Business

English 2

(english for Managers)

Tusyanah, S.PD, m.Pd

Economics faculty/ 2014

Business English 2 2014

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contents

Meetings Materials

1 Lecturing counteract

2 Unit 1 Business Basics

3 - 4 Unit 2 Management Basics

5 Unit 3 Marketing

6 -8 Unit 4 Presentations

9 Mid semester

10 - 12 Unit 5 meetings

13 -15 Unit 6 negotiations

16 Final Test

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UNIT 1

BUSINESS BASICS

A. OVERVIEW

Below is a list of terms that you will find in the text. As you read “What is

Business?”, see if you understand each term. See if you understand each term.

Use this as a working list and add other terms with which you are unfamiliar.

NOUNS VERBS ADJECTIVES OTHERS

Exchange

Production

Distribution

Sale

Goods

Services

Profit

Conversion

Surplus

Expenses

Examine

Classify

Perform

Remain

Create

Technical

Various

For instance

On the other

hand

B. READING 1

WHAT IS BUSINESS?

Business is a word which is commonly used in many different languages.

But exactly what does it mean? The concepts and activities of business have

increased in modern times. Traditionally, business simply meant exchange or

trade for things people wanted or needed. Today, it has more technical

definition. One definition of business is the production, distribution, and sale

of goods and services for a profit. To examine this definition, we will look at

its various parts.

First, production is the creation of services or the changing of materials

into products. One example is the conversion of iron ore into metal car parts.

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Next these products need to be moved from the factory to the marketplace.

This is known as distribution. A car might be moved from a factory in Detroit

to a car dealership in Miami.

Third is the sale of goods and services. Sale is the exchange of a product

or service for money. A car is sold to someone in exchange for money. Goods

are products which people either need or want; for example, cars can be

classified as goods, services, on the other hand, are activities which a person

or group performs for another person or organization. For instance, an auto

mechanic performs a service when he repairs a car. A doctor also performs a

service by taking care of people when they are sick.

Business, then, is a combination of all these activities; production,

distribution, and sale. However, there is one other important factor. This

factor is the creation of profit or economic surplus. A major goal in the

functioning of an American business company is making a profit. Profit is the

money that remains after all the expenses are paid. Creating an economic

surplus or profit is, therefore, a primary goal of business activity.

C. EXERCISE

C.1 Answer the following questions about the meaning of business.

1. What is one modern definition of business?

2. What does production involve?

3. What example of distribution is given in the reading? Can you think of

another example?

4. How do goods differ from service?

5. In addition to production, distribution and sale, what other factor is

important in defining business?

6. What is profit? In general, what do companies do with their profits?

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C.2 Determine which of the following statements are true and which are

false. Then put T or F in the blanks.

1. ------------------ business is not just one activity but a combination of

different operations such as production, distribution, and sale.

2. ------------------ from ancient to modern times the definition of business

has remained the same.

3. ------------------ moving a truckload of oranges from the orchard to the

supermarket is an example of production.

4. ------------------ a salesclerk provides a service by answering customers

questions.

C.3 Fill in the blanks with noun or verbs forms. Use your dictionary if

necessary.

NO NOUN VERB

1.

2.

3.

4.

5.

6.

7.

8.

Production

Conversion

Distribution

Sale

Perform

Examine

Classify

Create

D. Reading 2

Careers in Business

Business is an increasingly important activity throughout in the world today.

Consequently, the opportunities for a business career have grown in variety

in number. There are now five broad fields or areas of business that offer

exciting careers; management, marketing, accounting, finance and data-

processing. Within each of these fields are specific jobs in which you can

specialize. For example, within the field of marketing you can specialize in

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market research, advertising, buying, selling, or distribution. The figure

below gives an idea of the general career opportunities that are available in

the various fields

of business.

In choosing a business career , there are several questions you may want to

ask. For instance, does the work interest you?, are there any areas of business

for which you have an attitude? Or special capability? What are the

opportunities involved, such as demand (or made) for the job, salary, and

chance for advancement? Answer to these kinds of questions and careful

planning will help in choosing a suitable and successful career in business.

E. EXERCISE

Answer the following questions!

1. What are five different fields of business?

Five different fields of business are man, ……

2. What are some specializations within the field of finance?

3. What are some different types of managerial careers are…..

Business fields and careers

MANAGEMENT

-general manager

-personal manager

-production manager

MARKETING

-Researcher

-Advertiser

-Buyer

-Sales

-distributor

Accounting

-bookkeeper

-private accountant

-public accountant

-government accountant

FINANCE

-banker

-financial analyst

-stock broker

DATA PROCESSING

-computer operator

Computer programmer

-system analyst

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4. What are kinds of questions should you ask in order to choose a suitable

and successful career?

5. Can you add any more business fields or careers to figure 1? If you do not

know the name in English, describe the work!

In each of the examples below, three of the items are members of the same

class and one is not. Cross out the one that is not a member. Then write the

name of the class to which the other three belong.

1. Buyer/ banker/ seller/ distributor ………………….

2. Banker/ financial analyst/ stock broker/ accountant ……………………

3. Data processing/ finance/ marketing/ general manager ………

4. Computer operator/ computer programmer/ data processing/ system

analyst -----------

5. General manager/ management/ production manager/ personnel

manager ………….

6. Advertising/ management/ marketing/ accounting ……………………..

7. Private accountant/ banker/ government accountant/ bookkeeper …………

READING 3

Understand the reading!

Who/ what/ where/ when/ why/ how ?

Finding HR Management Challenging

When public trust in the banking industry waned quite a few years ago banking practitioners took note. They realized that they had to act in a reliable and professional manner and stay away from practices that could further erode public trust. Learning from this, the central bank (Bank Indonesia), introduced various measures to ensure that banks select people who were capable of maintaining public trust. To this end, BI requires banks to ensure that their managing executives meet certain requirements, such as the stipulation that bank executives must possess a risk management certificate, pass screening

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and have compliance and risk management clearance. It is in this context that Heru Budiargo, executive director of compliance and human resources at PT Bank Niaga, considers the application of Good Corporate Governance (GCG) important in the banking industry. For its part, Bank Niaga has long applied this principle to ensure that the bank is well managed by its executives. "GCG has been applied for a long time at Bank Niaga," he said. Many banks collapsed when the economic crisis hit the banking sector in late 1997. Bank Niaga was one of the few banks free of moral hazards, such as exceeding the maximum ceiling on loans (BPMK), violating banking regulations, extending loans to affiliated businesses, etc. "One can surmise that the aspects of prudence and professionalism have long been applied at Bank Niaga," he said. Ultimately, however, Bank Niaga could not escape the problems facing the banking sector. This bitter reality happened because its business portfolio was focused on corporate loans, which indeed entail a high risk. Sustainable application of GCG has produced a significant result. Owing to efforts by the management of the bank, which is deeply concerned with education and training, improvement in competence and professional expertise and the application of GCG in keeping with international standards, Bank Niaga has received a rating level of 6+ from independent rating institution Standard & Poor's. In addition, Bank Niaga was also presented an award by the Institute for Corporate Governance Indonesia for its successful application of GCG. "This shows that there is no doubt about the application of GCG at Bank Niaga and also in connection with its human resources," said Heru, who was born in Tuban, East Java. To ensure that the application of GCG is in accordance with what has been outlined, the first thing to do, he said, is to reach an agreement. "GCG is not inwardly oriented; it is outwardly oriented," he stressed. As a result, the goal of the application of GCG must refer to competition. He added, "GCG does not mean conformity, but it is well-directed and systematic steps that have been taken to make Bank Niaga more competitive and more sustainable in the market," he said. Therefore, GCG, he said, is related to the scope of strategy, product management and services, human resources management, risk management and internal control.

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After an agreement has been reached, it is time to build governance structure regarding the role and tasks of the supervisory board, the board of directors and executive commissioners. Transparency must also be fostered by regulating the mechanism on inter-institutional relationships internally and externally." At the end of the day, there will emerge a necessity to have a culture related to transparency, independence and accountability, which will develop with the passage of time, in line with the dynamics of the market," he noted. In the past, he said by way of an example, the risk of each product was never revealed. Today, however, following developments in the business world, the market wants every product to contain information on its risk so that investors can learn which products are relatively safe and will be profitable." Obviously the banking industry is challenged to ensure that the quality of its GCG must always be improved," said Heru, who was formerly chairman of the Pension Fund of Bank Niaga. It is not surprising that Heru is very knowledgeable about GCG and Bank Niaga. He is a professional who began from the very bottom of the career ladder. Heru, who has one teenage daughter, first joined Bank Niaga in 1977 as a graduate of the bank's Executive Training Program. He worked in the loan collection department at the bank office in Roa Malaka, Kota. At the time Bank Niaga was just a small bank with six branches and some 600 employees. From there he moved to other departments. At the beginning of his career at Bank Niaga, Heru spent more time in the loan department and in the branch offices. Later he was promoted to become chief of corporate affairs, internal control and human resources divisions. But his most interesting experience in his almost 30 years at Bank Niaga has been as human resources manager, a position he has held for 10 years. "I find managing people has been most challenging during my career," he said. The challenge was especially big when Bank Niaga decided to transform its business portfolio from a bank originally concentrating on corporate clients to a bank increasingly focused on retail banking. "It is not easy to transform the mind-set of employees from a corporate banking focus to retail banking," he noted. Luckily, thanks to much training, education and other activities to improve

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the competence of personnel, the employees of Bank Niaga can now work anywhere they are stationed. Heru is also thankful for being able to have a long career at Bank Niaga. While many people move to other companies for better positions, Heru prefers to stay put. The reason is very simple."I find the atmosphere at Bank Niaga agrees with me," he said. As a result, he has worked under four different owners. When he first joined the bank, Bank Niaga was owned by Julius Tahija, who jointly owned the bank with fellow founders Soedarpo Sastrosatomo and Idham. Then the bank was bought by entrepreneur Hasyim Djojohadikusumo. Later the ownership of the bank was handed over to the government, and in 2003 the bank was acquired by Bumiputera-Commerce Holdings Berhad (BCHB) of Malaysia, which controls 64.25 percent of the bank's shares. And Heru moved up the career ladder. All this has given him valuable experience and memories. A lover of tennis and swimming, Heru has been active in student activities, especially hiking, since his student days at the University of Indonesia (UI). He was a member of UI's association of nature lovers Mapala UI. But these days he gets around on a large motorcycle. "Well, I still have adventures in nature but using different facilities," he said. Once in a while he travels outside Jakarta with a small group of large motorcycle enthusiasts to enjoy the fresh air and take his mind off his daily routine. (Maulana Yudiman) The Jakarta Post August 23, 2006

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UNIT 2

MANAGEMENT BASICS

Definitions

What is Management?

According to Harold Koontz,

"Management is the art of getting things done through and with people in

formally organised groups."

Harold Koontz gave this definition of management in his book "The Management Theory Jungle".

According to Henri Fayol,

"To manage is to forecast and to plan, to organise, to command, to co-

ordinate and to control."

Henri Fayol gave this definition of management in his book "Industrial and General Administration".

According to Peter Drucker,

"Management is a multi-purpose organ that manages business and manages

managers and manages workers and work."

This definition of management was given by Peter Drucker in his book "The Principles of Management".

According to Mary Parker Follet,

"Management is the art of getting things done through people."

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Meaning of Management

According to Theo Heimann, management has three different meanings, viz.,

1. Management as a Noun : refers to a Group of Managers.

2. Management as a Process : refers to the Functions of Management i.e.

Planning, Organising, Directing, Controlling, etc.

3. Management as a Discipline : refers to the Subject of Management.

Management is an individual or a group of individuals that accept

responsibilities to run an organisation. They Plan, Organise, Direct and

Control all the essential activities of the organisation. Management does not

do the work themselves. They motivate others to do the work and co-

ordinate (i.e. bring together) all the work for achieving the objectives of the

organisation.

Management brings together all Six Ms i.e. Men and Women, Money,

Machines, Materials, Methods and Markets. They use these resources for

achieving the objectives of the organisation such as high sales, maximum

profits, business expansion, etc.

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Features of Management

Following image depicts fourteen important features of management.

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Now let's briefly discuss each feature of management.

1. Continuous and never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to his subordinates. He also has to Control all the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process. 2. Getting things done through people

The managers do not do the work themselves. They get the work done

through the workers. The workers should not be treated like slaves. They

should not be tricked, threatened or forced to do the work. A favourable work

environment should be created and maintained.

3. Result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management always wants to get the best results at all times.

4. Multidisciplinary in nature

Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.

5. A group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to individuals.

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6. Follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organisation.

7. Aided but not replaced by computers

Now-a-days, all managers use computers. Computers help the managers to

take accurate decisions. However, computers can only help management.

Computers cannot replace management. This is because management takes

the final responsibility. Thus Management is aided (helped) but not replaced

by computers.

8. Situational in nature

Management makes plans, policies and decisions according to the situation. It

changes its style according to the situation. It uses different plans, policies,

decisions and styles for different situations.

The manager first studies the full present situation. Then he draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is called Situational Management. 9. Need not be an ownership

In small organisations, management and ownership are one and the same. However, in large organisations, management is separate from ownership. The managers are highly qualified professionals who are hired from outside. The owners are the shareholders of the company. 10. Both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts

continuous research. Thus, it is also a Science.

11. Management is all pervasive

Management is necessary for running a business. It is also essential for

running business, educational, charitable and religious institutions.

Management is a must for all activities, and therefore, it is all pervasive.

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12. Management is intangible

Management is intangible, i.e. it cannot be seen and touched, but it can be felt

and realised by its results. The success or failure of management can be

judged only by its results. If there is good discipline, good productivity, good

profits, etc., then the management is successful and vice-versa.

13. Uses a professional approach in work

Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the superior.

14. Dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc.

B.Introduction To Human Resource Management ↓

Every business unit needs human resource (manpower) for the conduct of

different business activities. In fact, no organisation can exist or operate

efficiently without the support of human resource. Such human resource

includes top level managers, executives, supervisors and other subordinate /

lower level staff / employees. A business organisation has to estimate its

future manpower needs and adjust its manpower planning and development

programmes accordingly. This is called 'staffing' function of management.

Human resource management is also described as personnel management or

manpower management.

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According to Edwin Flippo, "Personnel Management is the planning,

organising, directing and controlling of the procurement, development,

compensation, integration and maintenance of people for the purpose of

contributing to organizational, individual and social goals".

Various areas such as recruitment and selection, wage payment and

industrial relations are covered under human resource management.

Meaning of Human Resource ↓

In an industrial unit, large number of persons are employed in order to

conduct various operations and activities. This is treated as human resource

or manpower employed. A business unit needs material resources as well as

human resource for the conduct of various activities. Of all the "M"s in

management (such as Materials, Machines, Methods and Money) the most

important "M" stands for Men i.e., manpower working in the organisation. It

is through manpower/employees that all other ingredients of an enterprise-

money, machines, materials, marketing, etc., are managed. In brief, Human

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Resource (HR) constitutes the most important and the most productive

resource of an industrial / business unit.

It is rightly said that "machines are important in the production process but

the man behind the machines is more important". He transforms the lifeless

factors of production into useful products. Human resource (HR) is an

important asset of a business unit. Well-trained, loyal and efficient team of

workers brings success and stability to a business unit. This suggests the

importance of human resource in business. People and the organisation in

which they work are inter-related and interdependent. organisation moves

towards prosperity only by using its available human resource purposefully.

Similarly, employees get various monetary and other benefits through the

prosperity of their organisation.

What is Human Resource Development? HRD ↓

Human Resource Development (HRD) means to develop available manpower

through suitable methods such as training, promotions, transfers and

opportunities for career development. HRD programmes create a team of

well-trained, efficient and capable managers and subordinates. Such team

constitutes an important asset of an enterprise. One organisation is different

from another mainly because of the people (employees) working therein.

According to Peter F. Druker, "the prosperity, if not the survival of any

business depends on the performance of its managers of tomorrow." The

human resource should be nurtured and used for the benefit of the

organisation.

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Importance of Human Resource in Management ↓

Human resource is most important resource in management and needs to be

used efficiently. This is because success, stability and growth of an

organisation depend on its ability in acquiring, utilizing and developing the

human resources for the benefit of the organisation. In the final analysis, it is

the people (i.e employees) who produce promising results and generate a

climate conductive to the growth and development of an organisation. HR is a

highly productive corporate asset and the overall performance of companies

and corporations depends upon the extent to which it is effectively developed

and utilised. It is the most delicate factor of production and need not be

treated merely as a commodity to be bought and used in factories.

According to Peter Drucker, "The function of management is to manage

managers, workers and work". The importance of manpower in business

management is now universally accepted. Employees have a capacity to grow

and develop, if suitable opportunities are offered. They give positive

response to monetary and non-monetary incentives, training opportunities,

favorable work environment and motivation. According to Pigors and Myers,

"Good management means getting effective results with people". This

suggests the importance of human resource.

Human resource is certainly important even in this age of extensive use of

computer technology. This is because machine cannot be used as a substitute

for human brain which has capacity to think, assess and react. It is correct to

say that man is a power rather than man has a power. Progressive /

professional managements invest huge funds on training and development of

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human resource and this suggests the importance of human resource and its

contribution in industrial and economic development. Professionally

managed companies in India such as Larsen and Toubro Ltd, TELCO,Reliance,

etc., give special importance and good attention to HRD.

The following remark of Shri Dhirubhai Ambani, former chairman of Reliance

Industries Ltd. (made in the 21st AGM held on 3/8/95), is worth noting in

this regard. "Our People : People are assets you can never show on a balance

sheet. Our company has a human resource asset of around 12,500 people;

3,000 of which constitute scientific and technical manpower. Every year we

add over 450 young professionals. These motivated and well-trained people

are the backbone of our business. The team is young in spirit, conscious of its

responsibilities and committed to building world class assets for the

country".

Definitions of Personnel Management ↓

1. According to Edwin Flippo, "Personnel management is the planning,

organising, directing and controlling of the procurement, development,

compensation, integration and maintenance of the people for the purpose

of contributing to organizational, individual and social goals."

2. According to George R. Terry, "Personnel management is concerned with

the obtaining and maintaining of a satisfactory and a satisfied,

workforce."

3. According to British Institute of Personnel Management, in London,

"Personnel management is that part of management which is concerned

with the people at work and with their relationship within an enterprise."

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Features of Personnel Management ↓

1. Personnel management relates to managing people at work. It covers all

levels of personnel’s and their needs, expectations and so on. In this

sense, it is a comprehensive function and is basically concerned with

managing people at work.

2. Personnel management is concerned with employees, both as individuals

as well as a group. The aim of personnel management is to get better

results (for the Organisation) through their involvement, motivation and

co-operation. It is a people-oriented process of bringing people and

organisations together so that the goals of each are met property.

3. Personnel management is concerned with helping the employees to learn

and develop their potentialities to the highest level for their benefits as

well as for the benefits of their Organisation.

4. Personnel management is inherent in all organisations as all

organisations (including industrial and commercial) need manpower for

the conduct of their activities. They are concerned with recruitment,

selection, utilisation and development of manpower available. Personnel

management is an integral aspect of total business management.

5. Personnel management is a continuous activity/function in an

Organisation as personnel problems continue to exist as long as

employees are working in an Organisation.

6. Personnel management aims as securing willing co-operation of

employees for achieving organizational objectives. This is natural as

industrial and other activities can be conducted only with the support of

human resources. http://kalyan-city.blogspot.com/2011/04/what-is-management-definitions-

meaning.html

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TASK 1

Make groups of 4 – 5 students

Find the materials about finance and marketing management!

Make a paper and slides in PowerPoint!

Present it!

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UNIT 3

MARKETING

A. READING

Rivalry among businesses and service industries is called competition.

This feature of a market economy encourages businesses to improve their

goods and services, keep their prices affordable, and offer new products to

attract more buyers,

There are four basic types of competition in business that form a

continuum from pure competition through monopolistic competition and

oligopoly to monopoly (see diagram). At one end of the continuum, pure

competition results when every company has a similar product. Companies

that deal in commodities such as wheat or corn are often involved in pure

competition. In pure competition, it is often the ease and efficiency of

distribution that influences purchase.

In contrast, in monopolistic competition, several companies may

compete for the sale of items that may be substituted. The classic example of

monopolistic competition is coffee and tea. If the price of one is perceived as

too high, consumers may begin to purchase the other. Coupon and other

discounts are often used as part of a marketing strategy to influence sales.

Oligopoly occurs when a few companies dominate the sales of a

product or service. For example, only five airline carriers control more than

70 percent of ll tickets sales in the United States. In oligopoly, serious

competition is not considered desirable because it would result in reduced

revenue for every company in the group. Although price wars do occur, in

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which all companies offer substantial savings to customers, a somewhat

similar tendency to raise prices simultaneously is also usual.

Finally, monopoly occurs when only one firm sells the product. Some

monopolies have been tolerated for producers of goods and services that

have been considered basic or essential, including electricity and water. In

these cases, it is government control, rather than competition, that protects

and influences sales. The following chart represents the competition

continuum.

most -------------------------------competition------------------------------------least

B. EXERCISES

1. Which of the following would be a better title for the passage? a. Monopolies b. The Commodity Market c. The Competition Continuum d. The Best Type of Competition

2. An example of a product in monopolistic competition is a. Corn b. Electricity c. Airline tickets d. Coffee

3. The word ‘tolerated’ could best be replaced by a. Permitted b. Reserved c. Criticized d. Devised

4. Which type of competition is subject to the greatest government control?

a. Monopolies b. Oligopolies c. Monopolistic competition d. Pure competition

5. The author mentions all of the following as characteristic of monopoly EXCEPT

Pure competition ---monopolistic Competition -----oligopoly--monopoly

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a. The use of coupons or other discounts b. Government control c. Basic or essential services d. Only one firm e.

B. Reading 2

Apple vs Samsung: copy or competition?

BY KATZ · AUGUST 2, 2012

Apple vs Samsung is a hot issue of the time. Lawyers for Apple and Samsung

discussed the differences between copying and fair competition to present

their arguments on Tuesday on the second day of the mega-trial in the United

States for violation of patents, which pits the two technology giants.

Harold Mc Elhinny, one of Apple’s lawyers in proceedings before a federal

court in San Jose, California, told the jury that Samsung began to copy the U.S.

firm was publicly presented only the iPhone in January 2007.

“At the same time that Apple cofounder Steve Jobs introduced the iPhone,

warned his competitors that it had applied for patent protection for more

than 200 new inventions in the iPhone,” Mc Elhinny said. “Samsung could

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invent their own designs, Apple could beat fairly in the market. Or Apple

could copy it’s easier to copy than to innovate,” he added.

Mc Elhinny said, in turn, that Samsung copied specific characteristics, such as

the rebound effect in the display function when the end of the screen, or use

of black colored throughout the device, which before the iPhone did not exist.

“At the highest corporate levels, Samsung decided to copy every element of

the iPhone,” he said. “This was not an accident. A copy of Samsung was

intentional”.

The lawyer argued that Samsung made dozens of changes as Apple updated

its products so that the end result was identical to that of Apple products.

Samsung’s lawyer, Charles Verhoeven, countered the arguments of Apple

with its own version of history of mobile phones, citing several cases of large-

screen phones before the iPhone. The South Korean company is not a

“copier” or someone who came later, Verhoeven said, but a large technology

company that develops its own innovations. And he said that internal

documents show that Apple’s designers were inspired by U.S. giant also in

competition, including Sony. The iPhone was actually an “inspiration” for

many, but there is nothing wrong with that said Verhoeven. “Is that rape? No,

that’s competition,” he said. The lawyer said the design of Samsung can be

clearly distinguished from Apple even for ordinary observer.

Apple claims more than 2,500 million dollars to Samsung for copying its

designs and patents, while the South Korean firm accuses the iPhone maker

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of violating some of its patents for wireless communications. The suit seeks

to unravel these accusations.

Google on the other hand, although not directly involved in the case, while its

operating system Android is used on devices from Samsung, will take center

stage in the trial.

Apple and Samsung, which together monopolize almost half the global

market for smartphones – 49.5% – also face legal in several European

countries and Australia. In the U.S., Samsung is on the defensive. In some

region sales of the ten inches Galaxy tablet and Galaxy Nexus phone designed

with Google were suspended.

The case has enormous financial implications for both companies and for the

flourishing industry of mobile devices. A survey by research firm IDC showed

that Samsung sold 50.2 million smartphones worldwide in the April-June

period, up 172.8% over the previous year, while Apple sold only 26 million

iPhones. Samsung is the leading manufacturer of smartphones with Android,

which has become the most popular platform despite claims that Apple has

infringed its patents.

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Marketing Article

Post : Gaurav Akrani Date : 5/28/2010 10:30:00 AM IST

1. Introduction To Marketing

Marketing is an important socio-economic activity with history of

many centuries. It is an essential activity for the satisfaction of human wants

and for also raising social welfare. Production is the base of marketing. It

supplements production activities by distributing goods and services.

Marketing links producers and consumers together for mutual

benefits. It facilitates transfer of ownership of goods and services to

consumers. Production will be meaningless if goods produced are not

supplied to consumers through appropriate marketing mechanism.

Marketing activities are conducted through the medium of money.

They are conducted regularly throughout the world. Modern marketing is

global in character. Everyone participates in marketing activities for the

satisfaction of needs / wants.

Customer is the most important person in the whole marketing

process. He is the cause and purpose of all marketing activities. According

to Prof. Drucker, the first function of marketing is to create a customer or

market. All marketing activities are for meeting the needs of customers and

for raising social welfare. Marketing itself is a "need-satisfying process". It

facilitates physical distribution and creates four types of utilities viz., Form

Place, Time and Possession.

The term marketing can be given narrow or broad interpretation. In

the narrow sense, marketing is concerned with the flow of goods and

services from producers to consumers / users. This interpretation is 'product-

orientation' of marketing. In the broader sense, marketing essentially

represents consumer-oriented activity. It is for meeting the needs of

consumers and naturally production and marketing activities are to be

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planned as per the needs and expectations of consumers. Marketing is for

demand creation and demand satisfaction. This interpretation of marketing

is now accepted. The broader interpretation views marketing as a "Total

Concept".

2. Definitions of Marketing

1. According to Philip Kotler, "Marketing is human activity directed at

satisfying needs and wants through exchange process."

2. According to J.F. Pyle, "Marketing is that phase of business activity

through which human wants are satisfied by the exchange of goods and

services."

1.3. According to William Stanton, "Marketing is a total system of

business activities designed to plan, price, promote and distribute want-

satisfying products to target markets to achieve organizational

objectives."

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UNIT 4 MODULE 3 PRESENTATIONS

UNIT 5 MODULE 4

MEETINGS

UNIT 6 MODULE 5 NEGOTIATIONS

From Communicating in Business (pdf)

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