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3. If you
a problem, you do something to make sure the
problem no longer exists.
4. If you
a problem, you make it less serious.
5. If you
a problem, you find an answer to it.
6. If you
a problem, you realise that it may happen and you
are prepared for it.
LISTENING
2.1 Mike Ashton is Senior Vice President of Hilton Hotels International.
The hotel employs 75,000 people in 65 countries. Listen to the first part of the
interview and complete the definition of quality Mie Ashton gives.
Delivering ……. quality is absolutely fundamentally important to any busi-
ness. I believe the best way to define quality is to look very closely at customers’
……… and then to look at the ……. of a business to ……. or …….those expec-
tations, consistently.
2.2 Listen to the second part of the interview. Which of the following does
the hotel use to measure quality improvements?
•
Inspecting rooms daily
•
Contacting team members
•
Making unexpected visits regularly
•
Contacting guests
•
Studying operational standards
•
Comparing check out times
2.3 Listen to the third part of the interview. Are the statements true or
false? Correct the false ones.
1.High quality means high cost.
2.Investment in high quality helps to build profitability.
3. Delivering good quality consistently is something that can be done
without any cost to an organisation.
4. Healthy revenues and healthier profits are the results of investment in
quality.
READING
Read the article from the Financial Times and answer the questions.
Fierce Competition Result in Better Quality
By Jeremy Grant
South Korean carmakers have long been the subject of jokes about poor
quality in the US. But yesterday they won the endorsement of US car buyers

12
when Hyundai jumped ahead of Detroit and some European carmakers in a quali-
ty survey. The JD Power & Associates ‘initial quality’ survey, which measures
the number of problems reported by a customer in the first 90 days of new ve-
hicle ownership, showed that Hyundai and Kia Motors had on average reduced
such problems by 57 percent over the last six years. The number of problems re-
ported on average for the two carmakers dropped from 272
го
ad problems per
100 vehicles in 1998 to 117 this year according to the survey, which involved
51,000 vehicle owners.
Hyundai performed better than 25 Kia, tying with Honda of Japan for second
place in the rankings after Toyota. The Koreans now lead European carmakers by
five problems per 100 vehicles and are ahead of General Motors, Ford and Chrys-
ler, by six problems, while trailing the Japanese by six problems per 100 vehicles.
‘A decade ago, as Korean manufacturers struggled with a universally poor reputa-
tion for vehicle quality, no-one would have predicted they could not only keep
pace, but actually pass domestic 40 carmakers and other foreign imports in terms of
initial quality,’ said Joe Ivers, Executive Director of quality/customer satisfaction
at JD Power, based in California.
Toyota again dominated the survey, with the fewest problems reported. How-
ever, GM, Ford and Chrysler had more than the industry average of 119 problems
per 100 vehicles for the second year running. GM’s Cadillac luxury brand and the
Jaguar marque owned by Ford both narrowed the quality gap with Lexus, Toyo-
ta’s luxury offering that is the biggest seller in the segment.
Like last year, the study also showed that carmakers across the 6o board are
making better quality vehicles amid fierce competition and a drive by Detroit to
make up ground lost for years to Toyota and Honda. Initial quality problems
dropped industry-wide by 11 percent from last year. However, the Hummer,
GM’s massive sport utility vehicle inspired by the US army’s Humvee, came bot-
tom of the list of 37 vehicle brands in terms of the number of problems reported,
for the second year running.
From the
Financial Times
COMPREHENSION
1. Read through the whole article and match the figures with the things
that they refer to.
57 percent
a) the number of quality
2, 272
problems per 100 Hyundai
117
and Kia cars this year
51,000
b) the number of brands
2nd
covered in the survey
119
c) the number of vehicle
37 owners
surveyed
the average number of quality problems per 100 new cars
the number of quality problems per 100 Hyundai and Kia

13
cars six years ago
the position of Hyundai and Honda in the survey
the fall in the number of quality problems with Hyundai
and Kia cars in the last six years
2. Are the statements about the expressions in italics true or false?
‘Korean cars
won the endorsement
of US car buyers’ means that US car
buyers still don’t like Hyundai and Kia cars.
‘Hyundai
jumped ahead
of Detroit and some European carmakers in a
quality survey’ means that previously Hyundai had worse quality than US and
European cars, and now they have better quality.
The
‘initial quality
survey’ relates to the quality of cars over their whole
lifetime.
The number of problems
reported
by customers is the number of problems
that they told the people doing the survey about.
The number of problems
dropped
means that there were fewer problems.
The survey
involved
51,000 vehicle owners means that this number of
people took part in the survey.
3. Find expressions in the article to replace the expressions in italics.
Toyota
were top
in the survey.
Some of the results were the same
this year as last year.
Some carmakers had become closer in quality to
Lexus.
Carmakers
everywhere
are improving quality.
There has been
an effort
by US carmakers to improve quality.
US carmakers are trying to
reduce quality differences
in relation to Toyota
and Honda.
The Hummer is
based on
the Humvee.
The Hummer had the worst quality of any vehicle in the survey.
FOLLOW UP
1. Does the survey confirm your opinions of different car makes? Why /
why not?
2. Make a list of brands for another product category (e.g. washing ma-
chines). Then rank them for
perceived quality
UNIT 3
MARKETING CHANGE
START UP
Do companies change their marketing strategies? Why? Give examples.

14
VOCABULARY
1. Match the sentence beginnings (1-5) with the correct endings (a-e).
1. Farms are now more market-oriented
2. Since the 1980s, Britain has had a much markets at once.
3. Many market-led growth businesses, it takes.
4. Lack of investment and market orientation
5. American TV is a market-driven industry, a such as Microsoft and Sony,
are in several
a) more market-led
b) and the audience decides the direction
c) led to falling sales and profits.
d) and less dependent on government money.
e) approach to economics.
2. Choose the best word or phrase to fill each gap.
Our company makes wooden garden furniture - mainly tables and chairs.
Sales are much higher this year because we have spent a lot on (
selling / distri-
buting / marketing
). First we did a survey about customer
(wants / needs / uses
).
Then we redesign all our (
a products / benefits / services
)to include the special (
goods / profits / features
) that people want. Our (
presenting / promotion / persua-
sion
) included a competition in all the major gardening magazines where the
prize was a set of our furniture. Most importantly we’ve made sure all our (
a
price / costs / charges
) are very competitive because our customers want value
for money.
3. Complete each sentence by writing the correct word in each gap.
1. We advertised on TV , but that’s not enough. We need a whole new mar-
keting
con….
2. We need to tell customers about the special
ben…..
that our service pro-
vides.
3. Our company is market-
ori
….. Everything we do is about giving buyers
what they want.
4. The
pac…..
doesn’t only protect the goods – it advertises them too.
5. I’ve been a
m..k…r
for many years and I know how to promote any prod-
uct.
6. People in different parts of the country buy different things, so
p…e
is one
of the four Ps of marketing.
LISTENING
1. Richard Brown is the managing partner of Cognosis, a management
consultancy in London which advises companies on organization and change.
Listen to the first part of the interview and answer these questions.

15
1. What four approaches does Cognosis use to analyse a
business?
2. How many different business ‘character types’ does Cog-
nosis recognize?
3. What three things do companies deal with differently, ac-
cording to Richard?
2. Listen to the second part of the interview. Tick the sentences below
which are true, according to Richard, and correct those which are false.
1. The hardest way to change the character of a business is to
merge it with another company.
2. When Guiness and Grand Metropolitan merged, they
wanted to create a business culture which was different from
the two companies.
3. The senior managers spent a lot of money training staff in
the new business methods.
4. The new culture was only partly successful.
3. In the first part of the interview, Richard Brown describes three ways in
which successful companies are similar. Complete the description below.
First, they are ……. ……….(1): they have a very clear sense of …….
……… …….. ………(2). Second, they’re …….-……..(3): they invest much
time and energy in understanding and …….. …….. ……… ………(4). And
third, they are ……-…….(5). By that I mean that people inside the organization
are very clear about the values that should ……. ……. …….(6) and beha-
viours.
READING
1
.
Discuss these questions.
1. Does the way a soft drinks company advertise its products encourage you
to buy them?
2. Do you think people prefer to buy “healthy” drinks these days? Why
(not)?
2. Read the article from the Financial Times and answer the questions.
Marketing: Investors Adapt to Consumer Trends
By Jenny Wiggins
When the world’s biggest soft drink company starts changing its marketing
tactics, investors should ask why. Coca-Cola, which has traditionally promoted