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ESP111 Final - Tổng hợp key terms vocab từ phiếu bài tập

Advanced English (Trường Đại học Ngoại thương)

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MANAGEMENT
Vocab
1. Management: the process used to accomplish organizational goals through planning,
organizing, leading, controlling people and other resources.
2. Manager: individual in charge of group of tasks or area of department
3. Chief Executive Officer: the most senior manager responsible for overall performance and
success of a company
4. Planning: management function including anticipating trends, determining strategies 
organizational goals
5. Organizing: management function including designing the structure of the org and creating
conditions and systems  everyone works together  org’goals
6. Leading: creating vision for org, training, coaching, motivating others to work effectively
7. Controlling: management function including creating clear standards to assess if org is
progressing towards goals, rewarding employees for doing a good job and taking corrective
actions if they aren’t
8. Coordinating: bring ppl together  work towards same goals
9. Commanding: guide, lead, supervise employees
Unit review
1. What is a manager?
Manager is an individual in charge of a certain group of tasks or certain area of department in a
business.
2. What can a manager do with a subordinate when considering their performance and
behaviors?
A manager has the authority and power to hire, promote, discipline and fire employees based on
their behaviors and performance.
3. What is a leader?
Leader is a person in control of a group, country, or situation.
4. Why it is possible for anyone to become a leader?
Anyone can become a leader because the basis of leadership is on the personal qualities of the
leader. People are willing to follow the leader because of who he or she is and what the leader
stands for, not because they have to due to the authority bestowed onto the manager by the org.
5. How is a manager different from a leader?
Leader is different from manager in the sense that leaders do not have to hold the management
position a person can become leader without a formal title. People follow a leader for the
personal qualities of the leader, not because of the authority bestowed onto him/her by the
organization.

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Managers have subordinates while leaders have followers. A leader has no formal, tangible
power over their followers. Power is awarded to the leader on a temporary basis and is contingent
upon the ability to maintain motivations and inspiration.  following is voluntary choice
6. 5 common roles of a manager? Explain briefly.
- Planning: setting aims and targets for the org, plan for the resources will be needed.
- Organizing: organize people and resources effectively, make sure staff do not perform
overlapping task
- Coordinating: bringing people and departments together  work towards same aims
- Commanding: guide, lead, supervise people rather than just tell them what to do
- Controlling: checking that the original aims are being met and appraising individuals.

Ideas for essays:

1. Difference between manager and leader?
Manager Leader
Definition The one in the company in charge of Leader is a person in control of a
carrying out 4 functions of group, country, or situation.
management (planning, organizing,
leading, controlling)
Followers Subordinates because of his/her job Followers because of the personal
description and title, authority qualities of a leader (who they are,
bestowed onto them by org. what they stand for, …)
Power A manager become manager by the Leader has no formal, tangible power
virtue of their position. The manager upon their followers. Power is
is accountable for themselves as well awarded to a leader on a temporary
as the behavior and performance of basis and is contingent upon his/her
the others. A manager has the ability to maintain motivation and
authority and power to hire, promote, inspiration for the others. 
discipline and fire employees following is voluntary choice.
Characteristics Management is about efficiency and Leadership is about effectiveness
getting results through procedures, through trust, inspiration and people
processes, controls and structure.  visionary, change-savvy, creative,
agile and adaptive.

2. What is needed to be a good manager?

- Good interpersonal communication skills: managers have to be good at communication
and motivation  deliver the company’s objectives to the people responsible for attaining
them  motivate staff to work well, be productive and contribute to the org.
- Visionary, change-savvy, adaptive  essentially associated with the planning and
organizing function of a manager. They have to set objectives for the org  figure the
best strategies to accomplish the goals.
- Ability to assess and reflex  the control over hiring, awarding, discipling and firing
employees  measure the performance of their staff  ensure that the target objectives

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are met by individual staff and the org as a whole vicious cycle of learning and
developing method to train and guide employees  self-discipline  reflect
MOTIVATION
Vocab
1. Motivation: factors that influence the behavior of employees towards reaching business
goals. Motivation determined by:
- Monetary rewards
- Non-monetary rewards
- Job satisfaction
2. Job satisfaction: enjoyment of worker stems from the feeling that they have done a great job.
3 ways to motivate staff to be more committed to work:
- Job rotation: swapping workers round and only doing 1 task for limited time  swap
again/ regular switching between different tasks
- Job enlargement: extra tasks added to make job more interesting
- Job enrichment: adding tasks require more skills and/or responsibility
3. Theory X: average person doesn’t like work  must be supervised  motivation is from
external factors for eg. pay schemes
4. Theory Y: average person is motivated by internal factors  find way to make them interest
in their jobs for eg. giving rewards, incentives.
5. Maslow’s hierarchy of needs: a theory of motivation states that 5 categories of human needs
dictate their behavior which are:
- Physiological needs: air, food, drink, clothing, shelter, …
- Safety needs: security, protection, stability, …
- Love and belonging needs: family, relationships, work groups, friendship, …
- Esteem needs: achievement, status, recognition, reputation, …
- Self-actualization needs: personal growth and fulfilment
6. Frederick Herzberg’s motivation theory: human have 2 sets of needs:
- Hygiene factors and needs: basic needs
- Motivational needs/motivators: for human to grow psychologically
7. Hygiene factors: must be present in the workplace to prevent job dissatisfaction
8. Knowledge worker: skilled professionals
9. Labor relation: interaction between employers and employees
10. Job security: knowing that there is little chance of losing jobs
11. Wage: money paid to manual worker
12. Incentive: advantage that comes with a job
13. Motivator: things that encourage people to do sth
14. Promotion: to be raised to a higher rank or better job
15. Corporate culture: a company’s shared attitudes, practices and work relationships
Unit review
1. What is a motivation?

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Motivation is the factor that influences the behaviors of employees towards reaching business
goals.
2. What are the most common ways to increase a worker’s motivation? Eg of monetary
and non-monetary
There are 3 most common ways to increase a worker’s motivation:
- Monetary rewards: bonuses, pay schemes, pay rise, …
- Non-monetary rewards: coupons, …
- Job satisfaction
3. What is job satisfaction?
Job satisfaction is the enjoyment stemmed from the feeling that you have done a great job.
4. How can companies raise job satisfaction of their workers?
There are 3 ways that companies can enhance job satisfaction of their employees:
- Job rotation: swapping workers round and doing 1 job in limited period be4 swapping
again
- Job enlargement: adding more tasks to make job more interesting
- Job enrichment: adding tasks require more skills and/or responsibilities
5. Distinguish Theory X and Theory Y
Theory X Theory Y
Workers Lazy, avoid work, incapable of taking Most people have psychological need
responsibility to work and
Hierarchy “Lower order” at the bottom “Higher order” needs such as esteem
of needs
Methods Controlling, supervising, guiding what Given the right condition ambitious,
to do, threatening and rewarding with creative, self-motivated
incentives.
Examples Large-scale manufacturing more applicable to skilled
workers/knowledge workers

6. What are hygiene factors?

Factors that must be present in the workplace in order to avoid job dissatisfaction
7. Describe briefly Maslow’s hierarchy of needs
5 categories:
- Self-actualization needs: personal growth and fulfilment
- Esteem needs: status, achievement, reputation, …
- Love and belongings needs: family, friendships, relationships, …
- Safety needs: security, protection, stability, …
- Physiological needs: air, food, shelter, …

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Ideas for essay

1. How to improve employee’s motivation?
- Theory X, theory Y, Frederick Herzberg’s theory
- Physiological and security needs: monetary benefits, job security, praise, …  manual
labor, once these factors are present  workers take them for granted
- Intrinsic factors (theory Y): inspiration, conditions for personal growth, job satisfaction,
…  related to self-actualization needs motivated if they are able to realize their goals
through their work  durable, greater impacts on employees  applicable only when
satisfiers are present in the workplace   if not satisfied people wouldn’t quest for
higher need
 Managers need to balance between these 2 and figure out which is best fit for each of their
employees
2. Extrinsic vs intrinsic
- Extrinsic motivation: determined by external factors  lower order in the hierarchy of
needs  physiological needs, security needs, love and belonging needs, esteem needs 
not durable
- Intrinsic motivation: higher order  self-actualization  seek happiness fulfilment
through their work  driven by the enjoyment of having done a good job  long-lasting

COMPANY STRUCTURE
Vocab
1. Organizational structure: levels of management and division of responsibilities within an
org
2. Hierarchy: levels of management in any org from highest to lowest. A level refers to people
of same level of responsibility
3. Chain of command: structure in org allows in4 to be passed down from senior management
to lower levels.
4. Span of control: no of employees working under a manager
5. Directors: senior managers leading a particular department/division of a business
6. Line managers: responsible for those under them in the hierarchy
7. Supervisors: junior managers, having direct control over employees under them in org
structure
8. Staff manager: specialists provide support, in4, assistance to line managers
9. Delegation: giving a subordinate authority to do sth
10. Decentralization: taking decision away from the center of an org
11. Line authority: power to give instruction to people of lower levels in the chain of command
Unit review
1. What is an organizational structure?

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Organizational structure is the levels of management and division of responsibilities in an

organization.
2. Define a chain of command
Chain of command is a structure in a company which allows in4 to be passed down from senior
managers to lower levels of management.
3. What is the main advantage of a chain of command?
All the people in the org know what decisions they are able to make, who their line manager is
(who they report to) and who their immediate subordinates are (over whom they have line
authority and can give instruction to).
4. Describe briefly functional organizational structure.
A functional organizational structure is a common type of business structure that organizes a
company into different departments based on areas of expertise, grouping employees by
specialty, skill or related roles.
5. In what way can dividing a business functionally cause problems?
People are often more concerned with the success of their department than that of the company as
a whole  conflicts between departments over what objectives are.
6. Describe briefly a matrix organization
Matrix management is a round hierarchy in which people report to more than 1 superior.
7. What is the potential disadvantage of matrix management systems?
Matrices involving several departments can become quite complex  necessary to give 1
department priority in decision making.
8. What is centralization?
The act or process of centralizing a system, company, country, etc. (= removing authority to one
central place
9. Why is it not usually possible to organize a large org in a single hierarchy?
The activities of most organizations are too complicated to be organized in a single hierarchy.
10. What factors might lead to companies to flatten their hierarchies?
- In hierarchical organizations, people at lower levels can’t take important decisions  pass
on responsibility to their boss.
- Recessions  companies are forced to cut back and eliminate jobs.
- Advanced IT systems  reduce the need for administrative staff
11. Under what circumstances might team not be effective?
Teams are not always good at decision making and usually require a strong leader.

Ideas for essay

1. Wikinomics: Wikinomics is a new force or movement that is bringing people together
on the net to create a giant brain (mass collaboration)

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Advantage:
- Numerous ideas from numerous people: A large pool of participants leads to more ideas,
which makes it likely that among the flood of ideas there are some especially smart ones
- Cheap: Similar to outsourcing, crowdsourcing is used to cut costs. When you don't have to
employ people and pay them a wage, whether they are working or not, it definitely lowers
costs.
- Fast: Basically, if you use crowdsourcing to get a job done, it will take less time to find the
right person to do the job -- in fact it could be almost immediately. The pool of potential pros
for the job is large, and chances are that somebody will be available right away.
Disadvantage:
- Quality could be questionable: When you hire numerous people to do a job, it could easily
lead to lack of consistency, even if they are pros. If you aren't lucky enough to hire the
professionals, then what you might get could make your worst nightmares pale by
comparison.
- Confidentiality: The fact that you post your task on the Net for everybody to see is enough to
blow any confidentiality away. Of course, you can post a very detailed task description
without revealing any (or at least not much) confidential information. Still, for many vital
projects, the lack of confidentiality with crowdsourcing is too much to accept.
2. How to organize a business? Compare types
Functional organizational Flattening hierarchies and
Matrix Teams
structure delegating responsibilities
Method Organization is divided Advanced IT system  Round hierarchy in Autonomous,
based on expertise, reduced need to which people report temporary groups or
speciality, skills, related administrative staff to more than 1 teams that are
roles Recession  eliminate jobs superior responsible for an
entire project  split
up as soon as project
finishes
Disad More concerned with the Small business owners Managers from Teams are not
and ad success of their department, would prefer keeping as different always good at
lack of synergies  much control of employees departments can deal decision making and
unnecessary  hard to flattening directly with their usually require a
competitiveness among Large companies  counterparts in other strong leader.
departments  hatred managers motivate staff departments 
Decrease the consistency of through decision making higher efficiency
outcome among department. and responsibilities
For example, marketing delegation  employees got
needs input from production chance to voice up
but don’t have the thorough
insight of product 
shortcomings in marketing
strategies

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MANAGING ACROSS CULTURES

Vocab
1. Glocalization: combination of “globalization” and “localization”  describe a
product/service that is developed and distributed globally but adjusted to accommodate local
market.
2. Culture: complex system of values, traits, morals, and customs shared by a society
3. Context: refers to stimuli, environment, ambience surrounding an event
4. The Lewis Model: divides human into 3 categories, based on behavior  linear-active,
multi-active and reactive
5. High-context culture: rules of communication are primarily and dominantly transmitted
through contextual elements  specific forms of body language, the social/familial status of
an individual, the tone of voice during speech  rules are not explicitly written or stated
6. Low-context culture: most communications take place through verbal language and rules are
written out or stated
7. Power distance: distribution of power among individuals in a culture and how well unequal
levels of power are accepted by those with less power
8. Individualist: someone who believe that personal growth is more important
9. Universalist: people think rules apply to everyone
10. Collectivist: believing that group is more important than individuals
11. Particularist: people who believe friendship, personal relationships are more important than
rules and regulations  VN
12. Business culture: the way that companies in general behave, business is done in a particular
place.
13. Company/ corporate culture: the way a particular company works and the things that its
employees believe are important
14. Long-hours culture: where people are expected to work long time each day
15. Macho culture: values typically associated with men
16. Sales culture: selling is seen as the most important thing in the org > other activities
17. Learning culture: learning and innovation are seen as important

Unit review
1. Why is it important for companies to be aware of local cultures?
Local differences, including cultural habits, beliefs, principles to each country and market, make
it impossible for companies to have a mere set of corporate, objectives, goals, …  local
characteristics affect the way business is done
2. Describe the characteristic of businesspeople from multi-active, reactive, linear-active
cultures
Multi-active Reactive Linear-active

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Characteristic Emphasize feelings, intuition Listen to and establish other’s Organized and rational
s and relationships position and react to it Act logically rather than
Do many things at once Avoid confrontation, eye emotionally
Flexible, good at changing plans contact, don’t want to lose face Plan in advance, do 1 thing at
and improvise Formulate approaches which once
Believe in social hierarchy and suit both parties Believe in rules, regulations,
status, personal relationships, contracts  universalist
friendship> rules & regulations Not afraid of confrontation but
 collectivist/particularist will compromise if necessary
 individualist
Examples Southern European, Africa, Asia Britain, US, Germany
Latin America

3. What is culture? What factors are likely to be governed by cultures?

Complex system of values, traits, morals and customs shared by a society. Culture is a powerful
force that mold the way we think, behave and communicate.
4. What is context?
A context refers to the stimuli, ambience, environment surrounding an event.
5. Describe the major features of low-context and high-context cultures and give example
of countries adopting low-context and high-context cultures

Low-context culture High-context culture

Rely little on the context of a situation and shared Assume that listener doesn’t need much
exp to convey meaning background in4
Messages must be explicit, listeners receive on Intuitive, contemplative
written/spoken words  words are taken literally Emphasize interpersonal relationships, nonverbal
Linear, analytical, action-oriented expressions, physical settings, social contexts
Businessman: stress clearly articulated messages
that is objective, efficient
North America, Scandinavia, Germany China, Japan, Middle Eastern countries
6. What does power distance index measure?
PDI measures how people in different societies cope with inequality or how they relate to more
powerful individuals.
7. Indicate the difference in the relationship between subordinates and their supervisors in
low-context and high-context cultures.
- Low-context culture:
o Subordinates consider themselves equal to their boss
o Subordinates confidently voice their opinions and participate in decision making
o Relationships tend to be democratic, egalitarian, informal
o For eg: in Western countries deference are not paid to individuals because of their
wealth, position, seniority
- High-context culture:

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o Subordinates expect formal hierarchies and have authoritarian paternalistic power

relationships

Ideas for essay

1. Glocalization
- Def: refers the process of adjusting globally-distributed products/services in order to fit the
local market
- Advantages:
o Through glocalization international products are adapted to the local taste of the
population and thereby local communities are introduced to different aspects of
foreign cultures. This helps multinational companies to grow and gain trust of the
people of particular regions.
o Multinational companies bring in foreign revenue and offer employment opportunities
for locals.
- Disadvantage:
o It is really difficult to implement a glocal strategy due to organizational problems.
This means that glocalization doesn’t always benefit multinational companies because
individuals and groups in each region or country can choose to accept or reject the
products offerings or the company’s presence.
2. Importance of culture awareness when emerging in the local market
Culture, including religion, belief, habits, … of people in certain places  affects the way
business is done in each region or country  deserve more spotlight
- Adapting global business models to the local market:  glocalization  Lacking in
understanding of the local culture and its influence on consumer demand and decision-
making can result in failure and significant costs to your business. While various brands and
products are universally prevalent, certain changes must still be made for variables such as
product offerings, marketing strategy, and brand messaging to reflect the local culture and
value system.
- Studying local business and managerial practices: The influence of local culture is extensive.
It impacts everything from how employees are managed to the pace at which business is
conducted, how negotiations are handled, and how risk management is enforced. Thus, an in-
depth understanding of local business practices is crucial to international business success. 
aware of high/low context culture, linear-active, reactive, multi-active  adjust corporate
culture

RECRUITMENT
Vocab
1. Recruitment: the process from identifying that the business needs to employ  the point at
which applications arrive at the business

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2. Employee selection: the process of evaluating candidates for a specific job and selecting an
individual for employment based on the needs of org
3. Job analysis: identifies and records the responsibilities and tasks related to a job
4. Job description: outlines of responsibilities and duties to be carried out by a specific job
5. Job specification: a document outlining the requirements, qualifications, expertise, physical
characteristics, etc. for a specified job
6. Internal recruitment: vacancy is filled by an existing employee of the business
7. External recruitment: vacancy is filled by someone who will be new to the business
8. Induction training: intro given to a new employee explaining business’s activities, customs,
procedures and fellow workers.
9. On-the-job training: occurs by watching a more experienced worker doing the job
10. Off-the-job training: being trained away from the workplace, usually by specialist trainers.
11. Shortlist (n): a list of people who have been judged the most suitable for a job or prize, made
from a longer list of people originally considered, and from which one person will be chosen
12. Shortlist (v): to put someone or something on a shortlist
13. Commission: tiền hoa hồng
14. Increments: tiền lời
15. Situation vacant: trang tuyển dụng (trên báo)

Unit review
1. What are the different stages of the recruitment and selection process?
Vacancy arises  job analysis  job description  job specification  job advertised in
appropriate media  application forms and shortlisting  interviews and selection  vacancy
filled
2. How do you draw up a job description and job specification?
- Job description:
o Functions:
 Applicants know what the job entails
 Allow job specification to be drawn up  to see if applicant match up to the
job
 Once someone employed  track efficiency of worker. If dispute occurs about
tasks job specification settling these questions
o Requirements:
 Conditions of work (hours of work, salary, pension scheme, welfare, …)
 Training that will be offered
 Opportunities for promotion
- Job specification:
o Requirements (usually included):
 Level of educational qualifications
 The amount of experience and type of experience

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 Special skills, knowledge or particular aptitude

 Personal characteristics
3. How do you choose suitable ways of advertising a vacancy – either internally and
externally?
- If recruit internally  could be placed on staff notice board, email to all staff, workplace
newsletter
- If recruit externally  depends on the nature of the job
o If for middle and senior management jobs, jobs requiring specialist skills  nationally
> locally
o If for unskilled or semi-skilled which will probably be filled by the local population
 no need national advertising  waste of money
o On websites
o Government-run job centers  advertised for free
o Use specialist recruitment agencies  Save time but expensive
4. How important is training? And what are different types of training?
Training is important to business as it may be used to:
- Introduce a new process/equipment
- Improve the efficiency of workforce
- Provide training for unskilled worker  more valuable to org
- Decrease supervision needed
- Improve the opportunity for internal promotion
- Decrease the chances of accidents
3 main types of training:
- Induction training
- On-the-job training
- Off-the-job training
5. What is induction training, on-the-job training and off-the-job training?
- Induction training: the intro to new employees explaining business’s activities, customs,
procedures and co-workers.
- On-the-job training: involving watching a more experienced worker doing the job.
- Off-the-job training: being trained away from the workplace, by specialist trainers.

Ideas for essay

1. Disadvantages and disadvantages of internal recruitment
- Advantages:
o Reduce time to hire: find candidates  evaluate them and  persuade them to join
their company  takes time. Conversely, internal candidates are already part of your
workplace, so the time you need to find and engage those candidates is much less
because: they’re prescreened for culture fit, may not always need full interviews with

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managers (for example, if they are moving within their department, the department
head already knows the candidate.)
o Cost less: Research has shown that external hiring may cost 1.7 times more than
internal hiring. This is because when hiring from within, you usually don’t need to:
 Post ads on job boards
 Subscribe to resume databases
 Pay for backgrounds check.
- Disadvantages:
o Limit your pool of applicants: While your company may have a lot of qualified
candidates for specific positions, this isn’t necessarily true for every open role. For
example, if a role is fairly new to your business, your employees will have other
specialties and may not be able to fill this skills gap. Relying solely on internal hiring
means you could miss the chance to hire people with new skills and ideas.
o Leave a gap in your existing workforce: When you promote someone to fill an open
position, their old position becomes vacant. This means that a series of moves and
promotions may ensue that could disrupt your business’ operations. Ultimately you
may need to turn to external recruitment in addition to your internal hire.

2. Disadvantages and disadvantages of external recruitment

- Advantages:
o Fresher skill and input:: When a company goes with an external recruitment method,
there is a quite better possibility of finding and identifying a fresher candidate who is
capable of delivering new skills and inputs for the betterment of the company.
o Selecting from more candidates: When you look outside your own company, you can
explore a much larger pool of candidates for your position. This can increase your
chances of finding a qualified, successful applicant. Having more potential hires can
allow you to be more selective and find candidates with the right education and
experience for the job.
- Disadvantages:
o Increased costs: External recruitment typically costs more than internal recruitment.
Organizations may pay for a recruiting service, memberships for job search sites and
travel for long-distance candidates. Additionally, your company's HR team spends
more time on recruitment efforts, interviews and paperwork for bringing on new
employees.
o Additional training: Outside hires require more training than internal employees on
general company policies and procedures. This can cost the company additional time
and money. Training for external employees can also result in reduced productivity
during the training period and as new employees get familiar with their
responsibilities.

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CLASSIFICATION OF BUSINESS
Vocab
1. Primary sector: extracts and uses the natural resources of Earth to produce raw materials
used by other business
2. Secondary sector: manufactures goods using the raw materials provided by the primary
sector
3. Tertiary sector: provides services to consumers and the other sectors of industry
4. Quaternary sector: The quaternary sector typically includes intellectual services such as
technological advancement and innovation
5. Mixed economy: has both a private sector and a public (state) sector
6. Public sector: sector of econ in which organizations are owned and controlled by the state
7. Private sector: sector of econ in which orgs are owned and controlled by individuals
8. Privatization: the sale of state-owned assets such as public corporations to the private sector
9. Sole trader: business owned and operated by 1 person
10. Limited liability: liability of shareholders in a company limited to only the amount they
invested
11. Unlimited liability: owners of a business can be held responsible for the debts of the
business they own. Their liability is not limited to the amount they made in the business
12. Partnership: form of business which has > 2 owners
13. Shareholders: owners of a limited company  buy shares which represent part-ownership of
the company
14. Private limited company: businesses owned by shareholders but they cannot sell shares to
the public
15. Public limited company: businesses owned by shareholders but they sell shares to the public
and their shares are tradeable on the Stock Exchange
16. Privatization: the act of selling an industry, company or service that was owned and
controlled by the government, so it becomes privately owned and controlled
17. Shares: one of the equal parts that the ownership of a company is divided into, and that can
be bought by the public
18. Liability: legal responsibility for something
19. Prospectus: a legal document offering a company's shares for sale, and giving details about
the company and its activities
20. Creditor: = debtor
Unit review
1. What are different stages of economic/business activities?
- Stage 1: primary sector  using Earth’s natural resources  raw materials used by other
resources
- Stage 2: secondary sector  taking materials and resources from primary sector 
manufactured/processed goods
- Stage 3: tertiary stage  providing services to both costumers and other businesses

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2. What business activities are included in the quaternary sector?

 Information services:
- Computing
- ICT (information and communication technologies)
- Consultancy
- R&D (research and development)
 broader terms add:  intellectual activities
- News media
- Libraries
- Universities and colleges
3. Differentiate public and private sector from the pubic sector in mixed economies?
Private sector Public sector
- Not owned by the gov - Owned by the gov
- Decide what to produce, how to produce - Gov and other public sector authority 
and prices decide what to produce and prices
 most business aim at making profit  gov  some products are provided for free to
still have control over these decisions consumer (state health and education services)
 money from taxpayer

4. Features of different forms of business organizations: sole traders, partnerships, private/public

limited companies, franchises, joint venture? Disadvantages and advantages.
Definition Advantage /Disadvantage
Most common form Advantage:
of business org - Few legal requirements to set up: it isn't a separate legal entity
Owned and operated register as self-employed for tax purposes can start working
by 1 person right away
- More profits: fewer fixed overhead cost  no need to lend
workplace, pay salary, share profit; fewer tax responsibility  no
Corporation Tax to pay or annual accounts to submit to
Companies House because sole trade business isn’t incorporated
Sole trader Disadvantage:
- Unlimited liability owner is responsible personally for any debts
and losses of the business, whether that’s outstanding tax, office
rent or equipment costs  personal assets could be at risk.
- Difficulties in raising capital: lenders are more wary of sole traders
because of the unlimited liability aspect and, in some cases,
because of the private nature of these businesses  the amount
able to borrow might be lower than a limited company and the
rates not quite as favorable.
Partnership Group/association of Advantage:
> 2 people agree to - Less financial burden: costly overhead expenses for inventory,
own and run a equipment, retail space, etc  your partner can split the cost 
business avoid large amounts of debt when starting your business.
 partners contribute - More helping hand: Partners can offer skills and knowledge that

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to the capital  have one doesn’t have  past experience  help direct your business
a say in the running onto a successful path  divide up tasks, meaning tasks will get
of the business  done faster
share profits Disadvantage:
- Potential for differences and conflict: strategic direction, shares,
…  owners probably won’t always get their own way, and each
partner will need to demonstrate flexibility and the ability to
compromise
- Unlimited liability: business does not have a separate legal
personality, the partners are personally liable for debts and losses
incurred personal assets may be at risk of being seized by
creditors
Business owned by Advantages:
shareholders but can’t - Limited liability: members are responsible to pay only that much
sell shares to the how much they own towards their own shareholdingpersonal
public  assets of the shareholders will not be used to pay the company’s
shareholders appoint debts
directors to run the - Investment and lending opportunity have access to a range of
business funding opportunities that other business structures do not
(crowdfunding, venture capital, and even going public on the stock
Private market)  more likely to be able to borrow money from banks
limited due to their limited liability status.
company Disadvantages:
- Greater administrative burden: maintain three types of legally
required records:
o Records of company activities, such as lists of directors,
shareholders and voting decisions.
o Financial records covering all transactions.
o Records of persons of significant control.
 comply with any relevant laws, rules or regulations, maintain
accurate business records, file accounts and pay Corporation Tax.
Public Business owned by Advantages:
limited shareholders  - Raising Capital: to have the ability to sell shares to the public to
company shares are tradeable raise capital  give the business money that can be used to grow
on stock exchange the company
- Easier access to finance: it’s easier to secure a loan or mortgage
from a bank as they are seen as a safer option when it comes to
credit checks
Disadvantages:
- Volatile Stock Markets: when a company receives negative media
attention, this will create a negative impact to the company’s share
price  the public can purchase shares in the company at a
greatly reduced price
- Vulnerability to takeovers: shareholders possess a small share of
your business  if the shareholders club together, they will have
the power to influence the strategic decisions of your business.
If another business wants to take over your business, they could
gradually buy shares in your company until they have the majority

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share  they can force sold your business to the company (hostile
takeover)
Franchisor: business Advantages:
with a - Brand recognition: Franchises are already well-known businesses
product/service idea with established customer bases built-in
that it doesn’t want to  when you open a franchise with this recognizable branding,
sell to consumers people will automatically know what your business is
directly  appoint - Built-in customer base: come with instant brand recognition and a
franchise to use and loyal customer base
Franchise
sell idea and product Disadvantages:
- Initial cost: if you’re joining a very well-known and profitable
franchise, the initial cost can be costly.
Restricting regulations: While a franchise allows the franchisee to be
their own boss, they’re not entirely in control of their business, nor
can they make decisions without taking into account the opinion of the
franchisor.
> 2 business agree to Advantages:
start a new project - Time-limited: Their temporary nature means it doesn’t tie
together  share businesses together for eternity, and exit clauses mean it can be
capital, risks, profits simple to dissolve a joint venture if it isn’t working out.
- Pooled risk: All businesses involved in the joint venture share a
proportion of the risk, with all parties working to a shared goal.
This can dilute the risk that an individual business would face by
going it alone, and if the venture fails, means that sunk costs are
Joint
shared between invested parties
venture
Disadvantages:
- Decision making: Trust is vital in any joint venture – which can
make decision-making more difficult if both parties need to sign
off decisions when there is a lack of trust. Poor decision-making
and second-guessing the other party can lead to failure.
Unequal commitment: Ideally a joint venture should be an all-for-one
and one-for-all proposition. A lack of commitment from one of the
partners can create an unbalanced joint venture.

PRODUCTION
Vocab
5. Production: process of converting inputs such as land, labor, capital  saleable goods
6. Inventories: stock of raw materials, work-in-progress and finished goods
7. Lean production: production of goods and services with min waste of resources
8. Job production: the production of items one at a time
9. Batch production: the production of goods in batches. Each batch passes through one stage
of production before moving onto the next stage
10. Flow production: the production of very large quantities of identical goods using a
continuously moving process

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11. Just-in-time (JIT): a production method that involve reducing or virtually eliminating the
need to hold inventories of raw materials or unsold inventories of finished goods
12. Lead time: time needed to perform an activity such as manufacturing a product
13. Plant: a collective word for facilities used in the production process
14. Cell production: production line is divided into separate, self-contained cells, each of which
making a part of the finished product
15. Production run: a period of producing 1 particular product without adapting the production
equipment
16. Obsolescence: being out of date
17. Zero defect: having no faults
18. Product recall: the removal from sale of an item that might be dangerous to consumers
19. Inventory: (AmE and BrE) or stock (BrE) is a company’s reserves of raw materials, parts,
work in process and finished goods
20. Outsourcing: buying products or processed materials from other companies rather than
manufacturing them.
21. Capacity planning: measuring amount of work that can be done in certain amount of time
with how many people, machine, … needed
22. Offshore production: the manufacture of goods in 1 country imported to domestic market
23. Downtime: the time during which a machine, especially a computer, is not working or is not
able to be used
24. Planned obsolescence: designing products having limited lifespan  need to be replaced
more often
25. Economies of scale: the cost savings that can be achieved from a production processs

Unit review
1. What is the production and operation management?
- Operation management: is the administration of business practices to create the highest level
of efficiency possible within an organization. It is concerned with converting materials and
labor into goods and services as efficiently as possible to maximize the profit of an
organization.
- Production: the process of converting inputs such as land, labor, capital, …  saleable goods
2. What is lean production? How can lean production be achieved?
- Lean production: the production of goods and services with the minimum waste of resources
- Lean production can be achieved by Kaizen method
o Kaizen means “continuous improvement” in Japanese, focusing on elimination of
waste
o Small groups meet regularly to discuss problems and possible solutions because no
one knows the problems that exist better than the workers
o Eliminating waste, for example, by getting rid of large amounts of inventory or
reducing the amount of time for workers to walk between job

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3. What is job production, batch production and flow production?

- Job production: the production of an item one at a time
- Batch production: production of goods in batches. Each batch pass through 1 stage of
production before moving to another
- Flow production: the production of very large quantities of identical goods using a
continuously moving process
4. What are benefits and limitations of different production methods?
Benefits Limitations
Cut down on waste of resources, including time Equipment failure: Lean has very little room for
 increase efficiency error. Equipment or labor failure can lead to
Lean Space saved on warehousing may be used to major inconsistencies and can make the entire
production add new product lines. The same is true of time operation fall behind
savings. Your staff can absorb new work and
react quickly to changes in client demand.
Improve the morale of employees  make them Errors can be costly: An undetected quality
Batch work harder  more efficient  employees error can ruin a whole batch and end up wasting
production feel more valued and less likely to strike or a lot of materials and time, especially when
cause disruption producing more expensive goods.
Customer requirements and changes can Individual cost of one unit may be high.
be handled. Often labor intensive = High labor costs
Associated with higher quality due to skilled workers.
Job
production Employees can be better motivated, due Requires close consultation with the
to varied tasks - More job satisfaction. client.
A flexible production method. Production may be slow- Longer lead times.
Production is easy to organize
Economies of scale can be achieved as High initial set-up costs of automated
Flow cost per unit will be low assembly lines Standardized product
production Quality systems can be built into the production produced
at each stage Workers find work repetitive and boring
Automated assembly lines save time and money
High productivity – A well-designed cell Risk of downtime – Equipment failure can
provides quick, efficient flow and high- disrupt the cell’s flow (and, therefore, the
Cell broader manufacturing process).
quality production.
production Operator training – Since cell operators are
Waste reduction – Improved production
responsible for multiple processes, additional
efficiency and material usage can reduce scrap
training may be necessary.
and overall waste.
Reduce or virtually eliminate the need to hold Business needs very reliable suppliers and an
inventories efficient system of ordering raw materials and
JIT  reduce the cost of holding inventory components
 finished goods sold quickly  money back
to business more quickly

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LOGISTICS
Vocab
5. Logistics: marketing activity that involves planning, implementing, controlling the flow of
goods and other resource between the point of origin to and the point of consumption
6. Inbound logistics: the area of logistics that involves bringing raw materials, packaging other
goods and services and in4 from suppliers to producers
7. Materials handling: movement of goods within warehouses, warehouses  factory, factory
 workstations
8. Outbound logistics: area of logistics that involves managing the flow of finished products
and in4 to business buyers or ultimate buyers
9. Reverse logistics: area of logistics involving bringing goods back to manufacturer due to
defects or to recycle
10. Customs clearance: the act of passing goods through customs so that they can enter or leave
the country
11. Supply chain: network of facilities that performs the function of procurement of materials,
producing finished goods and distributing them to customers.
12. Logistics management: the part of supply chain that plans, implements, controls the flow
and storage of goods between the point of origin and the point of consumption
13. Replenish: to fill something up again
Ideas for essay
Push and pull strategies:
Push Pull
Often incorporate safety stocks and Including lean production, stockless
safety lead times production, continuous flow manufacture and
agile manufacturing  nothing is produced
until its needed
Based on the estimated future Based on current demand
demand

QUALITY
Vocab
1. Quality:
2. Quality control:
3. Quality assurance:
4. Total Quality Management (TQM):
5.
Unit review
1. What does the word “quality” mean to you? Brainstorm as many ideas as possible

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2. What are quality control and quality assurance?

3. What is TQM?
4. How does TQM affect the business?
5. How do companies spend time and money to ensure quality?

MARKETING
Vocab
Unit review

ADVERTISING
Vocab
Unit review

BANKING
Vocab
Unit review

ACCOUNTING AND FINANCIAL STATEMENTS

Vocab
1. Cost accounting:
2. Tax accounting:
3. Auditing:
4. Accounting:
5. Managerial and management accounting:
6. “Creative accounting”:
7. Bookkeeping:
8. Cash flow statement:
9. Income statement (statement of income, profit and loss statement, profit and loss
account):
10. Balance sheet (statement of financial position):
Unit review

BUSINESS CYCLE
Vocab
1. Business cycle model: a model showing the ups and downs in rGDP over time  typically
show long-run increase in rGDP + short-run fluctuations in output

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2. Expansion: phase of business cycle when output is increasing

3. Recession: the phase of business cycle when output is falling
4. Depression: a deep and prolonged recession
5. Peak: the turning point in the business cycle between an expansion and contraction  output
has stopped increasing and started falling
6. Trough: the turning point in the business cycle between a recession and expansion  output
has stopped increasing and started falling
7. Recovery: increase after a contraction and a trough in the business cycle  an econ is
considered in recovery until it returns to long-run potential output
8. Potential output: level of output an econ can achieve at full employment
9. Growth trend: straight line in business cycle model, usually upward-sloping  long-run
pattern of change in rGDP over time
10. Positive output gap: difference between actual output and potential output when an econ is
producing more than full employment output  rate of unemployment < natural rate of
unemployment  econ operating outside its PPC
11. Negative output gap: difference between actual output and potential output when an econ is
producing less than full employment output  rate of unemployment > natural rate of
unemployment  econ operating inside its PPC
12. PPC (production possibilities curve): đường cong về khả năng doanh nghiệp sản xuất

Unit review

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