Professional Documents
Culture Documents
What do you think makes a good manager? Which 5 of the following qualities do you think
are the most important in a manager?
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
being efficient: doing things quickly, not leaving tasks unfinished, having a tidy
desk
being friendly and sociable
being able to communicate with people
being decisive: able to make quick decisions
being able to motivate, inspire and lead people
being logical, rational and analytical
being competent: knowing every aspect of his job perfectly, as well as the work
and responsibilities of his subordinates
being authoritative: able to give orders
having good ideas
being persuasive: able to convince people to do things
Which of these qualities can be acquired? Which must you be born with?
TASK SHEET 2:
Read the dictionary definitions of management below; compare your first definition of
management with those given below underlying both the similarities and differences you
have found:
Longman Dictionary of Contemporary English:
1. the act of managing, especially a business or money
2. skills in dealing with a person
3. the people who are in charge of a firm, industry, etc., considered as one body
Websters New Collegiate Dictionary:
1.
2.
3.
4.
TASK SHEET 3:
You will be given a set of skills a good manager is supposed to have. In groups of two or
three decide whether they may be described as human or technical skills. After discussing
your results with the rest of the class, make up two columns and write them underneath.
forecasting
problem-solving
team-building
organizing
selecting
goal-setting
recruiting
interpersonal skills
controlling
HUMAN SKILLS
motivating
planning
decision-making
rewarding
negotiating
delegating
training
coordinating
seeing the whole
TECHNICAL SKILLS
TASK SHEET 4:
Which is the difference between a good and a bad manager? The following adjectives may
prove useful in describing the qualities/ non-qualities of a manager:
ruthless
nosy
enterprising
focused
interfering
firm
thorough
wish-washy
bullying
ambitious
forceful
opportunistic
indecisive
competitive
open to change
helpful
combatitive
narrow-minded
rude
tolerant
caring
polite
irresponsible
humorless
determined
generous
fair
WHAT IS MANAGEMENT?
Peter Drucker, a well-known American business professor and consultant, suggests that the work of a
manager can be divided into: planning (setting objectives), organizing, integrating (motivating and
communicating), measuring and developing people.
First of all, managers set objectives and decide how their organization can achieve them. This
involves developing strategies, plans and precise tactics, and allocating resources of people and
money.
Secondly, managers organize. They analyse and classify the activities of the organization and
the relations among them. They divide the work into manageable activities and then into
individual jobs. They select people to manage these units and perform the jobs.
Thirdly, managers practise the social skills of motivation and communication. They also have
to communicate objectives to the people responsible for performing individual jobs from teams.
They make decisions about pay and promotion. As well as organizing and supervising the work of
their subordinates, they have to work with people in other areas and functions.
Fourthly, managers have to measure the performance of their staff, to see whether the
objectives set for the organization as a whole and for each individual member of it are being
achieved.
Lastly, managers develop people both their subordinates and themselves.
TASK SHEET 5:
Complete the following sentences with these words:
achieved
manageable
board of directors
communicate innovations
performance resources
setting supervise
1. Managers have to decide how best to allocate the human, physical and capital
.. available to them.
2. Managers logically have to make sure that the jobs and tasks given to their
subordinates are
3. There is no point in objectives if you dont them
to your staff.
4. Managers have to their subordinates, and to measure and try to improve
their .
5. Managers have to check whether objectives and targets are being
6. A top manager whose performance is unsatisfactory can be dismissed by the companys
7. Top managers are responsible for the that will allow a company to adapt
to a changing world.
TASK SHEET 6:
Match up these verbs and nouns to make common collocations.
allocate
communicate
develop
make
measure
motivate
perform
set
supervise
decisions
information
jobs
objectives
people
performance
resources
strategies
subordinates
TASK SHEET 7:
Read the following paragraph and then tick the answer you think is correct.
MANAGER vs. MANAGEE
There is a paradoxical conflict of roles, a conflict peculiar to the process by calling you, s/he is
playing the role of manager, for s/he is attempting to get something done through you.
Simultaneously, you are playing the role of managee, the one through whom s/he is attempting
to get it done. The skill required to be an effective manager is quite different from the skill
required to be an effective managee; few managers are equally effective at both. One of the
career-fatal misconceptions of the amateur is that, in order to succeed in management careerwise, it is sufficient just to excel as a manager.
1. The skills required to be an effective manager and an effective managee are quite the
same.
TRUE
FALSE
2. Managers are usually effective as managees.
TRUE
FALSE
FALSE
A
a. Dismiss it as wishful thinking?
b. Set up a task force to review the present
strategy and alternatives, including your
vision?
c. Communicate your vision to the team
and tell them to produce a strategy to make
it happen?
d. Change the strategy piece by piece over
time without revealing your vision?
D
a. Try to talk him out of it?
b. Commission an
independent consultancy
report?
c. Go ahead on the basis
hes been right most times
before?
d. Resign?
E
a. Fire the agency?
b. Veto the ad?
c. Let it go ahead?
d. Suggest some modifications to it?
H
a. Wait for his luck
to run out?
b. Promote him?
c. Send him on a
business
management course?
d. Set up a
subsidiary for him to
run?
J
a. Create a new post for him?
b. Tell him to keep in touch till an
opportunity arises?
c. Hire him and tell him to create
his own role?
d. Offer him work as a
consultant?
B
a. Go ahead regardless?
b. Postpone the decision?
c. Drop the project?
d. Order a review of the project?
C
a. Postpone the meeting to another day?
b. Change the time so you can go by train?
c. Stick to the original plan?
d. Send your deputy?
F
a. Go ahead regardless?
b. Commission a second study from an
outside agency?
c. Drop the product?
d. Seek to modify the product to meet the
objections?
G
a. Leave it to them to follow their own line?
b. Insist that they pursue yours in parallel?
c. Ask a contract research institute to examine your idea?
d. Set up some experiments yourself?
I
a. Disregard the questionnaire?
b. Check back over your answers?
c. Examine the questionnaires scoring system?
d. Revise your self-image?
K
a. Ask Internal Audit to make an investigation of the area?
b. Switch him with another area manager?
c. Pull him into a head office job where you can keep a close eye on him?
d. Engineer a redundancy/ early retirement for him?
L
a. Tell your subordinate and let him decide?
b. Veto the appointment?
c. Keep quiet about it?
d. get a psychologists report?
The table bellow illustrates better the patterns of the representatives of each style:
My prime
objective is to...
I enjoy jobs
that
In my job, I
look for
I communicate
best with
others
When I am not
sure about what
to do, I
I am especially
good at
When time is
important, I
I am good at
remembering
9 When under
stress, I
10 I dislike
A
have a
position with
status
are technical
and well
defined
practical
results
on a direct
one-to-one
basis
rely on
intuition
B
be the best in
my field
remembering
dates and
facts
decide and act
quickly
solving
difficult
problems
follow plans
and priorities
peoples
names
become
anxious
losing control
places we met
have considerable
variety
the best
solutions
in writing
C
achieve
recognition for
my work
allow
independent
action
new approaches
or ideas
by having a group
discussion
D
feel secure in
my job
involve people
good working
environment
in a formal
meeting
look for a
possible
compromise
seeing many
possibilities
wait before
making a
decision
interacting
with others
refuse to be
pressured
look for
guidance or
support
peoples
personalities
am forgetful
peoples faces
being rejected
TASK SHEET 2:
Try to find the most appropriate adjectives that best describe the attitudes illustrated in the
table above. You may find the characteristics of each style useful in accomplishing your
task.
e.g. My prime objective is to:
have a position with status = managerial
be the best in my field = proficient
achieve recognition for my work = well-reputed
feel secure in my job = steadfast
organization
planning
staffing
directing
controlling
Leadership is just one important component of the directing function. A manager cannot just be a leader, he also
needs formal authority to be effective. For any quality initiative to take hold, senior management must be
involved and act as a role model. This involvement cannot be delegated.
In some circumstances, leadership is not required. For example, self-motivated groups may not require a single
leader and may find leaders dominating. The fact that a leader is not always required proves that leadership is just
an asset and is not essential.
Differences In Perspectives
Managers think incrementally, whilst leaders think radically. Managers do things right, while leaders do the right
thing. This means that managers do things by the book and follow company policy, while leaders follow their own
intuition, which may in turn be of more benefit to the company. A leader is more emotional than a manager. Men
are governed by their emotions rather than their intelligence. This illustrates why teams choose to follow leaders.
Leaders stand out by being different. They question assumption and are suspicious of tradition. They seek out the
truth and make decisions based on fact, not prejudice. They have a preference for innovation.
Subordinate as a Leader
Often with small groups, it is not the manager who emerges as the leader. In many cases it is a subordinate
member with specific talents who leads the group in a certain direction. Leaders must let vision, strategies, goals,
and values be the guide-post for action and behavior rather than attempting to control others.
When a natural leader emerges in a group containing a manager, conflict may arise if they have different views.
When a manager sees the group looking towards someone else for leadership he may feel his authority is being
questioned.
Loyalty
Groups are often more loyal to a leader than a manager. This loyalty is created by the leader taking responsibility
in areas such as:
The leader must take a point of highlighting the successes within a team, using charts or graphs, with little
presentations and fun ideas.
Leaders are observant and sensitive people. They know their team and develop mutual confidence within it.
The Leader Is Followed. The Manager Rules
A leader is someone who people naturally follow through their own choice, whereas a manager must be obeyed.
A manager may only have obtained his position of authority through time and loyalty given to the company, not
as a result of his leadership qualities. A leader may have no organizational skills, but his vision unites people
behind him.
Management Knows How It Works
Management usually consists of people who are experienced in their field, and who have worked their way up the
company. A manager knows how each layer of the system works and may also possess a good technical
knowledge. A leader can be a new arrival to a company who has bold, fresh, new ideas but might not have
experience or wisdom.
Conclusion
Managing and leading are two different ways of organizing people. The manager uses a formal, rational method
whilst the leader uses passion and stirs emotions. William Wallace is one excellent example of a brilliant leader
but could never be thought of as the manager of the Scots!
TASK SHEET 3:
Are these statements true or false? Correct the false statements:
a)
b)
c)
d)
e)
f)
g)
TASK SHEET 4:
Fill in the blanks with the following words or phrases. Choose the most appropriate form for each context:
lead off
lead out
lead up to
lead on
lead the way
lead to
leadership
leading
leader
lead
1. She him to think that she would eventually accept his proposal of marriage.
2. He managed to maintain his of the party despite heavy opposition.
3. He is a figure in industry. His results speak for him.
4. In fashion she has always . She likes to take the initiative and always be the first.
5. I could tell by her allusions that she something.
6. The incident his resignation.
7. We have decided to launch a new product. That will be the item on the agenda.
8. William Wallace is one excellent example of a brilliant military in the history of the Scots.
9. He her and they began a rumba.
10. the victorious Norman invasion of England by William I, Duke of Normandy.
TASK SHEET 5:
Fill in the blanks with the following words or phrases. Choose the most appropriate form for each context.
to manage
managed currency
manager (Mgr.)
managerial
1.
2.
3.
4.
5.
manage with
manageable
management
managing director (MD)
SECTION C: MARKETING
Here is a modern definition of marketing (as opposed to selling):
There will always, one can assume, be a need for some selling. But the aim of marketing is to make
selling superfluous. The aim of marketing is to know and understand the customer so well that the
product or service fits him and sells itself. Ideally, marketing should result in a customer ready to buy.
(Peter Drucker: Management: Tasks, Responsibilities, Practices)
TASK SHEET 1:
Comment upon Peter Druckers definition of marketing.
TASK SHEET 2:
Complete the following definition of marketing, by inserting these verbs in the gaps below:
design
develop
identify
influence
modify
persuade
TASK SHEET 3:
Match up the words or expressions on the left with the definitions on the right:
1. distribution channel
2. to launch a product
3. market
opportunities
4. market research
5. market segmentation E. places where goods are sold to the public shops, stores, kiosks,
market stalls, etc
6. packaging
7. points of sale
8. product concept
9. product features
2.
3.
4.
5.
Company-to-company marketing
It must be remembered that quite apart from customer markets (in which people buy products for direct
consumption) there exists an enormous producer or industrial or business market, consisting of all the individuals
and organizations that acquire good and services that are used in the production of other goods, or in the supply of
services to others. Few consumers realize that the producer market is actually larger than the consumer market,
since it contains all the raw materials, manufactured parts and components that go into consumer goods, plus
capital equipment such as buildings and machines, supplies such as energy, pens and paper and services ranging
from cleaning to management consulting, all of which have to be marketed. There is consequently more industrial
than consumer marketing, even though ordinary consumers are seldom exposed to it.
TASK SHEET 4:
Match the following words or expressions with their definitions, on the right:
1. recession
2. promotions
3. slogan
4. monopoly
5. market share
6. competitors
7. turnover
8. niche
9. differential factor
TASK SHEET 5:
Match up the words in the box with the definitions below
barriers to entry cartel
monopolistic competition
1.
2.
3.
4.
5.
6.
7.
8.
monopoly
perfect competition
exists when products are homogenous and there are a great many firms to small to
have any influence on the market price and firms can easily enter and exit the industry.
A is a market in a particular product in which a single producer can fix an artificial
price.
is the situation in which there is only one buyer.
A is an industry in which the efficient existence of more than one producer is
impossible; examples include public utilities such as water, gas and electricity, where it would be inefficient
to have several competing companies laying their own networks of pipes or cables.
exists when many producers of slightly differentiated products are able to sell them at
well above their marginal cost.
An is a concentrated market dominated by a few large suppliers. This is very frequent
in manufacturing because of economies of scale and the cost barriers of entering an industry.
are factors which cause the average cost of producing something to fall as output
increases.
are economical or technical factors that make it difficult or impossible for firms to
enter a market or compete with existing suppliers.
9.
A. is one in which a market leader can indicate its preferred price to smaller
competitors.
10. A is a group of producers or sellers who fix prices and quantities in order to avoid competition and
increase profits. This is illegal in many countries, most notably the USA.
TASK SHEET 6:
Classify the following markets according to whether you think they are examples of the following:
a dominant-firm oligopoly
monopolistic competition
cars (automobiles)
monopoly
wheat
monopsony
oligopoly
mainframe computers
perfect competition
rail transport
MARKET CONCENTRATION
The arguments against market concentration, or at least against monopoly, are obvious: monopolists are
always able to make excessive profits and businesses facing no competition have no incentive to find
ways to reduce costs. The only common argument in favor of monopoly concerns patents: it is right that
inventors should be granted a temporary monopoly as a reward for innovation or discovery.
Although some people argue that any barrier to competition will inevitably lead to inefficiency, a
counter argument is that erecting barriers for example, by process innovation, product differentiation,
persuasive advertising, or pricing policy in order to be successful and to make competitors less
successful, is a normal part of rivalry and competition. According to this view, market concentration
arises naturally from a few successful firms growing larger as a result of increased efficiency ,
innovation and economies of scale in production, distribution, R&D, capital financing and so on.
Some people even argue that monopolies are always temporary and consequently not a problem. For
example, although entrepreneurs introduce new products and techniques and open up new markets, their
products are soon competed away by rivals. Even profits made by a natural monopoly will be temporary,
because they are an incentive for entrepreneurs to discover and implement new low-cost technologies.
An example here would be telecommunications. According to this position, the government only needs
to ensure that there is no monopoly over important inputs, because there will never be a monopoly of
scientific or artistic genius or business ideas.
GRAMMAR SECTION
ADJECTIVES AND PARTICIPLE CONSTRUCTIONS
Position of Adjectives
2
3
What
Where the noun
color the comes from:
noun is. town, country,
class, category,
etc.
4
What
the noun
is made
of.
5
What the
nouns
function is.
Longer
adjectival
NOUN phrases.
Remember that: you would normally only put two or three adjectives before the noun. The adjectives
following the noun can go in any order.
limit
vast, huge, enormous
filthy, revolting
perfect, marvelous, wonderful
furious
terrified
impossible
b.
If it is important to show that one action has finished before the other begins, the perfect
participle is used.
Having finished lunch, we set off.
Having had a shower, she got dressed.
c.
Notice that in these three uses, the subject of the main verb must be the same as the subject of the
participle.
EXERCISE 1:
Put the adjectives in a suitable position in the sentences below them.
(a) English, tweed, long, with wide lapels
He was wearing a coat.
(b) antique, waterproof, wooden, china, strengthened with metal bands
The goods were packed in a crate.
(c) marketing, manufacturing, expanding, with proven ability, European, dynamic, young
This company requires a manager.
(d) metal, filing, tall, five-drawered, thick, yellow, cardboard, correspondence
He put the file in the cabinet.
(e) latest, marketing, middle class, consumer, potential, leisure
The techniques have accurately predicted behavior in the market.
(f) managing, English, fat, middle-aged, boring, sales
A meeting was held by the director.
EXERCISE 2:
Read the following adjectives and try to figure out which have a positive or a negative meaning.
Make up sentences to illustrate your choice.
cheerful
optimistic
light-hearted
carefree
sociable
talkative
inquisitive
nosy
cautious
fussy
sensitive
insecure
vain
self-centered
aggressive
determined
EXERCISE 4:
Which group (limit or gradable) do these adjectives belong to? Can you think of their equivalent
in the other group?
angry
cold
deafening
enormous
filthy
hilarious
pleased
spotless
surprised
exhausted
brilliant
upset
EXERCISE 5:
Replace the words in italics with an adjective, making any necessary changes in word order.
a) All men are liable to make mistakes.
b) Many people are easily influenced by flattery.
c) The police admitted to having made a mistake that was very much to be regretted in accusing an
innocent man.
d) In Wales, there is a village whose name is, for English people, impossible to pronounce.
e) Television exerts an influence that has a widespread effect on the lives of our children.
f) Most teachers prefer a class that is fairly consistent in having pupils of the same level.
g) The machine that didnt work properly had to be returned to the makers.
h) The quality that makes a picture a masterpiece is often impossible to define or explain.
i) After he had followed a course in elocution, his speech was quite without faults.
j) Although the two ships collided with a sharp impact, the damage was found, on inspection, to be of
little or no significance.
EXERCISE 6:
Complete the sentences with participial clauses introduced by the verbs in italics, using the form suggested:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Jones put up a good fight in the first few rounds of the contest, ( punch, present participle)
. I think my advice could help. ( have, perfect participle)
They fount the treasure ( hide, past participle)
, we put up at the nearest hotel. ( decide, present participle)
I last saw him ( go, present participle)
, you cannot go back on your word. ( promise, perfect participle)
, I thought it best to remain hidden until after midnight.( overhear, perfect participle)
Motorists should take extra care when ( drive, present participle)
, the climbers decided to put off their attempt until the following week. ( tell, passive perfect
participle)
, the speaker suggested that Government was mistaken in its policy. ( choose, present participle)
EXERCISE 7:
Rewrite the following sentences using who/ which + clause. Make sure you put the verb in the
correct tense.
(a) Candidates possessing the qualification and experience specified in the advertisement
published in todays newspaper should request an application form by sending us a letter
containing a stamped addressed envelope.
(b) Your responsibilities, involving a great deal of traveling are to monitor the movements of
representatives working all over the region shown on this map.
(c) Franco domicile is a term favoured by small importers wishing to know what the goods
delivered to their warehouse will cost.
(d) All visitors arriving in this building must complete a registration card stating their name,
business and the person they wish to see.
(e) The supplier sends a copy of the advice note to the person buying the goods before the goods
ordered have been dispatched. The supplier then sends the goods accompanied by a delivery
note duplicating the advice note.
(f) Thank you for your instructions arranging insurance for your consignment being sent to New
York. We confirm that the policy issued on the 24th of this month and covering all risks will
be sent to you as soon as we receive settlement of the amount stated below.
EXERCISE 8:
Rewrite the following sentences using either because + clause, while + clause, after + clause or
when + clause:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
The goods being entirely suitable, we would like to place another order.
Examining the consignment, our agent found that two cases were damaged.
Taking the consignment to the port, our driver met with a serious accident.
Having received no communication from you since dispatch, we must ask you to explain
why our sight draft has not been honored.
Not knowing how the consignment is to be packed, we must ask you for further details.
Having confirmed your credit, we found our client had cancelled the order.
Having given you all the necessary information, we hope to hear from you shortly.
Visiting the Munich trade Fair, we had the pleasure of meeting your representative.
Learning of your present financial difficulties, we are prepared to allow you sixty days credit.
Having had the opportunity of seeing the full range of your products, we would like to place
an order with you.
EXERCISE 9:
Join the pairs or groups of sentences, using participles and making any necessary changes in word
order.
e.g.: The employers issued an ultimatum. They threatened all workers with dismissal if they didnt return
to work by the following Monday.
The employers issued an ultimatum, threatening all workers with dismissal if they didnt return to
work by the following Monday.
1. I was interested to see what would happen. I therefore stayed till the end of the meeting.
2. I found I had wasted my time going to the sale. The best bargains had already been snapped up earlier
in the day.
3. The rescue party decided that it would be hopeless to carry out a search while the fog persisted. They
put off their rescue bid until the next day.
4. He was brought up in the belief that pleasures were sinful. As a result, he now leads an ascetic life.
5. The children had a weeks holiday. The school had been closed because of an influenza epidemic.
6. One can allow for the fact that the orchestra was under-rehearsed. Even so, last nights concert was
extremely disappointing.
7. He was very angry when his car broke down. He had had it serviced only a week before.
8. No one was surprised at the change in Bank Rate. It had already been confidently expected by
investors.
9. The man lost interest in his work. He had been passed over in favor of an outsider when a senior
position became vacant.
10. We decided not to visit Oxford. It was then the time of the summer vacation. There were few students
in residence.
11. He had to put off buying a house. The bank was unable to lend him any money at that time.
12. The police found the small boy. He was wandering about the docks. He was, apparently, looking for
somewhere to spend the night.
BASIC VOCABULARY:
a quota o cot parte
an auction vnzare prin licitaie
barter troc
bull market - pia financiar ale crei cursuri sunt n cretere
canvasser prospector de pia
consumer goods bunuri de consum
display stand stand de prezentare
follow-up urmrire
foreign/overseas trade comer exterior
free trade liber schimb
hard-sell - vnzare agresiv
hike price o mrire a preurilor
home trade comer intern
market - pia
market maker - cumprtor/revnztor de titluri la Bursa din Londra
market research - studiu de pia
niche o pia
on display expus
outlet debueu
patron un client fidel
price-fixing nelegere ilicit (n privina preurilor)
punter un cumprtor, un client
sample mostr
target int
the retail price index indicele preurilor cu amnuntul
the standard of living nivelul de trai
to buy wholesale a cumpra angros
to comission a survey a comanda un studiu
to hike price (US) a mri, crete preuri
to jack up a mri (preuri)
to kickstart the economy a impulsiona economia
to pick up the tab a achita nota de plat
to put out to tender a lansa o cerere de ofert
to sell retail a vinde endetail
to shop around a compara preurile
to undercut, undersell a vinde mai ieftin
trade fair trg comercial
trade gap deficit comercial
trial offer ncercare gratuit
FURTHER READINGS
THE ESSENCE OF MARKETING
Marketing - activities involved in getting goods from the producer to the consumer. The producer is
responsible for the design and manufacture of goods. Early marketing techniques followed production
and were responsible only for moving goods from the manufacturer to the point of final sale. Now,
however, marketing is much more pervasive. In large corporations the marketing functions precede the
manufacture of a product. They involve market research and product development, design, and testing.
Marketing concentrates primarily on the buyers, or consumers, determining their needs and desires,
educating them with regard to the availability of products and to important product features, developing
strategies to persuade them to buy, and, finally, enhancing their satisfaction with a purchase. Marketing
management includes planning, organizing, directing, and controlling decision making regarding
product lines, pricing, promotion, and servicing. In most of these areas marketing has complete control;
in others, as in product-line development, its function is primarily advisory. In addition, the marketing
department of a business firm is responsible for the physical distribution of the products, determining
the channels of distribution that will be used and supervising the profitable flow of goods from the
factory or warehouse.
Tailoring the Product
Merchandise generally similar in appearance, that is, in style or design, but varying in such elements
as size, price, and quality is collectively known as a product line. Product lines must be intimately
correlated with consumer needs and wants.
In order to develop a line effectively, marketing research is conducted to study consumer behaviour.
Changing attitudes and modes of living directly affect the saleability of products. For example,
the trend to informal dress has changed clothing styles dramatically. Also, a high-income economy
triggers a demand for products very different from those selected in a declining business cycle. The
availability or lack of disposable income, meaning income over and above that spent for basic
necessities such as food, shelter, and clothing, affects the buying pattern for so-called luxury products.
Similarly, the purchase of durable or long-lived goods, such as refrigerators, automobiles, and houses,
may be deferred when the economy is declining and may increase rapidly in periods of prosperity.
Staple products, such as food and clothing, tend not to be seriously affected by the business cycle.
The life cycles of products require careful study. Virtually all product ideas lose in time the novelty
that initially attracted purchasers of the merchandise. Manufacturers may also accelerate the
obsolescence of a product by introducing new, more desirable features. Consumers today are
conditioned to expect product innovations and tend to react favourably to new features. This has an
important bearing on the usable life deliberately designed into a product, which in turn has a significant
effect on the costs to the manufacturer and ultimately on the price to the consumer. Competition
between manufacturers of similar products naturally accelerates the speed of changes made in those
products.