front of the Oxford Street branch in London as a reaction

to the shameful news. So an order worth millions of pounds was cancelled by Primark.

10 Withdrawing clothes produced by the three suppliers from stores was the next step to

restore CSR.

Primark, like all the other retailers and brands is now focusing on CSR and ethics but

unfortunately it took a broken reputation and a loss in sales in order not to be left behind

and keep up with the changes in the market. There are differences in the markets in terms

15 of income distribution and culture but the ratailer learnt lately how to adapt to them

without being unethical or losing their differentiation point, i.e. pricing. All the necessary

measures were taken in order to repair what had been done wrong in terms of regular

social and environmental audits made by their new Ethical Trade Director, internal

communications, transparency, staff responsibility and incentive systems. The retailer is

20 regaining its reputation and has made steps ahead but with the corporate objective to

expand in Europe, the supervision of all the suppliers and buyers will be impossible and the

brand should do its best to keep its current ethical and CSR approach.

11

Page 13: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Online Shopping and the Germans:

Amazon and Zalando

Internet companies are other great

examples where the character traits

5 determine strategy. Many of these

companies are willing to take massive

risks. Start-ups like German online shoe

store Zalando seized opportunities that

its competitors saw as too risky. It

10 entered the online sporting goods

segment that traditional, more

risk-averse sports outfitters had left untapped for

years. It is a strategy that has proved successful as

this particular online channel is now growing

15 rapidly. [from: Roland Berger]

Amazon and eBay are online giants not just in the

US, but also around the world. So it’s not

surprising that our survey respondents in several

countries ranked them high on their list of online

20 pure players.

For example, in Germany, 89% of online shoppers

made purchases on their PC with Amazon and

75% with eBay over the past 12 months. Domestic

online retailer Zalando was a distant third with

25 only 22%. That might suggest that domestic

players are at a serious disadvantage—but

appearances can be deceiving. After Zalando

there are a whole host of German players where

5-17% of shoppers are making purchases. Both

30 Amazon and eBay actually entered the German

market by acquiring a local player. And after 15

years, Amazon still has only a 13.8% share of total

internet sales in Germany.33 While an eventual

shakeout is probably likely, eliminating some of these smaller retailers, the fact remains

35 that domestic online players do possess a path to success.

12

Page 14: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Indeed, we’ve found that in many cases domestic online pure players are able to withstand

entry by foreign competitors. They’ve already built up brand recognition and customer

loyalty, making it harder for new entrants to compete, especially in competitive, mature

markets.

40 Global delivery is well established in the fashion sector. Online fashion shops have a very

good ability to detect the customer’s location, sending him or her to a country---specific

webshop and offering local content; major players such as Mr.Porter and Tres Bien Shop

have platforms detecting the customer’s location and gives him information such as the

currency, language or shipping price. But the reward comes to Zalando in 2012; the brand

45 receives the price of the “Best Cross---Border Webshop” at the European e---commerce

Awards in Barcelona. The summit underlined the brand ability to make “the customers […]

feel they are shopping with a local brand.”

• Today Zalando is the biggest online fashion retailer in Europe

• Zalando has reached a strong brand awareness in all the countries he is currently

50 targeting (i.e. in Germany same brand awareness as Volkswagen)

• Zalando is active in 14 European countries

Main drivers for Zalando success

1. Extremely figure-driven company (Business Intelligence, Marketing Intelligence

teams, etc.)

13

Page 15: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

55 2. Strong online marketing competencies

3. Quick and efficient logistic system

4. Strong focus on customers’ behavoiurs (User Experience team): give the users what

he is looking for

5. Efficient and reliable Customer Service

60 6. Be local: adapt products and services to the specificity of each markets:

i. Having a wide and country specific offer (products, etc.)

ii. Country specific management teams

iii. Country specific webpage

Amazon in Germany (and another one at the end - sorry)

14

Page 16: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

65 The Italian market entry and its current status

Issues Observations

Conversion Rate Low level compared to other Zalando countries. Perfect pricing and

improved assortment represent crucial levers

Trust project

Return Rate Italy has the lowest Zalando return rate. Italians buy when they are

extremely convinced therefore return is physiologically less likely

Brand Awareness

70 (aided)

TV had great impact. Offline measure under testing (Magazine,

educational booklet

Preferred Payment

methods

Cash on Delivery represents more than half of the Italian payment

method. Strong focus in the current advertising in order to get

“offliners” online

Call-Center Contact

Ratio

Italy has the highest contact ratio with half of the contacts

pre-sale” and CS represent a powerful marketing tool (telephone

orders)

75 Customer

Satisfaction

Italy has one of the highest customer satisfaction level.

Huge efforts in order to achieve First Class Operations

“Fashionability“ New home page

News&Style section

15

Page 17: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Globalisation

The word globalisation was not recognised as academically significant until the early-to-mid

1980s. Since then its use has increased dramatically. Some see the concept of globalisation as

the key idea by which we understand the transition of human society into the third

5 millennium. There have been numerous definitions of the term with the common theme

being the increasing interconnectedness of the world economically, culturally and politically.

What is ‘globalisation’?

It is the coincidence of especially the following forces that can be associated with the concept

of economic globalisation:

10 1. deeper and wider international economic integration as the combined effect of the

increasing international mobility of goods and services, technological and

organizational knowledge, and corporate as well as portfolio investments;

2. accumulation of breakthroughs in communication and computer technologies,

together often coming under the information and communication technology (ICT)

15 label, and their world-wide commercialisation;

3. the global interlocking of financial markets, enabling much of the above.

Tom Friedman on Outsourcing, in the NYT

How can it be good for America to have all these Indians doing our white-collar jobs?" I

asked 24/7's founder, S. Nagarajan.

20 Well, he answered patiently, "look around this office." All the computers are from HP.

The basic software is from Microsoft. The phones are from Lucent. The air-conditioning is

by Carrier, and even the bottled water is by Coke, because when it comes to drinking

water in India, people want a trusted brand. On top of all this, says Mr. Nagarajan, 90

percent of the shares in 24/7 are owned by U.S. investors. This explains why, although

25 the U.S. has lost some service jobs to India, total exports from U.S. companies to India

have grown from $2.5 billion in 1990 to $4.1 billion in 2002. What goes around comes

around, and also benefits Americans.

Globalization does not exist - criticising the hyperglobalist attitude

Seductive as such ideas might seem, a moment’s thought will show just how misleading they

30 are. The world is both a ‘space of places’ and a ‘place of flows’. Production networks don’t just

16

Page 18: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

float freely in a spaceless/placeless world. Although transportation and communications

technologies have, indeed, been revolutionized both geographical distance and, especially,

place remain fundamental. Every component in the production network – every firm, every

economic function – is, quite literally, ‘grounded’ in specific locations. Such grounding is both

35 physical, in the form of sunk costs, and less tangible in the form of localized social

relationships and in distinctive institutions and cultural practices. Hence, the precise nature

and articulation of firm-centred production networks are deeply influenced by the concrete

socio-political, institutional and cultural contexts within which they are embedded, produced

and reproduced. An especially important bounded territorial form in which production

40 networks are embedded is that of the state. All the elements in the production network are

regulated within some kind of political structure whose basic unit is the national state but

which also includes such supranational institutions as the International Monetary Fund and

the World Trade Organization, regional economic groupings such as the European Union or

the North American Free Trade Agreement, and ‘local’ states at the subnational scale. All

45 markets are socially constructed. Even supposedly ‘deregulated’ markets are still subject to

some kind of political regulation. [extract from: Dicken, Peter (2003), Global Shift: Mapping

the Changing Contours of the World Economy, Fourth Edition, London: Sage.]

17

Page 19: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

18

Page 20: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

International human resource management 1

Selection and recruitment

An assumption is often made that an effective manager at home will also be an effective

manager abroad. Moreover, many companies continue to focus primarily on the technical

competence criterion for expatriate assignments. There are two reasons for this: (1) task

5 requirements are usually more easily identifiable; and (2) since technical competence

almost always prevents immediate failure on the job, particularly in high pressure

situations, the selectors play safe by placing a heavy emphasis on technical qualifications

and little on the individual’s ability to adapt to a foreign environment. Both these

assumptions are suspect, however, when one examines the rate of expatriate failure and

10 the reasons for such failure.

Some US multinationals experienced expatriate failure rates as high as 30-40 per cent; in

contrast, European, Japanese, and Australian multinationals experienced significantly lower

rates of expatriate failure. Nevertheless, these casualties of selection not only represent

substantial lost investment, they also constitute a human resource waste since most of

15 those who fail seem to have a noteworthy home track record. Failures often constitute a

heavy personal blow to the expatriates’ self-esteem. Hence, even if they are accepted back

by corporate headquarters, it may take some time before they regain confidence in their

own abilities. The unsettling experience for the person’s family, both emotionally and

physically, represents yet another consequence.

20 What are the causes of expatriate failure? In the US sample the most important reasons for

expatriate failure, in descending order of importance, were:

1. inability of the manager’s spouse to adjust to a different physical or cultural

environment;

2. the manager’s inability to adapt to a different physical or cultural environment;

25 3. other family-related problems;

4. the manager’s personality or emotional immaturity;

5. the manager’s inability to cope with the responsibilities posed by overseas work;

6. the manager’s lack of technical competence;

7. the manager’s lack of motivation to work overseas.

30 Selection criteria

Overseas managerial assignments can be classified into four major categories: (1) the chief

executive officer (CEO), whose responsibility is to oversee and direct the entire foreign

operation; (2) the functional head, whose job is to establish functional departments in a

foreign subsidiary; (3) the troubleshooter, whose function is to analyse and solve specific

35 operational problems; and (4) the operative, or rank and file. [...]

Selection of parent-, host- and third-country nationals

Multinationals have three sources of human power supply available to them: (1) parent-

19

Page 21: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

International human resource management 2

country nationals (PCNs), or those who are citizens of the home country of the

multinational corporation; (2) host-country nationals (HCNs), or citizens of the country of

40 foreign operation; and (3) third-country nationals (TCNs), or nationals who are neither

citizens of the home country of the multinational nor of the country in which the foreign

operation is located.

Analysis thus far has focussed on the use of PCNs. The reasons for using PCNs, HCNs and

TCNs are multiple and varied, and the selection criteria may be summarized as in Figure 1.

45 It is noteworthy that west European multinationals seem to use expatriate assignments as a

mechanism for developing an international orientation among their management

personnel. Tn the 1990s, US multinationals are also following this trend (Tung and Arthur

Andersen 1997). In order to compete effectively in a world characterized by the

globalization of industries, European multinationals recognize the need to develop this

50 orientation among its management personnel.

The extent to which PCNs, HCNs and TCNs are used at various levels of management in

different geographic regions of the world varies. For the US and west European samples,

HCNs are used to a much greater extent at all levels of management in developed regions

of the world compared to less developed countries. This is logical as one would expect the

55 more developed nations to have a larger pool of personnel that would possess the

necessary human power and technical skills to staff management-level positions.

Unfortunately, the countries staffed by a smaller percentage of HCNs at management levels

of US and European subsidiaries tend to be ones whose culture, values and business

practices differ substantially from those at home. Consequently, the issue of selecting a

60 candidate who would be able to live and work in a very dissimilar cultural environment still

constitutes a pressing problem.

Japanese multinationals, on the other hand, employ considerably more PCNs in their

overseas operations at the senior and middle management levels. This phenomenon may

be attributed, in part at least, to the significant differences that exist between Japanese and

65 non-Japanese styles of management which can create problems of integration, particularly

at the senior management level. One problem pertains to language differences. Virtually all

communication between corporate headquarters in Japan and the foreign subsidiary is in

Japanese. There are very few non-Japanese who are thoroughly proficient in the Japanese

language. The more extensive use of PCNs at the senior and middle management levels in

70 Japanese multinationals may also be a function of the stage of internationalization of

Japanese firms. Compared with their US and European counterparts, Japanese companies

are more recent entrants into the multinational scene. Aside from the large general trading

companies, the majority of Japanese firms only began overseas expansion in the 1960s. In

start-up phases there is a greater tendency for multinationals to use PCNs.

75 Another characteristic of international human resource management practices in Japanese

multinationals is the limited use of TCNs. Except for Africa, the Japanese multinationals

studied did not use TCNs at all. When asked why, the Japanese multinationals indicated

20

Page 22: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

International human resource management 3

that since they already experience difficulties in trying to integrate a local workforce with

their expatriate staff, they do not wish to confound the situation by adding a third

80 dimension, namely TCNs.

The trend towards the increased use of HCNs at various levels of management in overseas

operations has continued for US multinationals. While acknowledging the obvious

advantages associated with the use of HCNs, such as reduced costs and greater familiarity

with the local environment, there can be limitations associated with relying exclusively on

85 HCNs. Because of geographic distance and cultural differences, corporate control becomes

more tenuous. [...]

Retention of personnel

Two factors which can affect a firm’s ability to retain competent corporate personnel to

meet their international human resource management needs are: (1) compensation - is

90 there adequate compensation for service abroad? and (2) repatriation - does the overseas

assignment have a positive impact upon the expatriate’s subsequent career advancement

within the organization on repatriation?[...]

21

Page 23: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

The business market consists of all organisations that purchase goods and services. All

organisations operate in the business market in some way. We refer to the business

market, but in fact we are actually referring to the organisational buying market. This is

because it is not only businesses that are the target of business to business marketers.

5 Other organisations such as hospitals, schools, charities and agricultural enterprises also

form part of the business market. The business market is often referred to as the B2B

(business-to-business) market.

B2B (business-to-business) marketing is marketing of products to businesses or other

organizations for use in production of goods, for use in general business operations (such as

10 office supplies), or for resale to other consumers, such as a wholesaler selling to a retailer.

Differences from Consumer Market

Fewer customers. There were about 316,000,000 potential individual consumers in the

U.S. alone. The number of businesses in comparison is almost

laughable. In 2007, it's estimated that there were about 7,705,000

15 businesses operating in the U.S. and about 86% had fewer than 20

employees.

Derivative demand. A significant amount of business demand is derivative of consumer

demand. For example, a big box retailer's demand for books from its

wholesalers may decline as its customers continue to transition to

22

Page 24: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

20 electronic books. This may not effect the retailer much, but it sure

hurts the traditional publishing industry.

The products and buying process is often more complicated. The

products purchased are often very complex and expensive, like

manufacturing equipment, and are sometimes even custom made.

25 Moreover, negotiation between buyers and sellers is much more

prevalent because of the increased bargaining power of individual

buyers.

Types of Business Consumers

1. Manufacturers are businesses that produce products. The bulk of their purchases will be

30 inputs for their production, such as raw materials, components, and outsourcing of

labor. They will also buy some products to support general operations, including office

supplies, furniture, and computers.

2. Trade are consumers that generally purchase finished products to sell to consumers for

a profit. Retailers and wholesalers are examples. A wholesaler may make a high-volume

35 purchase of a product at a reduced price and then sell the product to retailers at a

lower volume but at a higher price. Of course, trade businesses will also buy products to

support general operations.

3. Government is certainly the largest

consumer in the U.S. market bar none. It

40 spends trillions of dollars for goods and

services ranging from pencils to

billion-dollar aircraft carriers.

4. Institutions are organizations that engage

in charitable, educational, and community

45 activities. They can be public or private

organizations. Common examples include

universities and hospitals. These

consumers generally buy products that

support their service activities, like general

50 office supplies, and equipment and

specialized equipment needed for a

service, such as an MRI machine.

Complextransactions.

23

Page 25: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Employee Motivation, by B. Nelson

The vast majority of today’s workers report they are overworked and underappreciated.

The most validated principle of employee management is the simple notion that “you get

what you reward.” If you systematically provide positive consequences to your employees

5 for desired behaviors and results, you will get more of those behaviors and results. Studies

prove that employee recognition also has an immediate positive impact on stress,

employee morale, job satisfaction and increased performance. That translates into more

sales and better customer service.

There’s also strong evidence that employee recognition has a direct impact on employee

10 retention. Robert Half International, the staffing firm, found the number-one reason why

people left their jobs was “limited recognition” for the work they were doing. Similarly, the

Gallup Organization found that the number-one predictor of tenure on the part of any

employee is the relationship that person has with his or her immediate supervisor. In

relationships that were characterized as “positive,” employees tended to stay in their jobs

15 longer. In other words, for most of us if we have a good boss and a good job, we think twice

about leaving it!

Fortunately, the most effective forms of recognition cost little if anything and are within the

grasp of any motivated manager. Here’s what workers say they want in study after study:

Support and20 involvement

How well do you provide the information to employees that they needto do their jobs? How well you involve employees when makingdecisions? How well do you support your employees when they makemistakes? These are all aspects of support and involvement.Employees want to know how they are doing in their jobs and how thecompany is doing in its business. Involving employees is bothrespectful and practical: you increase their commitment, make iteasier for them to complete their work, and encourage them toimplement changes and adopt new ideas.

Personal andpublic praise

It only takes a few seconds to thank someone for going above andbeyond by helping a co-worker or staying late until a project iscompleted. If your thank-you is immediate, sincere and specific, it willbe on the mark in making your workers feel valued andappreciated—and will increase the chance that they will repeat thebehaviors you noticed.

Autonomy andauthority

Most employees value being given a chance to do their work as theysee fit. Do you allow employees to decide how to get a job done, givethem increased job autonomy and authority once earned, and allowthem to pursue their ideas or give them a choice of assignments, whenpossible?

24

Page 26: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

25 Flexibleworking hours

Time is the new currency for today’s employees. They expect work tobe an integrated part of their lives, but not their entire lives. Giventhat 83 percent of employees report wanting more time with theirfamilies, allowing greater work flexibility, where possible, can be agreat motivator. Using time off as a form of reward—whether it’s anhour, an afternoon, or a full-day—is another way this need can be met.

Learning anddevelopment

Most development and learning occurs on the job from newopportunities, new challenges and chances to gain new skills andexperience. Do you support and encourage employees to learn newskills? Do you allow them to take on new tasks, discuss what they’velearned after the projects are completed and explore continuing careeroptions within the company? If not, now is the time to start!

Manager30 availability and

time

Are you available to address employees’ questions and concerns? Doyou take time to get to know your employees and listen to theirnon-job issues? Being accessible to employees is critical for buildinglasting relationships with your workers. Remember, you can’t be openand receptive with a closed mind!

This is why “employee of the month” programs are so ineffective.

Here are a few examples of effective and low-cost recognition methods:

• Crate & Barrel store managers in Houston, TX, started a program for their associates

involving a “surprise hour off.” Once a week, each store manager would pick a sales

35 associate, and take his or her shift on the floor for an hour, saying, “You’ve been

working hard, and I appreciate it—take an hour off and come back refreshed and

ready to sell some more.”

• As a result of its commitment to a more balanced work life, employees at clothing

outfitter Eddie Bauer can “call in well.” The company’s Redmond, WA, store has

40 even created Balance Day, an additional day off for all employees.

• At Claire’s Boutique in

Wooddale, IL, district

managers reward store

managers for the highest sales

45 by filling in for the store

managers on a Saturday so

the manager can have a day

off. The regional managers

also present simple trophies

50 to district managers in

recognition of their

achievements.

25

Page 27: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

26

Page 28: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

27

Page 29: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

28

Page 30: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Attitude & Manners at a Job Interview

Pre-reading

Questions:

• What does it mean to have a good attitude?

• What are some good manners?

• Why should you show both a good attitude and good manners

at a job interview?

Definitions:

• Attitude – a way of thinking, acting, or feeling

• Manners – a way of behaving that is polite or proper

• Alert – interested, quick to notice or act

• Motivated – to want to do something

• Enthusiastic – having or showing great interest and excitement

Reading

17

32

37

56

74

90

96

113

133

144

161

178

186

201

220

239

253

269

282

Having a good attitude and good manners are important both at an interview and on the job.

Managers agree that a person’s attitude can be more important than their work experience. Your

attitude makes a big difference.

If you are excited about being at the interview and are eager to be hired for the job, the

employer will probably consider you for the job. If you speak softly and look at your feet during

the interview, the employer may not consider you for the job. Managers are looking for someone

who is alert, motivated and enthusiastic.

Using good manners at an interview and at your work is very important. The way you act

tells a great deal to an employer. If you’re polite and kind, it says that you get along with people

and you have a respect for seniority, company managers and supervisors.

One of the first manners an employer will look for is punctuality, being on time for the

interview. This indicates whether you’re reliable and will be to work on time. Being late for an

interview could hurt your chances of being hired.

When you meet the manager, smile. Then, offer a friendly greeting of “Hello” or “Hi”.

Give the manager a firm handshake. Address the manager as Mr. or Ms. unless he or she asks you

to call him or her by a first name. This shows that you have respect for the manager’s position.

Also, look at the manager directly in the eyes, not down at your feet.

During the interview, sit up straight in the chair. It shows that you’re alert and interested.

Keep your hands and feet still during the interview. And, never chew gum.

Level 6.5

29

Page 31: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

Understanding

1. What does the word punctual mean in this story?_______________________________________

______________________________________________________________________________

2. Why is punctuality important? _____________________________________________________

______________________________________________________________________________

3. What does the word eager mean in this story? _________________________________________

______________________________________________________________________________

4. What is the difference between a good attitude and poor (or bad) attitude? ___________________

______________________________________________________________________________

5. What are some good manners to show at an interview? __________________________________

______________________________________________________________________________

6. What should you never do at an interview? ___________________________________________

______________________________________________________________________________

7. What shows that you have respect for the person giving the interview? _____________________

______________________________________________________________________________

Writing

Option A: Think about a past job interview you’ve had. In what ways have your attitude and manners

been the same as those you read about? In what ways have your attitudes and manners been

different?

Option B: In your own words, write about why having a good attitude and using good manners are

important at a job interview. What would you do at an interview to show the employer you

had a good attitude and good manners?

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

30

Page 32: Sodmann - Business English - Winter 2013 - Semester 3hochschule-bochum.de/fileadmin/media/3_internationales/WiEn/Script... · Script Sodmann - Business English - Winter 2013 - Semester

31