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English

For Science Professions


An ESP Study Course for the Science Track

Business Administration and Computer Science

Foreword. .

II

Acknowledgements

III

UNIT1

Getting Started? ...

UNIT2

The Basics Of Business ........

17

UNIT3

Operations .....

39

UNIT4

Marketing .............

59

UNIT5

Finance And Accounting .

77

UNIT6

Leadership .

91

UNIT7

Information Systems ..

97

UNIT8

Systems Analysis ....

115

UNIT9

Programming ....

127

UNIT10

Decision Support Systems

143

UNIT11

I.T. Security ...

151

Project

159

References

English for Science


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Table of contents .

161

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his book serves a dual purpose: to give students of English an introduction


to the English terminology of the Engineering professions, to improve their
overall use of the language, and to enable them to participate actively in

their prospective courses. The contents of our English for Science Professions
have been designed for high, intermediate and beginner level students who are
supposed to be already familiar with the basic and common structural patterns of
the language. We believe it aptly fits with our students of the Preparatory Year
who have now emerged from their past experience of General English ready to
embark on a more advanced and specialty-oriented learning experience in their
academic life.
The book focuses on important terminologies that are commonly used in
academic business and information technology courses. Key concepts and theories
are covered in from the two disciplines, giving students an opportunity to familiarize
themselves with what they can expect in their respective majors. Reading and writing
are the main skills that are covered in this course.
Pictures and illustrations are used to provide students with a clear
understanding of the course material. Each UNIT is divided into four parts. The first
three parts constitute material related to the discipline. The fourth part of each UNIT
contains either four or five exercises to test students abilities and understanding of
the material. At the end of each chapter, there is a glossary of the most important
words required for the students. The students are responsible for filling in the
definitions and any notes.
The English focus section at the end of each UNIT is crucial for enhancing the
students abilities in writing and academic research. The sections are developed
based on the difficulties faced by students in their disciplines. At the end of the book,
a group project should be carried out throughout the semester. Each UNIT
contributes to the completion of this project. It is left to the teachers discretion on
whether lower level students will participate in the project.

II

His book came to fruition through the efforts of the English Language
Department and the Deanship of the Preparatory Year Programme at

the University of Dammam in collaboration with the faculty of the College of Business
Administration.

ESP Committee

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T
I

English Language Department

III

GETTING STARTED

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Key Terminologies:

After reading this chapter you will be able to:


1.
2.
3.
4.
5.

Break words down to their basic form


Find the meaning of a word from context
Annotate an article
Understand the writing process
Do a basic literature review

Classify

Income

Multinational

Intangible

Literature
Analysis
Process
Annotate
Business
Employees
Customers
Overestimate

International
Outcome
Transformation
Unlimited
Nondurable
Competitive
Subcontractor

1.1.Vocabulary

we would not be where we are today. Have you ever thought of what life would be
like without doing business? Business is a part of
our nature as people. Imagine you were on an
Island with another person. You have some food
but no water, and he has some water but no food.
What would you be inclined to do?

Business is pronounced
biz-nis, not busy-ness.
The word business
predates 950 A.D. and
comes from the Old English
word Bisignes.

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Business has been around as long as man walked the earth. Without business,

USING THE TERM BUSINESS


The word business in English has different uses. It is important to know when
and how to use the term business when writing and speaking. The word business
can be used as a general word. For example, Mind your own business! In this
example, the word business is a non-count noun. The word business can also be
used to refer to a company, for example, She owns her own business. Here, the
term business is a count noun. Another way to use the word business is in relation
to working or doing some type of work. For example, He decided to go into business.
Business, in this example, is a non-count noun.

Is the italicized word a count/non-count noun?


1. He always gets himself into other peoples business.

Non-count

2. I would like to do business someday.

.
.

3. Omar is good at business.


4. Do you think that we can go into business together?

5. A bookstore is a good business to open.

GETTING STARTED
TERMINOLOGIES
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Terminologies, the study of words and their use, are important in business.
There are many words that we use in business that can be used in many other ways
and have different meanings. This is why it is important to learn how to understand
the meaning of a word from its context. Before we start learning about business, we
will learn techniques to breaking down the meaning of words from context.
Look at the word investment. What does investment mean? Here is an
example: Buying gold is a good investment because the value of gold is going up.
How can we understand the meaning of the word investment from this sentence?

When you buy something, you pay money.


The value of gold is going up.
Conclusion: If I buy gold and sell it later, Ill make more money!

Therefore, an investment is when I put money into something, such as buying


gold, to make more money later.

Cooperate
Co: A prefix (comes before the base word)
that means with or together.
Operate: the base word that means to
work, use, or do something.
Activity

Did you notice that the


suffix changed the base
word?
A prefix rarely changes the
form of the base word,
while the suffix usually
changes the form of the
base word

Active: the base word that means to do things or engaged in action.


ity: A suffix (comes after the base word) that turns the adjective into a noun.

What are the prefixes and suffixes in the following words?


Classify

International

Intangible

Organization

Outcome

Management

Income

Overestimate

Nondurable

Unlimited

Subcontractor

Competitive

Multinational

Ownership

Look at the words in the practice box above. What do they mean? Use a
dictionary, or go to www.dictionary.com, to find the meanings of these words. Try to

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Transformation

form sentences with these words and share it with your class.

Reading!
Wal-Mart is reported to be the second largest company in the world and is
second only to Exxon-Mobil based on revenue. The company has reported sales
which amounts to a larger number than the GDP of countries like Norway. This
comparison of Wal-Mart as a company to countries of the world exemplifies the
magnitude of the corporation. In comparison to competitors, Wal-Mart recorded sales
higher than Target, K-Mart, and Sears combined. William Cody reported that WalMarts day after Thanksgiving sales were $1.5 billion, which is higher than the GDP
of 36 countries. Wal-Mart also employs 1.7 million people which makes it the second
largest employer in the United States, the first being the government. The work force
of the company is larger than General Motors, Ford, and IBM combined. It is
estimated that 138 million people shop at Wal-Mart every week. Wal-Marts annual
sales were reported at $285.5 billion in January 2005.
The Wal-Mart business model is about higher sales volume and technological
innovations coupled with lower labor costs. The company achieves higher sales
volume by offering low prices, which reduce costs by two effective methods, a more
effective distribution system and low labor costs. Wal-Mart has a high employee
turnover and this is used to the companys advantage as high turnover means that
more employees do not qualify for benefits. In order to sustain low price, the

GETTING STARTED
company has to reduce supplier costs. Wal-Mart revolutionized supply chain

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management in the business world.


Wal-Mart operates in the retail industry, which is one of the largest contributors
to the economy. The company maintains roughly 20 percent of the grocer retail
industry in the United States. The retail industry is the second largest industry in the
United States and it generates roughly $ 4 trillion annually. The retail industry
accounts for 12 percent of the business establishments in the United States and this
shows that the industry is a high capacity industry.

Writing
Write down a full definition of business.

Answer the following questions about the previous reading.


1. According to the article, which company is the largest company in the world?

2. Why is a high employee turnover good for Wal-Mart?

3. Based on the passage, roughly how much does Wal-Mart contribute to the
American Economy? (HINT: You have to calculate the answer based on the details given
in the passage)

5. Complete the sentence: "Wal-Mart made more money in one day than
.. made in one year. (HINT: The passage shows a

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4. Give an example of a sentence that provides supporting evidence.

comparison of Wal-Mart to companies and countries).

Use the words provided to fill in the blanks.


Customers

Employees

Managers

Intangible

Tangible

Income

Goods, or products, are .., which means they can be touched


and held. Unlike services, which are .. Companies generate
.. through selling their products and services to .. who
buy their products. .. companies sell their products all over the world,
whereas local companies sell only in their countries or even cities.
Big companies, like Wal-Mart, have many .. that work for them.
Hiring people is not an easy thing to do, companies will often have human resource
.. who spend many hours trying to find qualified people to work for them.

GETTING STARTED

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1.2. Introduction to Writing


Business writing can take many different forms. You may be writing a business
plan, a strategic plan, organizational goals, an employee handbook, or a business
article. It is important to practice your business writing skills. What should you
consider when writing business-related topics?

It is important to know your subject before you begin writing. Ask yourself the
question, what am I writing about? Are you supposed to be defining, explaining,
analyzing, or arguing? Are you supposed to research, report, or interpret? What are
the limits of your paper?

Knowing who is going to read your paper is an important step to writing. Ask
yourself questions about your audience. Who is going to read your paper? (Most
likely your teacher), who is supposed to read it? You should find out what is
expected of your paper. What do you know about your readers? What will they look
for?

Purpose

Research

Subject Analysis

Format

Audience Analysis

Writing
Style
Fig 1-1
The Writing Process

At this level, you are expected to learn academic writing for business and

for business.

Example

Your teacher asks you to write about the meaning of business.


Is this information enough to begin writing your paper? Without a doubt,
the answer is no! How long should my paper be? What exactly am I writing
about? Do I need research?

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information technology studies. We will only cover the basics of academic writing

How should you start writing this paper? You should stop, think, and ask
questions before you start writing.
The first step in the writing process is to identify the subject. Ask the teacher
for details. Ask what the purpose of the paper is, are you supposed to explain what
businesses do? Are you supposed to define the term business?
The second step is the format. How should I format this paper? APA style?
MLA? Chicago? What font should I use? The size? Double-spaced?
The third step is to identify the audience. You know that your teacher is reading
this paper, but is this paper supposed to be written for someone else? What sort of
research do I need? Should I cite the textbook? Should I research on the Internet?
When these questions have been answered, you will have a clearer view of
how to start your paper.

GETTING STARTED

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1.3. Introduction to Reading


Technical reading can be a difficult job for anyone. The greatest difficulty that
students face after writing is reading. Textbook reading can be difficult and take lots
of time. If you learn to read smarter, you can read faster and understand more. Start
by getting a notebook! Yes, a notebook.

The first step in reading should be to skim (quickly read) the article or material.
Skim reading is simple, read the titles and sub-titles, first and last sentences of every
paragraph, and any caption, figure, or table. Write down some notes on what you
read.

After you have skimmed the material, start reading carefully. Look for details,
examples, and main ideas. Annotate and take notes in the reading. Highlight or
underline important points or examples. Look for specific information that explains
ideas or theories. Take note of words you do not know, and look these words up in
the dictionary. Use your notebook to create a summarized guide to this reading.

The PC industry has faced a decline in profitability even though the industry
has seen growth over the observed years. Increasing competition is a cause of
reduced profitability. Since the costs of production and distribution have substantially
decreased due to many factors, such as economies of scale, the industry has
attracted a lot of competition. The PC industry is one that requires fast change and
constant upgrades since new technology is invented and old technology is improved
upon in a matter of months. Therefore, the prices of the products devalue as new
products and technology enter into the market and this reduces the profitability of the
firms present.
Industry information

Thesis Statement

Changes in Costs

With more companies indulging in a wider product and service selection, the
competition has become fiercer. This industry relies heavily on effective channels of

create value in their distribution channels. Many companies have turned to


outsourcing due to the low costs involved, and generally, lowering costs should give
room for increased profit margins. However, the PC market does not reap this benefit.
Competition

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distribution, and many firms face problems with perfecting their business model to

The problem with the PC market is with the major competitors within it. Many
of the competitors lack a flexible and efficient business model that creates value.
Research and development plays an important role in the industry. Research and
development are undertaken by the two largest processor manufacturers in the
supply chain. Therefore, the companies in the industry are given low cost parts and
low cost labor, which should increase the profit margins. However, the companies
are experiencing losses in profitability due to their inability to out-perform Dell. This
is due to the effectiveness and efficiency of Dell's business model.
Problems with the PC market

Dells strategy

A literature review is a method used to examine published scholarly


information on a specific topic. In order to do a literature review, the author should
gather several reliable sources on a particular field. Literature reviews are an
excellent way to help create well-written papers. A literature review is not a collection
of articles or a summary of articles. Literature reviews are critical analyses of the
information related to a topic.
A literature review should include an introduction and a conclusion. The
introduction should provide the reader with a general idea why the articles or material

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GETTING STARTED
was chosen for review by the author. The author should provide background

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information to the reader before he starts to analyze the articles.


Literature reviews are always written in past tense because the research or
articles have already been completed. When reviewing literature, the author should
look for patterns, strengths, weaknesses, sources, and methods. The most difficult
part of a literature review is evaluating and interpreting the information in relation to
the topic.

Source: Lambert _Pandraud, R., & Laurent, G. (Sep. 2010). Why Do Older
Consumers Buy Older Brands? The Role of Attachment and Declining
Innovativeness. Journal of Marketing, 74(5), 104-121. Doi: 10.1509/jmkg.74.5.104

Literature Review: The authors studied how age affects consumer behavior
specifically based on perfume products. They found that younger consumers have a
greater tendency to change their preferred brands to newer products and brands.
They behave innovatively, with frequent changes.

On the other hand, older

consumers tend to remain attached for a longer period to the same preferred brand.
They found that among all ages, some consumers frequently change their preferred
brand, whereas others remain attached to it for long periods. This implies that older
consumers are attractive targets because they likely remain attached to a brand
longer. This research is important for consumer research because it shows how age
affects buying power.

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Source: Sriram, S., & Arbor, A. Investigating consumer purchase behavior in

10.1287/mksc.1090.0506

Literature Review: The authors of investigating consumer purchase behavior


in related technology product categories studied the purchase behavior of consumers

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related technology product categories. Marketing Science, 29(2), 291-314. doi:

to technology product. This suggests that consumer behavior differ based on the
product being taken into account. They found that consumers would delay purchasing
a technology product in anticipation of declining prices. They also found that
consumers compare the prices as well as the quality of all similar technology products
before purchasing. They found a complementary relationship between three
categories-personal computers, digital cameras, and printers. Consumers acted
differently with technology products because of perception of price decline. This
research is important because it shows that there is no one consumer behavior
pattern for all products, but rather consumer behavior changes depending on what
the product is.

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GETTING STARTED

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1.4. Exercises
Exercise 1: Short-Answer Questions
1. What is the writing process?

2. How do you annotate a reading?

3. How do you review literature for a paper?

Exercise 2: Critical Thinking Question


What are the reasons students conduct literature reviews?

Exercise 3: Terminologies
Search for the terminologies in the chapter to fill in the blanks for the following
passage:
Wal-Mart is an company that operates in the
industry in America and Europe. Wal-Mart is reported to be
the second largest company in the world because of its By
using technological Wal-Mart is able to beat their competition.
Another method that they use to costs is by not keeping
employees working at Wal-Mart for a long time, this is known as employee

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Exercise 4: Reading Comprehension


Look at the reading exercise in 1.1 and answer the following questions.

2. What was the size of Wal-Marts revenue in the year 2004?

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1. Find a word in the reading passage that is similar to the word sales.

3. What is the second largest company in the world according to the passage?

4. Why does the author compare Wal-Mart to Norway?

5. According to the passage, how does Wal-Mart make so much money?

6. Compare and Contrast Wal-Mart to Panda or Tamimi.

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GETTING STARTED

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Terms You Should Know


Word
Income
Intangible
International
Outcome
Transformation
Unlimited
Nondurable
Competitive
Subcontractor
Overestimate
Classify
Multinational
Literature
Analysis
Process
Annotate
Business
Employees
Customers

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Definition

Notes

English Focus

because of the time it takes to complete this process properly. If you master the tools
that can help you improve your writing, you will find your assignments easier and will
complete them faster.

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Writing should be thought of as a process. Many students find writing difficult

While reading and studying, make sure you take a lot of notes. Notes can
reduce the time it takes to write your assignment. When you read or study, group
your notes into main ideas, topics, or connections that you find within the material.
Do not forget to record your citations (author, year, title, publication source, and page
numbers). You want to make sure that you avoid any kind of plagiarism.

Look for connections and trends in your notes. Build on ideas that you have
developed from the course and the notes you took in class. Consider how you can
use them to develop a topic that interests you. Academic writing should be clear and
provide the readers with a well-stated purpose.

Look at the terminologies covered in this chapter; can you construct a few
paragraphs using those words? Try to use the different forms of these words while
writing. Ask your instructor for help if you have difficulty using these words correctly
while writing.

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THE BASICS OF BUSINESS


Key Terminologies:

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Ownership
Public Company
Private Company
Liability
Organization
Structure
Hierarchy
System
Sole Proprietorship
Chart

After reading this chapter you will be able to:


1.
2.
3.
4.
5.
6.

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Understand the types of businesses


Define stakeholders
Define organizational structures
Explain the types of organizations
Explain management
Define motivation

Partnership
Stakeholders
Shareholders
Resources
Resource Allocation
Layers
Functional
Frontline
Management

2.1. Types of Businesses

to start a business, one of the first decisions you will have to make is what type of
business to open. You should consider several factors before you open a business,
especially if you are not planning on going into business alone.

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Starting your own business can be a rewarding experience. Before you decide

Ownership

Public
(Government)

Private

For-Profit

Limited
Liability

Non-Profit

Unlimited
Liability

Sole
Proprietorship

Partnership

Fig 2-1
The types of ownership

Figure 2-1 shows basic types of ownership. The types of ownership can be
different based on the laws of the country that you decide to operate in. Companies
are either public (or governmental) or private. Public, or governmental, companies
are owned and operated by the government. Private companies are not owned by
the government, and are operated by people who are not representing the
government.

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THE BASICS OF BUSINESS

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Non-profit organizations are companies that use their profits for their services
instead of their investors. Non-profit organizations often get support from the
government. For-profit organizations are businesses that are started to make money
for investors.
Limited liability companies are protected by the amount of money they have
invested into the business. This means if the company owes money, the owners cant
lose their personal property, like their cars or houses. Unlimited liability companies
are not protected. A sole proprietorship, or sole trader, is owned by one person. A
partnership is owned by two or more people who share in the profits.

Use figure 2-1 to help you answer these questions:


6. The Saudi Electricity company is an example of a .. company.
7. Ali decides to open up a small business by himself, what can you say about
his business?

8. Ahmed started an organization that promotes safe driving. The profits he


makes goes back into his company. What kind of business does Ahmed
own?

9. When Kareem went into debt and owed the bank money, they took his
business and everything that he owned, including his own house. Why can
the bank do that?

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Stakeholders are people or organizations that have an interest, or stake, in a

different. For example, an employee has different interests than customers, but both
of them are stakeholders in a company. Do not get confused between stakeholders
and shareholders. Shareholders are people who own a part of the company. In other
words, they share ownership. Shareholders are always stakeholders, but
stakeholders are not always shareholders.

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company. The types of stakes, or interests, that they have in the company are

Employees

Customers

Distributors
The
Firm

Creditors

Suppliers

Shareholders

Local communities
Fig 2-2
Stakeholders

Explain why each of these groups or people is considered stakeholders in a


company.

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THE BASICS OF BUSINESS

Look at the descriptions below and choose the words that describe
the company
Public

Private

Limited Liability

Unlimited Liability

Non-Profit

Non-Profit

Partnership

Sole Owner

Ahmad and Naif own a company that sells fast food. Ahmad owns 40% and
Naif owns 50%. At the end of the year, Ahmad will take 40% of the profits and Naif
takes 50%.

Omar started a business that sells clothes. At the end of each month, Omar
takes the money he earns and uses it to feed the poor.

Yahya works for a company that his father started. After 5 years, his father
gave him a share of the company.

Khalid took a loan from the bank to start up his company. After 2 years, the
bank took back Khalid's house and car because he could not pay the company back.

Ahmad and Zaid bought a business together. They took a loan from the bank
and could not pay it back. The bank only took their business because they couldn't
pay the loan.

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Fill in the blanks with the words provided below. (Verb Usage)

Planning

Identify

Prioritize
Affected

The first step in stakeholder analysis is to .. who your


stakeholders are. The best way to do this is to think about all the people who are
.. by your work. The second step is to .. the stakes they

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Analyze

have in your company to figure our what their interests are. The third step is to
.. the importance of your stakeholders by choosing the ones who have
the biggest interest in your business. It is important to follow these steps when you
are .. for new projects.

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THE BASICS OF BUSINESS

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2.2. Organizational Architecture


Often in technical language, you will find that some terms are compounded
from different words. Before we look at the definition of the term organizational
architecture, let us try to create a definition from what we know of the basic words.
What is the base word of Organizational? Remove the suffix -al and you are left
with organization. Can we break this word down further? We can break this word
further to the base word organize, which means, to put things in its proper place.
When you add the suffix -ation to the base word (verb), it makes it a noun. The
general meaning is, the act or process of organizing.
The word architecture can be broken down to the base word architect. An
architect is a person who designs buildings or structures. When you add the suffix ure, the word architecture means, the art or process of designing structures.
The technical meaning of organization refers to a company or a business.
When you compound the word architecture with organization, we can guess the
meaning to be the design of a business. The definition of the term organizational
architecture is, the totality of an organization, including the organizational structure,
control systems, incentives, people, and culture. A simpler definition would be, All
of the companys systems. What do we mean by systems? A system is a formal
process used to complete a task.

An organizational structure is a chart that shows the decision-makers,


divisions or units, and hierarchy, of an organization. The organizational structure
shows how the different parts of a company are connected together. Figure 2-3
shows an example of an organizational structure. Tall structures will have many
layers while flatter structures have less.

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Fig 2-3
Organizational Structure

Use figure 2-3 to help you answer these questions:


1. How many positions do you see in this chart?

2. How many divisions do you see in this organization?

3. How many subdivisions do you see in this organization?

4. Who is the leader of this firm?

5. Whom does the factory manager report to?

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THE BASICS OF BUSINESS

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The managing director is a general manager. This means that he is


responsible for the organization as a whole. The next layer of managers is made up
of functional managers. Functional managers are responsible for specific jobs or
tasks and manage other managers who are below them in the organizational
structure. In the picture, the factory manager is a frontline manager. He does not
have any other managers under him and only manages employees. These positions
in the organizational structure are known as a hierarchy. A hierarchy is a system that
ranks people above each other according to their positions. For example, the
production manager has a higher position and more power than the factory manager
does.

Reading!
TYPES OF ORGANIZATIONAL STRUCTURES
Businesses are organized in different ways based on their goals.
Organizational structures can be different from company to company. A type of
structure used in a small company may not work in a large company; in fact, it may
even hinder its progress to achieving its goals. There are many types of
organizational structures, but the most common types are functional, divisional, and
matrix.
Functional structures group each part of the organization based on their
purpose. For example, the marketing and advertising employees will be placed in a
marketing department because they have similar functions. The finance and
accounting employees will be placed in the finance department because they have
similar functions. This type of structure works well with small, medium, and large
companies. The functional structure is very popular, but may have some faults.
Communication can become difficult between departments, especially if the
organization follows a rigid hierarchy. In a rigid hierarchy, employees must report
to their immediate managers and cannot go above them. If an employee has a

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problem with his salary, he has to report this problem to his manager in his own
department and he cannot go straight to the finance director.

For example, a car manufacturing company may divide the business into engine
manufacturing, assembly, etc. Divisional structures are often used in large
companies. As with the functional structure, divisional structures are limited by
communication.

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In a divisional structure, the company is divided by the business activities.

Matrix structures are a mix, or hybrid, of the functional and divisional


structures. They are often used in very large firms that operate internationally. The
problem with matrix structures is that there may be overlapping job functions or
power struggles because of dual management.

Answer the following questions about the previous reading.


1. Are all organizational structures the same? Why or why not?

2. Based on the passage, what are some types of organizational structures?

3. What is a rigid hierarchy?

4. Try to apply the organizational structures defined in the passage to the


university, which fits best? Why?

5. Complete the sentence: "The army follows a


Soldiers have to report to their immediate officers and cannot go straight to
the general.

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THE BASICS OF BUSINESS

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Use the words provided to fill in the blanks.


Hierarchies

Top

Matrix

Overlapping

Structures

Function

Organizational .. show the jobs and tasks that


specific people in the company have to do. If you want to know who runs the
company, you should look for the person at the .. of the
chart. Most companies have .. that show who reports to
who. There are many different types of organization structures. The most common
type of structure is based on .. rather than division. A
.. structure is one that combines two other structures. The
problem

with

this

type

of

structure

is

that

it

creates problems

with

.. jobs.

CEO

CEO

Finance

Production

Fig 2-4
Functional Structure

Marketing

Healthcare

Lighting
Products

Consumer
Lifestyle

Fig 2-5
Divisional Structure

Fig 2-6
Matrix Structure

27

Look at the diagram on the right. Each box in the picture shows a position in

others. For example, the second layer of the picture shows one manager with five
employees who report to him. This manager has a wide span of control. The
manager in the fourth layer has only three employees who answer to him; he has a
less span of control.

English for Science


Professions

the company. Some positions have more employees that answer to them than

Fig 2-7
Span of Control

28

THE BASICS OF BUSINESS

English for Science


Professions

2.3. Introduction to Management


Some words in business may have multiple meanings. The term
management can be used in different ways and have different meanings. The base
word for management is manage, which means to take control, handle, and
influence something or someone.
Management can mean:

The activity of managing a company


The people in charge of a company
A skill in controlling or leading

Test yourself

Can you write down some


examples for each of these
meanings?

Management is the process of getting work done through people in an


organization. A manager is a person who is responsible for planning, organizing,
controlling, and leading. Managers have a difficult job of distributing resources in a
firm.

Resources are a source of supply used in


businesses. Money, people, and machinery are
all examples of resources. However, there are
different types of resources. Oil, gas, water, and
air are all natural resources. Wealth and property

Have you noticed how


the words organization,
firm, company, and
business are used with the
same meanings? These
words are all synonyms.

are capital resources. Employees and managers


are human resources. The job of the manager is to allocate limited resources to the
unlimited demand from the organization.

29

English for Science


Professions

Fig 2-8
Allocation of Resources

Use the words provided to fill in the blanks.


Behavior

Process

Science

Art

We say management is a .. because it has steps and


rules. We say management is an .. because management
styles are unique. It is also a .. because it follows the
scientific process of using knowledge, experience, testing, and evidence for
decision-making. We also consider management to be a ..
because it involves personality and interaction with people.

Use the words provided to fill in the blanks.


Allocate
Capital

Allocation

Allocated
Human

1. The CEO .. resources to the finance department.


2. The company's .. resource department is responsible
for hiring and firing employees.
30

THE BASICS OF BUSINESS

English for Science


Professions

3. The manager's job is to .. limited resources to


different divisions.
4. .. resources refers to the financial resources of a
company.
5. Resource .. is the process of distributing resources.

Fill in the blank for each verb


Managers can...

Verb

Fill in the blank

allocate
hire

Resources to different departments.


.

.
.
.
.
.
.

spend
provide
create
organize
Fire
pay

transfer
sell

.
.

Reading!
In 1943, Abraham Maslow published a theory of motivation (the desire to
complete a task) in the Psychological Review journal (issue 50, 370-396). Maslow
described five levels of needs that every person requires in order to be motivated to
complete a task. The most basic need is known as the physical needs (sometimes
referred to as physiological needs). These needs are the things we need to survive,
like food, water, shelter. Once these physical needs are satisfied, the need for
safety arises. If a person does not feel safe, then he will not be motivated to do his
job.
After satisfying the need to feel and be safe, people desire social interaction.
Social needs are the need to be around other people, communicate, and socialize.
After fulfilling social needs, people require self-esteem to do their jobs. Self-esteem
refers to the way people feel about themselves. If a person feels that his job makes
31

him look bad, he will not feel motivated to perform well. After gratifying self-esteem
needs, people reach the highest level of motivation in the hierarchy, which is self-

Maslow describes self-actualization as the need to be what you must be. It


is a desire to do something because you feel that you want to do it and not for any
extrinsic, or external, rewards. Self-actualization is intrinsic motivation, meaning
that it comes from a person, and is not affected by what others say or do. It is difficult

English for Science


Professions

actualization.

for managers to create intrinsic motivation in their employees because they cannot
simply give it to people. An artist who paints for money is not motivated in the same
way as an artist who paints because he loves painting. Both artists may be
motivated, but one is motivated by extrinsic rewards while the other is motivated by
intrinsic rewards.
Maslows hierarchy of needs can be used for personal and professional uses.
How can you apply Maslows hierarchy of needs to yourself and your education?

Fig 2-9
Maslows Hierarchy of Needs

32

THE BASICS OF BUSINESS

English for Science


Professions

Answer the following questions about the previous reading.


1. Based on the information in the passage, describe Maslow's Hierarchy of
Needs

2. What is a self-actualization?

3. According to the passage, what is the difference between intrinsic and


extrinsic motivation?

Use the words provided to fill in the blanks.


Motivates

Self-Actualization

Self-Esteem

Safety

Social

Motivated

1. Ahmed his employees by paying them a bonus.


2. Omar is not to study for his class.
3. Naif does not feel good about the type of job he does, he has very little

4. Nourah does not like the people she works with, so her
needs are not met.
5. Abdullah was given a hardhat when he started his new job as a construction
worker, his needs are met.
6. Aisha paints on her free time because she enjoys it, she has reached

33

2.4. Exercises

1. Write a definition of business.

2. How do businesses use organizational structures?

English for Science


Professions

Exercise 1: Short-Answer Questions

3. What is the difference between organizational architecture and organizational


structure?

4. What makes a manager different from a regular employee?

Exercise 2: Critical Thinking Question


Ismail is a front-line manager and hopes to one day become a functional
manager. What are some ways Ismail can move up the hierarchy to reach his goal?

Exercise 3: Terminologies
Search for the business terminologies in the chapter to fill in the blanks for
the following passage:
Many people these days want to become and influence
employees. Nobody wants to stay as just an employee all his life. Many businesses
have an organizational that allows employees to move upwards and
become a part of Some of them may become

34

THE BASICS OF BUSINESS


managers. Most likely, they will start as this type of manager because they are the

English for Science


Professions

lowest on the After experience, they will move up to become divisional


managers, also known as managers. The highest levels they can
reach are managers.
Exercise 4: Reading Comprehension
Using the reading in section 2.2, answer the following questions (short
answer).
1. How many types of organizational structures are there? What are the most
common?

2. Explain the three most common types of organizational structures.

3. Think about your university, what structure do you think it follows?

4. In your opinion, which of the three structures is better to use for a small shop
that sells groceries, a fast food restaurant, an international car manufacturer,
and an oil company?

5. What are the problems faced by each structure?

35

Exercise 5: Reading Comprehension


Using the reading in section 2.3, answer the following questions (short

1. Explain the five needs of Maslows hierarchy.

2. How can you apply Maslows hierarchy of needs to yourself?

English for Science


Professions

answer).

3. Can we describe Maslows hierarchy as steps or a ladder? Why?

4. What is self-esteem?

5. Why do people require self-esteem to be motivated?

36

THE BASICS OF BUSINESS

English for Science


Professions

Terms You Should Know

Word
Ownership
Public Company
Private Company
Liability
Organization
Structure
Hierarchy
System
Sole Proprietorship
Partnership
Stakeholders
Shareholders
Resources
Resource Allocation
Layers
Functional
Frontline
Management
Chart

37

Definition

Notes

English Focus

ideas. Paraphrasing is the best method to use when you want to write a paper using
sources. In academic writing, you should reduce the number of quotations in the
paper. The easiest way to do this is to paraphrase. However, paraphrasing can be

English for Science


Professions

Paraphrasing is writing your own explanation of another persons work or

difficult if you do not practice. It is easy to fall into plagiarizing if you are careless
while paraphrasing.

Switch or change a few words in someone elses sentence and use it in your
own paper (this is considered plagiarism and is very easy to catch).
Paraphrase without citing the source. Even if you write a persons ideas in
your own wording, you have to source where you took the information.
Otherwise, you have plagiarized.
Use exact wording without quotations. If you use an authors exact words, you
must use quotations.

Plagiarism can get you kicked out of university or fired from a job.
Plagiarism is stealing.
If you use common knowledge without sourcing, it is not plagiarism.

Read the original passage several times until you fully understand it. Look up
words that you do not know.
Cover the passage and write it down from memory as if you were explaining it
to your friend.
Compare what you wrote to the original and check whether you have
accurately represented the information without copying the text.

Always cite a source that you use!

38

OPERATIONS

English for Science


Professions

Key Terminologies:
Productivity of Labor
Productivity of Capital

Continuous Flow
Production

Just-in-Time
Jidoka
Poka Yoke
Supply Chain
Economies of Scale
Productivity

Customer
Labor Intensive
Time Consuming
Efficiency
Kaizen

After reading this chapter you will be able to:


1.
2.
3.
4.
5.

39

Operations
Raw Materials
Job Production
Batch Production

Define operations
Explain Gantt charts
Understand production types
Explain efficiency
Define supply chain management

Total Quality
Management

3.1. Production

services. It is the process of converting raw materials into a final product or service.
Operations follow an input-transformationoutput model. Inputs are the raw materials that are
used to create the final product. Transformation is
the process of converting inputs into outputs, the
final product or service. This model, inputtransformation-output, is a simple form of an

Did you know that


service industries also
have the inputtransformation-output
model? Inputs are labor,
transformations are
processing labor, and
services are the

English for Science


Professions

Operations refer to the different activities involved in creating products and

organizations process in creating their final


product. Organizations will generally have models that are more complex.
Operations managers are in charge of this
process. Managers will often use Gantt charts to
help them organize and handle the operations
process. Henry Laurence Gantt, a mechanical
engineer in the early 20th century developed a
chart to show the activities and inputs involved in
operations and projects.
Test yourself
Choose 5 different companies/industries.
Write down the input-transformation-output
for each of them.

A Gantt chart can also be used for project


management. Project managers use Gantt charts
to make their jobs easier and more efficient. You
will need to create a Gantt chart for your class

Fig 3-1
Operations Model

project. Programs like Microsoft Project can help you plan and follow your projects.
Read more about project management at www. pmi.org

40

OPERATIONS
Time frame

English for Science


Professions

Activities

bar

Fig 3-2
Gantt chart

INPUTS
Materials
Raw Materials
Purchased Parts
Supplies
Energy
People
Workers
Technicians
Supervisors
Managers
Maintenance
Custodial
Equipment
Land
Buildings
Machines
Tools
Office Equipment
Computers

TRANSFORMATIONS
Physical
Locational
Storage
Exchange
Informational
Educational
Attitudinal
Physiological

OUTPUTS
Products
Services

Table 3-1
Examples of the Operations Model

Physical or Chemical Manufacturing, chemical processing, oil refining, etc.


Locational Airline companies, trucking companies, package delivery services.
Storage Warehousing operations, banks.
Exchange Wholesale and retail operations.
Informational T.V. news departments, newspapers, computer information services
Educational Schools, colleges, universities.
Attitudinal Entertainment industry, movie companies, theme parks.
Physiological Hospitals and healthcare institutions.

41

1. Saudi Aramco.

2. SABIC.

English for Science


Professions

Look at these five companies and explain the transformation


process in each one (there maybe more than one transformation type):

3. Saudi Airlines.

4. King Fahad University of Petroleum and Minerals.

5. Saad Specialist Hospital

Writing!
Using the words in table 1, describe the operations process for a
computer manufacturer.

42

OPERATIONS

English for Science


Professions

Production, from the verb produce, is the process of producing the final
products (outputs). There are many different systems of production used in
businesses. In this section, we will look at three types of production (1) job production,
(2) batch production, and (3) continuous flow production.

Job production, also known as job shop, is


used when the products are ordered individually
and

are

customized

to

the

customers

specifications. When you order a tailor-made suit


or thobe, the tailor designs the product for your
requirements. This production is known as job
production. Job production is highly customized
and slow. When a customer orders a super car,
like a Lamborghini, it is only built after the order is
made. It is labor intensive and time consuming.

Fig 3-3
Job production

Each product may be different from the other as it is built after the order is placed.

Batch production systems are used when


the products are ordered in batches, rather than
individually. Each batch will differ from the other
batches. For example, a baker makes a batch of
10 chocolate chip cookies and another batch of
plain cookies. Batch production could be used
when orders are not very large. Within the batch,
the products are identical and only differ with
products in other batches.

43

Fig 3-4
Batch production

Continuous flow production, also known as

English for Science


Professions

assembly-line production, uses technology to


mass

produce

products.

The

concept

of

assembly-line production was developed by


Henry Ford in the 1920s with the Model T Ford.
Products that are mass-produced, like the Toyota
Camry, are built with continuous flow systems.
Technology plays an important role in this type of
production to maintain uniformity in the results.

Fig 3-5
Continuous flow production

Match the type of production with the descriptions


1. A company that produces a sports car after you make the order.

..

2. A bakery that makes cookies for a party.

..

3. What kind of production is used to make the Toyota Camry?

..

4. A professor writes a textbook for his university.

..

5. A gaming laptop built for your specifications.

..

44

OPERATIONS

English for Science


Professions

Make complete sentences with the following set of words


1.
batch
cake
order
.
2.
job
shop
car
production
.
3.
tailor
suit
Production
.
4.
continuous
flow
production
pen
.
5.
advantages
continuous
production
.
6.
nowadays
companies
produce
orders
.
7.
mass
production
continuous
.
8.
specifications
computer
Job
.
9.
labor
intensive
Job
.
10.
Model T
uniformity
cars
.

45

3.2. Efficiency

cost. In technical terms, efficiency is using less input to create more output. We can
simply say that efficiency is doing things right. In operations management, efficiency
refers to keeping the cost of production as low as possible to receive the highest
profits while maintaining quality. Effectiveness is completing the tasks that help you
fulfill the organizational goals. We can also say that effectiveness is doing the right

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Professions

Efficiency is the process of getting work done with minimum waste, effort, and

things.
Productivity is the measure of efficiency.
Productivity is the output produced by a given
input (=Output/input).
Productivity of labor is the unit output
divided by the measure of labor input (=Unit
output/ labor input).
Productivity of capital is the sales divided
by the total capital invested in the business
(=Sales/total investment).

Fig 3-6
Efficiency

Total quality management is an approach to long-term success through


customer satisfaction. The concept of TQM is always to make the customer the focus
of every aspect of the business. The simple objective of TQM is do the right things,
right the first time, every time.

One method that managers use to improve efficiency in operations is to


implement the Just-in-Time inventory system. Inventory refers to the stock of
products that the company has available at their location at any time. Just-in-Time
systems only start the production process just in time for the order. This means that

46

OPERATIONS
the supplies needed to manufacture the product arrive on time for the product to be

English for Science


Professions

processed.

The Japanese developed a system of efficiency known as kaizen. In the kaizen


system, every part of the production process is continually improved. The process
involves identifying waste and eliminating it for improved operations.

Jidoka is another Japanese quality control method that involves the automatic
identification of a defect in the manufacturing process and stopping production until
the fault is fixed. Every machine or worker is provided with the ability to immediately
stop the production once a fault is detected.

Poka Yoke, or error proofing, is a system that is known in America as Zero


Quality Control (ZQC). Poka Yoke is a system or device that prevents errors or
mistakes from occurring in the production process. It is a preventive method for
stopping mistakes before they happen.

Which method(s) of efficiency is/are best for the following?


1. Making burgers at McDonald's.
2. Producing the Toyota Camry
3. Developing software
4. Writing a book on MS Word
5. Making cardboard boxes
6. Bottling milk
7. Building customized computers
8. Making the iPhone
9. Manufacturing steel
10. Building an Air Plane

47

Match the definitions


.....

a. Error Proofing

2. Jidoka

.....

b. Continuous improvement

3. Poka Yoke

.....

c. Customer focus

4. Kaizan

.....

d. Identify defects

5. Effectiveness

.....

e. Reduce waste to do things better

6. Efficiency

.....

f. Doing the right things

7. Just-in-time

.....

g. Measuring output through input

8. Productivity

.....

h. Receiving inventory in time for production

English for Science


Professions

1. Total Quality Management

Economies of scale occur when companies buy in large amounts to lower


costs. Capacity utilization is a method that organizations use to measure how well a
company uses its resources. It can be calculated by dividing the actual output by the
maximum potential output multiplied by 100 (= Actual output / (maximum potential
output * 100)).

Reading!

Six Sigma, Kaizen, Lean, and other variations on continuous improvement can
be hazardous to your organization's health. While it may be heresy to say this, recent
evidence from Japan and elsewhere suggests that it's time to question these
methods. Admittedly, continuous improvement once powered Japan's economy.
Japanese manufacturers in the 1950s had a reputation for poor quality, but through
a culture of analytical and systematic change Japan was able to go from worst to first.
Starting in the 1970s, the country's ability to create low-cost, quality products helped
them dominate key industries, such as automobiles, telecommunications, and
consumer electronics. To compete with this miraculous turnaround, Western

48

OPERATIONS
companies, starting with Motorola, began to adopt Japanese methods. Now, almost

English for Science


Professions

every large Western company, and many smaller ones, advocate for continuous
improvement.
But what's happened in Japan? In the past year Japan's major electronics
firms have lost an aggregated $21 billion and have been routinely displaced by
competitors from China, South Korea, and elsewhere. As Fujio Ando, senior
managing director at Chibagin Asset Management suggests, "Japan's consumer
electronics industry is facing defeat. Similarly, Japan's automobile industry has been
plagued by a series of embarrassing quality problems and recalls, and has lost
market share to companies from South Korea and even the United States.
Looking beyond Japan, iconic six sigma companies in the United States, such
as Motorola and GE, have struggled in recent years to be innovation leaders. 3M,
which invested heavily in continuous improvement, had to loosen its sigma
methodology in order to increase the flow of innovation. As innovation thinker Vijay
Govindarajan says, "The more you hardwire a company on total quality management,
[the more] it is going to hurt breakthrough innovation. The mindset that is needed, the
capabilities that are needed, the metrics that are needed, the whole culture that is
needed for discontinuous innovation, are fundamentally different."
So should we abandon continuous improvement? Absolutely not! It has
created tremendous value and still drives competitive advantage in many companies
and industries. But perhaps it's time to nuance our approach in the following ways:
Customize how and where continuous improvement is applied. One size
of continuous improvement doesn't fit all parts of the organization.
Question whether processes should be improved, eliminated, or
disrupted. Too many continuous improvement projects focus so much on gaining
efficiencies that they don't challenge the basic assumptions of what's being done.
Assess the impact on company culture. Take a hard look at the cultural
implications of continuous improvement. How do they affect day-to-day behaviors?
Read the full article: http://blogs.hbr.org/ashkenas/2012/05/its-time-to-rethink-continuous.html

49

Use the previous passage to answer the following questions

a.
b.
c.
d.

We should stop imitating the Japanese methods of efficiency.


We should imitate the Japanese methods of efficiency.
We should never continuously improve.
We should strictly follow six sigma.

2. What can you infer from this passage?

English for Science


Professions

1. What is the main idea of this passage?

a. The author thinks that the Japanese methods do not work in U.S.
businesses anymore.
b. That companies are too obsessed with continuous improvement.
c. That continuous improvement is a Japanese idea.
d. That we should abandon continuous improvement.
3. Which of the following is not a recommendation from the author?
a.
b.
c.
d.

Abandon continuous improvement completely.


Continuous improvement should be customized.
Challenge what is already being done.
Consider the effects on the company's culture.

4. Which of the following would be a good topic statement for this passage?
a.
b.
c.
d.

Six Sigma is a better method to use for continuous improvement.


Continuous improvement does not always work.
Continuous improvement cannot save us.
Companies should not focus all their efforts on continuous improvement.

5. Which of the following is a supporting evidence found in the passage?


a. "But what's happened in Japan?"
b. " Six Sigma, Kaizen, Lean, and other variations on continuous
improvement can be hazardous to your organization's health "
c. It has created tremendous value and still drives competitive advantage
in many companies and industries."
d. Take a hard look at the cultural implications of continuous improvement.

50

OPERATIONS

English for Science


Professions

3.3. Supply Chain Management


A supply chain is the chain that provides the raw materials, partly finished or
completed products to the organization. The supply chain also includes the delivery
of the products to the consumer. Supply chain management is the organization of
the process of getting the product from conception to the consumer. The process of
the supply chain management is to add value for the customers. Value-added is the
process of making the raw materials into a product that the consumers will buy. To
calculate value-added, the cost of raw materials is subtracted from the price the
product is sold (= Price - Cost of Raw Materials). If a company can increase the value
of the product, they can sell it for a higher price.
Customers

Neighborhood Panda Store

Local Panda Distribution Center

External

Regional Panda Distribution Center

Distributors

Internal

Dairy Processing Plant (Nada)

Functions

External
Suppliers

Dairy

Cardboard

Label

Plastic

Farm

Container

Company

Container

Manufacturer

51

Manufacturer

Feed & Grain

Paper

Plastic Film

Chemical

Company

Mill

Company

Plant

Grain

Lumber

Chemical

Farmer

Company

Extraction Plant

Fig 3-7
Supply Chain for a Dairy Plant

Tier One

ARAMCO

Tier Two

Tier Three

Tier Four

Writing!
English for Science
Professions

Explain and describe the supply chain for a fast food restaurant like
McDonalds.

Describe the supply chain for the following companies.


1. McDonalds

2. Tamimi

3. Toyota

4. Toshiba Laptops

5. Clothing retailer

6. Book publisher

52

OPERATIONS

English for Science


Professions

Match the terms with the correct definitions


1. Supply Chain

.....

a. An idea

2. Value Added

.....

b. The organization of the product from manufacture to sale

3. Consumer

.....

c. The steps to complete an action

4. Raw Materials

.....

d. Turning raw materials to a product

5. Conception

.....

e. Materials needed to make a product

6. Process

.....

f. Person who may buy the product

Correct and rewrite the sentences below


1. Supply chain management is process of add value.

2. Consumers buy product from retailers. Who get it from suppliers?

3. Materials Raw are needed make products.

4. To calculate, value added subtract cost of raw materials from price.

53

3.4. Exercises

1. Why is supply chain management important?

2. What are the types of methods used to increase efficiency?

English for Science


Professions

Exercise 1: Short-Answer Questions

3. Explain the three types of production methods mentioned in this chapter.

Exercise 2: Critical Thinking Question


Khalid owns a popular restaurant. He wants to increase his production
capacity while improving his efficiency. Write a letter to Khalid explaining how he can
meet his goals.

Exercise 3: Terminologies
Search for the business terminologies in the chapter to fill in the blanks for the
following passage:
The first step in production is obtaining .. which are
unprocessed. There are three different types of production. .. is when a
product is made as the customer orders it, and is made according to the customers
requirements. .. is when a customer orders a group of products with the
same specification, like cookies. The goal of operations management is to make the
entire production process .. in order to reduce waste.

54

OPERATIONS
Exercise 4: Reading Comprehension

English for Science


Professions

Using the reading in section 4.2, answer the following questions (short
answer).
1. What is the main idea of this passage?

2. Explain the three suggestions made by the author in the passage.

3. What examples does the author give to support his argument?

4. Is the author completely opposed to continuous improvement?

5. What is the thesis statement in this passage?

Writing!
How can you apply the concepts of efficiency in a factory that makes
Pepsi?

55

How would you make your university more efficient?

English for Science


Professions

Discuss!

56

OPERATIONS

English for Science


Professions

Terms You Should Know

Word
Operations
Raw Materials
Job Production
Batch Production
Continuous Flow Production
Customer
Labor Intensive
Time Consuming
Efficiency
Productivity
Productivity of Labor
Productivity of Capital
Total Quality Management
Just-in-Time
Kaizen
Jidoka
Poka Yoke
Supply Chain
Economies of Scale

57

Definition

Notes

English Focus

paragraph like an essay, with a thesis statement, a body, and conclusion. The topic
sentence is like the thesis statement in an essay. The body of the paragraph is the
sentences that provide the explanations, supporting details, and analysis. The
conclusion of the sentence is the transition or conclusion of the paragraph.

English for Science


Professions

A topic sentence is like a thesis statement for a paragraph. Think of a

A strong topic sentence should be at the start of the paragraph, but this is not
required. The topic sentence can be the second or third sentence. It is better to keep
the topic sentence early in the paragraph so that the reader can be focused on the
information of the paragraph. This sentence focuses on a specific issue that is
discussed in the paragraph. The topic sentence does not contain any quotations.

In this article, Breaking the Bandwidth Barrier, Chen clearly explained the
effectiveness of optical Ethernet with the use of the charts that explained how capital
expenditure and direct operating costs are affected with the use of MAN in metro areas.

The topic sentence should provide the reader with an introduction to the details
in the paragraph. You should not mistake the topic sentence for a hook. A hook is a
sentence captures the readers attention and keeps them interested in reading the
remainder of your paper. The hook will appear in the same paragraph as the thesis
statement.

58

MARKETING

English for Science


Professions

Key Terminologies:

After reading this chapter you will be able to:


1. Define marketing terms
2. Understand product strategies
3. Explain product placement and market
mapping

59

Marketing
Advertising
Sales
Marketing Mix (Four P's)
Customer Needs

Withdraw
Niche Marketing
Decline
Mass Marketing
Product Life Cycle

Target Market
Product Placement
Market Map
Strategy
Market Segmentation

Prototype
Advertising Campaign
Market Share
Boston Matrix

4.1. Fundamentals of Marketing

services to the consumer. There is a difference between marketing, advertising, and


selling. Marketing is the process of developing the brand, the packaging, and
everything involved in the appearance of a company, product, or service. Advertising
is the activity involved in conveying the message of the product to the consumers. In
other words, we can say that advertising is the process of convincing the consumer

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Marketing is the process of advertising and selling a companys products or

to purchase your product. Advertising is a function of marketing and can take many
forms. Sales are a direct approach that is centered on the process selling the product
to the consumers.

The four main parts of marketing is known as the marketing mix. The
marketing mix is also referred to as The four Ps:
1. Product- the final output of the company.
2. Promotion- the method that the product is promoted.
3. Price- the amount that the product is sold.
4. Place- where the product is sold.

Marketers must make sure that the


product meets the customers needs. In order
to know what the customers need, marketers
have to conduct market research. The first
step is to identify the target market. Once a
company decides whom they will target their
product to they will have to conduct a product
placement. In order to do this, they will use a

Fig 4-1
The Marketing Mix

market map. A market map is a tool that

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MARKETING
businesses use to help them decide how they want their product to be seen by the

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consumers.

Fig 4-2
Market Map

Reading!

Businesses rely on solid marketing strategies to boost salesyet the tools


used to evaluate these strategies often provide misleading results, leaving managers
with the inability to accurately measure how they can get the best bang for their
marketing buck. Thomas J. Steenburgh, an associate professor in the Marketing Unit
at Harvard Business School, has developed a new analytical tool that more
accurately measures the effectiveness of various marketing efforts. He created the
model with Qiang Liu, an assistant professor of marketing at Purdue University, and
Sachin Gupta, the Henrietta Johnson Louis Professor of Management and professor
of marketing at Cornell University.
Steenburgh believes that the model could help brand managers determine
which marketing strategies work best to invest in. "Companies really need to pay
attention to the effectiveness of their marketing instruments," Steenburgh says. "They

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need to look at whether they're creating new customers or whether they're just
drawing customers away from competitors. It's a fundamental question in the field,

When planning marketing campaigns, brand managers have a wide portfolio


of weapons to draw on, including in-store merchandising, advertising, coupons and
sweepstakes, trade promotions, prices, and deployment of a direct sales force. The
key is crafting the right mix between themthe ideal brew needed to achieve sales

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and this model helps measure that."

and market share goals. The trick is that each marketing effort affects consumer
behavior in different ways, and also prompts different types of responses from
competitors. Some activities result in expanding demand across an entire category
of products. Take for example the "Got Milk" advertising campaign, which is intended
to increase demand for a category of products, milk. In contrast, an advertisement
that points out how one brand is better than a competitor's brand has the goal of
encouraging consumers to switch products within a particular category.
If a business seeks to grow demand for a category of products, the effort may
not elicit much of a reaction from its competitors; after all, if the entire category grows
the rising tide lifts all boats. But a competitor's reaction is typically quite different when
a company attempts to move in on its market share, perhaps by offering price
discounts. Since this strategy is viewed as more threatening, the competitor can be
expected to retaliate with prejudiceoften by firing off a campaign to win back many
more customers than it lost.
Measuring the different effects of these marketing strategies can help brand
managers make the right decisions about which strategies to use in their marketing
mix. Steenburgh, Liu, and Gupta argue that the tools that have been used in the past
to analyze the effectiveness of different marketing activitiescalled discrete choice
modelscan skew the results and misguide brand managers. Traditional discrete
choice models are flawed because they make it appear as if all marketing activities
produce the same results, the researchers contend. In reality, differences between
various marketing instruments are often significant. The cause of these flawed results

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comes from what is called the Invariant Proportion of Substitution (IPS) property,

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which implies that the proportion of demand generated by taking business away from
a competitor is the same, no matter which marketing activity is used.
"These models get run all the time in academics," Steenburgh says. "There
has been some talk at conferences where there seems to be an understanding that
these models are too restrictive."
Read the entire article: http://hbswk.hbs.edu/item/6828.html

Answer the following questions using the previous reading


1. What is the main idea of the passage?
a. Companies need to understand the marketing mix correctly.
b. Companies need more cash cows.
c. Businesses need more models that run all the time in academics.
d. There is a lot of talk at conferences on the marketing mix.
2. Steenburgh believes
a. That his model is better than Qiang Liu's model.
b. That his model can make it easier for managers to develop their
strategies.
c. That his model can make more cash cows for people.
d. That his model gets run all the time in academics.
3. The author states that
a. Steenburgh, Liu, and Gupta are always arguing about strategy.
b. Different marketing strategies should be measured to make better
decisions.
c. It is a waste of time to use the marketing mix.
d. The "Got Milk" is the best advertising campaign.

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Use the information in the previous pages to answer the following

a. Price.
b. Product.
c. Labor.
d. Promotion.

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1. The marketing mix is not made up of

2. A target market is
a. The group of people that the company wants to sell to.
b. The store that the company wants to sell to.
c. The name of a store.
d. A place companies sell their products.
3. A market map is used for
a. A treasure hunt.
b. Product placement.
c. Satisfying consumer needs.
d. Nothing.

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4.2. Marketing Strategies


A strategy is an action plan that managers use to reach their goals. One
important strategy that marketing managers use to place their products in the market
is called market segmentation. Segmenting the market simply means categorizing,
or dividing, the market into parts based on different types of consumers (segments).
For example, wealthy, older, popular culture, luxury, etc. Consumer markets can be
segmented on many different characteristics, such as geographic (location),
demographic (age, gender, etc.), psychographic (the way people think), and
behaviorist (how people act).

Managers can choose to serve a small or


limited group of segments. This type of strategy is
known as focus strategy or niche marketing. A
Lamborghini Diablo is not advertised or priced for
a large market, only a few people would buy one.
Fig 4-3
A niche market appeals to a smaller group of
consumers.

Managers can choose to serve an entire market. This type of strategy is known
as broad strategy or mass marketing. The Toyota Camry is marketed to a mass
market. The advertising strategy, prices, promotions, etc. are all targeted to a very
broad, or wide, market.

Every product and service has a life cycle. The product life cycle is the stages
that the product goes through from its development to withdrawal from the market. In
other words, the product life cycle is the life of the product from birth to death. The
product life cycle chart shows the sales of the product over time. There are six stages
of a products life cycle. Figure 6-4 shows these stages.

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Sales
Introduction

Growth

Maturity

Saturation Decline

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Development

Time
Fig 4-4
A typical product life cycle

In the development stage of the product life cycle, the product is created. The
company studies different ideas by doing market research. The company will
conceptualize, they will think up new ideas, and try to create a product that meets the
demands, or needs, of the consumers. The company will also test the product and
create a prototype (a test product). In this stage, costs are high and the company
does not make money.

The product is launched at the introduction stage. Businesses spend a lot of


money in this stage because of their advertising campaigns. A lot of money is
invested into marketing the product to introduce the product and convince consumers
to purchase it. In this stage, the costs are high and the company makes less money.

After the product has been launched and people become more familiar with it,
the product experiences growth in sales. More people start to purchase the product,
which makes it cheaper to produce. As the supply (amount available to sell) goes up,

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the cost of production is lower. At this stage, the costs are lower and the company

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makes more money.

By this stage, competition has entered into the market. Other companies will
now want to make their products to compete. The companys product is established
in the market. We can say that the market has stabilized, meaning the consumers
are aware of the product and our market share is high. Sales may peak (stop
growing). The company should break-even (Costs = Profits).

In the saturation stage, the market is likely to be flooded. As more companies


enter the market, there may be too many competitors fighting for market share. The
amount of profit made will start to fall and the margins will be lower. By this stage, the
company has to decide whether to leave the market (exit) or develop the product
further.

In the final phase, fewer people will buy the product. Sales will decline and the
cost to keep the product in the market will increase. The company will have to
withdraw the product from the market or develop it.

Fig 4-5
A detailed product life cycle

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Answer the following questions


1. In the decline stage, a product
Loses market share and profit.
Loses market share, but not profit.
Gains market share, but loses profit.
Gains market share and profit.

2. An example of a product that is based on a focused strategy is


a.
b.
c.
d.

Colgate toothpaste.
IPad 2.
Lamborghini Diablo.
Toyota Yaris.

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a.
b.
c.
d.

3. A broad strategy is used when companies want to


a.
b.
c.
d.

Sell to a mass market.


Sell to a niche market.
Stop selling their products.
All of the above.

4. When a company withdraws its product, it is in the


a.
b.
c.
d.

Introduction stage.
Maturity stage.
Decline stage.
Saturation stage.

Match the terminologies with the correct definition


1. Demands
2. Launch
3. Prototype
4. Phase
5. Peak
6. Break-even
7. Purchase
8. Withdraw

.....
.....
.....
.....
.....
.....
.....
.....

i. A test product
j. To remove
k. Want or desire something
l. To buy something
m. When costs equal profits
n. To start selling a new product
o. Stage
p. The highest point

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4.3. Boston Matrix


The Boston Matrix is a tool that was developed by the Boston Consultancy
Group in 1968. It is also known as the BCG Matrix. The Boston Matrix is a tool used
to analyze the product portfolio and inform marketing managers about possible
marketing strategies. The Boston Matrix links the growth rate, market share, and cash
flow in a matrix.

Fig 4-6
The Boston Matrix

Star products are in markets that are experiencing high growth rates (more
customers entering in the market) with increasing market share (the amount of sales
a company has in the market). Star products require investment to keep the market
share high. If the market share falls, the product will become a problem child. An
example of a star product is the iPad.

Cash cows have high market shares in markets that are not growing. A product
that is a cash cow is often in the maturity stage of the product life cycle and requires
very little financial support. Companies want to have cash cows because they make
money with little investment. Coca Cola classic is an example of a cash cow.

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Problem children, also known as question marks, are products that have a low

lot of money in advertising and development to turn the problem child into a star. An
example of a problem child product is the Blu-ray disc.

A dog is a product that has low market share in a stagnant market. A dog is in

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share in a growing market are known as problem children. Companies must spend a

a market that is not growing (possibly in the decline stage of the PLC) and loses
money. Managers have to either sell the product or discontinue it. Windows Vista is
an example of a product that is a dog.

Reading!
The growth share matrix is a framework first developed by the Boston
Consulting Group (BCG) in the 1960s to help companies think about the priority (and
resources) that they should give to their different businesses. Also known as the
Boston matrix, it puts each of a firm's businesses into one of four categories. The
categories were all given memorable namescash cow, star, dog and question
mark, which helped to push them into the collective consciousness of managers all
over the world. The two axes of the matrix are relative market share (or the ability to
generate cash) and growth (or the need for cash).
Cash cows are businesses that have a high market share (and are therefore
generating lots of cash) but low growth prospects (and therefore a low need for
cash). They are often in mature industries that are about to fall into decline.
Stars have high growth prospects and a high market share.
Question marks have high growth prospects but a comparatively low market share
(and have been known as wild cats).
Dogs, by deduction, are low on both growth prospects and market share.
The conclusions drawn from such an analysis are to transfer the surplus cash
from a conglomerate's cash cows to the stars and the question marks, and to close
down or sell off the dogs. In the end, question marks reveal themselves as either

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dogs or stars, and cash cows become so drained of finance that they inevitably turn

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into dogs. The trouble with this colorful schema is that classifying businesses in this
way can be self-fulfilling. Knowing that you are working for a dog is not particularly
motivating, whereas working for an acknowledged star usually is. Moreover, some
companies misjudge when industries are mature. This may lead them to decide that
businesses are to be treated as cash cows when they are in fact stars. One such
industry was consumer electronics. Considered by many to be mature in the 1970s,
it rebounded in the 1980s with the invention of the CD and the VCR. Not, however,
before some companies had consigned their electronics businesses to the fate of the
cash cow.
The growth share matrix has been blamed for persuading companies to focus
obsessively on market share. In a world where markets are increasingly fluid, this can
blind them to the bigger picture. If Lego, for example, considered its market to be
mechanical toys, it would miss the fact that it also competes with companies such as
Nintendo for a share of young boys' attention. The growth share matrix started a
fashion for matrices among management consultants. For a while, no self-respecting
report or theory was complete without one. Like many leading figures in the world of
management theory, Bruce Doolin Henderson, the founder of the Boston Consulting
Group (and the man most responsible for the Boston matrix), was an engineer. One
of his favorite quotations was a saying of Archimedes: Give me a lever and a place
to stand, and I'll move the world. He believed that while most people understand
first-order effects, few deal well with second-and third-order effects. Unfortunately,
virtually everything interesting in business lies in fourth-order effects and beyond.
Henderson worked for Westinghouse Electric Corporation before joining the
Arthur D. Little management consultancy. He left ADL in 1963 to set up the Boston
Consulting Group, which rapidly established a reputation as the prime strategic
consultancy. On his death in 1992, the Financial Times said: Few people have had
as much impact on international business in the second half of the 20th century.
Adapted from: Hindle, T. Management Ideas and Gurus. The Economist.

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Answer the following questions using the previous reading passage

a.
b.
c.
d.

The Growth Share Matrix was developed by BCG.


The Cash Cow is the best product.
The Growth Share Matrix is also known as the Boston Matrix.
The Growth Share Matrix is a tool that can be used to help develop strategies.

2. What can be inferred from the passage?

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1. What is the main idea of this passage?

a. Companies spend too much time focusing on the Boston Matrix.


b. Companies don't spend enough time focusing on the Boston Matrix.
c. There is no need to classify products into cash cows, dogs, stars, and question
marks.
d. Henderson worked for Westinghouse Electric Corporation.

3. What has the Growth Share Matrix been blamed for?


a.
b.
c.
d.

Classifying products into dogs.


Making companies focus too much on market share.
Making companies think that their products are cash cows.
Convincing companies to sell their star products.

4. What does the passage say about dogs?


a.
b.
c.
d.

They make good pets.


They are products that have low market share only
They are in markets that have low growth only.
They are products with low market share in low growth markets.

5. Question marks are also known as


a.
b.
c.
d.

Wild cats.
Wild children.
Problem cats.
Stars.

6. What is true about Henderson?


a.
b.
c.
d.

He founded the Westinghouse Electric Corporation.


He was responsible for the Boston Matrix.
He invented the Archimedes principle.
He was a marketing manager.

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4.4. Exercises
Exercise 1: Short-Answer Questions
1. Explain the Boston Matrix

2. Explain the Product Life Cycle

3. Explain the Marketing Mix

Exercise 2: Critical Thinking Question


How can you combine the Boston Matrix, Product Life Cycle, and Marketing
Mix to create strategies?

Exercise 3: Terminologies
Search for the business terminologies in the chapter to fill in the blanks for the
following passage:
When a product is first introduced into a market, we say that the product is
. The product will go through several . in the
product life cycle. The . stage occurs when the product starts to
lose money, and should be removed from the market. Companies that are in the
. stage face a lot of competition from companies that have entered
the market. If a company does not try to improve its advertising campaign, they will
lose market .

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Exercise 4: Reading Comprehension


Using the reading in section 6.1, answer the following questions (short

1. What is the main idea of the passage?

2. What is the thesis statement of the passage?

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answer).

3. What type of magazine would this article be published in?

4. Who are the intended audience for this passage?

5. Compare the writing style in the passage in 6.1 to the passage in 6.2, what
similarities and differences do you find?

Exercise 5: Reading Comprehension


Using the reading in section 6.3, answer the following questions (short answer).

1. According to the passage, what is the growth share matrix?

2. What is the main idea of the passage?

3. Who founded the Boston Consultancy Group?

4. What does the passage state about Cash Cows?

5. What does the passage state about Question Marks?

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Terms You Should Know


Word
Marketing
Advertising
Sales
Marketing Mix (Four P's)
Customer Needs
Target Market
Product Placement
Market Map
Strategy
Market Segmentation
Withdraw
Niche Marketing
Decline
Mass Marketing
Product Life Cycle
Prototype
Advertising Campaign
Market Share
Boston Matrix

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Definition

Notes

English Focus
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Professions

Clarity in writing is extremely important. You may be able to get some grammar
help from Microsoft Word, but word processors cannot help you with your ideas or
your arguments. The subject is like the heart of the sentence. If the reader does not
understand what or who the subject is, they will not be able to follow the idea of the
sentence. As you have learned in your basic grammar classes, the verb will explain
or specify the actions related to the subject.

Businessmen often invest a lot of money in advertising.


Can you identify the subject and verb in this sentence?
Creating an emphatic sentence is important to clarity. Look at the following
sentences:
The intention of the business was to invest in advertising. A plan was also
proposed to expand the target market.
These sentences are grammatically correct, but they are unemphatic (They do
not have emphasis on the subject). These two sentences do not place any focus on
the subject, therefore, they are unclear sentences.
The business intended to invest in advertising. It proposed a plan to expand
its target markets. In this revision, the subjects are emphasized and the actions are
clear and concise.

The passive voice is unemphatic. It focuses the actions received by the


subjects instead of being done by the subjects. The passive voice removes the focus
from the subject and places it on the action. It is always best to use the active voice
in your writing when you want to focus on the subject.
Passive voice: The car was destroyed in the accident.
Active voice: The accident destroyed the car.

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FINANCE & ACCOUNTING

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Key Terminologies:
Accounting

Income Statement

Finance

Auditing

Capital

Balance Sheet

Limited Resources

Liabilities

Budget

Cash Flow Statement

Revenue

Financial Year

Cash Flow

Expenses

Profit

Assets

Investment

Annual

Cost Benefit Analysis

After reading this chapter you will be able to:


1. Understand the difference between
finance and accounting
2. Define financial terms
3. Explain financial statements

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5.1. Fundamentals of Accounting


financial events. Finance is the process of interpreting financial events into strategies,
determining where and how a company will get its capital and how it will use it.

Capital refers to the money or other asset (property of a person or business) used in
operating a business in order to get income. Companies need capital in order to run the

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Accounting is the process of recording, classifying, summarizing, and interpreting

business. Since capital is a limited resource, businesses will create a budget to show the
amount of money to be spent and the likely revenue (money earned from sales) in the coming
year. A budget is also used to distribute or divide capital within the company. Cash flow is
the money that goes in and out of the company. Cash flow is positive when more money
goes in than out. Companies increase cash flow by selling more products, selling assets,
reducing costs, or raising the selling price.

A cost is the money that is spent to purchase or pay for something. For example, the
money spent on raw materials is considered a cost. There are different types of costs
involved in businesses. Fixed costs are costs that do not change because of production. The
cost of renting a building does not change if you make 100 units or 1000 units. Variable costs
are costs that change based on the amount that is produced. If a company makes 1000 units,
the cost per unit is lower than if they made 100 units.
Omars pizzeria makes 50 pizzas a day. The cost of rent is

Example

$500 a month. Omar has five employees whom he pays a total of $150,000 annually. In order
to make 50 pizzas, Omar needs two boxes of dough, which costs $100. The sauce for 50
pizzas costs $30. The marginal cost (the cost for a single pizza) is $3 without including the
fixed costs. If Omar wants to make 100 pizzas a day, he has to buy four boxes of dough and
more sauce. When he buys more quantities, or amounts, from the supplier, he receives a
discount of $30. When a company buys larger quantities, the price is reduced (this is known
as economies of scale). Therefore, if Omar makes 100 pizzas a day, the marginal cost is
$1.2 without including the fixed costs. The costs changed based on the amount of pizzas
made.

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Profit is the money made from a sale after the subtraction of costs (=sales (or
revenue)-costs). In the example above, lets say that Omar sells each pizza for $10.
Assume that Omar pays his fixed costs after each month, if he sold 50 pizzas a day,
what would his profit be for one day? What about one month? Lets say he sold 100
pizzas a day, what would his profit be for one month?

Omar wants to increase his profits. It costs him $50 for the materials
to make 100 pizzas. His fixed costs are $2000 a month. He sells an
average of 300 pizzas a month. He sells each pizza for $10. How can Omar
increase his profits by the end of the year?

Match the terms with the correct definition


1. Fixed costs
2. Variable costs
3. Budget
4. Marginal cost
5. Profit
6. Finance
7. Accounting

79

.....
.....
.....
.....
.....
.....
.....

q. Yearly
r. Purchasing larger quantities for a lower price.
s. Money or wealth.
t. Costs that do not change with production.
u. Money made after subtracting costs
v. Money put into a company
w. An individual product

8. Capital
9. Investment
11. Unit
12. Annually
13. Economies of scale
14. Cash flow
15. Quantities

x. Money that goes in and out of a company


y. Costs that change when production changes
z. Amounts
aa.

How much money is spent

bb.

The cost of a single unit

cc.

recording and interpreting financial data

dd.

Money made from sales

ee.

Interpreting financial data into strategies

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10. Revenue

.....
.....
.....
.....
.....
.....
.....
.....

Fix the mistakes in the following sentences


1. Costs that do not change is fixed with production.

2. Companies will publish income statement every year.

3. A Budget is used to planning how money is spent.

4. Business man invest their money in business to get a retuning on their


investments.

5. Buying in large quantity can give you economies of Scale.

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5.2. Managing Financial Accounts


There are many different ways that companies analyze and manage their financial
information. Managers use this financial information to help them plan for strategies or check
their current position.

A cost benefit analysis is a technique that is used to compare the various costs with
the possible benefits associated with an investment. A cost benefit analysis is done when a
manager or an organization wants to decide whether to invest in a project or a purchase. If
the cost is greater than the benefit, then the business will not go through with the investment.

An income statement, also known as a profit/loss account, is a financial statement


that gives the income (money earned), cost, and expenses (money spent regularly, like rent)
incurred during a specific period (like a year, or 6-months, etc.). An income statement is a
legal document, meaning it can be used in court or by the government when investigating or
auditing a company. The purpose of an
income statement is to show whether a
business has made a profit or a loss
over a specific period and how they
made the profit or loss.

Income: The money that the


company earns from their
operations
Operating expenses: Money
that the company spends in
order to produce goods or
services
Operating Profit: Income minus
operating expenses
Profit Distribution: How the
profits are distributed amongst
the shareholders, within the
company, or on taxes.

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Fig 5-1
Income Statement for the Bank of Tanzania

A balance sheet is a financial statement that summarizes a companys assets

money), capital and resources (known as equity), and net value at a specific point in
time. In simple terms, a balance sheet compares what we have to what we owe.
Assets: What the company
owns
Current Assets: Cash,
inventory, and investments
Total Assets: Current Assets +
Long term assets.
Liabilities: What the company
owes, debts, etc.
Current Liabilities: Short-term
debt.
Total Liabilities: short-term
plus long-term debt.
Stockholders Equity: The
money that the company owes
to the investors.

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(everything a company owns), liabilities (what the company owes, example: borrowed

Fig 5-2
An example of a balance sheet

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A cash flow statement is required for a product life cycle. It provides


information on how the company was able to finance its activities. In other words, a
cash flow statement shows where
the money came from and where
the money went.
Operations: Money used to
produce the goods and
services and run the
business
Investing activities: The
money invested in business
activities.
Financing activities: The
source of capital

Fig 5-3
An example of a cash flow statement

Look online for the balance sheets and income statements of:

1. Wal-Mart
2. Apple
3. Ford

Compare and contrast these two statements. What can you learn from these
statements?

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Additional practice: Compare these statements to a local company like ARAMCO.

Match the terms with the correct definition


.....

a. Everything the company owns

2. Liabilities

.....

b. What the company owes

3. Assets

.....

4. Operating profit

.....
.....

c. A financial statement that summarizes what


the company owns and owes
d. Money earned

5. Income

e. A financial statement that shows money earned


f. Money owed to shareholders

9. Equity

.....
.....
.....
.....

10. Income statement

.....

j. A study of expenses versus benefits

11. Balance sheet

.....

k. A statement that shows how to finance a project


or product

12. Cost Benefit Analysis

.....
.....

l. Sources of capital

6. Auditing
7. Investing activities
8. Financing activities

13. Cash flow statement

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Professions

1. Operations

g. Money invested in business activities


h. Money used to run the business
i. Investigating a company

m. Income minus operating expense

Fill in the blanks using what you learned from this chapter
1998
amount
1
2

...
. Assest
Property, plant, equipment
other assests
total assests

20,230
12,335
27,355
59,920

current liabilities
long term liabilities
stockholder's
total liabilities

16,379
27,344
16,197
59,920

...

HINT: Liabilities Current - Equity - Assets

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5.3. Types of accounting

There are two types of accounting, financial and managerial. Financial


accounting describes the performance of a business over a specific period (usually
one year- annual). Financial accountants look at the end of the period, known as the
end-date. For example, the fiscal (financial) year of 2012 refers to the end of the
financial year.
Financial accounts concentrate on the total sales and activities of a business
rather than analyzing specific components of the business. Most financial accounting
information is related to monetary transactions. Financial accounting represents the
historic perspective on the financial performance of the business. Financial
statements are primarily used for external groups or people, such as investors,
creditors, and the government.

Management accounts are used to help businesses record, plan, and control
the activities of a business and to assist in the decision-making process. It is focuses
on analyzing the historic performance to predict future performance (like budgets).
Management accounts can be written and prepared at any time and there are no
legal requirements. There is no specific format for management accounts. Generally,
management accounts focus on specific areas of business activities, like the product
life cycle. Usually, there is a wide variety of non-financial information included in
management accounts. This type of accounting is internal and only viewed within the
company.

Reading!
Whatever the disagreement over the precise objectives of financial
statements, there probably is general agreement that they are supposed to report the
economic events and the economic status of a n enterprise as realistically as

85

possiblethey are supposed to tell it like it was. The essence of the current debate
between the historical-cost advocates and the proponents of replacement cost is, I

What really does happen in the company about which the financial statements
report? Some companies grow and prosper and other companies are less
successful and fail. The factors responsible for prosperity or failure are complicated,
and the actual financial statements reflect this complexity.
In order to focus on the accounting issue, we must separate out the influence

English for Science


Professions

believe, a disagreement on what actually constitutes economic reality.

of extraneous factors. We can do this by looking at a steady-state company, one that


neither grows nor shrinks, but remains at a constant level of production and unit sales
indefinitely.
We can then test alternative accounting concepts by examining whether they
accurately report this steady-state situation. The essential characteristic of such a
company is that its revenues will just equal all its costs, including the cost of capital.
If revenues exceed all costs, the company will grow. If they are less than costs, the
company will shrink. Therefore, if, under one accounting concept, the income
statement reports that a steady-state company is growing or shrinking, then we know
that this concept does not provide a realistic picture.
Read the full article: http://hbr.org/1976/11/a-case-for-historical-costs/ar/1

Answer the following questions using the previous passage


1. The word prosper means
e.
f.
g.
h.

to do better.
to do worse.
to stay the same.
to make less money

2. The word indefinitely means


a.
b.
c.
d.

unsure.
without an end.
with an end.
not definitely.

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FINANCE & ACCOUNTING

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3. The author states that


a. the goal of financial statements is to report on economic events.
b. that financial statements are not useful.
c. people always disagree that financial statements report on economic
events.
d. all of the above.

Fill in the blanks using the words provided below


Margin

Equity

Decline

Profitability

During 1997 and 1998, Viacom experienced a sharp . in its Net Income
from a net profit of $733.60 million to a net loss of $149.60 million. Viacom also had a
$700.00 million decrease in Current Assets, from $5,713.50 to $5,064.50, and a decrease in
Stockholders . from $13,383.60 to 12,049.60, while increasing Current
Liabilities by $600.00 million. Concerning profitability, Viacom had a decrease in Profit
. from .0687 to -.0124, and a decrease in Return on Equity from .0565 to -.0118.
Although both Viacom and the Entertainment Industry experienced a decrease in
. taking a closer look reveals that Viacom experienced a much larger decrease.
The Entertainment Industry only decreased in Profit Margin from .0257 to .0214, and in
Return on Equity from .0284 to .0185.

5.4. Exercises
Exercise 1: Short-Answer Questions
1. What is the difference between financial and managerial accounting?

2. What is the difference between income statements and balance sheets?

3. What is the difference between legal documents and internal documents?

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Exercise 2: Critical Thinking Question


How can companies use balance sheets to increase profitability?

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Professions

Exercise 3: Terminologies
Search for the business terminologies in the chapter to fill in the blanks for the
following passage:
A . sheet compares the . and liabilities of a firm. An
. statement shows the profits earned after subtracting the . from
the revenue. Companies use these financial . to judge their companys
performance. Some of these statements are . which means they have to be
published by law and some of them are internal, which means they are only seen by the
company.

Exercise 4: Reading Comprehension


Using the reading in section 8.3, answer the following questions (short
answer).
1. What is the main idea of the passage?

2. What are the authors supporting arguments?

3. Find the meanings of the bolded words and replace them with synonyms.

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FINANCE & ACCOUNTING

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Terms You Should Know

Word
Accounting
Finance
Capital
Limited Resources
Budget
Revenue
Cash Flow
Profit
Investment
Cost Benefit Analysis
Income Statement
Auditing
Balance Sheet
Liabilities
Cash Flow Statement
Financial Year
Expenses
Assets
Annual

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Definition

Notes

English Focus

a reminder of your points, the importance of your paper, and a bigger picture of what
you have written. The conclusion should never contain additional information that is
not in the paper.

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Professions

The conclusion is a summary of your paper. It should provide the reader with

The conclusion is generally a paragraph or two that is written at the very end
of the paper.
Write a good conclusion:
1. Restate the thesis with different wording

2. Compile the main points

3. Remind the reader of the importance of your paper

4. Make sure the reader feels that the paper has come to an end

5. Do not present any new information

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LEADERSHIP
Key Terminologies:

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Leadership
Creative
Theory X
Theory Y
Participative
Authoritarian
Influence
Interaction
Behavior
Goal

After reading this chapter you will be able to:


1. Understand leadership terms
2. Explain the types of leadership
3. Apply leadership terminology to business

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Theories
Rewards
Punishments
Control
Ability
Sustainability

6.1. What is Leadership?


researchers have been studying these factors that make people good leaders. Are good
leaders born that way? Or can you learn to be a good leader?

Can you learn to be a good leader? How?

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Many people have an idea of what makes a person a good leader. For many years,

Leadership is defined as the ability, behavior, influence, and interaction skill of a


person with others (Yukl, 1989). The job of a leader is to guide people to a common goal.
Companies are always looking for creative leaders to guide their business and to have
sustainability (keeping the business running).
(Reference: Yukl, G. (1989). Managerial leadership: A review of theory and research. Journal of
Management, 15(2), 251-289. doi:10.1177/014920638901500207)

What are the factors that make a good leader?

Based on your class discussion, fill in the diagram below

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LEADERSHIP

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6.2. Theory X and Y


In 1960, Douglas McGregor studied different theories on how people behave at work.
The result of his studies were that there are two basic ways to manage people and get them
to work. In his book, The Human Side of Enterprise, he called his theory, "Theory X and Y".

Theory X leaders are authoritarian, which means that they like to exercise their power.
They believe that the average person does not like to work, or is lazy. Therefore, we have to
punish them if they do not do any work. A theory X leader believes that people want to be
told what to do, and if they are not told what to do, they will not do anything at all.

Theory Y leaders are participative, which means they like to get involved with their
workers and take part in the job. Theory Y leaders consider work to be more like play. They
believe that people will control themselves and work on their own without any punishments,
if they do well, they get rewards. The theory Y leader considers people responsible for
themselves and believes that they like to have control over their own work.

Fig 6-1
Theory X and Y Leadership

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6.3. Unethical Leadership


Enron began to inflate their assets and profits and fabricate entries on their financial
statements by placing debts and losses into false entities. Enron used eccentric financial
transactions to remove the unprofitable entities off the company's financial statements and
their books.
Rumors began to spread about the bribes and illegal dealings within Enron. Irregular

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Enron was formed in 1985 through the Houston Natural Gas merger with Internorth.

accounting practices arose throughout the nineties with the accounting firm, Arthur Anderson.
In November of 2001, Enron was about to be the largest bankruptcy in history. In December
of 2001, Enron filed for bankruptcy and the Enron scandal was revealed in 2001 and a
criminal investigation was embarked upon by United States Department of Justice in 2002.
Kenneth Lay and Jeffrey Skilling went on trial in January 2006. Both, Kenneth Lay
and Jeffrey Skilling were former CEO's of Enron. The indictment includes major financial
crimes such as, bank fraud, making false statements to banks and auditors, securities fraud,
wire fraud, money laundering, money laundering conspiracy and insider trading.
Kenneth Lay pleaded not guilty to the eleven criminal charges under the pretense of
'being influenced by the people around him'. The SEC sought $90 million in civil fines.
Kenneth Lay and Jeff Skilling were indicted for securities and wire fraud in July, 2004.
Kenneth Lay was convicted on all six counts and Skilling on 19 of 28 counts on May 25, 2006.
Paula Rieker (Former managing director of investor relations for Enron) pleaded guilty
in federal court to criminal insider trading. Rieker's charge carries a maximum penalty of ten
years in prison and a $1 million fine.

Based on the information from this chapter, answer the following


questions
1. What did the leaders of Enron do wrong?

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2. Based on the factors you discussed in class, how do you think the leaders
of Enron should have behaved?

6.4. Exercises
Exercise 1: Short-Answer Questions
1. What is the difference between theory X and theory Y?

2. What are some factors that make a person a good leader?

3. Name some leaders you think are good? Why?

Exercise 2: Critical Thinking Question


What are some ways we can teach good leadership?

English Focus

Once you start writing academic papers in your courses, you will be expected to
write using technical language. Normally, you are not expected to define technical language
in your paper. However, you should always consider your audience and define terms that are
not normally used. Always make sure that you use the terminologies in its correct form.
Practice by writing sentences using the technical terms in each chapter.

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Terms You Should Know

Leadership
Creative

Definition

Notes

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Professions

Word

Theory X
Theory Y
Participative
Authoritarian
Influence
Interaction
Behavior
Goal
Theories
Rewards
Punishments
Control
Ability
Sustainability

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INFORMATION SYSTEMS
Key Terminologies:

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Professions

Motherboard
Central Processing
Unit (CPU)
Memory Buses
Data
Memory
Fiber Optic Cables
Bytes
Storage
A Display Device
BIOS Processor
Pixels

After reading this chapter you will be able to:


1.
2.
3.
4.

97

Understand basic computer terms


Explain how a computer works
Define networking terminology
Know the types of printers

Ethernet Networks
Card Controllers
System Ports
An Operating System
Interface
Protocols (TCP/IP
FTP)
Networks
Wide Area Network
(WAN)

7.1. Computer Architecture

data through logical processes and displaying results in a usable form.


Computers are built up from different components, or parts, that do various
jobs. The most important part of a computer is the motherboard. The motherboard
is the biggest and the main circuit board in the computer. The purpose of the
motherboard is to connect the central processing unit (CPU) to the rest of the

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A computer is a device capable of solving complex problems or manipulating

computer. The motherboard connects the various inputs, like the keyboard and
mouse. In addition, the motherboard contains multiple layers to carry the BIOS
processor and memory buses. The CPU is like the brain of the computer, it controls
the major logical and mathematical processes.
Data and programs are kept in the computers memory. The memory is stored
in the form of bytes, which contains eight bits to each byte. Each byte is stored in an
address that is accessed only by the CPU. Data is stored in the computers storage.
There are two main types of storage (1) ROM (Read Only Memory), which stores
data permanently, and (2) RAM (Random Access Memory), which is a temporary
storage. Disk drives, CD-ROMs, and USBs are storage devices.
A display device is the visual output
of the computer. They are commonly
known as monitors and are of many
different

types.

Monitors

display

information in the form of picture elements,


or pixels. The distance between each pixel
is known as a dot pitch. Computers use
card controllers, such as video cards,
sound cards, and network cards. External
devices connect to these cards found on
the motherboard.

Fig 7-1
Desktop Computer

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INFORMATION SYSTEMS
System ports are the interfaces that send and receive data. Many of us are

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familiar with the USB ports as we use them almost every day. Ethernet ports, where
we plug in the network cable, are shaped differently than the USB ports.

An operating system is a program that is loaded onto the computer when the
system is booted up, and is responsible for running other applications. An operating
system provides an interface between the user and the programs. The interface can
be command-line based, such as Linux or UNIX, or it can use images and pictures
(graphical user interface GUI), like Windows or Macintosh OSX.
Operating systems can be divided
into two types: Single process (working
one task at a time) or multi process
(working on several tasks at a time).
Operating systems use file systems to
organize, store, and name the files. It also
gives the user control over the information

Fig 7-2
Operating Systems

and data.

Imagine you are going to build a computer. What parts would you
need?

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Reading!
LONG BEACH, California The history of computer revolutions will show a

desktop, if computer genius Jinha Lee has anything to say about it.
The Massachusetts Institute of Technology grad student earned some notice
last year for the ZeroN, a levitating 3-D ball that can record and replay how it is moved
around by a user. Now, following an internship at Microsoft Applied Science and

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logical progression from the Mac to the iPad to something like this Space Top 3-D

some time off from MIT, Lee is unveiling his latest digital 3-D environment, a threedimensional computer interface that allows a user to reach inside a computer screen
and grab web pages, documents, and videos like real-world objects. More advanced
tasks can be triggered with hand gestures. The system is powered by a transparent
LED display and a system of two cameras, one tracking the users gestures and the
other watching her eyes to assess gaze and adjust the perspective on the projection.
Lees new 3-D desktop, which he just showed off at the annual TED
conference in Long Beach, California, is still in the early stages, but it lights the way
toward the sort of quantum leap thats all too rare in computer interfaces. It took
decades to get from the command-line interface to the graphical user interface and
Apples Macintosh. It took decades more to get from the Mac to the touch interface
of iPhones and iPads. Lee and people like him might just get us to the next revolution
sooner.
Others are working along similar lines. Gesture-based control has been
incorporated into Microsofts Kinect, Samsungs Smart TV platform, and products
from startups like Leap Motion and Soft Kinect (not to mention in cinema fantasyland
). Three dimensional display interfaces, meanwhile, have been brewing at the
University of Iowa.Lees Space Top weaves these two threads together, joining 3-D
interface with 3-D gesture controls, a smart convergence that will likely become more
common. In his talk, Lee said Space Top and ZeroN, which he also demonstrated,
are part of a broader shift toward interfaces we can grab with our hands. Humans
seem to prefer collaborating via physical interfaces; think of a scale model, map, or

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INFORMATION SYSTEMS
whiteboard. People also like interacting in multiple modalities; think of reading a book,

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underlining words and scribbling in the margins in pencil, and taking separate notes
on a pad. Todays computers allow none of this, flattening all interaction onto a single
screen.
If you somehow allow computers to accept different types of modalities in the
same workflow, that will be much more effective, Lee said in an interview. Physical
activities like how you dance and how you play sports there will be some sort of
digital aid in there.
At TED, Lee showed Space Top and ZeroN alongside a collapsible pen that
can be pushed inside a computer display; as the pen folds into itself, the monitor
shows the end of a pen moving deeper and deeper into the display. He also showed
a concept video of a smartphone app that, when paired with augmented reality
goggles, would allow the user to try on a virtual watch from an online store before
ordering the real thing. The common thread between these systems, Lee says, is that
they bring the physical world and digital world much closer together, allowing
automated physical interaction he refers to as programming the world.
Read the Full Article: http://www.wired.com/business/2013/02/amazing-3d-desktop/

Use the previous reading to answer the following questions:


1. The 3-D desktop was invented by
a.
b.
c.
d.

An MIS student.
A graduate student.
a business man from Massachusetts
ZeroN

2. The 3-D desktop was shown at


a.
b.
c.
d.

101

A conference at MIT.
Microsoft.
A school.
The TED conference.

3. What does Lee mean by "programming the world"?


Hes going to turn the world into a computer.
He wants technology to be interactive.
He doesn't like 3-D technology.
He meant to say something else.

4. What is the difference between the "digital world" and the "physical world"?
a.
b.
c.
d.

The digital world is more interactive than the physical world.


The physical world is more interactive than the digital world.
They are both the same.
The digital world is bigger than the physical world.

English for Science


Professions

a.
b.
c.
d.

5. Which of the following is not a 3-D technology that is mentioned in the


passage?
a.
b.
c.
d.

Space Top
LED
TED
ZeroN

6. What does Lee mean by this statement, Physical activities like how you
dance and how you play ports there will be some sort of digital aid in
there.?
a.
b.
c.
d.

That future technology will have more real-life features.


That dancing will be a way to access your digital world.
That he likes to dance.
That physical activities cannot be used in the digital world.

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7.2. Networking
Computers are connected to each other through networks. There are many
different ways to connect computers to each other. Local area networks (LAN) will
often use cables to connect different computers together. Coaxial cables were very
common in the past and were used to connect Ethernet networks. Nowadays we use
different types of cables for LAN connections. Unshielded Twisted Pair (UTP) cables
consist of two or more insulated copper conductors that are twisted around each
other. Category 1 UTP is used in telephony systems, while Category 3 and higher
are used for LAN connections. STP, or shielded twisted pair, cables have more
protection than UTP, but are also more expensive. Fiber optic cables are made of
transparent, or see-through, glass or plastic fibers that allow light to be transmitted at
very high speeds. Wireless connections and satellite connections are often used in
wide area networks (WAN).

The purpose of a computer network is to share information between


computers. Like people, computers will communicate with each other to deliver
information. As with English grammar, computers have a set of rules, or protocols,
that govern how they communicate with each other over a network. The most
common protocol is the TCP/IP protocol suite. TCP breaks data down into small
packets and tracks information. IP is a protocol that is only created once data is sent
over a network. The IP is responsible for the addressing and sending the packets
between computers. ICMP, internet control message protocol, enables systems to
share error and status information. SMTP, standard mail transfer protocol, is used to
send and receive mail (E-mail) over the internet. FTP, file transfer protocol, is used
for transferring files between systems. ARP gives an IP address to a MAC address
(the permanent identification for a computer or device that cannot be changed, unlike
an IP address). POP3, post office protocol, is a mail server that holds an email until
the computer is ready to receive it. HTTP, hypertext transfer protocol, is a set of rules
used for transferring files on the internet.

103

Ports are used when communicating between a client and server computer.

IP addresses are divided into two parts: (1) network ID (netid) and (2) host ID
(hostid). All hosts on the same network must have the same network ID. IP addresses
are divided into four octets with each octet having a maximum value of 255. There

English for Science


Professions

For example, the HTTP port is 80, the FTP port is 21, and the SMTP port is 25.

are three classes of IP addresses:

Class A: 1-126
Class B: 128-191
Class C: 192-223
127. X.x.x is a local system host, which means that it is used for the computer

that is being used.

Fig 7-3
Types of Network Connections

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INFORMATION SYSTEMS

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Routers are devices that forward data packets between computers in a


network. The job of the router is to connect computers to data lines. Most of us use
routers at home to connect to the internet. There are many different types of routers
with various settings. Wireless routers use different wireless standards (802.11a-g)
to connect your computer to the internet.
The router you use at home has an
ASDL telephone line and several Ethernet
ports. The internet service provider, like
STC, will provide access to the router
through a router IP address. Depending on
the type of router you are using, the router
address may look like this:

197.168.1.1

Fig 7-4
Linksys Router

Match the terms with the correct definition


1. Router

.....

a. An identifier for a computer on the internet

2. Protocols

.....

b. A cable that uses light to transmit data

3. IP address

.....

c. A shielded wire cable used to transmit data

4. UTP

.....

d. A set of rules

5. STP
6. Fiber optics

105

.....
.....

e. A device used to connect computers to the


internet
f. A cable consist of two or more insulated copper

conductors that are twisted around each other

Correct the mistakes in the following sentences

2. Internet protocol are used to monitor communication between devices.

3. Fiber optic is fast than coaxial cable.

English for Science


Professions

1. We using a router to connect the internet.

4. The IP Addresses for your computer can be change.

5. ADSL connected through the telephone line

7.3. Printers
Printing is something that many people are used to doing. For many people,
printing is simply clicking File then Print. In this chapter, you will learn what happens
when you print a file. There are many different types of printers available on the
market. In the past, printers used cables with 9 or 25 pin serial ports to connect to the
computer. Nowadays, printers can be connected with USB, firewire, or Ethernet
connections. Some printers use wireless connections that are shared over networks.
Dot matrix printers are almost obsolete, meaning that they are no longer being
used. You might see some cash registers using dot matrix technology. These printers
use an impact printing process, where a matrix of pins will print an image of the file
onto an ink ribbon. The ink from this ribbon is then transferred onto paper. Smudged
ink, broken pins, and misalignment are common problems faced with dot matrix
printers.
Ink Jet printers are very common, and are often used at home. Ink Jet printers
use cartridges that are filled with black ink or color ink. The ink is sprayed onto the

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INFORMATION SYSTEMS
paper through very tiny holes in the printhead. The paper is fed through the printer,

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Professions

while the ink is sprayed line by line. Just like the dot matrix printer, ink jet printers can
sometimes be misaligned. The ink jets printhead can be clogged with ink. Most
modern ink jets will use software that sends commands to auto-clean the printhead.
Laser printers are commonly found in offices because of their high print
volume. Last printers can print more pages with less ink consumption (usage). Most
people dont buy laser printers for their homes because of the high cost of the device
and consumables (parts that have to be replaced periodically). Laser printers use
toner, or dried ink, that is bonded to the paper using heat and static electricity. Just
like dot matrix printers, laser printers can experience smudging if the heating element
stops working.

Fig 7-4
Identify these Printers

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Reading!

a press conference, but it was only a low-key presentation on the show floor, not
some over-produced auditorium-filler. Yet, every time I walked by a booth owned by
a 3D printer manufacturer, the crowds were there in force. People are clearly excited
by 3D printing here, and they had a variety of examples to learn about at the show. I

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Professions

LAS VEGAS--No 3D printer vendor had a booth at CES. Only MakerBot held

checked in on all of the major 3D printing vendors here at the show. Here is what I
saw.

3D Systems had a very strong showing at CES. The company introduced a


refined version of its consumer-oriented Cube 3D printer, and it also served up a new,
category-leading design with its CubeX, a high-end printer, aimed at enthusiasts and
professionals, that can print the largest objects in its class in up to three different
colors, and in two different kinds of plastic.

This Minnesota-based vendor is a U.S. licensee of Chinese-held Delta Micro


Factory. You may have seen Delta Micro's UP! Printers sold in the U.S. via distributor
PP3DP, but rather than just distributing the UP!, Afinia has taken the core design and
bundled it into its H-Series 3D printers, which the company says have improved
packaging and FCC-certified electronics.

Kickstarter Form Labs didn't have any major CES announcements, but this is
the second time I've seen its Form1 3D printer in person, and it impressed me just as
much as when I saw it back in September during Maker Faire NY.

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The Form1 not only looks well designed, it uses a process called stereo

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Professions

lithography to make objects with detail and smoothness that's superior to those from
the rest of the printers here that use fused-deposition modeling.
Form Labs has announced that it will begin shipping the Form1 to its first batch
of Kickstarter funders in the next few months. The company's long-term prospects
are less clear due to a pending lawsuit with 3D Systems, but if it can weather the
legal storm, the Form1 could bring desktop 3D printing to a new level of professionalclass object making.

The best-known 3D printer manufacturer, MakerBot, announced its new


Replicator 2X 3D printer at CES. This model, a higher-end version of the Replicator
2 announced this fall, offers two-color printing and support for both ABS and PLA
plastic. It can also print to resolutions as low as 100 microns, among the finest of any
desktop 3D printer.
3D Systems CubeX had a dominant showing with the CubeX, stealing the
thunder from MakerBot, whose original Replicator 3D printer was last year's
Emerging Tech category winner.

Along with 3D Systems, Stratasys is the other large, publicly traded 3D printing
company. Both vendors have operated on the commercial side of the industry,
designing million-dollar machines that can print in ceramic, gold, titanium, and other
more exotic materials.
Read the entire article: http://ces.cnet.com/8301-34445_1-57563395/still-emerging-for-now-the-3dprinters-of-ces-2013

109

1. What is the main purpose of this passage?


a.
b.
c.
d.

The author compares and contrasts different 3-D printers.


The author reviews 3-D printers.
The author summarizes another article on 3-D printers.
The author tries to sell different printers.

English for Science


Professions

Answer the following questions based on the previous reading


passage

2. According to the author, which printer manufacturer is the most famous?


a.
b.
c.
d.

Stratasys
MakerBot
FormLabs
Afinia

3. .. is a process that makes objects smooth and detailed.


a.
b.
c.
d.

Stratasys
Kickstarter
Deposition modeling
Stereolithography

In your own words, describe the three types of printers


Dot-matrix:

Ink Jet:

Laser:

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7.4. Exercise
Exercise 1: Short-Answer Questions
1. Explain the differences between the three different types of printers.

2. Why is the motherboard essential to the computer?

3. What is the purpose of a router?

Exercise 2: Critical Thinking Question


Based on the rapid changes in technology, what kinds of new technology will
we see in the near future?

Exercise 3: Terminologies
Search for the IT terminologies in the chapter to fill in the blanks for the
following passage:
The main part of the computer that is responsible for logical functions is the
The can be considered the brains of the computer.
provide users with an interface with the computer. These parts are
essential for a computer to work, but without the user will not be able
to see what is on his monitor.

111

Exercise 4: Reading Comprehension


Using the reading in section 3.1, answer the following questions (short

1. According to the article, what is a 3-D desktop?

2. What kinds of technology are used in the 3-D desktop?

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Professions

answer).

3. What does Lee mean by programming the world?

4. According to the article, what kinds of things can you do with a 3-D desktop?

Exercise 5: Reading Comprehension


Using the reading in section 3.3, answer the following questions (short
answer).
1. What are 3-D printers?

2. According to the article, what differences can you find in the 3-D printers

3. Which of the companies reviewed is the most well-known?

4. What do you think will be the future of 3-D printing?

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INFORMATION SYSTEMS

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Terms You Should Know

Word
Motherboard
Central Processing Unit (CPU)
BIOS Processor
Memory Buses
Data
Memory
Bytes
Storage
A Display Device
Pixels
Ethernet Networks
Card Controllers
System Ports
An Operating System
Interface
Protocols (TCP/IP FTP)
Fiber Optic Cables
Networks
Wide Area Network (WAN)

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Definition

Notes

English Focus
English for Science
Professions

A thesis statement is a single sentence that focuses the subject of your paper
clearly into a main idea. The purpose of a thesis statement is to narrow your subject
into a specific topic that you want your readers to understand from your paper. The
thesis statement will name the topic specifically and provide the reader with a concise
preview of how you will arrange your ideas.

To compete well in a global market, Samsung must be able to keep up with


technological advances while maintaining affordable prices for customers.
The topic: Competing in a global market.
Assertion/ Argument: Technological advances and low prices will help
Samsung compete.

Does the thesis statement make an argument or assertion about the topic?

Is the argument/assertion limited to a single idea?

Is the argument/assertion specific and significant?

Does the statement provide a purpose?

Is the statement unified and consistent?

Seat belts can save lives, but now car manufacturers are installing air bags.

This statement is not unified. How do these two (seatbelts and air bags) relate?

A better thesis statement would be:

If drivers had used lifesaving seat belts more often, car manufacturers might
not have needed to install air bags.

The thesis statement appears in the introduction paragraph. It is a good idea


to write your thesis statement at the end of your paragraph, after you have completed
your paper.

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SYSTEMS ANALYSIS

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Key Terminologies:

After reading this chapter you will be able to:


1.
2.
3.
4.
5.

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Define database terms


Understand Systems Analysis terminology
Explain data and information
Understand data recovery terms

Information
Database

Maintenance
Data Recovery

Metadata
A File Processing
System
Data Redundancy
Preliminary Analysis
Logical Design
Physical Design
Specifications
Implementation

Downtime
Human Error
Systems Development
Life Cycle
E-Commerce
Virtual Machine
Disk-to-disk backup
Restorations

8.1. Database Management Systems

videos. Information is data that is processed to be useful in decision-making. It is


important to understand the difference between data and information. Information is
processed data for human interpretation. Data by itself is unusable without translating
it into information.
A database is an organized collection of logically related data. Databases are

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Data is a term used to describe meaningful facts, texts, images, sounds, and

used to create information. Metadata is data that describes data. For example, the
name of a file or the date it was made is metadata. A file processing system is an
information system that stores data in separate files. Each program manages its own
data and focuses on the processing needs of individual units. The problem with file
processing systems is that data can be repeated, this is known as data redundancy.
There is limited file sharing abilities and a lot of maintenance.
To solve the problems of file processing systems, databases are used to allow
users to share data across applications. A database will show data in tables. Tables
are connected with each other and this eliminates data redundancy. A database
management system is used to manage and control databases and interface them
with users.

Fig 8-1
Data and Information

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SYSTEMS ANALYSIS

Fig 8-2
A Database Management System

Match the terms with the correct definitions

117

1. Data

.....

a. data that describes data

2. Information

.....

b. repeated data

3. Database

.....

c. removes

4. Metadata

.....

d. A collection of data

5. Data redundancy

.....

e. Processed data

6. Eliminates

.....

f. meaningful facts

7. File processing system

.....

g.

information system that stores data files

Answer the following questions

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Professions

1. Describe the kind of data you would need for a student database?

2. What kind of information would you need for a student database?

8.2. Systems Development


A project is a sequence of unique, complex (difficult), and connected activities
having a single goal that must be completed at a certain time, within a budget,
according to requirements. An activity, or task, is a part of a larger piece of work.

The systems development life cycle has six stages:

Preliminary (first, initial) analysis

Analysis

Logical design

Physical design

Implementation

Maintenance

An easy way to remember these


stages is by using an acronym:
PALPIM

An acronym is a shortened
version of a group of words that
are pronounced as a single word.

Preliminary analysis refers to the first thing that you do before starting the
project. An analysis is a study of the current situation and the possible futures based

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SYSTEMS ANALYSIS
on different actions. Logical design refers to the

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technical design of the system or project, for


example the technology that should be used. The
physical design is the actual design based on the
specifications, or requirements, of the logical
design. The implementation stage is putting the
system into use, and the maintenance stage is
making sure everything is working properly.
Fig 8-3
SDLC

8.3. Data Protection & System Recovery


What happens when you lose your information? Imagine a company loses all
its information because of IT failure. What would happen if a hospital loses all its
records because the data was erased from the hard drives? Companies will invest
hundreds of thousands of dollars to protect their data or to recover it in case of IT
failure.

Reading
Disaster recovery planning plays an increasingly vital role in keeping
corporate information both secure and available. However, given the growth of data
volumes, shrinking backup, the demand for more effective change management,
and the need for fast, reliable recovery, IT departments are finding themselves
seriously tested in their disaster recovery efforts. Increasingly, today's enterprises are
coming to the realization that they need to embrace solutions offering both best data
protection and best system recovery.
A 2005 study of 80 large organizations by Infonetics Research found that
overall downtime costs averaged an astounding 3.6% of annual revenue. In another
study, Forrester Research estimated the average cost of downtime for e-commerce
sites at $8,000 per hour; at larger sites, such as eBay and Amazon, the costs soar to

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hundreds of thousands of dollars per hour. According to Contingency Planning


Research, system downtime can cost anywhere between $14,000 and $6,450,000

According to IDC, hardware failure, application-related failure, and human


error are the leading causes of IT downtime, not natural disasters such as hurricanes
or earthquakes. An eight-day system outage at Sunoco's Haverhill, Ohio, plant
reduced its 2005 fourth-quarter results by approximately $2 million. The conclusion
is unavoidable: downtime has potentially disastrous results for a business.

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per hour.

Traditionally, tape has dominated as the backup and recovery medium of


choice. However, as the cost of disk-to-disk backup decreases and the need to
restore rapidly becomes ever more important, disk is increasingly finding its place in
company backup plans. Thanks to advances in disk-based backup technology,
enterprises can go beyond the limitations of traditional backup and recovery practices
to take advantage of speed, flexibility, efficiency, and expense.
As important as data recovery is, it is not enough to help a business continue
operations if there has been physical corruption of a system or application, or loss
of a server. Rebuilding systems from bare metal can take hours or even days. That's
because system recovery traditionally has been a very manual, intensive process.
Steps include repairing the hardware and reinstalling the OS, applications, patches,
system updates, and other system requirements. After these were completed,
administrators would then need to try to reconfigure the system back to the exact
state before the disaster. Several tests would be needed to ensure the system was
ready for production. Then administrators would need to load the data onto the
system from the last backup. Finally, the system would be introduced back into the
live environment.
In contrast, today's recovery solutions combine the speed and reliability of
disk-based, bare-metal Windows system recovery with new technologies for
hardware-independent restoration. This allows organizations to perform a full system
recovery in just minutes, and to create real-time system recovery points without

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disrupting accessibility. In addition, administrators can perform system restorations

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even if there is no hardware available by restoring recovery points to virtual


environments. When new hardware is available, or existing hardware is repaired, the
servers can then be restored from a virtual machine back to a physical machine
without affecting the business.
Practice: Match the type of production with the descriptions

Match the type of production with the descriptions


1. What would be an appropriate title for this passage?
a. Data corruption and physical recovery.
b. The importance of disaster recovery plans.
c. The importance of back-up data.
d. Restoring data on virtual machines.
2. Based on the passage, what problems can occur if a company does not have
a disaster recovery plan?
a. A company can recover its data by using a virtual machine.
b. Resorting data is an easy task and does not require a recovery plan.
c. Companies can lose valuable and private data.
d. Physical corruption cannot occur without a disaster recovery plan.
3. The word vital means
a. Important.
b. Useless.
c. Useful.
d. Recovery.
4. Human error refers to
a. Mistakes made by computer systems.
b. Mistakes made by people.
c. Mistakes made when people forget to use computers.
d. Application related failure.
5. When the author says, "In contrast," he is
a. Giving an example.
b. Concluding.
c. Giving an opposing view.
d. Comparing.

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8.4. Exercises
English for Science
Professions

Exercise 1: Short-Answer Questions


1. What is systems analysis and design?

2. What is database management?

3. What is the difference between information and data?

Exercise 2: Critical Thinking Question


You have to create a database for a small company, how will you do it?

Exercise 3: Terminologies
Search for the IT terminologies in the chapter to fill in the blanks for the
following passage:
.. is data that has been processed and organized to be
used in decision-making. A ..is created to store data and create
information. It is important to make sure that the data is ..so that
people cannot steal or misuse it. It is just as important to have a data
..in case the data is lost or corrupted.

Many people will

..their data onto hard drives or servers in case their original files
are lost.

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SYSTEMS ANALYSIS
Exercise 4: Reading Comprehension

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Professions

Using the reading in section 5.3, answer the following questions (short
answer).
1. What is data recovery?

2. What are the problems that arise when companies lose their data?

3. Why is data recovery planning important?

4. What is physical corruption?

5. What does the word medium refer to in the passage?

6. What is a virtual machine?

123

Writing
Write a disaster recovery plan recommendation for your university.

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124

SYSTEMS ANALYSIS

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Professions

Terms You Should Know

Word
Information
Database
Metadata
A File Processing System
Data Redundancy
Preliminary Analysis
Logical Design
Physical Design
Specifications
Implementation
Maintenance
Data Recovery
Downtime
Human Error
Systems Development Life
Cycle
Restorations
E-Commerce
Virtual Machine
Disk-to-disk backup

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Definition

Notes

English Focus
English for Science
Professions

Plagiarism occurs when a person takes the words or ideas of another author
and uses it as their own. Plagiarism is easy to spot and can earn you a failing grade
or even have you removed from university. How do you avoid plagiarism? Academic
writing and research requires sourcing and referencing.
Many formats and styles are used in academic writing. Referencing can be
very difficult, but you can make it easy by practicing how to cite and reference.
How do you reference in APA?
Change is an essential factor of organizational sustainability (Stacey, 2009).
Sustainability requires organizations to change based on varying factors (Tichy and
Ulrich, 2008). These changes require leaders with the ability to adapt, develop,
delegate, and lead the organization into this change efficiently (Tichy and Ulrich,
2008).
Pay attention to the parenthesis within the paragraph. In the APA style, in-text
citations are done at the end of the sentence that contains information from the
source. The format is done as follows: (Last name, date).
Another way to cite is by including the authors name within the sentence itself:
Stacey (2009) stated that change is an essential factor of organizational
sustainability. Tichy and Ulrich (2008) argued that sustainability requires
organizations to change based on varying factors. They mentioned that these
changes require leaders with the ability to adapt, develop, delegate, and lead the
organization into this change efficiently.

At the end of the paper, you should include a reference page with the full
details of each source you used in the paper in alphabetical order.
Last name, F. date. Title. Publication Details

Tichy, M., Ulrich, D. The Leadership Challenge- A Call for the Transformational
Leader.
Classic Readings of Organizational Behavior. Thompson-Wadsworth.
Belmont, CA

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PROGRAMMING

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Key Terminologies:
Programming language
Execute
Compile/ compiler
Assembly languages
Scheme

Object oriented
programming

Debug
Statement terminator
Logical operators
Boolean
Loops

Class
Methods
Instance
Events
Conditional Statements

After reading this chapter you will be able to:


1. Explain basic programming terminology
2. Understand the types of programming
languages
3. Define common terms in programming
4.

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Inheritance
Modules
Arrays

9.1. Fundamentals of Programming

did the programmer (person who designed the software) develop this application?
Programming is the process of designing an application through writing code (known
as coding), testing through debugging (looking for errors), and maintaining the source
code. All software is developed through coding. Source code is written through
various programming languages. Learning to code is similar to learning to write in

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Professions

Have you ever wondered what is behind the software that you are using? How

English or Arabic. Each programming language has its own rules and methods.

A program is a sequence of logical instructions that tell the computer how to


complete a task. When you click a program on your computer, you are asking it to
execute, or run, the program. The file extension .exe is short for executable, which
means you can double-click the file and the computer will run the program.

Write down instructions on how to make a


sandwich.

A programming
language is collection
of instructions with
specific rules (syntax)
that tell a computer
how to do a task

In the same way you wrote down the instructions to make a sandwich,
computer programmers will write instructions in programming languages.

Fig 9-1
How Programming Works

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PROGRAMMING
All computers have a native language called machine code that is expressed

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in 1s and 0s (binary numbers). Programming languages, like C++, BASIC, and


Java, provide people with an interface to machine code. When we type the coding,
the computer will compile or interpret what we type into binary numbers. Compiled
programs are like translated books, whereas interpreted programs are like books
being translated by a person reading and translating as he reads. Programming
languages are classified in levels. Lowlevel programming languages are closer to
machine code and they are known as
assembly

languages.

Higher-level

programming languages are written in


closer to English and will use words that
we are familiar with.

Fig 9-2
Hello Word in C

Programming languages require compilers to translate coding into machine


code. Interpretation can be done by the CPU or virtual machines. The way that the
compilers or virtual machines translate coding is called a scheme.

Reading
Five years ago, the answer to "why learn to program" may have been simple:
to get a nice job with beanbag chairs and a six-figure salary. Recently, the job market
for programmers has lost some of its previous luster--no longer can anyone and his
dog start a tech company, get venture capital, and pay programmers a combination
of stock options and worth millions and a high salary. This seems to have taken its
toll on the number of prospective programmers; at some colleges, introductory
computer science classes are at all-time lows in attendance. This is a real shame
because programming isn't really about making the big bucks. Though you will
certainly be well paid if you are very good, your doctor friends are unlikely to be
jealous of your finances once they pay off their medical school loans.

129

When you program, you are a creator. You go from a blank text file to a working
program with nothing to limit you but your imagination. Programming is like having

Even better, you can get all of your building materials completely free (once you own
a computer) on the internet. It's also great fun to see someone using something that
you made. Your ability to improve your life and the lives of your friends and family is
limited only by your ideas once you can take full control of your computer. Moreover,
your work can be extremely high quality because the limiting factor is not manual

English for Science


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access to the absolute best set of Legos in the world in almost unlimited qualities.

dexterity or other non-mental attributes. If you can understand a programming


technique, you can implement and use it.
Programmers are famous for being lazy--in fact, being lazy is one reason
people are drawn to programming. After all, why do something routine and repetitive
when you could have your computer do it for you? Programmers have written all sorts
of simple-to-use tools that make life easier for them--especially tools to manage the
complexity of creating software (for instance, tools to help keep track of all the ways
of making a program, or debuggers to help improve their understanding of a running
program). But more than that, every programmer has a collection of simple tools that
he or she uses on a day-to-day basis, from custom calendar reminder programs to
processors for large data sets (especially useful for scientists!). Indeed, the physics
community has a history of writing powerful tools that make their lives easier--one
tool; HTML over HTTP, created by Tim Berners Lee, eventually became the World
Wide Web. It was originally designed by a physicist programmer coming up with ways
of simplifying his life. People are often frustrated by technology when it fails. Although
operating systems such as Windows have become much more stable, there are still
many security holes exploited every day. For a non-programmer, these issues are
mysteries: the machine that never makes mistakes is full of problems, and who knows
why?
Programmers, on the other hand, are familiar with the limits of the machine-what happens inside the computer when it takes several minutes to open large files,
why a particular security hole is a problem, and why it's so difficult to get large-scale

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PROGRAMMING
software projects right. They understand it because they've dealt with most of these

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issues in their own programs and work with the ``stuff'' of the machine (to varying
degrees across different programming languages). In sum, programming lets you
work with your mind to free yourself to create things that are interesting or useful
instead of being limited by the confines of what others have done before, and even
when using those other things, you'll find that you can better appreciate and
understand them.
Read the Article: http://www.cprogramming.com/whyprogram.html

Match the type of production with the descriptions


1. What is the main idea of this passage?

2. What are the authors arguments for learning to program?

3. Who invented HTML?

4. Why does the author say about programmers?

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9.2. Programming Languages

some commonalities between them. All programming languages are a compilation of


statements. When the program is executed, the computer will go through each
statement, or line, until the end. If there is a mistake, the program will stop running.
A statement is a piece of code that ends with a statement terminator. The statement
terminator is like a full stop in English, and is different in each programming language.

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Professions

Even though programming languages are different from one another, there are

Variables are elements in a program that stores information, such as inputs.


Variables in mathematics are like variables in programming. However, in
programming, the variables have to be defined. A variable is a named location in the
computers memory. The process of creating a variable and assigning a name is
called declaring a variable. If the variable is not declared, the computer will return
an error. Variables can be of different types, like integers, single characters, or
Boolean, or arrays. Boolean variables are can only hold two values, like 1 or 0, or
true or false, or yes and no. An array is a series of objects of the same size and type.

Logical operators are codes that take a Boolean value and produce a Boolean
result. For example, AND, OR, and NOT are all logical operators.

Computers, like people, can also be given conditional instructions. For


example, a father may tell his son that he may play his Xbox if he behaves. If he did
not behave, he has to clean the house. Computers can take conditional statements
by using If, then statements.

Loops execute the same piece of coding for a specified number of times. Each
loop is known as iteration. A loop is a group of statements (called a block) that instruct
the computer to repeat an action based on a Boolean expression (called a condition).

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PROGRAMMING

Fig 9-3
The result of coding (next page) done in C++

Fig 9-4

133

Look at the output box in Figure 7-3, what was the purpose of this program?

The traditional programming approach involves writing a lot of code. Object


oriented programming (OOP) is a type of programming where the programmer
defines helpers, called objects, which reduce the amount of coding that the

English for Science


Professions

9.3 Object Oriented Programming

programmer has to write. The data structure becomes objects that can relate to one
another and inherit from each other (see figure 7-5 for inheritance). Object oriented
programming allows the programmer to create modules that do not need to be
changed whenever a new object is added. The programmer can create a new object
that inherits its characteristics or features from existing objects.

Objects are the basic elements of OOP. Objects interact with each other to
send messages to the computer to perform a task. Objects are like nouns or things,
for example, buttons, text boxes, and labels. They have properties, which are like
adjectives- text, color, and size. An object is characterized by its state (what it knows,
or its attributes), behavior (what it can do), and identity (which object it is).

Fig 9-5
Example of an Object

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PROGRAMMING

Methods are like verbs, they are an


action or behavior that the object can do or
have done to it. Events are the responses
of the object to a users action, for
example, click or enter. When an object is
created, the time it is used is called an
instance. A class is a collection of objects
of a similar type, such as buttons or labels.

Fig 9-6
Example of Inheritance

Reading
There has been BCPL, C, and C++; several years ago, Microsoft introduced
yet another language in the same naming tradition: C# (pronounced "C sharp"). C#
is a language designed to be fully compatible with Microsoft's .NET initiative while
taking advantage of what has been learned from C, C++ and Java. C# is designed to
be a platform-independent language in the tradition of Java (although it is
implemented primarily on Windows). It's syntax is similar to C and C++ syntax, and
C# is designed to be an object-oriented language. There are, for the most part, minor
variations in syntax between C++ and C#. Main has no return type, there are no
semicolons after class names, there are some (to C++ programmers) strange
decisions regarding capitalization - such as the capitalization of Main. Other a few
differences, the syntax is often the same. This decision is reasonable, in light of the
fact that C syntax has been used with several other languages - notably Java.
Similar to Java, C# does not support multiple inheritance; instead it provides
Java's solution: interfaces. Interfaces implemented by a class specify certain
functions that the class is guaranteed to implement. Interfaces avoid the messy
dangers of multiple inheritance while maintaining the ability to let several classes
implement the same set of methods.

135

Another helpful feature of C# is garbage collection. Therefore, it is


unnecessary to include a destructor for each class unless a class handles

within the class (The Finalize function is used to clear up these unmanaged
resources; it can even be abbreviated with the same syntax as a C++ destructor). Of
course, C# also provides direct access to memory through C++ style pointers, but
these pointers are not garbage collected until specifically released by the
programmer.

English for Science


Professions

unmanaged resources; if so, it's necessary to release control those resources from

C#, as part of the .NET framework, is compiled to Microsoft Intermediate


Language (MSIL), which is a language similar to Java's bytecode. MSIL allows C# to
be platform independent and runs using just in time compiling. Therefore programs
running under .NET gain speed with repeated use. Furthermore, because the other
languages that make up the .NET platform (including VB and Cobol) compile to MSIL,
it is possible for classes to be inherited across languages. The MSIL, like bytecode,
is what allows C# to be platform independent.
The potential for C# is great if the .NET platform succeeds. C# is designed to
take advantage of the design of .NET, and Microsoft has poured a great deal of
money into .NET. Do you need to learn C#? If you know C++, you'll probably be able
to pick it up quickly, and yes, you can still use C++ with .NET. It's important to keep
an eye on C# to see how it will affect you.
Read the Article: http://www.cprogramming.com/tutorial/csharp.html

Writing
Write a compare and contrast essay on two different programming languages.
You will have to do some research, make sure you source your work.

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PROGRAMMING

Answer the following questions about the passage


1. Using the information provided in the passage, compare and contrast Jave,
C++, and C#.

2. C# is made by which company?


a. Microsoft
b. Java sun
c. Adobe
d. .NET
3. If the .NET platform succeeds,
a. C++ will have a lot of potential.
b. C# will have a lot of potential.
c. Java will have a lot of potential.
d. VB will have a lot of potential.
4. Which of the following is a benefit of C#?
a. It does garbage collecting.
b. Using a destructor for each class.
c. It's doesn't use unmanaged resources.
d. It's not object-oriented.

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9.4 Exercises

1. What is a program?

2. What are programming languages?

English for Science


Professions

Exercise 1: Short-Answer Questions

3. How do computers interpret programming languages?

Exercise 2: Critical Thinking Question


In what ways is coding syntax similar to English grammar?

Exercise 3: Terminologies
Search for the IT terminologies in the chapter to fill in the blanks for the
following passage:
Programmers use to instruct computers to complete
an action. Computers have to or interpret the coding before it
runs or the program. If there is a mistake in the coding, the
programmer has to the code to look for errors. Most of the
time, programmers have mistakes in the syntax. For example they might not have a
at the end of the code that tells the computer to go to the next
line.

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PROGRAMMING
Exercise 4: Reading Comprehension

English for Science


Professions

Using the reading in section 7.1, answer the following questions (short
answer).
1. What is the main idea of this passage?

2. What are the supporting arguments made in this passage?

3. Why does the author claim that programmers are lazy?

4. How does the author conclude this passage?

5. What is the authors hook statement?

Exercise 5: Reading Comprehension


Using the reading in section 7.3, answer the following questions (short
answer).
1. What is the main idea of this passage?
2. How does the author try to convince the reader to support his view?
3. What is the authors opinion about the future of C#?
4. What are the comparisons that are made in this passage?
5. What are the contrasts that are mentioned in the passage?

139

Terms You Should Know

Programming language
Execute
Compile/ compiler

Definition

Notes

English for Science


Professions

Word

Assembly languages
Scheme
Debug
Statement terminator
Logical operators
Boolean
Loops
Object oriented programming
Inheritance
Modules
Arrays
Class
Methods
Instance
Events
Conditional Statements

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PROGRAMMING

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Professions

English Focus

Transitions connect your sentences and paragraphs to one another, making it


easier for the reader to follow your points.

Relationship

Expression

Adding

additionally, again, also, and, and then, as well,


besides, equally important, either, equally
important, finally, first (second, third, etc.),
further, furthermore, in addition, incidentally, in
the first place, lastly, moreover, more important,
next, nor, still, then
accordingly, after all, as, because of this, by this
means, consequently, for this reason, hence, in
many cases, in this way, knowing this, naturally,
of course, then, therefore, thus, to be sure, to
this end, with this object, with this end, with this
in mind
after, afterward, at that moment, at last, at
length, before, by that time, during, earlier, first,
from then on, later, meanwhile, next, presently,
since, second, soon afterward, the next day,
then, when, while, within an hour
although it is true that, certainly, despite, granted
that, however, indeed, granted, I admit that, in
fact, in spite of, it may appear that, naturally,
nevertheless, of course, once in a while,
sometimes, still, yet
although, but, contradicting, despite (the fact
that), however, in contrast, in spite of the fact
that, in spite of this, it cannot be reasonably
deduced/inferred/assumed from this that,
nevertheless, nonetheless, notwithstanding, of
course, on the contrary, on the one hand ... on
the other hand, paradoxically, still, that is, the
previous does not imply/demonstrate/show, the
apparent implication is that, unfortunately that
does not

Causation

Chronology

Concession

Contradict

141

Expression

Example

as an illustration, after all, even, for example, for


instance, in fact, in short, in particular, indeed, in
another case, in other words, in this case, in this
situation, it is true, more specifically, namely, of
course, on this occasion, specifically, take the
case of, that is, thus, to demonstrate, to
illustrate, to summarize, truly

Sequence/Time

after, afterward, again, as long as, at length, at


that time, at the same time, at this point, at this
time, before, consequently, earlier, eventually,
finally, first (second, third, etc.), further,
furthermore, hence, here, immediately, initially,
in addition, in the beginning, in the first place, in
the meantime, in the past, last, lastly, later,
meanwhile, moreover, near, next, now, opposite,
on the opposite side, on the right, on the left,
now, presently, previously, shortly,
simultaneously, since, so far, soon, still,
subsequently, then, thereafter, therefore, thus,
then, today, to begin, too, until, until now, when

Summary/Conclusion

accordingly, all in all, altogether, as a result, as


has been noted, as I have said, as mentioned,
as shown, consequently, finally, hence, in any
event, in a word, in brief, in conclusion, in other
words, in short, in sum, in summary, in the final
analysis, to conclude, on the whole, summing
up, that is, therefore, thus

English for Science


Professions

Relationship

142

DECISION SUPPORT SYSTEMS


Key Terminologies:

English for Science


Professions

Knowledge Management
Decision Support Systems
Tacit
Intellectual Capital
Explicit
reusability
Intervention
Information overload
Unstructured
Complex

After reading this chapter you will be able to:


1. Explain Decision Support System
terminology
2. Understand knowledge management terms
3.

143

Format
Accountable

10.1. Knowledge Management

processes that will capture knowledge, experience, and intellectual capital within a
business for re-use and transfer across the company.
Knowledge management treats all business information as a valuable source
by selecting it and structuring it to increase value. The organization continuously
captures information in order to ensure future value. Therefore we can further define

English for Science


Professions

Knowledge management is defined as the method to improving decisions by

knowledge management to mean, The process of collecting, organizing, and


leveraging organizations knowledge in order to create future value. Knowledge is an
asset that includes intellectual capital. It needs to be collected, organized then
distributed and protected. Many organizations do not understand the importance of
knowledge management.
Knowledge management uses tacit knowledge and explicit knowledge. Tacit
knowledge is documented knowledge that can be learned on paper or by a book and
other than them while explicit knowledge is obtained through experience. Roughly,
40% of corporate knowledge remains with the individuals in the company and are not
recorded.
Knowledge management is a complex system of processes and technology
that enables learning and sharing of knowledge in the organization. The
implementation of knowledge management enables the reuse of knowledge across
the organization. So by organizing knowledge and storing it, the company can always
reuse the knowledge when in need. This allows for multiple retrieval of information
for similar situation and this saves time and reduces effort. It enhances productivity
by enabling employees to find the right information at the right time because of the
knowledge reusability. Knowledge management also destroys a poison known as
information overload. Rather than have an employee suffer with a load of documents,
they can just search a knowledge database for what they specifically need and they
can address the issues as such.

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DECISION SUPPORT SYSTEMS

English for Science


Professions

Answer the following questions


1. What is knowledge management?

2. Why is knowledge management important?

10.2. Decision Support Systems


Decision support systems are defined as an interactive computer based
information system that combines data and models in an attempt to solve
unstructured problems, which cannot be solved by a computer alone and therefore,
require human intervention. The basic concept of a decision support system is to
support a user in making a business related decision. Information systems and
knowledge bases are used by the computer system to choose the best alternatives
and provide the best solutions for the user. There is a point to be clarified when
discussing decision support systems: the computers do not make your decision! A
decision support system is more than just a computer system that aids the process
of decision-making.

145

A decision support system aids in the management process by reducing the


time that it takes to make large decisions that have a big effect on the company.

making process, so it is imperative to understand the importance of the human input


when it comes to decision support systems. Many people mistakenly think that
computers can solve any problem. Managers must understand that the final decision
is for the person to make, and that person is to be held accountable for that decision.

English for Science


Professions

Decision support systems are used to support and not replace people in the decision

Decision support systems use data and models to develop various scenarios
and choices that aid the user in making a decision. The decision support system will
access a large knowledge base and extract information from various sources that will
be fully analyzed by the system and then presented to the user in an easily
understandable format.

Answer the following questions


1. How can a decision support system help a teacher?

2. Why can't decision support systems make all the decisions for a manager?

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DECISION SUPPORT SYSTEMS

English for Science


Professions

10.3. Object Oriented Programming


Reading
The reason the user is added in to the part of the decision support system is
because the user has the final say in the decision and the decision is still made by
the user. So it is for the user to think and analyze the results and choose the best
solution or method. The user is a critical component to the design of the Decision
Support System. The system must be under the control of the user so without
considering the user, there would be no functionality.
It is also imperative to understand that decision support systems facilitate
learning. It provides the user with a very comprehensive understanding of the
situation or the knowledge being decided on. This is extremely helpful for a manager
who needs to know the outline of the situation and can do so with ease while making
effective decisions, this is why the user interface must be easy to use and very simple
to understand. The point of learning is very beneficial for a user, especially since it is
cost and time effective.
Decision support systems focus heavily on effectiveness rather than the
decision making process. This is something that many users do not understand, so
they make the assumption that the alternative suggested by the system is the best
alternative. It may be that it is the most effective decision and not the most correct
one. The example of this is in the medical field, the user would have to decide the
most correct option rather than use the most effective (as far as cost or time). This
further shows that the decision is controlled by decision support system user.
Another factor that greatly affects the decision support system is that it
supports all phases of the decision-making process. This is imperative to the
development and the use of the Decision Support System and the user.
emphasizes that the user is in charge of choosing the final decision.

147

This

A Decision Support System is developed using an evolutionary, iterative


process that leads to a concise ability to derive the optimal solutions and alternatives

and selects the best possible alternatives and presents it to the user.
A Decision Support System also provides support for all levels of
management. It is imperative that a Decision Support System can support all the
levels of management as each manager would play a role in entering data into the

English for Science


Professions

for user to select. The Decision Support System uses a logical process that defines

system. Each manager would have a different use for the Decision Support System.

Answer the following questions using the passage


1. Why is the user important?

2. What is the job of the user in a decision support system?

10.4 Exercises
Exercise 1: Short-Answer Questions
1. What is a Decision Support System?

2. What is the purpose of a DSS?

3. What is the function of a user in a DSS?

Exercise 2: Critical Thinking Question


Can Decision Support Systems be used by Doctors in hospitals? How?

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DECISION SUPPORT SYSTEMS

English for Science


Professions

Terms You Should Know

Word
Knowledge Management
Decision Support Systems
Intellectual Capital
Tacit
Explicit
Intervention
Unstructured
Complex
Format
Accountable
reusability
Information overload

149

Definition

Notes

English Focus

you are done writing your paper, proofread it. Review, review, review. Look at your
brainstorm and compare it to your draft. Improve your sentence structures and
grammar by reviewing your paper with grammar and spell check. Ask a friend to read
your paper, remember... you might overlook your own mistakes.

English for Science


Professions

Many students fail to proofread their paper, which leads to lower scores. When

150

I.T. SECURITY
Key Terminologies:

English for Science


Professions

Access Control
Cipher text
Sensitive Data
Hacker
Discretion Access
Mandatory Access
Control
Control
Role Based Access Control
Trojan Horse
Identification
Authentication
Encryption
Decryption
Plaintext

After reading this chapter you will be able to:


1. Explain IT security terms

151

Cracker
Black Hat
Grey Hat
Script Kiddies
White Hat
Phone Phreaking

11.1. Access Control

to resources on a computer or a network. Users can have different levels of access.


You would not want a person to access your personal files containing sensitive data.
If everyone had access to resources on computers or on networks, there would be
more problems than we can handle. There are different access models used by
developers. We will discuss only three in this chapter.

English for Science


Professions

As the name suggests, access control is the way we control a users access

What kinds of problems would arise if anyone had access to


information?

The Discretionary Access Control (DAC) model allows the user who creates
an object to have full control over that particular object. If Ahmed creates a word
document, Project1.docx, he can choose who can access that file. The user who
creates the object can set the access permissions. Access permissions are assigned
to different users by the creator of the file. The biggest problem with this type of
access model is that it can easily be attacked by a Trojan horse. A malicious attacker
can create a program that makes a new file similar to Ahmeds file. The attacker can
send the file to Ahmed. When Ahmed opens the file, it copies the data from Ahmeds
file to his the Trojan horse.

152

I.T. SECURITY

English for Science


Professions

The Mandatory Access Control (MAC) model gives full control to the
administrator. The administrator, or the user in charge of the computer or network,
will define the policies and procedures. These policies cannot be modified by any
users. The MAC model is based on a high security model that does not allow users
to create new objects or write to existing objects.

The Role Based Access Control (RBAC) model gives the users access based
on their roles. The administrator defines the roles and assigns them to users. For
example, the administrator can create two roles: (1) student, and (2) teacher. Each
role can have different permissions, for instance, the student cannot access
grades.xls. The users will then be classified as students or teachers.

Use the information above to answer the following


1. What are the differences in the three access control models?

11.2. Authentication and Cryptography


When you access a computer, you have a unique identification that gives the
computer information about who you are. Authentication provides the computer or
system with information on whether you are allowed to access information and
whether you are the user that you say you are. For example, Naif is a student who
does not have access to the network that contains the student grades. He does not
have the authentication to access those grades. Suppose Naif tries to logon the
system using his teachers username. The authentication process prevents Naif from

153

trying to access the system using his teachers credentials (information about the
user).

a. Username and password


b. Smartcard
c. Biometrics
When more than one method is used for authentication, this is known as a
multi-factor authentication.

English for Science


Professions

There are several ways authentication is performed:

In the past, messages with sensitive data were often disguised in different
ways. The text you are reading now is called plaintext because it is clearly readable.
The method used to hide clear text is called encryption. When plaintext is hidden in
unreadable symbols and words, it is called ciphertext. When the text is converted to
its original clear text, it is known as decryption.
Lets look at a simple method that Julius Caesar used in his encrypted
messages:
We are going to replace the letters with a different letter from a fixed distance
from the initial letter. For example:
Plaintext letter: A
Encrypted:
H

B
I

C
J

D
K

E
L

F
M

G
N

H
O

I
P

J
Q

Therefore, if our plain text message were This is easy, our encrypted
message would be ZOPY PY LHYE
Unfortunately, this method only has 25 possible encryptions because we can
only shift the alphabet 25 times. There is another way to complicate this encryption.
Adding a delta to shift each letter individually can complicate the encryption and make
it harder to crack.

154

I.T. SECURITY

English for Science


Professions

Answer the following True or False questions


1.
2.
3.
4.
5.
6.

Encryption is a new concept.


Ciphertext is unreadable.
A user can logon using only his smartcard.
Authentication is the same as Identification.
Plaintext is readable.
Decryption is used to make plaintext unreadable.

T
T
T
T
T
T

|
|
|
|
|
|

F
F
F
F
F
F

11.3. Network and System Attackers


Computer attacks can happen in many ways. Attacks on computer systems
can happen for many different reasons, ranging from spying on sensitive data to
causing problems on a persons computer. In this chapter, we will only discuss a few
types of hackers.

A hacker is a person who overcomes the limits of software or hardware for


various purposes. A hacker is not always malicious, a person may hack software to
find out if there are any problems. The first hackers were around before computers
even made it into your home. The original hackers used to hack public pay phones
on the streets to make free calls. This act became known as phone phreaking.

A cracker is someone who hacks with intent to cause harm or steal


information. They crack authorization and enter into networks or systems to steal or
manipulate data.

A black hat is another term for a cracker that breaks into a network with
malicious intent for fame, money, or espionage (spying).

155

White hats are the good hackers that hack with the intent to create awareness

companies or the government to improve their security.

Grey hats are hackers who used to be bad (black hats) and have turned to
using their skills to improve security and stop black hats.

English for Science


Professions

or to improve the security of a network or a system. White hats normally work for

Script kiddies are amateur hackers who do not have a lot of knowledge about
hacking. They may use software and tools used by expert hackers to help them hack
networks or systems.

Answer the following True or False questions


1.
2.
3.
4.
5.
6.

Script Kiddies are experts.


Hackers can be good or bad.
Grey Hat hackers are now White Hat hackers.
A Cracker is also a Black Hat hacker.
Hacking did not exist before computers.
White Hats can work for companies to help them.

T
T
T
T
T
T

|
|
|
|
|
|

F
F
F
F
F
F

11.4. Exercises
Exercise 1: Short-Answer Questions
1. Describe the types of hackers.

2. What kinds of security problems can networks experience?

156

I.T. SECURITY

English for Science


Professions

3. Describe the types of authentication.

Exercise 2: Critical Thinking Question


What methods would you use to improve your universitys security system?

Terms You Should Know


Word
Access Control
Sensitive Data
Discretion Access
Control
Role Based Access
Control
Trojan Horse
Identification
Authentication
Encryption
Decryption
Plaintext
Ciphertext

157

Definition

Notes

Hacker

English for Science


Professions

Mandatory Access
Control
Phone Phreaking
Cracker
Black Hat
Grey Hat
Script Kiddies

English Focus

Writing clearly is important in academic papers. You can achieve clarity by:
1. Following a simple sentence structure
2. Being brief if you can say it with less words, that is always better
3. Coherence
4. Using synonyms

158

SEMESTER PROJECT
Throughout this semester, you will work on a group project. Choose a group

English for Science


Professions

of 4 or 5 people per group.


Write your partners contact details here:

Group Name: .

Member 1: .

Member 2: .

Member 3: .

Member 4: .

You will create a new business (on paper).

Start a Business
You will create a business idea/concept
Using the chapter topics, you will write a proposal based on what we learn
in each chapter
What Should Your Group Do?
The business is not real and cannot be an actual business
You make your own business
Use the ideas, vocabulary, language, and skills you learn to write and
present

159

A proposal paper
3 Presentations

Paper
12 pages (1 page per
chapter)
12 point font, Times New
Roman, Double Spaced,
1 Inch Margins
Every group member
must type at least one
page (minimum).
Must be typed and
emailed

Presentation
12 slides (1 slide per
chapter)
15 minutes to present
Every member has to
present something from
the presentation
Three major presentations
You are business
men/women dress/act
the part.

English for Science


Professions

[Title of Paper goes here (same as main title not bolded)]


[The introduction of the paper goes here. 1 paragraph. Introduce the paper. What is
the paper about?]
Type of Business
[Discuss what type of business you have chosen. Is it a service business? Will you
sell products? Use the material from Chapter 1 to help you write this section. 1 page.]
Organizational Structure
[Discuss the structure in a hierarchical format. You may use a hierarchical chart to
mention who will be the Chief Executive Officer, who will be operations manager, etc.]
Management
[How will you run the business? What kind of management will you use? How will
you make sure people work hard?]
Technology
[What kind of technology will you use in your business? Do you need good
technology? Will you use the internet a lot?]
Marketing
[How will you advertise? Who is your market?]
Products and Services
[Describe the product or service that you sell. What makes you different from others
who sell the same things?]
Operations
[How will you produce the products? If it is a service business, how will you provide
the services?]
Quality
[How will you make sure the quality of your products/services is high?]
Finance
[How will you raise money for the business?]
Conclusion
[Summarize all your points and end the paper with a good conclusion.]

160

REFERANCES
Reading Passages

English for Science


Professions

AbdulCader, A. 2012. Motivational issues of faculty in Saudi Arabia. UMI


Publishing, ISBN: 1249092566

AbdulCader, A. 2007. A financial analysis of Wal-Mart. [adaptation].

AbdulCader, A. 2007. Functions of Decision Support Systems. [adaptation].

AbdulCader, A. 2007. Disaster recovery planning. [adaptation].

AbdulCader, A. 2007. A case for Enron. [adaptation].

Anthony, R. N. 1976. A case for historical costs. Harvard Business Review, Nov.
1076.

Allain, A. 2011. Why learn to program? Cprogramming.com

Allain, A. 2011. Whats the point of C#. Cprogramming.com

Ashkenas, R. 2012. Its time to rethink continuous improvement. Harvard


Business Review Blog.

Brown, R. 2013. 3-D Printers of 2013. CNET.com

Gerdeman, D. 2011. Getting the marketing mix right. Harvard Business Week.

Hindle, T. 2008. Management ideas and gurus. Bloomberg Press, 1st ed. ISBN:
1846681081

Wired.com, 2013. Amazing 3-D desktop. Wired Magazine.

Pictures and Illustrations


All pictures used in this book are the copyright of Dr. Akram Abdul Cader unless
otherwise noted.

161

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