Speaking Assignment: Brand Extension and Its Impact on Profitability | Tiếng anh chuyên ngành 2 | Học viện Tài chính
Some experts think that a company with an established brand should engage in brand extension to increase profit. Others think that they should be careful to avoid the risks of damaging the exclusive aspect of the brand image. Discuss the idea It is reasonable to say that brand extension is an effective technique for increasing profitability or they cause the brand to lose the image of exclusivity that the founder worked hard to build. Tài liệu được sưu tầm và soạn thảo dưới dạng file PDF để gửi tới các bạn cùng tham khảo, ôn tập đầy đủ kiến thức, chuẩn bị cho các buổi học thật tốt. Mời bạn đọc đón xem!
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Unit 8
9. Some experts think that a company with an established brand should
engage in brand extension to increase profit. Others think that they should be
careful to avoid the risks of damaging the exclusive aspect of the brand image. Discuss the idea
It is reasonable to say that brand extension is an effective technique for increasing
profitability or they cause the brand to lose the image of exclusivity that the founder
worked hard to build. This question arouses much controversy. Some experts believe
that brand extension brings many benefits whereas others suppose that this strategy harms the brand.
On the one hand, brand extension is not good for business because it brings many
negative impacts to the existence of the business. Firstly, it is believed that brand
extension is one of the main causes that contributes to harming the brand’s reputation.
According to many researchers, exclusivity plays an important role in perceiving the
value of luxury and premium brands. Customers may lose respect for a brand if it
becomes too accessible because of the aggressive distribution strategy that distracts
from exclusivity. Moreover, when businesses use a brand extension, they should be
concerned about the high risk of failure. If the extended product does not meet the
expectations of customers, it can damage the brand's credibility and customer trust,
leading to significant financial losses and reputational damage.
On the other hand, there are even more convincing arguments in favor of the
advantages of brand extension. The brand extension allows companies to expand into
new product categories and reach different customer segments, helping them diversify
the brand’s product portfolios and reducing dependency on a single category. Next,
brand extension is supposed to be good for companies and brings many benefits to
businesses as it is a cost-effective marketing strategy. When a company launches a new
product under an existing brand, it benefits from the brand’s established reputation and
customer base. This reduces the need for brand awareness campaigns, which can be
costly and time-consuming. Last but not least, brand extension plays a crucial role in
strengthening a company’s brand positioning. By expanding into new product
categories, businesses can reinforce their identity and establish themselves as trendsetters.
On balance, I am better convinced of the latter opinion. I feel strongly that enterprises
would lack an essential method for growth if the brand extension were removed from the company's development plan
2. Marketing experts think that brand extension is an effective way for a
company to launch a new product and increase profits. Do you agree or disagree? Why?
When the effects of brand extension are brought into view, different opinions are
given. Some people believe that brand extension has many negative impacts on a
brand, while others argue strongly that this is a successful strategy for launching a new
product and enhancing profitability. I am better convinced of the latter opinion for the following reasons.
To start with, brand extension is supposed to be good for companies and brings many
benefits to businesses as it is a cost-effective marketing strategy. When a company
launches a new product under an existing brand, it benefits from the brand’s established
reputation and customer base. This reduces the need for brand awareness campaigns,
which can be costly and time-consuming. Additionally, customers are already familiar
with the brand, making them more likely to trust and try the new product. This
familiarity allows new products to enter the market.
Moreover, the advantages of brand extension for companies seem to be obvious in
increasing the company’s revenue stream. The brand extension allows companies to
expand into new product categories and reach different customer segments, helping
them diversify the brand’s product portfolios and reducing dependency on a single
category. Take Nike as a spark example, this brand was successful in using a brand
extension strategy to move from footwear to sports apparel and equipment.
To conclude, I am strongly convinced that brand extension plays an important role in
determining the success of businesses
1. Talk about the Brand and its features
A brand is not just a name or a logo. It is the overall image and feeling that customers
have when they think about a product, a service, or a company. A strong brand helps a
business stand out in the market, build trust, and attract loyal customers. For example,
when people see the Apple logo, they often think of innovation, quality, and modern
design. This shows how powerful a brand can be.
There are several important features of a brand. First, every brand has a unique and
memorable name. Examples include Coca-Cola, Nike, or Samsung. Second, a brand
includes visual elements like logos and symbols, which help people recognize the brand
easily. Third, design is also a key feature — this includes product appearance,
packaging, and overall style. In addition, many brands have a slogan or tagline, which is
a short phrase that shows the brand’s message. For example, Nike says, “Just Do It.”
Another feature is the brand image, which refers to how people feel and think about
the brand. A positive image increases customer trust and loyalty. Then we have brand
identity, which includes the values, personality, and message that the brand wants to
show to the public. Brand equity is the value and strength of the brand in the market
Strong brands can charge higher prices and still attract customers. Lastly, consistency is
very important. A successful brand must give the same message and experience across
all platforms, whether online, in advertising, or in stores.
In conclusion, a brand is a powerful tool in business. It helps build recognition, trust,
and long-term relationships with customers. That is why companies invest so much in
creating and developing their brands
3. What do you think makes a brand lose its image?
A brand can lose its image for many reasons. One of the most common causes is poor
product quality. If a company sells products that break easily or do not work well,
customers will lose trust in the brand. Another reason is bad customer service. When
customers are treated poorly or their problems are not solved, they may stop buying
from that brand. In addition, false advertising can damage a brand’s image. If a
company makes promises it cannot keep, people will feel disappointed and lose respect
for the brand. Scandals or unethical behavior, such as using child labor or harming the
environment, can also make a brand unpopular. Lastly, a brand can lose its image if it
fails to adapt to change. For example, if it does not keep up with new technology or
changing customer needs, people may think the brand is old-fashioned or out of touch.
In short, losing quality, trust, and connection with customers is the main reason a brand’s image can fall.
4. What interesting things have you learnt from Chupa Chups?
Chupa Chups, founded in 1958 by Enrie Bernat, is a popular Spanish brand that sells
an innovative product that allows children to eat candy without getting their hands and
clothes dirty- a lollipop. In order to make his brand become the world's leading provider
of candy that parents worldwide would allow their children to cat, Finric first found a
name that would appeal to children everywhere and promoted at worldwide and he
chosen the name Chapa Chups (this name comes from the Spanish verb Chupar,
meaning "to suck"). Then, he asked a famous painter to design a colorful logo to to with
the marketing and advertising campaign Thanks to a positioning campaign, his famous
lofÏpops were being sold in 300.000 outlets throughout Spain within 5 years Today,
Enne's company sells 4b lollipops a vear in 170 countries around the world and the
brand has recently introduced the latest product lollipops that cat whiten the teeth and prevent cavities
5. What is a brand? What is brand identity?
A brand is more than just a name or a logo. It is the overall image, feeling, and
reputation that people have when they think about a company or product. A strong
brand helps customers remember the product and trust the company. For example,
brands like Nike or Coca-Cola are recognized all over the world because of their strong image and message.
Brand identity is the way a company presents itself to the public. It includes the logo,
colors, slogan, design, and the values the brand wants to show. Brand identity helps a
company stand out from others and connect with customers emotionally. For example,
Apple’s brand identity focuses on innovation, simplicity, and quality. In short, while a
brand is how people see the company, brand identity is how the company wants to be seen.
6. What are the features of a global brand?
- A global brand is a brand that has the ability to cross both geographical and cultural
boundaries, building an international reputation of quality.
A global brand is a brand that is recognized and sold in many countries around the
world. One important feature of a global brand is consistency. This means the brand
keeps the same logo, slogan, and quality across different markets, so customers can
easily recognize it anywhere. Another key feature is strong brand identity, which helps
create trust and loyalty among international customers. A global brand also shows
cultural adaptability, meaning it understands and respects local customs, languages,
and preferences while keeping its main values. In addition, global brands often use
international marketing strategies and work with local partners to expand their reach.
Examples of global brands include McDonald's, Apple, and Coca-Cola. These companies
are known worldwide because they combine consistency with the ability to connect with people in different cultures.
7. Why do companies have to keep exclusivity?
Companies need to keep exclusivity to protect their brand’s value and image. When a
product or service is exclusive, it feels more special, unique, and high-quality, which can
attract more customers, especially those who want to stand out or feel important.
Exclusivity also helps companies avoid becoming too common or ordinary, which could
weaken the brand’s identity. For example, luxury brands like Chanel or Rolex keep
exclusivity by limiting their products and not offering big discounts. This strategy makes
their items more desirable and allows them to charge higher prices. In addition,
exclusivity helps companies prevent copycats and maintain control over how their brand
is used or seen in the market. In short, exclusivity protects a brand’s reputation,
supports higher profits, and keeps customers loyal.
8. How did Gucci lose its image? How did it revamp?
Gucci is a prestigious Italian brand that sells exclusive personal luxury goods.
Although in the 1950s, the brand became an iconic brand in the world, in the 1980s, the
brand's image of exclusivity was damaged due to an aggressive distribution strategy.
However, strong and smart leadership saved the brand. Tom Ford, who was the creative
director of Gucci, brought the wealthy back to support Gucci again. And thanks to a
strategy focusing on improving the quality of core products, expanding the network of
directly operated stores, and choosing the right communication and advertising
campaigns, the reputation of Gucci as an exclusive brand has returned Unit 9
3. Explain "human intuition is a bad guide to handling risks".
When the effects of human judgment on managing risks are brought into view,
different opinions are given. Some people believe that gut feeling is a good guide to deal
with problems, while others argue strongly that people might find a more reliable way to
handle risks while understanding the causes of their issues. I am better convinced of the
latter opinion for the following reasons.
To start with, human judgment is supposed to be undesirable for managing problems
as it has many drawbacks. When people use their inner instincts, they often tend to
make an optimistic forecast about the stock market or real estate, believing that asset
value will continue to rise in the future. As a result, this optimism causes investors to
ignore potential risks and assume that past trends will continue. However, the fear of
loss frequently outweighs potential gains, leading to irrational decision-making. Under
the influence of human intuition, investors may panic-sell their assets during market
downturns, even when there is no reason to do so. Additionally, “home bias” in investing
means favoring the local market despite better opportunities elsewhere, which can influence investment choices.
Moreover, alternative problem-solving methods that are more efÏcient than inner
instincts appear to be more beneficial to people. Firstly, understanding biases helps
individuals and companies avoid irrational choices by recognizing the emotional
influence on decision-making. Next, by analyzing historical and statistical data, investors
and businesses can assess risk more realistically rather than relying on intuition or
assumptions. This practice plays an important role in helping investors assess the
potential outcomes, reducing the risks of costly mistakes. Last but not least, a
systematic decision-making process balances risks and opportunities, ensuring more
strategic and informed choices. This can increase the chances of long-term success and
financial stability for both organizations and individuals.
To conclude, I am strongly convinced that people should not follow their gut feelings
because they are not reliable indicators of how to manage risks; instead, they should
follow some of the better practices outlined above
1. Talk about different sources of finance for a start-up. What are the
advantages and disadvantages of each source?
It is sure that securing finance is important during the startup process. There are
numerous sources of finance you can explore. But today I'd like to share with you the 3
most popular sources of finance for start-ups as well as their pros and cons- bank loans,
venture capitalists, and business angels.
First, Bank loans are a conventional source of business funding that will help you to
raise cash quickly. These loans also offer certain tax breaks and have lower interest
rates compared to credit cards and overdrafts. However, you must meet a range of loan
requirements, and the burden of repayment can wear you down.
Second, seeking investment from venture capitalists who provide finance to small and
medium-sized businesses with no access to stock markets is a good way to raise a large
amount of capital and expand business operations. But, you have to prove to them that
your business has the growth potential, and you must accept that the venture capitalist will own part of your business
Finally, finance can also come from a Business Angel, a person who gives financial
support to a commercial venture and receives a share of any profit from it, but does not
expect to be involved in its management. This source offers businesses the freedom to
make fast investment decisions, no need for collateral, access to investors' knowledge,
and no repayments or interest. However, it takes time to find a suitable business angel
and requires giving up a share of your business
2. What makes a successful investor?
- Firstly, successful investors are proactive learners. They spend more time studying
than the others. They know that their cup of knowledge must never be full, so they
always keep their minds open, ever ready to learn
- Secondly, they are patient. Successful investors are very patient. When they make
their calculations on an investment, they are prepared to wait to make sure their plan is
successful. They plan to take advantage of a short-term market, but as a backup plan,
they still plan to hold on for as long as.
- Thirdly, successful investors have strong emotional control. They also have a neutral
reaction to either winning or losing. They don't abandon their investing strategy simply
because of a few failures, and they don't become overconfident when they are on the
winning side. No matter the market conditions, they still respect the 50-50 chance of winning or losing
- Finally, they learn quickly from their mistakes. Successful investors make mistakes,
but they are not discouraged by these mistakes because they know mistakes are part of
the process of becoming a better investor. 4. What is ROI?
Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an
investment. It measures the amount of return relative to the investment's cost, expressed as a percentage or a
ratio. ROI is widely used to compare the profitability of different investments and assess whether a particular investment is worth pursuing.
You can calculate ROI by dividing net profit (current value of investment - cost of
investment) by the cost of investment. For ex, an investor buys $1,000 worth of stocks
and sells them 1 year later when their value reaches $1,500. In this case, the net profit
of the investment (current value - cost) would be $500 ($1,500-$1,000), and the return on investment would be 50%
5. Why do we say "the reward of risk"?
"The rewards of risk" refers to the potential benefits or returns one can achieve by taking calculated risks
in various aspects of life, such as investments, business decisions, career choices, or personal endeavors. It
highlights the idea that stepping outside of a comfort zone or embracing uncertainty can lead to significant
gains, whether financial, professional, or personal.
There are many reasons for supporting the former view. First, investment gives you
more opportunities to increase profit, reinvest, and gain a larger market share. Second,
each investment brings you a lot of experience. Not only do you know how to avoid
mistakes in the past, but you also have innovative ideas to improve your plans. Third,
investment also challenges your knowledge and financial management skills, making you more and more advanced
However, the latter view is no less convincing. For one reason, if your investment falls,
you can lose a lot of money and even go bankrupt, as each investment decision directly
affects the firm's finances. Another reason is competition risk. The stronger your
opponent is, the less chance you have of gaining market share. In addition, your
company may encounter legal events if you make a mistake in the investment process .
Therefore, knowledge and caution are necessary when financing.
In short, everything has two sides. If you do it well, it will be a reward, otherwise, you will be at risk
6. What is ethical investment?
Ethical investing has a few different sub-categories, but at its core, this strategy is a way of investing that
aligns with an investor's personal values and ethical principles. There are 5 main types of ethical investing:
ESG (environment, social, and governance), socially responsible, sustainable, impact, and moral.
In this process, social or ethical investors use several strategies to maximize financial
return and maximize social benefits. Social investors need to respect society's benefits
and their own profits. Generally, ethical investment gives them the peace of mind
knowing that their returns are going toward improving society. As business and society
become more ethically driven, strategies of socially responsible investment have a
strong future profit potential.
However, prioritizing ethical factors over other goals may hinder the performance of
portfolios, especially in the short term. Investors need to balance their goals to obtain
the best return on investment as well as help enhance the quality of the environment and other society's benefits Unit 10
1. What are the reasons and consequences of the exaggeration of oil
reserves in energy companies?
-The world's oil reserves have been exaggerated by energy companies for the
following reasons. First, the most notable contribution to the exaggeration of oil reserves
in energy companies is that, for energy companies, proven oil reserves are their primary
indicator of economic health. Therefore, if they can claim they have huge oil reserves,
they can get more competitiveness, attract more shareholders, and become more and
more powerful. Second, in the 1980s, OPEC decided to factor in member states' reserves
when determining their market share. So, countries today inflate their oil reserves
because the more oil a country can claim, the more global market share it gains
Moreover, looking at the oil fight between Vietnam and China in the East Sea, it is clear
that oil other than increasing the revenue also relates to sensitive issues such as politics,
national strategy. The more oil a country can claim, the more stably the country will grow
-We will not know the exact oil reserve, so we can not predict when it will run out. For
an economy still reliant on fossil fuels, the effects would be catastrophic. The number of
oil barrels used will continue going up day by day without people's awareness of the
resource depletion, and suddenly, one day, if fossil fuel shrinks dramatically. essential
petroleum-dependent products (from transportation to electricity to basic foodstuffs) are
rendered either unavailable or unaffordable, economic activities are interrupted total economic collapse
9. Global oil reserves are overstated, and the world faces an impending
energy crisis. To what extent do you agree or disagree?
When the issue of global oil reserves is brought into view, different opinions are given.
Some people believe that present estimates are accurate and sufÏcient to fulfill future
energy demand, while others argue strongly that these reserves are considerably
exaggerated, resulting in an impending energy crisis. I am better convinced of the latter
opinion for the following reasons.
To start with, economic and political incentives to increase reserves are supposed to
be the reason for the overstated global oil reserves. Companies inflate reserves to boost
market value and shareholder confidence because oil reserves represent economic
health and attract investors. They claim that the more oil they have, the more valuable
they are to shareholders. Likewise, oil-producing countries benefit from reporting
inflated figures, particularly those in OPEC. For example, OPEC’s 1980s surge in reserves
after linking quotas to reported reserves
Furthermore, the risks of relying on hype seem so obvious that it is not only
misleading but also dangerously irresponsible. Prominent petroleum geologists have
warned that global oil production could peak much sooner than ofÏcially expected,
making extraction increasingly difÏcult and expensive. As more invasive and complex
techniques are needed to extract the remainder, the energy output from each barrel
could fall below the energy input required to extract it. At that time, oil will no longer be
an acceptable energy source, which is a frightening thought for an economy that still heavily relies on it
Last but not least, the rising global demand, especially from developing nations such
as China, is driving consumption at high rates. If this trend continues, the world demand
will outstrip supply long before the last drop is extracted. The world continues to operate
under the exaggeration of oil reserves that oil is abundant, ignoring the early warning
signs of some prominent experts, because a combination of dishonest reporting,
technological limitations, and soaring demand means the energy crisis is coming sooner than experts expect.
To conclude, I am strongly convinced that global oil reserves are overestimated, and
the world faces a looming energy crisis.
4. How would a shrinking oil supply affect the energy companies?
First, for exporting companies, it would seem like good news. Because high oil prices
mean more revenues for the companies, more happiness for the shareholders, which
plays a huge role in the development of the companies. At the same time, however, this
forces companies to spend more money on oil exploitation to meet market demand.
Second, for importing companies, it seems to be bad news. Because an increase in oil
prices leads to an increase in input material prices. At that time, if companies increase
their product prices, their product prices will become less competitive compared to other
products in the world market. But if they sell products at low prices, they will not make
much profit and may even lose money. And due to this, the companies will narrow their
business scale, causing unemployment. However, rising oil prices also force companies
to find ways to use oil efÏciently without wasting it
5. How would a shrinking oil supply affect the consumers?
According to the law of supply and demand, when the supply of oil decreases, oil
prices will increase, and this has a huge effect on consumers in both exporting and
importing countries. An increase in oil prices is beneficial for consumers in exporting
countries, as their lives will be improved due to economic growth resulting from sales of
oil of the government and stable politics
Conversely, this is detrimental for consumers in importing countries, as their lives
become difÏcult because of no foreign revenue, no economic development, and political
instability. However, they still suffer the same negative effects from rising oil prices.
Rising oil prices force businesses to raise product prices to ensure their profits, but this
makes all living expenses increase, forcing consumers to make some changes to their lifestyle
6. How many types of energy are there?
when we talk about energy sources, we usually divide them into two very different
categories: non-renewable and renewable. Non-renewable refers to all the energies that
depend on using mineral or petroleum resources, which you can only use once. For
example, if you use a barrel of oil to produce electricity or fuel, then that energy will
never be replaced. On the other hand, renewable energies depend on natural forces like
sunlight, which, of course, are unlimited. So, when you use renewable energy, you're not
reducing the amount of that energy that is available, because it's constant
7. Why do countries have to find alternative sources of energy?
Now the world is dependent on traditional energy sources (fossil fuels), which,
however, after some time they are exhausted. In addition, minerals are not present
everywhere, and it is not always easy to extract them, and countries that do not have
their own raw materials have to buy them abroad. The mass burning of fossil fuels is one
of the reasons leading to the rapid degradation of the environment. These impurities are
associated with the generation of large amounts of toxic ash and waste heat. The
negative effects include the destruction of portions of the Earth, for example, shifting
ground. Besides, it has also been causing health problems. These aspects have forced
countries to look for alternative sources of energy and forced the use of ecological
methods of obtaining energy from the so-called alternative sources, which are an
alternative to the conventional sources, not only for meeting daily consumption but also
due to their clean and effective nature. Unit 11
1. Talk about the IPO process and the role of an investment bank in the IPO process.
- An IPO takes place when a private company raises capital by introducing its shares
on the stock market and becomes a public limited company. Before a private company
can go public, it must comply with the requirements of the Securities and Exchange
Commission in the US and file an application giving all details of its accounts. After the
application is approved, the company will hire an investment bank to manage the
offering or hold a public auction instead. The investment bank is selected according to
the following criteria: Reputation, the quality of research, and industry expertise. Before
the IPO goes public, the phase of "roadshow" happens over two weeks. The executives
of the company travel around the country marketing the upcoming IPO to the potential
investors. And then pricing the IPO and providing online and ofÒine application forms to
the public. Finally, after the IPO price is finalized, the stakeholders and underwriters
work together to decide how many shares each investor will.
One of the primary roles of an investment bank is an intermediary between companies
and investors through IPOs. They provide underwriting services for new stock issues.
When a company decides to go public and seeks equity funding. Underwriting involves
the investment bank purchasing an agreed-upon number of shares below market price,
then reselling them through a stock exchange for profit. Part of the investment bank's
job is to evaluate the company and determine a reasonable price at which to offer stock
shares. In addition to handling IPOs, investment banks offer companies advice on taking the company public
2. Some companies are excited about going public, while others prefer to
stay private. What reasons do they give for their preferences? (advantages
and disadvantages of going public) OR Many experts think that using a public
auction to launch an IPO is risky. To what extent do you agree with this opinion?
When the issue of launching an IPO through public auction is brought into view,
different opinions are given. Some people believe this method saves a huge amount of
money for the company, while others argue strongly that it is unsafe since it lacks the
support of major investment banks. I am better convinced of the latter opinion for the following reasons.
To start with, using a public auction to launch an IPO is supposed to be risky for
companies as it has many challenges. When a company launches an IPO without the
support of investment banks, it lacks pricing accuracy and personal guidance, which
means it can easily underprice or overprice its shares. This reduces investor confidence,
making them hesitant to decide whether to invest in the IPO or not, leading to a loss of
company credibility. Next, the lack of advice and information from analysts also weakens
the company's position in the market. For instance, Google has gone against the
conventional path followed by large companies such as Microsoft and Apple. This creates
risk because it disrupts the established balance in the market.
In addition, this method is not yet widely accepted. Although some companies have
tried it, the auction-based IPO model is still not popular. Many founders still choose the
traditional route to receive more support in terms of analysis, valuation, and ensuring a
successful IPO. Moreover, there is no safety net during volatile market times. As a result,
the business may become "lonely" and open to criticism from institutional investors, who
are typically close to Wall Street, if it produces unsatisfactory results. For example,
without the backing of Wall Street giants, companies like Google would find themselves
"isolated" when they face difÏculties following the IPO.
However, the advantages of going public through a public auction seem obvious in
terms of increasing the financial benefits for the company. According to the text, Google
calculated that by not selling shares to investment bankers' preferred clients at a
discount, it would earn an additional $100 million. Launching an IPO without the support
of investment banks could also help the company reduce intermediary costs, which are a
significant expense, with traditional investment banks typically charging up to 7% of the capital raised
To conclude, I am strongly convinced that public auctions for initial public offerings
continue to be risky, unstable, and full of relationship and market reaction hazards. 3. What is an IPO?
-IPO, standing for initial public offering, is the act or process of offering the stock of a
company on a public stock exchange for the first time
- An Initial Public Offering (IPO) takes place when a private company raises capital by
introducing its shares on the stock market and becomes a public limited company
4. Offering shares on the stock exchange can help companies raise a surplus
of capital. While this seems appealing to some companies, others are
concerned with the pressures of public ownership. Discuss both sides of the view.
Businesses can secure substantial funding for expansion and growth by listing their
shares on the stock exchange. Some companies may find this financing strategy
attractive, while others may be concerned about the obligations and demands of being
publicly traded. This essay will examine both viewpoints before drawing a conclusion.
On the one hand, companies face many challenges when going public without the
support of investment banks. Firstly, businesses lose control and market dependence.
When a company goes public, internal decisions are vulnerable to pressure from
shareholders and the stock market, especially when the company’s earnings report fails
to meet expectations. Next, poor relations with Wall Street can be detrimental to
companies going public. For example, Google's decision to go with an automated IPO
"displeased" major banks. When faced with difÏculties, listed companies will lack support
from government financial institutions, leading to the risk of being isolated in the market.
On the other hand, there are even more convincing arguments in favor of the benefits
that companies gain when issuing shares to the public, is a large increase in capital for
investment and expansion. According to the article, Google estimates that it can raise an
additional $100 million by using the auction formula instead of information through the
bank's investment communication system. This shows that IPO can help businesses
mobilize abundant capital to serve long-term development plans. Next, companies have
the ability to access a wider market because offering shares to the public instead of only
large investors, including pension funds or insurance companies, helps firms expand
their investor base, creating a more democratic and fair model.
On balance, I am better convinced of the latter opinion. I feel strongly that issuing
shares to the public clearly gives companies a strong incentive to scale, innovate, and invest in the future. Unit 12
1. To what extent do you agree or disagree with the view that Apple's
strategy of focusing on both innovation and affordability will help it
successfully compete with major technology firms like Microsoft and Dell
When the issues of Apple's approach are brought into view, different opinions are
given. Some people believe that this method, based on affordable prices and innovation,
can help Apple compete with other tech companies, while others argue that it can easily
win this battle. Personally, I am better convinced of the latter opinion for the following reasons.
To start with, Apple gets its competitive advantage through innovation. Apple’s design
distinguishes its products, such as the iPod and Mac mini. The company is recognized for
its elegance and user-friendly products that differentiate it from competitors. It reflects
an integration across Apple’s ecosystem of devices. As Jobs mentioned, the connectivity
between iPods, iTunes, Macs, and later iPhones fosters customer loyalty and enhances
user experience. Moreover, Jobs’ background in the entertainment industry, especially
through Pixar, gave him insights into consumer behavior and digital media trends,
allowing Apple to stay ahead in the evolving market of digital content and consumer
electronics. By offering unique, interconnected products at more accessible prices, Apple
is not only competing with industry giants like Microsoft and Dell, but is also reshaping
the expectations of technology consumers
Additionally, affordability is one of the key factors that can help this brand compete
with other tech firms. By introducing low-cost products, including “flash” players, the
Mac mini, and the iPod ShufÒe, Apple can easily reach broader audiences, it can tap into
a market that has long been dominated by Microsoft and Dell. More importantly, the Mac
mini's model minimizes cost while maintaining functionality. Take the Mac mini's BYODM
(bring your own monitor, keyboard, and mouse) model as a spark example, it cuts costs
without sacrificing functionality. This approach is not only smart but strategic. It allows
Apple to target Windows users who are hesitant to switch due to high costs, and do so
without compromising the premium products that define the brand.
To conclude, I am strongly convinced that Apple’s strategic shift to combine
innovation with affordability is a powerful method in a competitive market landscape,
which helps it become more successful in facing other tech firms
2. Why do companies compete against each other?
The first reason for this is Awareness & Market penetration. The more the competition,
the more the awareness of the product. When the competition rises, it pushes an idea so
much that the idea catches on, and the product then receives better acceptance in the
market. The second one is increasing the EfÏciency of the corporation. You use your
resources better, you are on your toes to ensure that there is minimal loss, and you want
to capture the market faster. All this means, you are working at your optimum level, and
your work is efÏcient, giving you a better bottom line. And last but not least, the ultimate
goal of all companies is to make more and more profits. In a market, there is a limited
number of consumers but an increasing number of rivals. No firm wants to stand still;
they all want to get bigger. To grow, companies have to compete with each other to
steal it from other companies. To put it simply, businesses compete against each other
to sell their products and to increase or defend existing market share.
3. How to gain a competitive advantage?
Competitive advantage: An advantage enables a firm to generate greater sales or
margins and or retain more customers than its competition. Therefore, to maintain their
competitive advantages, some following ways companies can use
Differentiate the product or service by launching a product with outstanding features,
adding new features, or bringing out new versions of an old product. In other words, the
product should be distinguished from others and easily recognized.
Lower cost of production: possibly through economies of scale - getting a cost
advantage over the competitors. (by taking advantage of or disposal of discarded
materials, buy raw materials in bulk to enjoy a discount,...)
Control the source of the supply or the distribution network- having a network that
gives you access to markets. (have many sources of supply, not depend on only one
distribution network, because companies may be under pressure on price) Unit 13
1. Talk about different types of banks and their functions.
-Central banks: implement the monetary policies of G or countries and fix interest rates for other banks.
-Commercial banks or clearing banks take deposits and make loans to private individuals and businesses.
- I banks or corporate banks provide advice and specialist services to corp or large individual customers.
-Microcredit banks or microfinance institutions lend sums of money to the poor in
developing countries for small businesses. development.
2. Microfinance can help the poor. Do you agree or disagree? Why
When the issues of microfinancing are brought into view, different opinions are given.
Some people believe that this type of banking, which provides small loans to the poor in
developing countries, is not an effective tool to help improve poor people’s quality of life,
while others argue that it can help the poor to enhance their living conditions.
Personally, I am better convinced of the latter opinion for the following reasons.
To start with, microfinancing gives poor people access to money that they cannot get
from traditional banks. Commercial banks often do not lend to the poor because they do
not have any collateral, including assets or credit history. Microfinance institutions,
however, are different. They offer small loans, usually under $1,000, without asking for
collateral. For example, in Cambodia, some villagers used microloans to buy irrigation
equipment and seeds. They started growing vegetables and selling them to exporters
and hotels. This changed their lives and helped develop the whole village.
Additionally, microfinance works because most people repay the loans. Many people
believe that lending to the poor is risky, but the data shows otherwise. According to the
reading text, leading microcredit institutions report that only about 5% of loans are not
repaid. This is similar to or even better than repayment rates for borrowers with bad
credit in developed countries. Borrowers take pride in paying back their loans because it
gives them a chance to prove themselves. Microfinancing helps build trust, confidence,
and financial responsibility. Microfinancing helps both the poor and the investors.
BlueOrchard Finance lends to microfinance institutions in over 20 countries. They make
money from interest, but the poor also benefit by getting access to fair loans. This model
is not only about charity, it is also about smart investment. When managed well,
microfinancing brings profits to investors and progress to communities.
To conclude, I am strongly convinced that microfinancing institutions are an effective
way to help poor people improve their lives. It gives them access to credit, supports
small businesses, and promotes financial independence Unit 14?
1. What are the purposes of training activities?
From the point of view of the individual employee, there are three main aims of training:
Improve the individual's level of awareness
Increase an individual's skill in one or more areas of expertise
Increase an individual's motivation to perform their job well
When we consider the purpose of training from the perspective of the employer, we
can add one more objective to this list:
Increase overall productivity and performance
We are aware that the modern organisation is forced to operate in a volatile,
uncertain, complex and ambiguous business climate. In this context, it is important that
if an organisation is to invest in training, the skills and learning acquired stimulate
relevant productivity, so the business maintains a competitive edge in this competitive global market.
2. How many types of training courses are there? What are the advantages
and disadvantages of each type?
-There are 2 types of training courses: face-to-face training, including in-house or in
training centers, and online training - In-house training courses Ads:
+ The cost is typically less when compared to sending staff to public training courses
+ No need for employees to travel any further than their ofÏces and incur extra costs.
+ Can allow the training to be more focused on the subjects and skills that are relevant to your business Dis:
+Extra administration Requirements of In-House training courses could include a
training room, parking for the trainer, equipment such as projectors, laptops, and tablets, amongst other things
+Lack of innovation: If you are using all of your own equipment in the same
environment that your staff are used to, there is a danger of the training course going stale. - Online training course: Ads:
+ Online training is available anytime, anywhere, allowing your employees to arrange
when and where they take their training
+ Investing in online training gives you the opportunity and flexibility to specially
tailor every employee's professional development
+ With online training, employees can access their courses anywhere, bringing convenience and saving money. Disad:
+Online courses require good time management skills
+Online courses require you to be responsible for your own learning
+ Inability to Focus on Screens. One of the biggest challenges of online learning is the
struggle with focusing on the screen for long periods of time
4. What does "practice makes perfect mean?
Practice means constant use of one's intellectual and will power. Perfect means ideal,
complete and excellent. "Practice makes perfect" is a common idiom. This idiomatic
expression is used to convey the idea that the way to become skilled at something is to
practice it often. In other words, doing something over and over and over again helps
you become proficient or very good at it. (In this expression, the definition of practice is
"to do or perform often or habitually"). It's you that becomes perfect, not the activity
that becomes perfect. Ex: The most important thing about getting better at playing a
sport is to keep playing it. Thus, when someone tells you that "practice makes perfect,"
they're encouraging you to keep at a particular endeavor to continue learning and
honing the skills that will help you excel in that effort, even master it, and ultimately reach your goals.
5. Some people think that the company should pay for in-company training
courses, while others suppose that the staff themselves should pay for in-
company training courses. Which opinion do you agree with? Why?
In-company training courses refer to the courses that are offered to working people
who need to develop new skills to become more competent at their job
Companies should pay for the courses out of the training budget because of the many
benefits they can get from skilled staff. After training programs, workers will improve
skills, which has a positive impact on their motivation. When an employee is skillful in
what they do, the product of their hand will be good, and this makes them feel greater
job satisfaction. Therefore, they work harder and contribute to effective corporate
performance. By paying for these courses, companies also build good relationships with
employees, make them believe that the company cares for them, trusts their ability, and is willing to invest in them.
However, in some ways, the fee for the courses paid by employees will be better.
Paying by themselves will encourage all staff to participate in courses more easily, which
reduces absenteeism. When workers join in all lessons, they can get a lot of benefits,
including skills and experiences that are needed for their jobs. And they will become
skillful and work effectively As a result, they can receive the rewards from the company.
In short, training courses benefit both companies and employees. Therefore, if
companies or employees have to pay for the courses, they will get greater benefits than the costs they have to pay Unit 15
1. What is consulting? How many types of consulting are there?
- Consulting refers to the activity or business of giving expert advice about a particular subject to companies
- There are 5 main types of consulting, including
+ Recruitment consulting: Recruitment consultants are responsible for attracting
candidates for jobs and matching them to temporary or permanent positions with client
companies. You'll build positive relationships in order to gain a better understanding of
your clients' recruitment needs and requirements
+ Financial consulting: Financial consultants offer personalized advice to help
investors build wealth. They may offer financial planning, identify well-suited
investments, and guide insurance decisions. They often direct the buying and selling of
investments, like stocks and bonds, on their clients' behalf.
+Training consulting: Training consultants develop and optimize organizations' staff
development and training programs. They evaluate existing training programs, align
training programs with business objectives, and facilitate learning opportunities for various audiences.
+ IT consulting: A consultant in this area provides advice on how to best use
technology to enhance a client's business. This could involve designing unique software for a company.
+Management consulting: Management consulting is the practice of helping
organizations to improve their performance. Organizations may draw the services of
management consultants for some reasons, including gaining external (and presumably
objective) advice and access to consultants' specialized expertise\
6. Expanding globally allows professional-service firms to better support multinational clients.
While this approach offers potential for growth, it also raises concerns about conflicts of interest and
inefficiencies. Discuss both sides of the views
When the issues of global expansion for serving multinational clients are brought into
view, different opinions are given. Some people believe that becoming global provides
professional service firms with substantial development opportunities, whereas others
express worries about potential conflicts of interest and legal issues. This essay will
analyze both viewpoints before giving a personal opinion.
On the one hand, globalization benefits businesses by fostering significant growth
opportunities. Firstly, it is thought that going global enables companies to provide
various services. This strategy aimed to offer consistent support wherever their clients
operated, from Moscow to Buenos Aires, ensuring high-quality services. Firms tried to
become “one-stop shops,” providing audits, legal advice, and consulting under one
global brand. Their global presence promised service delivery, making them attractive
partners for companies navigating international markets. This model promised growth
and closer integration with clients' global operations.
On the other hand, there are even more convincing arguments in favor of the
disadvantages of going global. Managing operations across many countries created a
complex organizational structure. More seriously, offering multiple services to the same
client, including audit and consulting, led to conflicts of interest. Regulations such as the
United States’ Sarbanes-Oxley Act restricted firms from performing both auditing and
certain consulting services for the same client. As a result, the one-stop-shop model
began to collapse. Moreover, the assumption that multinational clients would centrally
purchase global services proved misguided. In reality, most professional services are
procured locally. Local managers, often nationals of the host country, prefer working
with service providers who understand their domestic legal, financial, and cultural environment.
On balance, I am better convinced of the latter opinion. I feel strongly that while
global expansion allows professional-service firms to support multinational clients, it
must be approached with caution.
2. What is PSF? How many types of PSFs are there? What are the ads and disads of each type?
Professional services firms are organizations that provide services to other companies,
relying on the expert advice of consultants who guide strategy and policy making.
- There are 2 main types of PSFs: global PSFs and local PSFS
Global PSFs are companies that offer advice services in different locations with a diverse range of services
Local PSFs are companies offering consulting to other firms within a nation or an area
- Differences between those 2 types: the global PSFs are in the scope of the area. The
global PSFs are in many places in the world. For example Big 4 has 4 companies working
in audit aspects in the world, Global PSF
Guaranteed quality. Ability to work internationally (no need to worry about
geographical features or locations). Usually have a complete solution. Strong and
professional workforce. High fee. Inferior local knowledge compared to local firms Local PSF
Cheaper fee. Strong local knowledge, Close customer-client relationships (because
their customers are local executives). Inability to cover transnational work
3. What is a complete solution?
-Complete solutions are a service provided by some professional service firms, in
which legal, accounting, and strategic expertise is offered to companies to give advice
on legal matters, financial transactions, and strategy and policy making. The
compensation when the target is not achieved is also high risk for PSF
4. What is a conflict of interest? When does the conflict of interest happen?
-Conflict of interests: is a situation in which someone's private interests are opposed
to that person's responsibilities to other people
-The conflict of interest happens when:
+ A person's or entity's vested interests raise a question of whether their actions,
judgment or decision-making can be unbiased.
+ A person chooses personal gain over duties to their employer, or to an organization
in which they are a stakeholder, or exploits their position for personal gain in some way. - For example:
+ A supervisor in an organization has a close family relationship with an employee he is supervising
+ A purchasing manager's decisions are influenced by the gifts and trips given by vendors
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