BUSINESS ANS DESIGN

Main ideas and details

SEMINAR 1: IDENTIFYING MAIN IDEAS

VOCABULARY PREVIEW

Read the vocabulary items in the box. Circle the ones you know. Put a question mark next to the
ones you don’t know.

profit (n) qualities includes appropriate (adj) market (n) brand (n) dozens

EXERCISE 1

Skim the article on the next page. Look at the title and image, and read the first paragraph. Then
mark your answers.

Topic of Article: business value proposition profits customers

Main Idea of First Paragraph:

 A value proposition is similar to a slogan because it is trying to sell a product.

 A value proposition includes the product as well as many intangible qualities.
 A value proposition is only concerned with making money.

EXERCISE 2

A. From the title of the article and the visual, check ( ✓) what the author might explain.

 the characteristics of a value proposition

 the problems of a value proposition
 how to create a value proposition
B. Read the article. Then read the statements that follow. Circle T(True) or F (False).
Correct the false statements.

The Value of a Value Proposition

1. In business, what does every person, idea, and system
work toward? Most would answer, “Profit. ”But this
is too easy. Actually, a business’s value proposition is
what the various qualities and parts of a business must
support. Otherwise there will be no way for that profit
to be made! Simply stated, the value proposition
includes everything that is being offered to the
customer. A well thought-out value proposition can tie
 together every process and part of a GLOSSARY
business, while a poorly considered value Value proposition: a written statement that
proposition may doom the business before explains to a potential customer how a product
(or service) solves a problem or improves his or
it begins. Far beyond the product itself, her situation, what the specific benefits are, and
the value proposition also includes why the product is different and better than what
intangible qualities—things like style, is offered by the competition Intangible: having
time saved, safety, and trust. no physical qualities
Endorse: approve
2. A value proposition is more than the Slogan: a memorable phrase used in an ad
intangibles, though. Consider the Perk: benefit
difference between a coach plane ticket Manufacturing: the making of something by a
and a first-class plane ticket. Both tickets machine, usually in a large amount
let you travel from one place to another,
but the value proposition of one ticket is
very different from the other. Understanding value proposition lets a business owner target
appropriate groups of customers and work well in each market.
3. Also, don’t mistake a company’s value proposition for the actual product or service itself.
Often, the value proposition is much more complicated than “Product A at Price B.” This will
be easier to understand by comparing two similar products. Imagine two pairs of shoes: one,
an off-brand pair of sneakers priced at $20; the other, a brand-name pair of basketball shoes
endorsed by a famous athlete, accompanied by a slogan, and priced at over $100. These shoes
have very different value propositions.
4. The first value proposition promises you a pair of shoes. The shoes will cover your feet … and
that’s about it. The second pair promises you not only a pair of shoes but also dozens of other
perks: unusual and expensive shoes, a sporty design, connection to a famous athlete, and
fashionability. The brand-name pair’s value proposition offers much more to the customer—
even if the cost of manufacturing, materials, and shipping are almost the same as the other
shoe! This is one example of how a clearly stated value proposition can attract customers and
result in enormous profits for a business.

T / F 1. A value proposition is the same as a company’s slogan.

T / F 2. A value proposition is concerned with the product as well as the benefits that the product provides.
T / F 3. Style, safety, and trust are qualities that a value proposition might include.
T / F 4. In business, a brandis a product given a specific name.
T / F 5. Connecting the product with a famous person can be part of a value proposition.
T / F 6. A successful value proposition can result in higher profits for a company.
T / F 7. A company that doesn’t think about its value proposition will probably not do as well as one that
does.
Discuss these questions with a partner.

1. What is the main idea of the passage? Use your own words.
2. Does the title reflect the main idea? If so, how? If not, suggest a title.
3. Why does the author compare pairs of shoes in Paragraphs 3 and 4?
4. What is the main idea of Paragraph 4?

VOCABULARY CHECK

Read each sentence. Then match the underlined vocabulary item with the correct definition. With
a partner, explain what the vocabulary item means.

1. Good financial leadership has resulted in huge profits this year.

2. When choosing a phone, consumers think about qualities such as design, usability, prestige, and cost.
3. Some companies include a one-year warranty with the purchase of an item. Others require you to buy a
warranty separately.
4. The movie was not appropriate for a young audience because of the violence.
5. If gasoline becomes more expensive, the market for electric and hybrid cars will grow.
6. Some customers buy a certain brand because a famous person backs it.
7. Eggs are usually sold by the dozen although they can also be found in half-dozen cartons.
a. to be part of
b. twelve
c. money made by selling things, after expenses are paid
d. suitable or good
e. features typical of one thing (size, color, etc.)
f. a particular group of people that a company sells to
g. a specific type of product, with a specific name

Vocabulary
The following vocabulary items appear in the reading. Scan the reading to find the items and see
how they are used. Then choose the correct meaning of the vocabulary item in bold.

Add new items to your notecards or vocabulary journal.

More practice A. Choose correct answer
More practice B. Choose correct answer
SEMINAR 2: IDENTIFYING SUPPORTING DETAILS

EXERCISE 4

1. Read each main idea and supporting detail. Underline the supporting detail. Then write the
kind of detail it is. Use the words from the box.
( anecdote definition description example fact quotation reason statistic )

1. Nowadays, watching movies is not only done in movie theaters. In 2015, the annual number of
DVD rentals in the US was 120 per adult, on average. ……………………………..
2. Movie theaters are noticing a decline in attendance. Most of the people I know don’t go to
theaters; in fact, my parents watch movies on their home televisions, and most of my friends
stream them on their phones. ……………………………..
3. In order for a business to make a profit, it must do many things. For instance, it must offer a
wanted product or service; it must advertise that product; and it must make sure that product or
service will be reliable and meet the customer’s needs. ……………………………..
4. Apple is an example of a company that has changed over the years. At the beginning, it focused
solely on computers but now sells a variety of products including phones, watches, and music.
……………………………..
5. Entrepreneurs must be persistent. As Winston Churchill once said, “Success consists of going
from failure to failure without loss of enthusiasm.” ……………………………..

EXERCISE 5. Read the passage. Then answer the questions that follow.

THE IMPORTANCE OF A BUSINESS MODEL

1. The main document of any business is the business model. This document explains how a
business is supposed to operate. The business model outlines things like sources of revenue
and customer interactions. Think of a business model as something that helps a business
provide the value proposition it promises. A business model should not be confused with a
business strategy. The model explains how the business works, while the strategy outlines the
business’s approach to a competitive market. For instance, if you opened a café near a
university, the details of buying and selling of coffee drinks and baked goods would be your
business model. Your business strategy would be something your business does that is special
—say giving discounts to students. This is your unique selling point (USP).
2. So what makes a business model different from an ordinary plan? First, a business model
outlines practices and makes clear that these practices can
be changed as needed to achieve specific ends. A business
model should be evaluated in terms of available data—
like customer information, profit, performance, and so on.
Also, a business model shouldn’t be set in stone—it
should be changed and improved regularly, to help a
 business achieve its value proposition profitably. Finally, improvements to a business model
can give a company many advantages over the competition.
3. One example of a business model making enormous profit through innovation involves the
movie rental company Netflix. Netflix was able to compete with Blockbuster, a long-time
brick-and-mortar movie rental company. How? By offering a subscription-based business
model. Netflix used numerous innovations—like mailing movies directly to the customer—to
save on operational costs. In addition, the company continued to innovate, or try new things,
by expanding into online streaming. Blockbuster, in contrast, was slow to adapt its business
model. Long story short, today Netflix is the most profitable movie rental company in the
United States.
4. When constructing a business model, a business should give itself room to grow. If, for
example, Blockbuster had been innovative, Netflix might not have succeeded. As it grows, a
business should compare results with its business model to see if it is fulfilling its value
proposition. Otherwise, it may become the next Blockbuster.

1. According to the passage, what should a business model consider? Choose all correct answers.
a. sources of revenue
b. customer interaction
c. impact on value proposition
d. website development
2. The expression “set in stone” is another way to say.
a. cannot be changed
b. is hard
c. have difficulty
d. made to be changed
3. According to the author, what is NOT a quality of a business model?
a. It should be evaluated.
b. It should be competitive.
c. It should be changeable.
d. It should be innovative.
4. The author mentions Netflix and Blockbuster to .
a. compare two companies that had successful business models
b. contrast two companies that had different business models
c. give a definition of a business model
d. persuade the reader to use Netflix
5. What was NOT mentioned as one of Netflix’s innovations?
a. It mails movies to the customers.
b. It is a subscription-based model.
c. It got into the online streaming market.
d. It advertises on the Internet.
6. The author suggests that Blockbuster .
a. actually had a superior product
 b. should have hired new managers
c. needed to keep its business model the same
d. would still be competitive today if it had quickly changed its model
C. Scan the passage for supporting-detail signals and circle them. Highlight information in the
passage that supports the main ideas: examples, statistics, quotations, definitions. Then answer the
questions.

1. In Paragraph 1, the author states: “A business model should not be confused with a business
strategy. The model explains how the business works, while the strategy outlines the business’s
approach to a competitive market.” Which sentence supports that idea?

a. The main document of any business is the business model.

b. So what makes a business model different from an ordinary plan?
c. Think of a business model as something that helps you fulfill the value proposition you o ffer customers.
d. For instance, if you opened a café near a university, the details of buying and selling co ffee drinks and
baked goods would be your business model.

2. In Paragraph 2, the author explains that a business model should be evaluated in terms of
available data. What kind of supporting details are given?

a. statistics b. examples c. facts d. definitions

3. What do the supporting details in Paragraph 3 give?

a. a definition of a business model b. an example of a successful company that innovated

c. suggestions for being a successful company d. statistics about successful strategies

4. What language does the author use in Paragraph 4 to signal a supporting detail?

a. When b. for example c. if d. Otherwise

EXERCISE 6 VOCABULARY CHECK

A. Complete each sentence using the correct vocabulary item from the box. Use the correct form.
( achieve adapt advantage construct evaluate operate )

1.The travel agency is located in San Francisco, but it is ……………by a business in Singapore.
2. Attracting a loyal customer base is a goal we hope to …………… .
3. The owners asked all employees …………… to the company, giving each category a score from 1 to
10.
4. One ……………of having a hair salon in your home is you don’t have to pay a booth fee.
5. After the bakery owners heard customers complaining that the pastries were dry, they…………… their
recipe to have more butter.
6. We ……………our business model to be more detailed.
VOCABULARY

The following vocabulary items appear in the reading. Scan the reading to find the items and see
how they are used. Then match each item with the correct definition.
MORE PRACTICE A
MORE PRACTICE B
SEMINAR 3. PARAPHRASING

EXERCISE 7

A. Crowd-fundingis raising money for a project before it exists. Have you ever helped crowd-
fund something?

B. Read a quote from a business expert. Which is the best paraphrase? Explain why the other
sentences are not acceptable.

Expert: “One creative kind of business financing that has become successful recently is crowd-
funding.”

Paraphrases

 One innovative way to raise money for a business that is now successful is crowd-funding.
 The expert believes one creative way to finance a business is crowd-funding.
 The expert believes that crowd-funding is the best way to raise money for a new business.
 According to the expert, crowd-funding has recently become a successful means of raising
money to start a business