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2.Whatmakesagoodleader? Whatarethedifferencesbetweenmenandwomenleaders? a)Aneffectiveleaderisbynatureaself-confidentpersonwhohasthecouragetoovercomedoubts, uncertainties andfearswhilebeingupbeatevenbeyondofhim/herpersonallimitations,business constraints,oddappreciations andenvyofco-workers.Leadershouldbecharismatic,humble,decisive,motivating,opportunistic,sometimesunpredictable.

b)There arelotofstereotypesaboutdifferencesinhowmenandwomenwork.Mostpeople donotacceptwomenasbossesbecause theythink theyhaveaweakcharacter.Womenaremore relationshiporiented

atworkthanmen.Theyarealsousinganeasierandamorestraightforwardlanguage comparedwithmen.Thelanguage ofwomenis alsomoreemotional andflowery.So,whena womanis aheadofthe

companyit’smorelikelythatintheorganization there’llbethefeelingof“togetherness” andeven informalityand thelack of hierarchy.Itmakes theemployeesfeelprotected and work in

cosy/comfortableconditionswhichwillstimulatetheir efficiency.

Asfarasmenconcerned,theyare, asa rule, are physicallyandemotionallystrongerthanwomen.

Usuallyithelpstokeepsituation undercontrol.Mostofthetime,menarethebreadwinners.Theyworkreallyseriouslyand seethe world asitreally is-itis perfectleadership quality;therefore,menmakecorrectdecisionsquickly.

Butweshouldn’tforgetthatitisourpersonalitythatmakesuscompetent,notourgender.

3.Whatisthedifferencebetweenamanagerandaleader?

1) Firstofall,leadershipis apersonalitytraitwhereasmanageris ajob title.

2)Aleaderisaninspirational,passionateandproactiveprofessional whodueto his/hertalentis a

benchmarktootherco-workers, whowantsucceedlikethem andlearntobeinfluentialinthe enterprise’s framework.Aleaderhasthewillingnesstofeelhim/herencouragedandfaceproactivelyanykindof situationneverthelessoftheriskandcostinvolved.Additionally,atrueleaderhasnomatterhow challengingandtoughthesecouldbe.

Amanagerisanoperationaland/orfunctionaldrivenprofessionalwhosefocusisorientedtoensure operationalexcellenceinthoseoperationalissues,financialperformance,talentmanagementand marketingstrategiesrelevanttohis/hermanagerialfunction.

Managerstendtobereactive,blendinwiththeenvironment,keepthefuturethesameasthepresent,

maintainimage,keepwhattheyhave,andnotalwayscomfortablebeingaccountableforthe responsibilitiestheywield.

3) Some differences:

- Managers workinginthesystemandleadersworkingonthesystem;

-Managersreduceweaknessesandleadersamplifystrengths;

But, bothofthemworkingonprogress, on company’s prosperity. So,youneedboth.Botharerequired foreffectivecorporategrowth.

4.Aretheleadersbornoremade?

Ibelieve thatnothinginourlife comeseasily.Ifyou wanttoachieve smthsignificant,becomea

founderofanorganization,leadernotonlyofyourcompany,butofthepublicopinion,youshould make

great efforts.So,from mypointofview, leaders aremade ratherthanborn.But it’sundoubtfullythatleadershipis amatterofpersonality. To becomeleaderyoushould possess charisma andotherabove mentionedcharacteristics.

Unit 13. Innovation

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1. Whatis themain roleofR&D?

2. Whydodifferentindustrieshavedifferentlead-times?

3. Whatmaythelaunchofanewproductinvolve?

4. Howis Procter&Gamblerbetterthanitscompetitorsinterms ofinnovation?

1.WhatisthemainroleofR&D?

ThemainroleofResearchandDevelopmentdepartmentis provisionofresultsofscientific researchin

ordertodevelopnewproductsandimproveexistingones.Forexampletheinitialideaforacarwillbe

turnedintoaseriesofprototypesandtested.Insoftwaredevelopment,thefinal'prototype'isthebeta version,whichisbeta-tested.Pharmaceuticalgothroughaseriesoftrials.

2.Whydodifferentindustrieshavedifferentlead-times?

Differentindustrieshavedifferentlead-times,thetimebetweenconceptionandproductlaunch;anew drugmighttake10or15yearstodevelop. Inconsumergoods,marketresearchwillbeakeypartofthe developmentprocess,withfocusgroups:smallgroupsrepresentingcross-sections ofconsumerstalking

abouttheirreactions toproposeddesigns,andconsumersurveys.Aftermarketresearchtherecanbetrialrun ofproducts. After that therecan be researches ofconsumer’s reactions onthis product, researches of sales.Soallresearchesrequiredifferentperiodoftimefordifferentproducts.

3.Whatmaythelaunchofanewproductinvolve?

Thelaunchofanewproductmightinvolveanational,internationalorglobal rollout.Awell-oiledpublic

relationsmachinewillhavepreparedthewayforthenewproductbygettingtherequiredmedia

coverage,wherethetermsleadingedgeandstateoftheartwillperhapsappear.Anyteethingproblems willhopefullybeironedoutduringdevelopmentratherthanafterthelaunch.Theultimatenightmareis whenacompanyhastorecallproductsbecauseofdesigndefects.Thecoveragethismightgetistheleast welcomeimaginable.

4.HowisProcter&Gamblerbetterthanitscompetitorsintermsofinnovation?

AccordingtoLafley,theCEOofP&G,organicgrowth strengthens acompany’sabilitytoinnovate.

Organicgrowth–meaninggrowthfromcorebusinesses.Lafleyhasamodelforinnovatinginabig company:

1.One-on-oneconsumerresearch–marketersmustspendlotsoftimewithconsumersintheirhomes,watchingthewaystheyweartheir clothesandaskingthemabouttheirhabitsandfrustration.

2.Getemployeestoexchangeideas– employeesfromninecountriespostproblemsonaninternal website.CEOevaluatestheideasofemployeesandpresentsthebestfindingseachyear.

3.Stoptestingsomuch–Onecannotbut agreewith factthat puttingouta productcan'tbewithouttest-marketing.Butit’snecessarytoreduceproductlaunchtimefromlaboratorytoroll-out.

4. Givedesignersmorepower–it’snecessarythatdesigners wouldbeinvolvedinallaspectsofproduct development.

5.Knowwhatnot to do– accordingtoLafley,it’simpossibletoofferfatbonusesforinnovation ortohirestarsfromoutside.Managerswhofailtoshareideas simplydonotgetpromoted.

Unit 14.Competition

1. Whatarethemostcommoncompetitionpractices?

2. Whatis MichaelPorter’smodelofcompetitors’types?

3. Whyis Nokianolongertheleaderinthemobile phonemarket?

4. Whyaresomeproductsunsuitableforforeignmarkets?

1.Whatarethemostcommoncompetitionpractices?

Competition betweencompaniescan betough,aggressive,evenferocious or cut-throat.Firmsmay

accuse eachotherofusingunfairmethods suchasdumping,wherea competitor(usuallyforeign)sells

productsforlessthanwhattheycosttoproduce,oratlessthanthepricechargedinthehomemarket. Firmsdumpinordertobuildmarketshareandrecouptheirlosseslaterwhen,havingestablished

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themselves tobenefitfromeconomiesofscale (producinginlargerquantitiessothatthe costofeachunit goesdown),theyareabletochargemarketpriceswithahealthyprofitmarginoneachunitsold.Competition canalsobegentlemanlyorevencosy,socosythatcompaniesmaybe accusedofforming a carteltoagreeonpricesinapricefixingarrangement.Theymaythenbeinvestigatedbyagovernment departmentthatlooksintounfairtradingpractices.

Competitorsmayalsoenterintootherperfectlylegitimateformsofcooperation,suchasjointventures forspecificprojects.Theymayeventalkaboutstrategic alliances.But likemergers,these cangoawryandleadtorecriminationbetweentheerstwhilepartners.

2.WhatisMichaelPorter’smodelofcompetitors’types?

MichaelPorter'smodelcontaining:

•cost-leaders,whoare low-costproducers with abroadscopeandcostadvantage,appealing tomany

industrysegments(manygroupsofbuyerswithdifferentneeds)

•differentiators,whoappealtobuyerswhoarelookingforparticularproductattributes

(characteristics)andpositionthemselvesasthemostabletomeetthoseneeds

•focussers,whoconcentrateononeparticularsegmentandtrytofindcompetitiveadvantageby

satisfying theneeds ofbuyersinthatsegmentbetterthananyone else.Focussers are,ineffect,nichers.These are the available choices,accordingtoPorter,that acommercialorganisationhasifitwantsto competeeffectively,andnotget'stuckinthemiddle'.

3.WhyisNokianolongertheleaderinthemobilephonemarket?

AlthoughNokia'sshareoftheglobalmarketformobilehandsetsismorethancompetitor’sshare,but

Samsunghasmomentum.Samsung's cameraphones,with twistingflip-upscreens thatallowuserstotake, sendanddisplayphotosquicklyandeasily,arehot;Nokia's arenot. Thehigh endofthemarket- phonesthatretailfor$300ormoreintheUS-isnolongerNokia's. Samsungmakestheexpensive cameraphonethatayoungconsumerwantstohave.Design shouldbeNokia's strength,sinceitovertook Motorolabyturninghandsetsintohandsomeanddesirableconsumergoods,ratherthantechnological objects.But initsrecentmodels,Nokiaforgotthefirstrule ofmodernistdesign -that formfollowsfunction.Instead,ithasplacedmostemphasis on makingitshandsetscolourful andzappy,with snap-oncovers.AndofcoursethemainNokia’s disadvantageis sizeofhandsets.Itis ratherbigincomparisonwithSamsung.

Samsunghasmainadvantage–itis thefactthatitis willingtopayhigh pricesfordevelopmentnew

electronicdevices.

4.Whyaresomeproductsunsuitablefor foreignmarkets?

Nowadaysmanynewhightechproductsappearonworldmarket.Producersoftheseproductstryto

distributethemintodifferentcountriesinordertoincreaseprofitsbuttheydonottakeforeignconditions

andtraditionsintoaccount.ForexampleJapanese robot-toys.IntheRussianmarketsuchtoyshaven’t greatdemand.Maybebecauseofratherhighprice.ButalsomaybebecauseofRussianmentality,habits

–weliketocommunicatenotwithrobotpetsbutwithalivepets.

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