1. Find the most appropriate summary for each paragraph. (Some of the summaries are not used.)

1. Why a pyramid-shaped television would fail.

2. How the product is going to be used is more important than the value it will add for consumers.

3. Products fail partly because people don't like change.

4. Professor Jolly discusses multimedia technology.

5. One success factor is how the product is going to be used, with an example about computers.

6. Art Fry describes how the Post-It note was developed.

7. A lot of money is spent on R&D, but most new products fail.

2. Find the meanings of these items from lines 7-11, as they are used there.

a) 'Art Fry knows a thing or two about innovation' means that he knows

i) one thing, ii) two things, iii) a lot.

b) 'People follow their own established patterns' means that they

i) tend to behave in ways in which they have always behaved.

ii) prefer particular designs rather than others.

iii) always buy things from the same shops.

c) If people figure that a new product is better, they _______ that it will be better.

i) doubt ii) certify iii) think

d) If you get 'accustomed' to something (lines 12-19), you

i) get fed up with it. ii) get used to it. iii) get on with it.

e) If you think that something 'isn't worth it', you think that, in relation to the benefits it may bring,

i) too much time and effort are involved,

ii) too much money is involved,

iii) too much emotion is involved.

3. True or false (lines 9-17)?

1. Professor Jolly entirely agrees with Art Fry.

2. Professor Jolly has identified only one thing that is very important for the success of new products.

3. The 'use paradigm' is concerned with how and why the product is going to be used.

4. Some people think that multimedia will be accessible through PCs.

5. Some people think thai multimedia will be accessible through TV.

6. Professor Jolly thinks that multimedia will definitely only be accessible through PCs

4. Find words in lines 20-30 to complete these statements.

1. If something is unlike anything else, it is _____________

2. If one product replaces another, it is a ___________for it.

3. If a new product is worth more to a consumer than an existing product, the consumer thinks that there is ____________ in the new product.

4. If something does not happen very often, it is extremely _______________

5. If a product looks like existing products, it is _____________

6. If consumers do not like a new product and do not buy it, they _______________ it.

Text 3

Read the text. What mistakes were made and why? What would you have done in the situation described in the article? What lessons can be learned?

Ford Edsel: Remember My Name

In the late 1940s Ford decided it needed a medium-price model to compete with General Motors - 'a car for every purse and purpose' -which would appeal both to the young executive and the professional family on the way up. Named after Henry Ford's son, Ford spent 10 years and $250m on the Edsel's planning and development. With $50m being spent on advertising, the launch in September 1957 was the most expensive for any commercial product to date.

Problems began when, due to an increase in road deaths, the US Automobile Manufacturers' Association agreed not to advertise a car's power and performance - two of the Edsel's main features. Also motoring journalists said the car was not the great innovation which Ford claimed. What's more, it had a conflicting image of speed against suitability for young families more interested in safety and comfort. Finally, many Edsels were faulty. Word spread and sales fell. Despite this, Ford spent $400,000 on a TV broadcast with Frank Sinatra and Bing Crosby. Next they sent a mailshot to 1.5m car owners offering a test drive. An economic recession in the US contributed further to disappointing sales.

On 19 November 1959 production was stopped. In total only 109,466 Edsels were sold (although only one was ever reported stolen) making a total loss of $350m. As Time magazine said, “It was a classic case of the wrong car for the wrong market at the wrong time”.

Text 4

Read the text. What mistakes were made and why? What would you have done in the situation described in the article? What lessons can be learned?

New Coke for Old

By 1979 Coca–Cola’s lead in the USA soft drink market was down to 4% although it was spending $100m more on advertising than its great rival Pepsi. So, after 99 successful years Coca–Cola decided to change its original formula and launch New Coke. Coke spent two years and $4m on new flavour research. By 1984 their market lead was down to 2% but in blind tests people seemed to prefer New Coke to Pepsi and in the biggest test 61% preferred it to original Coke.

Within 24 hours of its launch on 23 April 1985, 81% of the US population knew of the change to New Coke. However, once it was realised the New Coke was to replace rather than to be available as well as original Coke, the complaints started. By the middle of June there were 8,000 a day. Coke also received 40,000 letters. On 11 July Coke executives apologized, admitted their mistake and re–introduced original Coke as Coca–Cola Classic.

The failure of New Coke had cost more than $4m. Sales of New Coke continued to fall while sales of Classic rose. Loyalty to the original was stronger than ever and Coca–Cola regained its place as the Nation’s favourite soft drink.

GRAMMAR

TENSES

A. Simple past or present perfect? For each of the sentences below, choose the correct ending.

1 Rebecca has been with our organisation for five years

a) and she did a great job. b) and she is doing a great job.

2 His hard work ready paid off -

1. he was promoted to Chief Adviser a year later.

2. he has been promoted to Chief Adviser.

3 There have been serious problems with the merger,

1. but we proceeded with it anyway.

2. but we have proceeded with it anyway.

4 The motor trade has been in the doldrums

a) all year. b) last year.

5 She's been promoted

1. because she's brought off that deal with a Japanese firm.

2. while she was working as Head of R&D.

6 How long have you worked as Financial Adviser

a) for your current employer? b) before you became Financial Director?

B. Present perfect or past perfect? Fill in the gaps with the correct form of the verb in brackets.

1. They ___________ to organise a reception for their visitors, but it didn't come off. (hope)

2. They say they ______________ a message, but there's definitely nothing on my answering machine. I ________________ several times already, (leave) (check)

3. The manager is very upset as he _____________ outvoted at the AGM. (be)

4. We ___________ always _____________ ahead of our rivals, and we outstripped them again in 1995. (be)

5. The new XY3 tyre series _____________ really _____________, but then they were all recalled after a spate of complaints, (take off)

6. She ______________me the low-down on the merger, so I feel well prepared for the meeting, (give)

C. Underline the correct verb form in these two texts.

1 Four exchanges censured for anti-competitiveness

The Securities and Exchange Commission ¹said / has said yesterday it ²censured / had censured four US options exchanges for allegedly engaging in anti-competitive practices and ³ordered / has ordered them collectively to spend $77m on surveillance and enforcement. Without admitting or denying the charges, the American Stock Exchange, Chicago Board Options Exchange, Pacific Exchange and Philadelphia Stock Exchange ⁴agreed / had agreed to settle with the SEC and the Justice Department, which ⁵were probing / have been probing I had been probing options listing practices at the exchanges since last year.

2 Eurex names Franke successor

Eurex, the Swiss-German derivatives exchange, ¹appointed / has appointed I had appointed Rudolph Ferscha to take over from Joerg Franke as chief executive, at the end of the year. The appointment ²was announced / had been announced yesterday by Deutsche Borse, which ³ owns / owned 50 per cent of Eurex , and ⁴is seen / was seen as a move by the exchange to develop a stronger international presence.

Mr Franke, who ⁵announced / had announced his resignation from Eurex the week before, ⁶was appointed / had been appointed to the Deutsche Borse board a few days ago.

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