AGREEMENT OF SUBJECT AND VERB

Verb adalah kata yang melukiskan action atau tindakan yang dilakukan oleh subject. Apabila verb dalam bentuk tunggal (singular) maka subject juga harus dalam bentuk tunggal; bilamana verb dalam bentuk jamak (plural) maka verb juga harus dalam bentuk jamak. Jika subject berupa orang pertama, kedua, atau ketiga, bentuk verb disesuaikan. Peersesuaian antara subject dan verb ini disebut agreement. Perhatikan contoh berikut:
1. The manager meets the visitor in his office.
2. The managers meet the visitors in their office.

Dalam kalimat pertama subject berupa orang ketiga tunggal manager diikuti verb untuk orang ketiga tunggal meets.
Dalam kalimat kedua subject berupa orang ketiga jamak managers diikuti verb orang ketiga jamak meet.

Penambahan akhiran –s/-es pada subject kalimat kedua diatas menunjukkan bahwa subject adalah kata benda jamak. Tidak adanya penambahan –s/-es pada subject kalimat pertama menunjukkan bahwa subject berupa sebuah kata benda tunggal.

Akhirnya yang berupa penambahan –s/-es pada verb menyatakan bahwa verb tersebut berbentuk tunggal. Verb yang tidak disertai penambahan –s/-es berbentuk jamak. Ketentuan ini hanya berlaku pada present tense verbs saja.
Singular pronouns berikut ini tergolong singular. Apabila menduduki posisi subject kalimat maka digunakan singular verb.

Anyone, anybody, anything, everyone, everybody, everything, someone, somebody, something, one, nobody, no one, each, either, neither, nothing.

Example:
1. Anyone is eligible to apply for the position.
2. Anything goes.
3. Everybody here plans to attend.
4. Each person here is expected to contribute
5. Many a satisfied consumer has passed through these doors

Choose the form of the verb that agrees with the subject.
1. Many people (exercise, exercises) everyday.
2. Several items (am, is, are) out of stock.
3. Neither model (am, is, are) very expensive
4. Everyone (try, tries) to help
5. The folders (was, were) lying on your desk.
6. Neither report (was, were) accurate.
7. One of those machine (cost, costs) about $500
8. The owners of the store (plan, plans) to remodel it.
9. Neither of the reports (include, includes) charts.
10. The result (has, have) been increased sales.

RECOGNISING SUBJECTS AND PREDICATES

Kalimat adalah sekelompok kata yang mengungkapkan pikiran atau informasi. Setiap kalimat terdiri atas dua unsur pokok: Subject dan Predicate.

Subject adalah bagian kalimat yang menyatakan apa atau siapa yang menjadi pokok pembicaraan kalimat.

Predicate adalah bagian kalimat yang mengungkapkan apa yang dilakukan oleh subject, atau apa yang terjadi atas subject. Subject berupa noun atau pronoun dalam bentuk tunggal atau jamak. Predicate berupa verb atau verb phrase.

In each of the following sentences, separate the subject and predicate with a slash (/).
Examples:

• The employees/work in a business firm.
• The target of business/is consumers

1. A business produces goods and services.
2. Individuals own the factors of production.
3. Business needs people as owners, managers, employees and consumers.
4. People need business for the production of goods and services.
5. A manager is responsible for operating the business.
6. A professional manager attempts to achieve the objective of the business.
7. Employees supply the skills and abilities.
8. They expect to receive a wage.
9. The consumers want better goods and services.
10. A business enterprise attempts to satisfy such business.
11. The human element is the core of business.
12. A consumer is a person or a business that purchase a product of as business.
13. The profit motive is the desire to make a profit as reward for taking risk.
14. Profit is total sales minus the cost of production.
15. A profit is not always gained.

LEADERSHIP AND MANAGEMENT STYLES

LEADERSHIP AND MANAGEMENT STYLES

What is the difference between leadership and management?
Management
This is the process of setting objectives and making the most efficient use of financial, human and physical resources to achieve these objectives. Key tasks include planning, control and co-ordination.

Leadership
Influencing others to achieve certain aims or objectives. Effective leadership skills can help a manager to carry out their duties

What do Leaders do?
• Decide upon objectives for the organisation
• Provide expertise and set standards fort the organisation
• Decide upon company structure and shape the culture of the business

What makes a good leader?
A good leader will be informed and knowledgeable about matters relating to the business
A good leader should be self-motivated and desire to achieve great things
A good leader should possess an air for authority
A good leader would have the ability to think creatively and to solve problems

Styles of Leadership…
There are three basic categories of leadership style…
Autocratic or authoritarian leadership
Paternalistic leadership
Democratic leadership

Authoritarian or Autocratic Leadership
Such leaders would have considerable sympathy with the views expressed by Taylor.
Such leaders…
• Take decisions with little involvement of junior employees
• Allocate tasks
• Set objectives
• Will contain total control throughout

Key to Telebusiness success: Keeping it all together

An effective telesales of telemarketing organization should start with a simple question: Where to put it? The physical location of a telebusiness department can be one of the most essential factors to its success. In this regard, telebusiness models fall into two broad categories: centralized and decentralized. These two fundamental models can be compared to answer an important question about how to build a telebusiness program that works.
What’s the difference?
If a telebusiness department is decentralized, its staff as spread among two or more offices.
Centralized telebusiness departments come in two flavors. They can operate at the corporate headquarters or might do business out of a single location that is separate from the corporate offices.
There are some reasons someone operates telebusinesss staff out of a single location:

1. Clear communications. Centralizing this telebusiness team enables him to better manage the entire staff and control the quality of telemarketing and telesales efforts. Another key point here is that telesales and telemarketing messaging is ever evolving. As products change, competitors appear and markets mature, the value proposition communicated by his telebusiness staff must be quickly pressed forward.

2. Better teamwork. The importance of morale cannot be overstated. A single, cohesive telebusiness team will encourage and motivate each other through long hours of hard work on the phones. Group exercises, such as role-playing, will improve the productivity of each telesales and telemarketing representative. A centralized telebusiness organization also enables him to make the most of his team. With a close eye on the skills of each member of the group, his managers can better judge when to promote an employee from in-bound calls to cold calling, or from qualifying leads to making sales.

3. Reduce costs. It can be more expensive to spread a telebusiness staff across multiple offices. Decentralized models can create higher systems of cost, the need for additional phone switches, greater time requirements for management and human resources, a larger yet less productive telebusiness staff-the llist goes on.

The Bottom Line: Centralize
In the last ten years, there are many changes in the way telebusiness programs are handled. Today, telebusiness models are a topic at board meetings, where executives discuss telesales and telemarketing strategies. The resources dedicated to telebusiness operations have grown dramatically-especially in technology firms, where rapid sales growth is paramount. As a result, much greater attention is paid to the structure and management of telesales and telemarketing programs.
The advantages of a centralized telebusiness department are: effective management, clear internal communication, high morale, and successful division of labor and low systems of cost.

COMPREHENSION EXERCISES
1. Is “clear communication” one of the advantages of a centralized business model?
2. What are the advantages of centralized telebusiness model? (at least three)
3. Is centralized model divided employees into two kinds of office?
4. How do we operate telebusinesss staff out of a single location?
5. What sort of model can create higher system of cost?
6. Does a centralized model spend much time in sales?
7. Why are telesales and telebusiness resources dedicated to technology firms?
8. According to the passage, is there a “low system cost” in a decentralized model?

Setting Goals

Businessman should know the power of setting goals. Setting goals make successful people. However, many people are afraid of setting goals. This is labeled as “Elephant Chains”. When someone learns these “Elephant Chains” he will unleash the success that is within him.

By deciding to set a company goal for –let say-monthly sales, businessmen concentrate on improving their business instead of just working for it. They have to look at the production costs, i.e. parts and direct labor costs, they also need to know what their overhead costs are.

By setting goals in businesses, businessmen will not only increase their sales but also find they key to their company’s continued growth in the future.

The goal period can be set for yearly sales. A businessman must give his employees as many opportunities to win as possible. How can a businessman set his business goal? The followings are the ways that can be used to exercise.

First, a businessman needs to know cost of direct labor for the month. This is the real cost, including tax, insurance, retirement and vacations.

Secondly, he needs the goal cost to the company of all of the parts that were used during the month to produce his product or service.

Now by adding his cost of parts together then taking this figure away from the month’s sales he will have his gross profit figure. As an example in a company with $20,000 in sales, a cost of labor of $6,000 and a cost of parts at $5,000, the gross profit will be $9,000 or 45%.

If he takes the above example, sales of $20,000, he divides this by the total number of invoices that he has produced during the month, let’s say 67, this gives him the average invoice, value of around $300. This figure is a very important one and can be used in a number of difference exercises when somebody is working on some company’s finances.

The last piece of the information jigsaw that he needs is the cost of the month’s overhead. This must include every cost to his business with the exception of direct labor and parts costs. In the example, let us say that our overhead cost us $8,000 per month.

He knows that his overhead $8,000 and his gross profit margin is 45% so he must sell $17,800 per month to break even. He also knows that if he invoices 60 jobs at an average value of $300, he will break even.

COMPREHENSION EXERCISES
1. What does the writer think about people who are afraid of setting goals?
2. Does “the cost of labor” influence the gross profit?
3. Why should goals be broken down into short-term goals?
4. What is ‘elephant chains’?
5. What are some real costs for employees?
6. What do companies do to have their gross profit figure?
7. Is the meaning of ‘Weak even’ the same as ‘money loss’?
8. Find the word in the last paragraph that means “neither make profit nor lose some of money”.

The Secret of Skyrocketing Sales

There are secret to be successful in sales. The followings are 6 of them:

1. To set goals. All successful set long-term goals and then they break those goals do into short-term goals. Goals allow a businessman to remain focused, and the more focused he or she is, the more successful he will be. Here’s a tip from elephant chains, a success course to many of the world’s largest corporations: when someone sets any sales goals he needs to break them down into daily goals, then write that number down every morning.
2. To follow a sales procedure. All great doctors, great lawyers, great technicians and great sales people have one thing common. They all follow a procedure that includes asking questions and listening to the customer.
3. To offer people options. People love to buy but they hate to be sold. Movie theaters, grocery stores and clothing stores all understand the principle of options. Great sales people to do too. By offering options someone allows his customer to remain in controls and he allow the customer to compare one of his services to another one of his services rather than compare it to what his competitors offer.
4. To practice. All great athletes and sales people understand the principle the principle of what’s referred to as muscle memory. It’s conditioning them to the point whereas they don’t have to think about what to do next. If they are a prizefighter or sales professional, their reactions are instinctive and they happen automatically. Practicing sales techniques on co-workers rather than customers is recommended.
5. Never look at selling as “linking deals” or “getting the dollars”.
Obvious a salesperson has to have sales goals and has to pay attention to the numbers. The truly eat sales people sell with their hearts rather than with pens. When a salesperson truly cares about people, and when the customers realize the salesperson cares more about them than their money, then and only then will he have the opportunity to sell.
6. To follow up with each and every customer. General electric studies have found that word-of-mouth advertising is there to five times more effective than any other media. Referral customers come to a salesperson with many things, yet none is more important than a belief in him. Subsequently, one sure fire way of driving up sales is by driving up his number of referred customers.

COMPREHENSION EXERCISES
1. Do you think the writer use these secrets to grow his own business?
2. Is daily goal more effective than monthly goal?
3. What is the advantage of setting goals?
4. Why does the writer suggest giving options to customers?
5. According to the writer, is practicing your sales techniques to the customers more important than practicing to co-workers?
6. What do you think the difference between long-term goals and short-term goals?
7. What does “offering options” mean?
8. What does the writer mean by “Never look at selling as “linking deals”?

Preventing Employees from Failing

Suspicion and dissatisfaction with an employee’s performance may create a ‘failure mindset’ of a manager toward employee. Time after time, this manager may stop believing in the employee and a cycle that revolves low morale, low performance and deterioration of performance starts.
A chain reaction begins to happen with this employee once the manager’s mentality changes toward him. First he might turn in a project that has been completed improperly. In response, the manager reprimands him. His self-confidence decreases which leads to a reduction in productivity. The more the manager disciplines and chastises him, the more his motivation is undermined. When people perceive chronic disapproval or lack of confidence and appreciation they tend to shut down.

Here is an example of the issue. John was the President of a small company and a client of mine. He hired a new controller for his company who seemed to be a sharp, loyal and ambitious professional. Two months into the relationship John started doubting the capabilities of his controller. He started communicating his frustration to his colleagues. When of one of his colleagues asked what went wrong he answered that the controller was still not up to speed and that he failed to prepare a very important report for him last month. John’s colleagues asked him if he had communicated or at least found out what happened with the controller. His answer was, “I hired him for that. He was supposed to know that I need that report for my board of directors.”

There are of course some possible solutions, but several things many managers try that actually make the situation worse are often carried out some of the thing are:

1. Requiring approval before making decisions. Becoming stricter with a troubled employee will only aggravate the situation. With employees who suffer from low self-esteem, having someone looking over their shoulder every step of the way is stressful and distracting. By allowing them to work on their own, the leader is breaking the thought pattern of “failure” and displaying the trust he has in his employee.
2. Avoiding face-to-face confrontations. Instead of dealing directly face-to-face with his employees he may choose to communicate his dissatisfaction or concern via email. But he should not fall into the temptation. Progressive leaders make the time and effort to Mo the right thing” and discuss issues in person with their employees. Granted, these discussions are no fun for anyone.
3. Allowing his perceptions to prevail. A perception about a situation sometimes is strong and it may end up with reality – whether it is true or not, it can create turbulence and a string of bad decisions. When a manager is dealing with a troubled employee – before he discusses the issue with the troubled employee. He usually bases his decisions on his perception and not necessarily the facts.
4. Low expectations. If he expects too little from his employee and he does not present new challenges, his employee will come to doubt his or her own thinking and his confidence in them. When they lose the confidence of their manager, only negative things follow.

COMPREHENSION EXERCISES
1. If a manager reprimands an employee, will the employee’s self-confidence likely decrease?
2. What will happen when people perceive chronic disapproval?
3. Is avoiding face-to-face confrontation a solution to improve employee’s performance?
4. Why is John dissatisfied with his controller?
5. Do you think it is good for low self-esteem employees to always have approval before making decision in their work?
6. What does “do the right thing” in paragraph 4 mean?
7. Should manager lose his employees’ confidence?
8. What are the things that many managers try to make situation better but actually they make it worse?

The Difference Between Managing and Leading

What’s the difference between leading and managing employees? and what does the role as a leader now encompass? leaders are the heart of a business. The essence of leadership means inspiring a group to come together for a common goal. leders motivate, console and work with people to keep them bonded and eager to move forward. That means setting a direction, communicating it to everyone who will listen (and probably many who won’t) and keeping people psyched when times get tough.

Managers are the brains of a business. They establish systems, create rules and operating procedures, and put into place incentive programs and the like. Management, however, is about the business, not the people; the people are important as a way of getting the job done.
Most business executives and owners have a mix of management and leadership skills. Both skill sets are necessary to rim a successful business (unless it is a very small business with people who naturally mesh very well). Leadership skills provide the direction, while management skills provide the systems that let a company grow with success.

Only the top executives can set direction in a company. Setting direction is different from setting goals. A goal is concrete and measurable, for example: “we must sell 10 widgets by next Tuesday.” Direction is broader. Leaders set direction with a vision, a mission and operating principles that embody the company’s direction and values.
For instance, a mission statement for the imaginary Personal Assistants Inc. Company might sound like this: “We free people from life’s drudgery, freeing them to live a life of doing only the things they do best.” This mission doesn’t give measurable goals, but rather points to an overall direction-it gets people excited and moving in one direction.
As a business owner, someone should know his business’s direction. It might be broad, sweeping and world shattering. Or it might be smaller and local: “Smith Tailors make our customers look their best in their daily and business lives. “ But know his job to set the direction for everyone around him and communicate it well.

People sometimes forget a company’s direction in the heat of excitement over a new idea or market development. It it happens once or twice, it’s not a problem. But too many diversions can cause a company to lose focus and end up serving many different customers, in which none of them well.
A business owner’s job is to bring people back to the company direction gently and consistently and always challenge them to evaluate ideas and decisions with respect to the decision. If personal assistants propose asking clients to give 24-hour notice when they have a project, the leader simply asks: Does this help us free clients from drudgery or make more for them? The team can then decide (or even ask customers) wheter the suggestion aligns with mission.
COMPREHENSION EXERCISES
1. What is the essence of leadership?
2. Do management and leadership skills always come together in a succesful business?
3. Who is the heart of a product?
4. Is “widgets” a name of a product?
5. Should a business owner know much about business derection?
6. What are the responsibilities of a leader?
7. What should a manager be capable of as the brain of a business?
8. Which one is the most important thing in management, “people” or “business”?
9. Mention the two skills necessary to achieve a successful business!
10. What is the difference between goals and direction?

Knowing The Market

A sound marketing plan is key to the success of someone’s business. It should include a market research, locations, customer groups who are targeted, competition, positioning, the product or service which is pricing, advertising and promotion.
Derek Hansen, founder of American capital Access says that someone is in business to serve customers’ needs. If he is not sensitive to customers, he doesn’t know who his customerss are, how to reach them and, most of all, what will convince them to buy his product nor service, he should get help.

Before developing a plan, a businessman must do homework. Effective marketing, planning and promotion begin with factual information about the market place. He should visit his local library, talk to customers, study the advertising of other business es in his community (including that of his competition) and consult with any related industry associations.
Once he has all the necessary information, it is time to put his plan down on paper. It should accomplish the following:
1. Defining business. A manager should define his business by determining the products (goods and service), the geographic marketing area neighbourhood, regional or national. He also needs to know his competition, how he differs from his competition , his prices, his methods of promotion distribution both of his business and his competitors.
2. Definition customers. A complete understanding of the customers is necessary. A businessman needs to know his customers based on age, sex and also income. He also needs to know how the customers learn about his products wheter by advertising, direct mail, word-of-mouth, or perhaps Yellow Pages. The other important thing about the customers is the customers’ value on products such as convenience, service, reliability, availability, affordability etc.

The final component in his marketing plan should be his overall promotional objectives. They include communicating his message, creating and awareness of his product or service, motivating customers to buy and increasing sales.
Objectives make it easy to design an effective campaign and help him keep that campaign on the right track. These objectives will also help to choose the method that will be most effective.

COMPREHENSION EXERCISES
1. How can a businessman make a sound marketing plan?
2. Does the third paragraph tell about doing a survey to evaluate the market?
3. When we want to set up our marketing plan, is it necessary to consider our competitors’?
4. What does “it” in the first line of paragraph 1 refer to?
5. To define the costumers, should we know their potential share?
6. According to the second paragraph, what are the important things should bussinessmen know to serve the customers’ need?
7. What does the writer suggest to get factual information about the market place?
8. Give some examples of “television advertising” about product?
9. What do we do to promote our business objective?
10. What is the final component of a marketing plan?

What Makes a Great Manager?

The first step to becoming a really great manager is simply common sense: but common sense is not very common. This article suggests some common-sense ideas on the subject of great management.

The major prombel when someone starts to manage is that he/she does not actually think about management issues nbecause he or she doesn not recognize them. Put simply, things normally go wrong not because he is stupid but only because he has never thought about them. Management is sbout pausing to ask the right questions so that someone’s common sense can provide the answers.

When someone gains managerial responsibility, his first option is the easy option: he should do what is expected of him. He is new at the job, so people will understand. He can learn (slowly) by his mistakes and probably he will try to devote as much time as possible to the rest work (which is what he was good at anyway). Those exra little “management” problems are just common sense, so he should try to deal with them when they come up.

His seccond option is far moreexciting: he can become a Super Manager. When he becomes a manager, he gains control over his own work; not all of it, but some of it. He can change things. He can do things differently. He actually has the authority to make a huge impact upon the way in which his staff works. He can shape his own work environment.

In a large company, his option may be limited by the existing corporate culture – and therefore he should act like a crab: face directly into the main thrust of corporate policy, and makes changes sideways. He doesn’t want to fight the system, but rather to work better within it. In a small company, his options are possible much wider (since custom is often less rigid) and the impact that he and his team have upon the company’s success is proportionately much greater. Thus once he starts working well, this will be quickly recognized and nothing gains faster approval than success. But wherever he works, he should not be put off by the surprise colleagues will show when he first gets serious about managing well.

A manager of a small team has three major roles to play:
 A manager is a planner. A manager has to take a long-term view; indeed, the higher he rises, the further he will have to look. While a team member will be working towards known and established goals, the manager must look further ahead so that these goals are selected wisely.
 A manager is a provider. A manager has access to information and materials, nwhich the team needs. Often he/she has the authority of influence to acquire things which no one else in the team could. This role for the manager is important simply because no one else can do the job.
 A manager is a protector. The team needs security from the vagaries of less enlightened managers. In any company, there are short-term excitements that can deflect the work force from the important issues. The manager should be there to guard against these and to protect the team.

COMPREHENSION EXERCISES
1. Should a manager recognize the management issues to manage the company?
2. What are the two options to be responsible manager?
3. Should a manager look further ahead than his staff?
4. Why does the writer suggest us to act like a crab?
5. What is a manager responsible for as a protector?
6. What are the roles of a manager?
7. Does a manager control his environment totally?
8. What do you call somebody who has to provide something to fulfil the team needs?

Taking Responsibility-Leadership

People tend to blame each other when they are asked why thin weren’t progessing as planned. Intellectuals know that blaming others for bad circumstances is not a healthy habit. Why do people do this? what positive result does it bring? why is it so hard to stop? Wouldn’t they be better off it they ceased and desisted?

Blamming others is one of the worst things someone can do in relation to emotional integrity. It is distantly related to an addiction. Pretty soon almost everything that does not happen according to his liking becomes someone else’s fault.

If someone wants to become a progessive leader – if excellence and success is his motto in life – then blaming others cannot be tolerated. There are several steps to help people overcome the blaming addiction and take responsibility for themselves. They are:
 Be aware. Too often someone falls to notice that he is playing the blame game. It’s a natural defence mechanism. Paying attention to how he responds when he is quistioned about his actions or performance is the first step in taking responsibility.
 Respond responsibly. Just as blaming is a defensive more, so is reacting. Rather than react – he should respond. He has a choice of reacting impulsively or responding cautiously to the situation.
 Be honest. Let’s face it – some people simply like to place blame in order to be relieved of responsibility. That shows a huge lack of self – honesty.
 Don’t burn bridges. What happens to relationships when someone places from his co-workers, peers, vendors and others by pointing fingers.
 Be a good role model. When others see someone accepting responsibility for his actions – and when they see the extraordinary results he is getting – he makes the statement that blame placing is not acceptable behaviour.
 Have a positive and grateful attitude. Being a progressive leader means being a highly effective leader, and accepting nothing less than excellence from someone and others.


VOCABULARY LIST
1. Revolve : Berkisar, berputar
2. Admit : Mengakui
3. Revive : Tumbuh lagi, bangun kembali, giat lagi
4. Refugee : Pengungsi
5. Coach : Melatih
6. Revelation : Wahyu, Petunjuk
7. Cease : Berhenti
8. Desisted : Diberhentikan
9. Integrity : Ketulusan hati, kejujuran, nintegritas
10. Defensive : Sifat bertahan
11. Relieve : Meringankan
12. React : Bereaksi
13. Alienate : Mengasingkan diri, menjauhkan diri
14. Peer : Kawan sebaya, kawan sekerja
15. Extraordinary : Luar biasa

COMPREHENSION EXERCISES
1. According to the writer, is blaming others a healthy habit?
2. What do you think the job of the writer
3. Can blaming others be tolerated?
4. How many steps are there to overcome the blaming addiction?
5. Should a personnel respond to some questions of his actions if he takes the responsibility?
6. What may happen to someone when he or she places blame to others?
7. Can placing blame on others relieve us from responsibility?
8. What do the most people do to relieve us from responsibility?
9. Find the word or phrases that means, “to do something that you can’t change?
10. Should a manager be thankful to his staff?

Strategy Planning

Planning has long been integral part of business growth. As a business to grows, the manager needs to regroup and update long-term plans. An agressive plan of action to approach the market involves a strategy and, like most endeavours, it requires ongoing planing.
To think more creatively, first a manager should look at the overall, big picture of his business. Where is he now and where does he want to be? He’ll be undertaking a discovery process that will give him guidelines, which lead turn to his goals.

The discovery process would involve a review and/or evaluation of the existing situation. If the manager has not got it yet, he may need to survey his customers and public to find out if his product or service has benefied them, if the customers feel it can be improved in some ways, and what suggestions or comments they have about it.

From there, he’ll be armed with information to help him deliver what his public wants and plot a plan of attack. He might then take a look as some other ways to enter the market, and also find out other target markets to reach out. He should see if his product or service can be used somewhere else to a different niche. He should also check if he could package his product or service differently.

His growth strategy should also include setting profitability objectives. Profitability is measured by the executive’s perspective. Since an executive’s most valuable resource is time, it is necessary to determine how much, in dollars, that time is worth (establishing the value of an hour). Time way well be an executive’s most important asset and, using it wisely, will improve quality of life by helping to find time to spend on other things (without sacrificing income).
In the process of change, he should also anticipate the staffing needed for growth. If he finds himself trying to do too much, he’s probably noticed that he is not doing all of it well, or efficiently. So, he should take a look at if he is really saving money by not adding perssonnel.

COMPREHENSION EXERCISES
1. Is the necessary for a company te regroup and update long term plans when its business grows?
2. How is discovery process conducted?
3. Are consumers’ comments involved in discovery process?
4. Should an executive measure profitability?
5. What things are necessary to do when a business grows?
6. Should we know costumers’ comments about our products?
7. Which one is the most important for executives “Time or Income”? why is it so?
8. Why is it necessary for an executive to determine the value of this time?

The Role of Accounting

Some people think that accounting is a very technical field. Only professional accountant can understand it. Actually, nearly people practice accounting in a certain form on almost daily activity
Accounting is the art of interpreting, measuring, and describing economic activity. Wheter you are preparing a household budget, preparing your income tax return, or running in the business, you are working with accounting information.
Accounting is often called the language of business. People in business world-owners, managers, bankers, investors all use accounting terms and concepts to describe the resources and the activities of every business, large and small. Accounting provides a framework for looking at past performance, current financial health, and possible future performance. It also provides a framework for comparing the financial performances of different firms.

Financial information about a business is needed by managerial decision makers to help them to plan and control the activities of the organization. Financial information is also needed by outsiders-creditors, investor, and the public-who have supplied money to the business.
The field of accounting is divided into four main ideas: financial accounting, auditing, managerial accounting, and tax accounting. Financial accounting is the branch of accounting that prepares financial reports used by managers and outsiders. The process of reviewing the records used to prepare financial statement is called auditing.

Managerial accounting provides financial information that can be used to evaluate and make decisions about current and future operations. The fourth branch off accounting is tax accounting. It developes tax strategies and prepares tax return.
Independent accoutants who serves organizations and individuals on a fee basis are called private accountant. They may do financial accounting, auditing, managerial accounting, or tax accounting.

The accounting Cycle
the first step in the accounting cycle is to analyse the data collected from many sources. All transactions with a financial impact on the firm must be documented. Next each transaction is ordered in a journal, a listing of financial transactions in chronological order. Then the journal entries are classified into accounts, categories of items that appear in the financial statement, which are records of increases in a specific asset. The accounts are next generally prepared quarterly but may be prepared only at year – end.
The asset are listed in order of their liquidity, the speed with which they can be converted to cash. The most liquid assets come first, and the least liquid are last. Because the cash is the most liquid asset, it is listed on the balance sheet from to lest liquid.

Revenues
Revenues are the money amount of sales plus any other income received from sources like interest, dividends and rents. revenues are determined starting with gross sales, the total discounts and return and allowences from gross sales.

• QUESTION FOR COMPREHENSION

1. What is accounting?
2. What is auditing?
3. What is liquidity?
4. What is financial accounting?
5. What is public accountant?
6. What is Private accountant?
7. What is journal?
8. What is tax accounting?
9. Who does practice accounting in a certain form in an almost daily activity?
10. When are working with accounting concepts?
11. Why is accounting called the language of the business>
12. What are provided by accounting?
13. Why is financial information needed by managerial decision makers?
14. Name the four areas of accounting?
15. Who do public accountant and private accountant do?

Promotional Strategy

Promotion is marketing activity that stimulates demand for a firm’s products. Maketers promote everything from needle to aircraft. Once the product has been created, promotion is often used to competition.

Promotional strategy is the plan for informing, persuading, or reminding the target market about a product. The goal is to stimulate action. In a profit-oriented firm, the desired action is for the consumer to buy the promoted item.

The combination of advertising, personal selling, sales promotion, and publicity used to promote a product is called the promotional mix.
Advertising is any nonpersonal message paid for by an identifiable sponsor for the purpose of promoting products. Companies use two types of advertising: product advertising and institutional advertising. Product advertising, is advertising intended to promote demand for a product or service such as Pepsodent toothpaste. Institutional advertising is advertising done to enhance a company ‘s public image rather than to sell a product.

The second element of the promotional mix is personal selling. It is a face-to face attempt to persuade prospective customers to buy a given product. Personal selling provides the company with the opportunity (1) to give customers individuals attention, (2) to adapt a message to the customer, (3) to focus on a specific target market, (4) to receive immediate feedback, and (5) to provide the opportunity to close the sale.

The third element of the promotional mix is sales promotion. It is the marketing activities, other than personal selling and advertising that stimulate consumers purchasing and dealer effectiveness. Sales promotion supports the other three elements in the marketing mix.
The fourth element of the promotional mix is publicity. It is nonpaid, nonpersonal communication to promote the products, services, or image of the company. It is an important element of the promotional mix that can be overlooked because of its nature.
The four elements of the promotional mix need to be blended to communicate effectively to a target market. Each type of promotion serves a different function and therefore should support the other elements. There are two potential promotional strategy: push strategy and pull strategy.

A push strategy is a strategy directed at the members of the marketing channels rather than the consumer. A pull strategy is a strategy aimed at the consumer. To accomplish this strategy rely on the advertising, sales promotion, and publicity elements of the promotiuon mix.

QUESTIONS FOR COMPREHENSION
1. What is promotion?
2. What is promotional strategy?
3. What is promotional mix?
4. Name the promotional mix elements?
5. What is advertising?
6. What are the two types of advertising used by companies?
7. What is product advertising?
8. What is institutional advertising?
9. What is personal selling?
10. What is sales promotion?
11. What is publicity?
12. Name the elements of promotional strategy?
13. What is push strategy?
14. What is pull strategy?

What is Marketing

The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives.
Marketing activities are required for many differgent kinds of products. Product is not only tangible goods. Those that can be held or touched such as health care services.

Ultimately the purpose of marketing activities is to bring about exchanges. Exchange is the process by which parties provide something of value to one another to satisfy the needs of each.
Through activities that enables exchanges to take place, marketing adds value to products. This value is known as utility, the ability of a product to satisfy a customer need. There are four types of utility: form, time, place, and possession.

Marketing directly creates three types of utility. By marketing products available when costumers want and need them, marketing creates time utility. Publishing company print and distribute morning newspaper early so readers can read them at breakfast or while commuting to work.
Marketing products available where consumers need or want to obtain them creates place utility. Newspaper are delivered to homes and business; sold in supermarket , and bookstores. Marketing creates possession utility when the ownership of a product is transferred from seller to buyer. To obtain newspaper, costomers pay the publishing company for home delivery, or pay clerks in stores.

Marketing is important to organisations are consumers alike. It touches the lives of all members of society. Through the cost of what we purchase, each of us supports the costs of marketing. Most people would agree that marketing costs are worth it because the many and varied marketing ectivities enable us to satisfy our needs and wants. A need is something required for human survival, such as food, water, shelter, and clothing. A want is something desired but not necessary for basic survival. Without marketing, many needs and wants would go unsatisfied.
The efforts of marketing are directed at a market. It is a group of potential customers with the authority and ability to purchase a particular product or service that satisfies their collective demand. There are two major markets: consumer and industrial. The consumer markets is composed of individuals who buy products for their personal use. The industrial market consists of businesses that buy products to use in making other products.

The large industrial and consumer markets need to be divided into smaller markets. This process of the dividing markets into subgroups with similar characteristics is called market segmentation.
A management philosophy stating that an organisation should strive satisfy the needs of consumers through a co-ordinated set of activities to achieve its objectives is known as marketing concept the marketing concept calls for all departments to be committed to satisfying consumers. To put the marketing concept into action, a firm must decide on the appropriate marketing activities to satisfy consumer needs and achieve its goals.

Give your complete answer to the following questions.
1. What is the definition of marketing?
2. What is the purpose of marketing activities?
3. What is utility?
4. What are the four types of utility?
5. Why marketing is important to organisation and consumers alike?
6. What are the two major market?
7. What is marketing concepts?
8. What is market?


Choose the correct answer according to the reading passage

1. It is required for many different kinds of products.
a. Marketing assosiation
b. Marketing activities
c. Products value

2. The ability of a product to satisfy a consumer need.
a. utility
b. Exchange
c. Conception

3. Semething required for human survival
a. Want
b. Need
c. Utility
4. Something desired but not necessary for basic survival
a. Want
b. Need
c. Utility

5. A group of potential customers that can buy a particular product
a. Market
b. Purchasers
c. Individuals

Product and Price

A product is a good, service, or idea including all the tangibles and intangibles provided in an exchange between a buyer and a seller. People buy a product for the benefits and satisfaction it gives. A product can be a good (like a car) or a service (like your checking account at the bank). Sometimes a product is a blend of the both. Dinner at a restaurant, for example. Consists not only of tangible items – food and beverages – but also preparation, service, and the appeal of dining in that special setting.

Product used by individuals for personal and family cosumption are consumer products. Inexpensive goods and services that consumer often buy, without much thought or effort, are convenience products. Milk, bread, magazine, soft drinks are examples. An item that buyers will expend time and effort to find and purchase is shopping product. This category includes goods such as TV set, VCRs, major appliances, and furniture, and services such as dental care, legal advice, and tax preparation.

Goods and services that have specific attributes desired by a particular group of consumers are known as speciality products. Speciality products can be expensive and unique, such as Mercedes sports car.

Products used by organisations in producing goods or services are known as industrial products.
A group of related goods or services marketed by a firm is called product line. A firm’s product can be shallow, with only one or two products, or deep, including many products. The collection of items and services a firm offers for sale is known as product mix. Marketers refer to product mixes as narrow or wide, depending on how many product lines are carried.

PRICING
The price of a product is one of its most important aspects for both sellers and buyers. Price is the value that buyers exchange for a product in the marketing transaction. Money usually is the value exchanged for a product that satisfies a consumers and greatly affects purchase decisions.
A firm cannot determine a product’s price without considering several factors that affect price. Managers must take into account the use of price and non-price competition, supply and demand, and consumer perception of price. Firms competing based on price competition. It is policy of using price to differentiate product in the marketplace. Generally they set prices equal to or lower than competitor’s prices.
A policy of emphasising aspects other than price, such as, quality, service, or promotion, to sell products is known as non-price competition. This strategy is useful in building brand loyality. A name, sign, symbol, or design a company uses to distinguish its product from others is called a brand. Firms usually want exclusive use of their brands and take steps to prevent others from using them. A brand registered with the patent and trademark office is called a trademark. A trademark, legally protected, can be used only by its owner.

QUESTIONS FOR COMPREHENSION

1. WHAT IS A PRODUCT?
2. WHY DO PEOPLE BUY A PRODUCT?
3. WHAT DO PRODUCTS CONSIST OF?
4. WHAT IS A CONSUMER PRODUCT?
5. WHAT ARE A CONVENIENCE PRODUCTS?
6. WHAT IS A SHOPPING PRODUCT?
7. WHAT DO SHOPPING PRODUCTS INCLUDES?
8. WHAT IS A PRODUCT LINE?
9. WHAT A SPECIALITY PRODUCTS?
10. WHAT IS PRODUCT MIX?
11. WHAT IS A PRICE?
12. WHAT IS PRICE COMPETITION?
13. WHAT IS NON-PRICE COMPETITION
14. WHAT IS A BRAND?
15. WHAT IS TRADEMARK?

Types of Business Organization

When you start a business, you have many decisions to make. The first is the form of organization best suited to the needs of your business. Most business start as sole proprietorships. Many of them become partnerships or corporations as they expand. You are probably familiar with sole proprietorships, business that are established, owned, operated, and often financed by a single person.

Sole proprietorships have several advantages that make them popular. They are ease and low cost of setting up, all profit go to the owner, control of the business can be performed directly, and from government regulation. Another major form of business organization is the partnership. It is an association of two or more persons to carry on as co-owners of business for profit. Some advantages of partnership come quickly to mind. When you have a partner, you are not tied to the business, as you would be in a sole proprietorship.

Someone else helps manage and operate the firm and brings extra skills. Setting up partnership takes a more formal agreement than starting a sole proprietorship, but partnerships are still quite easy to form.Ease of information, availability of capital, diversity of skills and expertise, flexibility, and relative freedom form government control are the advantages of all types of partnership.

Corporations are not the most popular form of business organization in term of number of firms. But they acccount for the largest share of both sales and income. A corporation is a legal entity with an existence and life seperate from its owners. A corporation can own property, enter into contracts, sue and be sued, and engage in business operations under the terms of its charter. Unlike sole proprietorships and partnerships, corporations are taxible entitles.

There are four types of corporate ownership. The common stock of a privately owned firm is not available to the general public. A closely owned firm belongs to a small group of investors.
The common stock of a publicly owned firm belongs to a broad group of unrelated individual and institutional investors.

Several specialized types of business organization play a role in our economy are co-operative, joint ventures, and limited liability companies.
A co-operative is a legal entity with several corporate features, such as limited library, an unlimited life span, an elected board of directors, and an administrative staff. Unlike a corporation, a co-operative does not keep profit.
Instead, it distributes all profits to its members in proportion to their contribution. Since the co-operative keeps no profit, it pays no taxes.

A joint venture is an entity formed by two or more companies to undertake a special project. there are many reasons for joint ventures. The project may be too large for one party to handle on its own. Another reason for joint ventures is that a company can gain access to new markets, products, or technology by working with a firm whose expertise complements its own.
A new type of business entity is the limited liability company (LLC). This company provides liability protection but is taxed like a partnership.
The combination of limited liability and favorable tax treatment makes the LLC attractive for many types of small business.

EXERCISE:
Put the words in the following list into the blank space of the sentences below.

FINANCE, START, PROVIDE, ESTABLISHED, DISTRIBUTED, EXPAND, FORM, OPERATE, OWN, PERFORM

1. You may have planned to get a job and then ... working in the career of your choice.
2. Sole proprietorship is a ... of business organisation
3. They ... the business on several forms including partnership and joint venture.

4. The company has ... several factories in several location in five cities.
5. You must read the direction for user before you ... the machine.
6. They ... all of the business activity to produce good and services.
7. Managers often ... more than one of the managerial functions.
8. They ... the brochures to all audience in the conference hall.
9. Businesses ... goods and services for consumers.
10. They ... several companies operated by professional managers.

What is an Organization

An organization is a group of two or more people that exists and operate to achieve clearly objectives. A business is an organization created to provide a product that consists of goods and services to customers for profit. To reach the objectives it is necessary to establish a framework of operating relationships between people and structure.

The formal organization is developed through a series of organizing steps. These steps consist of considering the objectives and plans, determining activities necessary to achieve objectives, classifying and grouping activities, and designing a hierarchy of relationships. The result of this process is a formal organizational structure.

Once the organization is developed, there are organizational concepts to be applied by managers to assist the organization in achieving its objectives. These concepts include:
Authority: it is the right to give orders. There are there types of authority: line, staff, and functional authority.

Delegation: it is the passing of formal authority to another person. Delegation involves assigning tasks, delegating authority, exacting responsibility, and holding a person accountable.
Span of control: it is the number of subordinates a manager supervises. There are four types of formal organizational strucutres developed by managers. They are line organizational, line-and-staff organizational, functional organizational, and matrix organizational. Each has its advantages, stage of development. Within the format organization is the informal organization.
The informal organization is a network. Of personal and social relationships that arises spontaneously as people associate with each other in the work environment. Managers need to recognize and work with the informal organization as its assists the managers in meeting organization objectives.

VOCABULARY:
objective :tujuan
profit :laba
framework :kerangka
result :hasil
resource :sumber daya
subordinate :bawahan
advantage :keunggulan, keuntungan
network :jaringan
authority :wewenang
span of control :rentang kendali
necessary :perlu
developed :yang dikembangkan
achieving :pencapaian
assigning :penentuan
delegating :pelimpahan
exacting :penetapan

QUESTIONS FOR COMPREHENSION
1. What is an organization?
2. What is business?
3. What are the objectives of a business?
4. How is an organization to reach its objectives?
5. What do you call the operating framework?
6. What do the organizing steps consist of?
7. What is delegation and what does it include?
8. How many types of formal organization structures developed by managers? what are they?
a. What is the informal organization?
b. Why do managers need to recognize and work with the informal organization?

Manager and Organization

An effective manager is an effective leader. He creates positive work environment.
In the environment the organization and its employees have the opportunity and challenge to achieve a high performance. Managers should be leaders. They take the initiative and become active participants in the activities performed by their employees and other operations. Successful managers create a situation that encourages high performances and removes the cause of failure. These m anagers ensure that employees understand their jobs and have the resources necessary to complete their tasks. Finally, effective managers try to create interesting jobs and motivate the employees with appropriate incentives.

An organization is a managed system designed and operated to achieve specific set of objectives. This system processes human, financial, and information resources into outputs. These outputs are good and services. External environment demands both outputs.

Manager performs several major functions. These functions include planning, organizing and staffing, leading, and controlling. Planning is analyzing a situation, determining the goals to be achieved both in present and in the future, and deciding in advance the action which is needed to realize these goals.

Organizing and staffing include the efforts of the managers to assemble the resources needed to complete the job and to group and coordinate employees and tasks to get a maximum success. Controlling involves monitoring the progress of the organization and, if necessary, taking corrective action.

To execute management functions successfully, managers need these specific skills: technical skills, interpersonal and communications skills, conceptual and decision-making skills.
A technical skill is the ability to perform a specialized task. This task involves a certain method or process. Interpersonal and communications skills influence the manager’s ability to interact and work well with people. Conceptual and decision making skills involves the manager’s ability to recognize complex and dynamic issues, to examine the factors that influences these problems, and to make decision regarding them.

These functions and skills are applied differently depending on the manager’s status in the organization. Strategic managers are the senior executives who are responsible for the organization’s overall management. Tactical managers take the general goals and plans developed by strategic managers and translate them into more specific objectives. They supervise the operation of the organization.

VOCABULARY:
performance :pelaksanaan (pekerjaan)
Participant :peserta
Challenge :tantangan
Initiative :inisiatif
Failure :kegagalan
Task :tugas
Effort :upaya
Output :hasil
Issue :masalah yang harus diputuskan
Progress :kemajuan
Skill :kecakapan
Create :menciptakan
achieve :mencapai
encourage :membangkitkan semangat/dorongan
remove :menghapus, menyingkirkan
Ensure :meyakinkan
Pursue :berusaha untuk memenuhi, mengejar
assemble :merangkai, menggabungkan
execute :melaksanakan
involve :meliputi, mencakup

QUESTION FOR COMPREHENSION
1. Why a positive work environment must be created?
2. What do managers do ro achieve the targets of their company?
3. What is an organization?
4. What are the output of an organization?
5. What must managers carry out to achieve the organization’s objectives?
6. What is planning?
7. What is organizing?
8. How can managers execute management functions succesfully?
9. What are the differences of managers from tactical managers?

The Foundation of Business

Economics : The Foundation of Business
Economics is the study of how society chooses to use scarce resources to produce goods and services and to distribute them to people for consumption. A national’s resources consist of natural, capital, and labour resources.

Natural resources are provided by nature in limited amounts; they include crude oil, natural gas, miniral timber, and water. Natural resources must be processed to become a product or to be used to produce other goods and services. For examples, trees must be processed into lumber before they can be used to build homes, shopping malls, and hospitals.
Capital resources are good produced for the purpose of making other types of goods and services. Some capital resources are called current assets. They have a short life and are used up in the production process. These resources include fuel, raw materials, paper, and money. Long-lived capital resources, which can be used repeatedly in the production process, are called fixed capital. Examples include factory building, machinery, and means of transportation.
Labour resources represent the human talent. To have value in the labour force, individuals must be trained to perform either skilled or semiskilled work. For example, the job of a manager requires extensive training, whereas only minimal training is needed to operate a service station’s gas pump.

Goods and Services. The resources are used to produce goods and services that will satisfy people’s need and wants. Goods are tagible items made by business, such as shoes and cars. Services are intagible items, things that can’t be held. Touched, or seen, provided by organizations for their consumers.

Resources Allocation. The process of choosing how resources will be used to meet people’s need and wants is called allocation. All countries face the economic problem of limited resources and unlimited wants. Because we live in a world in which the quantity of all resources are limited, we must make choices about how to use these scarce resources. We have a basis for choosing the way of using and allocating the resources to satisfy our wants and needs.
The allocation involves the distribution of goods and services to consumer. Allocation also involves an exchange (e.g. money, goods, time, service) between a business and a consumer. The business earns a profit and the consumer is satisfied with the good and the consumer is satisfied with the good or service. The exchange provides mutual benefit.

VOCABULARY
1. STUDY : KAJIAN
2. SOCIETY : MASYARAKAT
3. RESOURCES : SUMBER DAYA
4. NATURAL RESOURCES : SUMBER DAYA ALAM
5. LABOUR : PEKERJA
6. AMOUNT : JUMLAH
7. CAPITAL : MODAL
8. CRUDE OIL : MINYAK MENTAH
9. NATURAL GAS : GAS ALAM
10. MINERAL : HASIL TAMBANG
11. TIMBER : KAYU GELONDONG
12. LUMBER : KAYU OLAHAN
13. PRODUCT : PRODUK
14. SHOPPING MAL : PUSAT PERBELANJAAN
15. PURPOSE : TUJUAN
16. FUEL : BAHAN BAKAR
17. RAW MATERIAL : BAHAN MENTAH
18. MEANS OF TRANSPORTATION : SARANA ANGKUTAN/TRANSPORTASI
19. TALENT : BAKAT
20. LABOUR FORCE : ANGKATAN KERJA
21. DISTRIBUTE : MEMBAGIKAN
22. CONSIST OF : TERDIRI ATAS
23. PROVIDE : MENYEDIAKAN
24. INCLUDE :MENCAKUP, MELIPUTI
25. REPRESENT : MENCERMINKAN, MENGGAMBARKAN
26. TRAIN : MELATIH
27. REQUIRE : MEMERLUKAN
28. OPERATE : MENGOPERASIKAN
29. SATISFY : MEMNUHI KEBUTUHAN (ORANG)

Question for Comprehension
1. What is economics?
2. What do a nation resources consist of?
3. What do natural resources include?
4. Whatdo people do to natural resources in preparing for use?
5. What are capital resources?
6. What are current assets?
7. What are fixed assets?
8. What is the difference of current assets from fixed assets?
9. What is the difference of needs from want?