Prepare for IELTS by Topic
13. Business
LISTENING
Listening Test Part:
2
Questions 1 - 6
Choose the correct letter A, B or C.
1 Last year, how much money did Bathroom Bunnies make after taking into account all costs?
A 50 million pounds.
B Several million pounds.
C 4 million pounds.
2 In which age group do Bathroom bunnies customers usually fit?
A Teenagers.
B Young kids.
C Adults.
3 When did Maggie Johnson establish her company?
A 2012.
B 2014.
C 2016.
4 Why did Maggie start thinking about making bathroom products?
A Because she often argued with her daughter about these products.
B Because she spent a lot of money on bathroom products.
C Because she liked to spend a lot of time in the bathroom.
5 Why did Maggie and her family face financial challenges?
A Her husband’s income was low.
B She had quit her job.
C They had a lot of debt.
6 How did Maggie find the funds to develop her products?
A Her husband provided the money.
B She had savings.
C She took out a loan.
Questions 7 - 10
What were the problems with the factories Maggie tried?
Choose FOUR answers from below. Choose the correct letter, A - F, for questions 7 - 10.
A They did not promptly reply to messages.
B They refused to take her order because it was too small..
C The factory was too expensive.
D The products were not the same as the samples.
E The factory did not complete production on time.
F Her order was never fulfilled.
7 1st factory
8 2nd factory
9 3rd factory
10 4th factory
READING
The Digital Shift: The Challenge Facing Traditional Retailers
A
The emergence of the internet has redefined our daily routines, and one of the most noticeable changes has been in the way we shop. With just a few clicks, consumers can now access a vast array of products and services online. This transformation, from traditional brick-and-mortar retail to online shopping, is having profound effects on the retail industry.
One of the primary factors propelling the shift to online shopping is technological advancement. The internet has become faster and more accessible, with secure payment systems making online transactions safer than ever before. This has drastically improved the online shopping experience, making it an attractive option for consumers. Furthermore, the convenience and accessibility of online shopping, offering the opportunity to shop at any time, from anywhere, is a major draw for consumers with busy lifestyles. According to Forrester research, this accessibility factor has been a significant driver behind the surge in online sales.
B
Online retailers also enjoy distinct cost advantages over their traditional counterparts. The cost efficiency of operating an online store, without the overheads associated with physical storefronts, allows for competitive pricing and potentially higher profit margins. Additionally, the global reach of e-commerce platforms transcends geographical boundaries, providing much simpler access to an international market. This not only benefits retailers, but consumers too, who now have a choice of a wider range of goods than ever before.
Online shopping has grown hand in hand with customer reviews and feedback. Shoppers can quickly check the reputation of an online store by looking at customer reviews and comments. Meanwhile, thanks to endorsements from previous customers, online shops can demonstrate that they are reliable and safe to use to their potential customers. This system of reviews and feedback means that shoppers have good reason to feel secure about their online purchase and has really helped drive the trend towards online shopping.
C
Personalisation of the shopping experience has become of paramount importance. Online retailers can use algorithms and data analytics which enable them to easily track consumer behaviour, preferences, and purchase history, allowing for tailored recommendations and targeted advertising. This level of personalisation enhances the overall shopping experience, providing consumers with a customised selection of products that align with their tastes and interests. As a result, consumers feel more valued and understood, fostering a stronger connection between them and the online shop.
D
However, the transition to online retailing is not without its challenges. The online marketplace is fiercely competitive, with numerous retailers vying for consumer attention. Traditional businesses must employ effective marketing and branding strategies to remain competitive. Many of these businesses could not do this successfully, and have since gone bankrupt. In addition, many large online retailers are very well funded and, with relatively low overheads, can make it very difficult for local brick-and-mortar shops to operate profitably. In some cases, online retail giants have even been accused of predatory pricing, appearing to deliberately undercut competitors at the expense of profits. This is doubtless a factor in the disappearance of so many retailers from local high streets. These shops can’t offer the same deals as are found online, and have lost a lot of business as a consequence.
E
In response to this digital shift, traditional retailers are evolving their strategies. Many are adopting hybrid models, integrating online and physical storefronts to offer customers a seamless shopping experience. Verhoef et al, in their 2015 study, emphasised that this approach capitalises on the strengths of both platforms. Moreover, physical stores are focusing on creating memorable in-store experiences to attract and retain customers. These experiences include interactive displays, in-store events, and personalised services.
F
While traditional retailers have faced many challenges as a result of the online shopping phenomenon, it’s safe to say that consumers have largely benefitted. Shoppers have enjoyed lower prices, and a plethora of special offers and discounts on many of their favourite products. In addition, delivery services have improved massively over the years, to the point where it’s now often possible to have your purchase delivered on the same day it’s ordered, which of course, is very convenient.
With the success of online players, the competition in the marketplace has become even more fierce. This has driven efficiency gains and innovation, as businesses face-off against one another in the competition for consumers’ money, further driving down prices and improving products and services. Furthermore, thanks to online retail, consumers are able to source and purchase products abroad much more easily. The combination of online stores and quick and efficient worldwide shipping means that shoppers can purchase products from countries ranging from Thailand to Norway, at the touch of a button.
G
In fact, the only real downside for shoppers is the demise of the local high street. Town and village shopping areas have really lost out to online retailers and consequently the selection of goods and services available on high streets is much poorer than in the past. This is especially the case in smaller towns and villages where it’s almost impossible for a small retail business to operate profitably. As a result, the typical British village high street has now been largely reduced to coffee shops, restaurants and charity shops.
H
The trend towards online shopping is reshaping the retail landscape. Traditional businesses must adapt to changing consumer preferences and technological advancements to remain competitive. By leveraging the strengths of both online and physical platforms, retailers can thrive in this digital era. Meanwhile, consumers have reaped many benefits from the increased competition and innovation in the online space, enjoying access to a wider range of goods than ever, and at reasonable prices.
Questions 1-6
The Reading Passage has eight sections, A-H.
Which section contains the following information?
1. a reference to how easy it is to buy products from foreign countries
2. an explanation of some of the difficulties facing traditional retailers
3. a reference to the importance of safe payment mechanisms for shoppers
4. a reference to how traditional shopping areas are less popular than in the past
5. an explanation of how traditional retailers are changing
6. an explanation of why online shops make more money from a sale than traditional shops
Questions 7-10
Complete the summary below.
Choose ONE WORD ONLY from the passage for each answer.
Shopping online is increasing in popularity. Shoppers have been encouraged to shop online thanks to faster and safer payments, as well as lower prices on goods and services. They like online shopping because they can read customer reviews to quickly understand the 7____________ of the shop.
Online retailers have lower 8____________ because they don’t pay for a physical store. This means they can make larger profits or offer lower prices. However, this is making it hard for regular shops to compete. Some traditional retailers are trying new things like mixing online and physical stores. However, some have not been successful and have gone 9____________. Local retailers are now really struggling, and as a result many high street shops have closed.
SPEAKING
Speaking Part 1
1. What type of business do you work in or would you like to work in?
2. Would you like to run your own business in the future?
3. Can you think of an example of good advertising or marketing?
4. How important is good customer service?
5. Are you a loyal customer of any companies?
6. Do you think businesses should protect the environment?
7. Do you think businesses should try to help the local community?
8. What businesses are very successful in your country?
Speaking Part 2
Describe a small business you would like to start.
You should say:
what business it would be
when you want to start it
why you have not you started it yet
and explain why you want to start this business
Speaking Part 3
1. What are the benefits of starting your own business?
2. How do you think companies can balance their profits with ethical practices?
3. How do you think businesses can stay competitive in a constantly evolving market?
4. Should governments help to protect small businesses from competition from larger corporations?
5. In your opinion, what role does innovation play in the success of a business?
6. What qualities are important for a person to have in order to be successful in business?
WRITING
Writing Task 1 Assignment (General Training)
You recently attended a business conference in a foreign country. Write a letter to the organiser of the conference.
In your letter:
thank them for organising the event.
say what you liked about the conference
provide feedback on any improvements that could be made
Writing Task 2 Assignment
As well as making money, businesses also have social responsibilities.
To what extent do you agree or disagree?
VOCABULARY
Vocabulary Exercises:
Exercise 1: Part of Speech
Change these nouns into their corresponding verbs. Leave blank if no verb is possible.
1. Brand
2. Competitor
3. Consumer
4. Demand
5. Entrepreneurship
6. Marketing
7. Production
8. Profitability
9. Revenue
10. Start-up
11. Subsidy
12. Supplier
Exercise 2: Gap-fill Exercise
Fill in the blanks with the appropriate word or phrase from the list provided below.
1. In a ___________, prices are mainly determined by supply and demand forces.
2. Companies often strive to create a ___________ that sets their business apart from others.
3. The ___________ for the new product exceeded our expectations, leading to increased production.
4. Effective ___________ is crucial for attracting and retaining customers.
5. To enhance ___________, the company installed cutting edge robotics in its factories.
6. The government provided a ___________ to support the growth of small businesses in the region.
7. A successful advertising campaign should lead to a significant increase in the __________ from sales.
8. The start-up was successful because it enjoyed a __________ advantage over its rivals.
9. The company decided to diversify into a new business ___________ where there were fewer competitors.
10. The entrepreneur chose a strategic ___________ for the new store in the heart of the city.
revenue
productivity
premises
free market
subsidy
competitive
marketing
brand
sector
demand
Exercise 3: Multiple Choice
Choose the best word or phrase to complete each sentence.
1. The company's focus on quality and innovation gives them a ___________ in the market.
a) brand
b) competitive advantage
c) demand
2. Effective ___________ is essential for reaching and engaging potential customers.
a) marketing
b) premises
c) revenue
3. The ___________ for electric cars has been steadily increasing as environmental concerns grow.
a) demand
b) loyal customers
c) revenue
4. The ___________ of the restaurant is spacious and well-designed.
a) service
b) premises
c) location
5. The government provided a ___________ to encourage the development of renewable energy projects.
a) subsidy
b) sector
c) start-up
6. The company suffered from high ___________ as a result of poor management practices.
a) revenue
b) losses
c) staff turnover
7. The CEO decided to bring in consultants to help ___________ the business.
a) start up
b) marketing
c) streamline
Topic Vocabulary:
brand (noun [c]):
Definition: A brand is a name or symbol that makes a company's products or services different from others.
Example: Nike is a well-known brand for athletic shoes and apparel.
competitive advantage (noun phrase):
Definition: An advantage a company has over another in the same market, usually due to better products or lower costs.
Example: The core objective of the charity is to provide education to underprivileged children.
consumer (noun [c]):
Definition: A consumer is someone who buys or uses things.
Example: As a consumer, I like to compare prices before making a purchase.
demand (noun [u]):
Definition: Demand is when people want and are willing to buy something.
Example: The high demand for the new smartphone caused it to sell out within hours.
entrepreneurship (noun [u]):
Definition: Entrepreneurship is starting and running a business by taking risks and being creative.
Example: Mark Zuckerberg and his success with Facebook is an example of successful entrepreneurship.
free market (noun phrase):
Definition: An economic system where companies do business without government intervention.
Example: In a free market, businesses can compete and set prices based on supply and demand.
level the playing field (idiom):
Definition: Creating fair and equal conditions for competition.
Example: New regulations ensure that small businesses can compete on a level playing field with large multinationals.
loyal customer (noun phrase):
Definition: A loyal customer is someone who keeps coming back to buy from the same company.
Example: Mary has been a loyal customer of the same coffee shop for over five years.
marketing (noun [u]):
Definition: Activities to promote a product or brand.
Example: The company launched a marketing campaign to promote their new product through social media and TV commercials.
premises (noun [pl]):
Definition: The buildings or land owned by a company or organisation.
Example: The company owns several large premises across the country.
productivity (noun [u]):
Definition: The amount of work done in a specific timeframe.
Example: By organising tasks efficiently, we can improve productivity in the office.
profitability (noun [u]):
Definition: The ability of a business to generate financial gain or profit.
Example: The company's profitability increased after launching a new product line.
revenue (noun [c]):
Definition: The income or money generated by a company or organisation from its operations.
Example: The company's revenue increased by 20% this year.
sector (noun [c]):
Definition: A sector is a specific area of the economy, like technology or healthcare.
Example: The technology sector includes companies that develop and sell software, hardware, and digital services.
service (noun [c]):
Definition: The professional work done for a customer by a company.
Example: The company provides house cleaning and maintenance services.
staff turnover (noun phrase):
Definition: The rate at which employees leave a company and are replaced.
Example: The high staff turnover at the restaurant is affecting its performance.
start up (phrasal verb):
Definition: To start a new business.
Example: Jane and her colleagues started up a company to develop a new mobile app.
streamline (verb):
Definition: Simplify or optimise a process or system to make it more efficient and effective.
Example: New software streamlined the process, saving time.
subsidy (noun [c]):
Definition: Financial assistance or support provided by the government.
Example: The government provided a subsidy to support local farmers during the drought.
supplier (noun [c]):
Definition: A supplier is someone who provides things to a company, like products or services.
Example: The bakery relies on a local farmer to be their supplier of fresh organic eggs.
Listening Answer Key:
1C, 2A, 3B, 4B, 5B, 6C, 7D, 8E, 9F, 10A
Reading Answer Key:
1.F, 2.D, 3.A, 4.G, 5.E, 6.B, 7. overheads, 8. reputation, 9. bankrupt
Vocabulary Answer Key
Exercise 1: 1. Brand, 2. Compete, 3. Consume, 4. Demand, 5. (-), 6. Market, 7. Produce, 8. Profit, 9. (-), 10. Start up, 11. Subsidise, 12. Supply
Exercise 2: 1. free market, 2. brand, 3. demand, 4. marketing, 5. productivity, 6. subsidy, 7. revenue, 8. competitive, 9. sector, 10. premises
Exercise 3: 1b, 2a, 3a, 4b, 5a, 6c, 7c