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Test2RART1LookatthestatementsbelowandtheadvicetobusinessesontheoppositepageaboutusingothercompaniestoruntheirITservices.1、theneedtoteachskillstoemployeesworkingontheoutsourcedprocess2、rememberingtheinitialreasonforsettinguptheoutsourcedproject3、theneedtodrawupagreementsthatsetouthowintegrationistobeachieved4、addressingtheissueofstaffwhoworkontheoutsourcedprocessbeingatadistantsite5、theimportanceofmakingsomeoneresponsiblefortheintegrationprocess6、staffontheoutsourcedprojectfamiliarisingthemselveswithvariousdetailsofthebusiness7、problemsbeingassociatedwithanalternativetooutsourcingWhenabusinessdecidestooutsourceitsITservices,itneedstoconsiderthequestionofintegration.Fourexpertsgivetheirviews.Tramcere,SilicaSystemsAnoutsourcedITserviceisneverafullyindependententity.Itistiedtothehomecompany'spreviousandcontinuingsystemsofworking.Butdespitetheaddedresponsibilityofmanagingnewwaysofworking,manybusinessesignoretheintegrationprocess.Theyfailtoestablishcontractsthatdefinethewaysinwhichthetwocompanieswillworkalongsideoneanother,andfocussolelyonthetechnologicalaspectsofservicedelivery.Rayner,DomolaBusinessesneedtobuildintegrationcompetencycentresdedicatedtomanagingtheintegrationeffort.Itiscriticaltohaveanindividualinchargetocheckthattheexternalandinternalbusinessoperationsworktogether.Althoughcompaniesoftenthinkofoutsourcingasawayofgettingridofpeopleandassets,theyneedtorememberthat,atthesametime,outsourcinginvolvesgainingpeople.Becausethereisanewoperationbeingcarriedoutinadifferentwayoutsideofthehomebusiness,thiscreatesatrainingelement.Locke,DigitalSolutionsCommunicationisthekeytosuccess,andoutsourcingtootherregionsorcountriescanleadtoarangeofproblems.Foranysuchinitiative,itisnecessarytocreateateamwherethereisgood,opencommunicationandaclearunderstandingofobjectivesandincentives.Bringingpeopletothehomelocationfromtheoutsourcedcentreisnecessary,sinceitcanaidunderstandingofthecomplexitiesoftheexistingsystem.Tointegrateefficiently,outsourcingpersonnelhavetotalktothehomecompany'sexecutivesanduserstounderstandtheirexperiences.Noon,JGTechOnewaytoavoidthedifficultiesofintegrationistocreateajoint-venturecompanywiththeoutsourcer.Thus,acompanycanswapitsassetsforashareoftheprofits.Yetjointventuresbringpotentialtroubles,andcompaniesshouldbecarefulnottolosesightoftheoriginalrationaleforoutsourcing:togaincostefficienciesandqualityofserviceinanareathatforsomereasoncouldnotbecarriedoutentirelyin-house.Thecomplexitiesandcostsofajoint-ventureinitiativeshouldnotbeunderestimated.Part2Readthearticlebelowaboutthechangingroleofhumanresourcesdepartments.ThebestpersonforthejobEmployeescanmakeabusinesssucceedorfail,sothepeoplewhochoosethemhaveavitalroletoplay.Employeesareacompany'snewideas,itspublicfaceanditsmainasset.Hiringtherightpeopleisthereforeasignificantfactorinacompany'ssuccess.(0)

G

Ifthehumanresourcesdepartmentmakesmistakeswithhiring,keepinganddismissingstaff,abusinesscandisappearovernight.Manycompaniesnowrealisethatrecruitingthebestrecruitersisthekeytosuccess.SarahChoi,HeadofHRatEncopic,believesthatthinkingcommerciallyisakeyqualityinHR.EverydecisionanHRmanagermakesneedstoberelevanttoadvancingthebusiness.(8)...CThat'snolongerthecase.HRmanagershavetothinkmorestrategicallythesedays.Theycontinuallyneedtothinkabouttheimpactoftheirdecisionsonthebottomline.(9)F...Forexample,achiefexecutivewillexpecttheHRdepartmenttoadviseoneverythingfromtheheadcounttowhethertoproceedwithanacquisition.WhydopeoplegointoHRinthefirstplace?Choihasareadyanswer.Ithinkmostpeopleintheprofessionareattractedbyalong-termgoal.(10)DNothinghappensinthecompanywhichisn'taffectedbyordoesn'timpactonitsemployees,sotheHRdepartmentisacrucialpartofanybusiness.Notalloperationalmanagersagree.AninformalsurveyofattitudestoHRdepartmentsthatwascarriedoutlastyearbyaleadingbusinessjournalreceivedcommentssuchas"Whatdotheyactuallycontribute?"(11)A

AsChoipointsout,salarieshaveneverbeenhigherand,inaddition,HRmanagersoftenreceivesubstantialannualbonuses.Despitethefinancialrewards,HRmanagersoftenfeelundervalued,andthisisamajorreasonformanyleavingtheirjobs.(12)...EHowever,alackoftraininganddevelopmentisamoresignificantfactor.Thesedays,goodprofessionaldevelopmentopportunitiesareconsideredanessentialpartofanattractivepackage,Choiexplains.AButrisinglevelsofremunerationdemonstratethattheprofession'sgrowingimportanceiswidelyrecognised.BAtonetime,aprofessionalqualificationwasrequiredinordertoprogresstothetopofHR.COtherdepartmentsandseniorexecutivesusedtoseeHRmanagersashavingapurelyadministrativerole.DSinceit'soneofthefewareaswhereyoucanseethewholeoperation,itcanleadtoaninfluentialroleontheboard.EBeingseenassomeonewhojustticksoffotherpeople'sleaveandsickdaysdoesnothelpbuildasenseofloyalty.FTheythereforeneedtobecompetentinmanyaspectsofacompany'soperations.GOntheotherhand,recruitingthewrongstaffcanleadtodisaster.Part3

CriticalPath

WhenDavidHaydenrealisedhiscompanywasheadingfortrouble,hetookdrasticmeasurestogetitbackontrack

DavidHaydenfoundedhiscompany,CriticalPath,anemailprovider,in1997totakeadvantageoftheboominemailtraffic.CriticalPathbecameapubliccompanytwoyearslater,andHaydentooktheopportunitytostepdownfromhisexecutivepositioninordertoworkonpersonalprojects.Atthesametime,heagreedtostaywiththecompanyasChairman,butthebusinesswasputinthehandsofnewmanagersbyitsinvestors.Withsector-leadingproductsandanexpandingmarket,thecompanyseemedtobeontheupandup.However,byearly2001,itwasintrouble.Sharesthathadbeenworth$26in1999,whentheywerefirstsold,weredowntoamere24cents.

Calledinbyapanickingboard,HaydenfoundhimselfbackinchargeasExecutiveChairman,tryingdesperatelytorescuewhathecould.The1,100staffhadlostconfidenceinthecompanyanddidnotknowwhatwasgoingtohappentothem.And,asHaydendiscovered,themanagementteamwasincompetent.Thoseguysdidn'tunderstandtheproductorthesector,'saysHayden.Theheadsofdepartmentdidn'tcommunicateandtheydidn'tlead.'Butwhatwasworse,CriticalPathhadlostthegoodwillofitsinvestors.

Haydenknewthatbringingthefiguresundercontrolwouldbeavitalstepinthecompany'sturnaround.'You'vegottosortoutthefinances.Forme,thatmeantgettingbackthegoodwilloftheinvestors.Thatwastough,afterwhathadhappened.Butalthoughtheywereangrywiththecompany,theydidn'thavebadfeelingsaboutme.ItoldthemthatIknewIcouldgetthecompanyonitsfeetagain.'Hewasauthorisedtomakewhateverchangeswererequired,andhisfirstactwastofindpeople

withinthecompanyhecouldtrustandputthemincharge.

ThenextthingHaydenhadtotacklewasmorale.'Everyonelefttheofficeatfiveonthedot-theycouldn'tgetawayquicklyenough.Togetthebuzzbackandwinthestaffover,Ihadtoprovemyowncommitmentandputintheextrahourswiththem.'Inreturn,itwasassumedthatnobodywouldaskforovertimepayuntilthecompanywasonitsfeetagain.Contrarytonormalpractice,Haydenwasreluctanttolaypeopleoff,andapartfromnotreplacingpeopleastheyreachedretirementage,helefttheworkforcelargelyunchanged,althoughhedididentifykeypeoplethroughoutthecompanywhoweregivenmoreresponsibility.

But,asHaydeninsists,beforeacompanyreachessuchacrisis,therearewarningsignsthatanyfinancialdirectororaccountantshouldtakenoteof.'Abusinessthathasanunrealisticpricingpolicyorhastonegotiateextendedcreditwithitssuppliersisintrouble,'ishismessage.'Orifyouoftenhavetoapplyforyouroverdraftlimittoberaisedorhavetroublepayingtaxontime,somethingneedstobedone.'

By2003,thecompanywashealthyagain,withreasonablystablefinancesandamodestbutsteadysharepriceof$1.60.'Onethingthathelpedsaveuswasthatourtechnologyworked,'saysHayden.'With20millionemailaccounts,weneverlostasinglemajorclientbecausetheproductkeptonworking.'Withideasforafreshventuredemandinghisattentionelsewhere,Haydenhasmovedon.'Itwastimetogo,'hesays.'I'mnotaturnaroundspecialist.Ipreferstart-ups.'13WhateventcoincidedwithCriticalPathbecomingapubliccompany?

AHaydenbecametheExecutiveDirectorofCriticalPath.

BInvestorshiredareplacementteamtorunCriticalPath.

CCriticalPathlaunchedasuccessfulnewproductonthemarket.

DCriticalPathwasfloatedontheStockExchangeat24centspershare.

14WhichofthefollowingsituationsdidHaydenfaceatCriticalPathin2001?

ATheemployeeswereworriedaboutjobsecurity.

BTheinvestorswerecallingforchangestothecompanystructure.

CThemanagementwasmisleadingthestaffaboutthecompany'sposition.

DTheboardofdirectorsdidnotrealisethescaleofthecompany'sproblems.

15OnereasonHaydenwasabletoturnCriticalPatharoundwasthat

Ahemanagedtofindnewinvestors.

Bthefinancialsituationwasnotasbadashehadthought.

Chehadbuiltupagoodrelationshipwiththemanagementteam.

Dhewasgiventhesupportthatheneeded.

16WhatwasHayden'spolicyregardingthestaffofCriticalPath?

AHepaidovertimetoeverybodywhoworkedoutsideofficehours.

BHereducedtheworkforcebyoperatinganearlyretirementscheme.

CHegavekeystafftheopportunitytohelphimsetgoalsforthecompany.

DHerestoredmotivationbyshowingwillingnesstoworkalongsidestaff.

17AccordingtoHayden,whatcouldindicatethatabusinessisintrouble?

Aproblemskeepingaccountsuptodate

Bsuppliersrefusingtooffernewcreditterms

Cafrequentneedtoincreasetheamountborrowed

Ddifficultiesingettingpaymentfromcustomersontime

18HaydenleftCriticalPathafterhehadrescuedthecompanybecause

Ahewantedtodevelopthetechnologyforanewinternetservice.

Bhewantedtoconcentrateonfoundinganewenterprise.

Chehadbeenofferedajobwithamajorinternetcompany.

Dhedecidedtogointopartnershipwithamajorclient.Part4FightingFit

FineFitness,thehealthandfitnesscluboperator,announcedanimpressivesetofresultsyesterday:(19)a38-per-centjumpinannualpre-taxprofits,thecompanyclaimedthatithad(20)noneoftheproblems(21)

lastweekbyitsrival,TopFitAccordingtoSamanthaCollier,thechiefexecutive,FineFitness(22)strongandison(23)toreachitstargetof100clubswithinthreeyears,itsstrategyunaffectedbytheapparent(24)downoftheeconomy.

Thecompanyopened12newclubsinthepastyear;(25)itstotalto51.Theyhave(26)tobehighlysuccessful,withpeoplejoininginlargenumbers,especiallyinthe25-to-40agerange.Eventhemore(27)clubsarestillseeingsalesgrowth,alongwithrisingretention(28)ofmorethan70percent.Thiscanbeseenasclear(29)oftheappealofFineFitness.

MsCollieradmittedthatastherewere(30)toomanycompaniescompetingwithoneanother;therewouldalmostcertainlybe(31)inthehealth-and-fitness-clubsectorofthemarketShepredictedthat,withinarelativelyshorttime,theremightbeonlyaboutthreemajorcompaniesstillin(32).However,shedeclinedtosaywhichthesewerelikelytobe.

Profitsroseby£million,althoughtherewasafallingrossmarginsfrom31percentto28.6percentbecauseofhigherinsurancepremiums,extramanagementcostsandstart-upexpensesforthecompany'snew(33)inSpain.19A

Stating

BReporting

CRemarking

DInforming

20A

taken

BfeltCexperienced

Dcaught

21A

released

B

issued

Copened

Drevealed

22A

stays

Bremains

Cmaintains

Dkeeps

23A

track

B

direction

C

way

Dline

24A

falling

B

breaking

C

cutting

Dslowing

25A

bringing

Bputting

C

getting

Dmounting

26A

shown

B

resulted

C

proved

Ddemonstrated

27A

installed

BformedCestablished

Dconfirmed

28A

rates

Bstandards

Cproportions

Dvolumes

29A

witness

Bsign

Cdisplay

Devidence

30A

purely

Bmerely

Csimply

Dbarely

31A

union

Bconsolidation

Calliance

D

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