What makes Nike's advertising Tick.

Phil Knight, the co-founder and former Chief Executive of Nike, prefers to let his superstar athletes and advertisements do his talking for him. Named Advertiser of the Year at the 500th Cannes International Advertising Festival, he is the first person to win the award twice.

Knight has an absolutely clear and committed strategy to use celebrity athlete endorsement. He describes it as one part of the ‘three-legged stool’ which lies behind Nike’s phenomenal growth since the early 1980s, with the other two being product design and advertising.

He has built Nike’s expansion into sport after sport from its athletics roots on the back of sporting masters: Carl Lewis on the track; tennis’s Jimmy Connors and John McEnroe; Tiger Woods, who led Nike into golf; Ronaldo and the Brazilian national football team; and the basketball star, Michael Jordan, who famously rescued the company.

From the beginning Nike has been prepared to take a gamble on sporting bad boys others would not touch. It was a strategy that began with Ilie Nastase, the original tennis bad boy.

After extraordinary growth, Nike became number one trainer manufacturer in the USA. But Knight admits the company then lost its way as it failed to cope with their success. It experienced unsuccessfully with expansion into non-athletic shoes, and lost its number one position to Reebok in 1986.

Knight bet the future of the company on a new feature: a new air technology inside the trainer. He launched the product with an ad which used the Beatles track Revolution and then marketed the Air Jordan brand on the back of Michael Jordan. Sales took off and the rest is history.

Nike uses a mix of global ad campaigns such as ‘good v evil’ and local advertising such as its famous poster campaigns in the UK.

During a 21-year partnership with the agency Wieden and Kennedy, Nike has created some of the world’s most attention-grabbing advertising: for example, Pete Sampras and Andre Agassi playing in the streets of Manhattan; Tiger Woods playing ‘keepy-uppy’ with a golf ball; and Brazil’s team playing soccer at the airport terminal. Things only happen in Nike ads that sportsmen and women can really do.

‘My number one advertising principle – if I have one – is to wake up the consumer,’ concludes knight, with an absolute conviction that is unique among modern-day chief executives. ‘We have a high-risk strategy on advertising. When it works, it is more interesting. There is really no formula.’

(from the Guardian)

Answer the questions:

1. According to Phill Knight, what are the three factors which have led to the huge success of Nike?

2. Why did Nike lose market share in the mid 1980s?

3. Which innovation saved the company?

4. Which celebrity saved the company?

5. What is Phil Knight’s key idea about advertising?

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THE AMERICAN ECONOMY

 

The United States ranks first in the world in the total value of its economic production.

The United States economy is based largely on a free enterprise system. In such a system, individuals and companies are free to make their own economic decisions. Individuals and companies own the raw materials, equipment, factories, and other items necessary for production, and they decide how best to use them in order to earn a profit.

Even though the U.S. economy is based on free enterprise, the government has placed regulations on economic practices through the years. It has passed antitrust laws, which are designed to keep one company or a few firms from controlling entire industries. Such control, called a monopoly, does away with competition and enables controlling companies to charge high prices and reduce the quality of goods. Government regulations help protect consumers from unsafe merchandise. They also help protect workers from unsafe working conditions and unreasonably low wages. The government has also enacted regulations designed to reduce environmental pollution.

Still, the United States economy has faced problems from time to time. The problems include recessions (mild business slumps), depressions (severe business slumps), and inflation (rising prices).

The US economy consists of three main sectors - the primary, secondary, and tertiary.

Primary economic activities are those directly extracting goods from the natural environment, including agriculture, forestry, fishing, and mining. The primary sector usually contributes about 3 percent of annual GDP (gross domestic product).

Agriculture accounts for 2 percent of the US GDP and employs 3 percent of the nation's workers. Yet, the United States is a world leader in agriculture production. The country's farms turn out as much food as the nation needs, with enough left over to export food to other countries. About a third of the world's food exports come from the US farms.

Beef cattle rank as the most valuable product of American farms. Other leading farm products, in order of value, include milk, soybeans, chickens and eggs, hogs, wheat, and cotton. The US farms also produce large amounts of hay, tobacco, turkeys, oranges, potatoes, tomatoes, and apples.

The United States has large deposits of coal, iron ore, natural gas, and petroleum, which are vital to the country's industrial strength. Its many other important minerals include copper, gold, phosphates, silver, and zinc. The United States ranks among the leading countries in the value of its mineral production. The United States ranks third, after Russia and Saudi Arabia, in the production of petroleum. It is second to Russia in natural gas production and to China in coal production. To meet its needs, however, the United States must import additional amounts of iron ore, petroleum, and other minerals.

The farms, factories, households, and motor vehicles of the United States consume vast amounts of energy annually. Various sources are used to generate the energy. Petroleum provides about 40 percent. It is the source of most of the energy used to power motor vehicles, and it heats millions of houses and factories. Natural gas generates about 25 percent of the energy used. Many industries use gas for heat and power and millions of households burn it for heat and cooking. Coal is the source of about 25 percent of all the energy. Its major uses are in the production of electricity and steel. Hydroelectric and nuclear power plants each generate about 5 percent of America's energy.

Secondary economic activities involve processing or combining materials into new products, and include manufacturing and construction. They account for 22 percent of the GDP and employ 20 percent of the workers. The leading categories of the US products are, in order of value, chemicals, transportation equipment, food products, non-electrical machinery, electrical machinery and equipment, printed materials, scientific and medical instruments, fabricated metal products, paper products, rubber and plastic products, and primary metals.

Construction accounts for 4 percent of the US GDP and provides jobs for 4 percent of the work force. This industry employs such workers as architects, engineers, contractors, bricklayers, carpenters, electricians, plumbers, roofers, ironworkers, and plasterers.

Tertiary economic activities involve the output of services rather than goods. Examples of tertiary activities include wholesale and retail trade, banking, government, and transportation.

Service industries account for 75 percent of the US GDP and employ 76 percent of the country's workers. This industry group includes a wide variety of businesses that provide services rather than producing goods.

Community, social, and personal services rank first among the US service industries in terms of the gross domestic product. This industry includes such establishments as doctors' offices and private hospitals, hotels, law firms, computer programming and data processing companies, restaurants, repair shops, private research laboratories, and engineering companies.

Finance, insurance, and real estate rank next among U.S. service industries. Banks finance much of the economic activity in the United States by making loans to both individuals and businesses. American banks loan billions of dollars annually. Most of the loans to individuals are for the purchase of houses, automobiles, or other major items. Bank loans to businesses provide an important source of money for capital expansion - the construction of new factories and the purchase of new equipment. As a business expands, it hires more workers. These workers, in turn, produce more goods and services. In this way, the nation's level of employment and its economic output both increase.

Other important types of financial institutions include commodity and security exchanges. Commodities are basic goods, such as grains and precious metals. Securities are certificates of investment, such as stocks and bonds. The prices of commodities and securities are determined by the buying and selling that takes place at exchanges. The New York Stock Exchange is the nation's largest security exchange. The Chicago Board of Trade is the world's largest commodity exchange.

The United States has the world's largest private insurance industry. The country has about 2,000 life and health insurance companies and about 3,500 property and liability companies. Real estate is important to the economy because of the large sums of money involved in the buying and selling of property.

Wholesale and retail trade play major roles in the American economy. Wholesale trade, which includes foreign trade, takes place when a buyer purchases goods directly from a producer. The goods may then be sold to other businesses for resale to consumers. Retail trade involves selling products to the final consumer. Grocery stores, department stores, and automobile dealerships are examples of retail trade establishments.

Canada and Japan are the country's chief trading partners. Other major U.S. trading partners include Germany, Mexico, South Korea, Taiwan, and the United Kingdom.

Important U.S. exports include machinery and transportation equipment, such as aircraft, computers, electric power equipment, industrial machinery, and motor vehicles and parts; manufactured articles, especially scientific measuring equipment; chemical elements and compounds, including plastic materials; basic manufactures, such as metals and paper; and agricultural products, especially corn and wheat.

The leading U.S. imports are machinery and transport equipment, such as automobiles and parts, engines, office machines, and telecommunications equipment; manufactured articles, such as clothing, shoes, and toys; mineral fuels and lubricants, especially petroleum; basic manufactures, such as iron, steel, and other metals, and paper and newsprint; and chemical products, such as chemical compounds and medicines.

(from English: National Economies)

 

Answer the questions:

1. What are the peculiarities of the US free enterprise system?

2. What sectors does the US economy consist of?

3. What do the US farms produce?

4. What mineral resources is the USA rich in?

5. What are the leading categories of the US manufactured products?

6. What are the most important service industries of the USA?

7. What are the US trading partners?

8. What are the US imports?

9. What are the US exports?

10. Does the US economy face any problems? What are they?

 

Text for annotation

 

Most successful democracies have existed in developed societies. In such societies, literacy rates are high, per capita (per person) incomes are moderate to high, and there are few extremes of wealth and poverty. Some scholars believe democracy works best in countries with a large middle class.

Many democratic governments have collapsed during economic crises. The basic problem involved in the failures of such democracies has been the inability to maintain sufficient agreement among either the people or their political leaders on the purposes of government. Crises have often aggravated and sharpened divisions and suspicions among various classes, groups, parties, and leaders. Excessive divisions have helped block action by freely elected governments, often resulting in widespread public frustration and disorder.

Democratic governments are likely to be unstable whenever people become deeply divided and suspicious of one another. Sometimes racial, ethnic, or religious differences make democracies difficult to operate. In such instances, the people may not see one another as legitimate and trustworthy partners in the enterprise of government.

 

GRAMMAR TEST: MODAL VERBS

l. Supply the modal verbs can, could, to be able to,or managed to.

1) A good 1500-metre runner... run the race in under four minutes.

2) Bill is so unfit he... run at all!

3) Our baby is only nine months and he... stand up.

4) When I was younger, I... speak Italian much better than I... now.

5)... she speak German well? - No, she... speak German at all.

6) He... draw or paint at all when he was a boy, bat now he is a famous artist.

7) After weeks of training, I... swim a length of the baths underwater.

8) It took a long time, but in the end Tony... save enough to buy his car.

9) Did you buy any fresh fish in the market?- No, I... get any.

10) For days the rescuers looked for the lost climbers in the snow. On the forth day they saw them and... reach them without too much trouble.

 

2. Insert the modal verbs may or can into each gap.

11) The engines don't seem to be working properly. There... be some ice in them.

12) Planes flying in cold countries in winter... have problems because of ice on the wings.

13) Both engines have failed. I'll try to find a place to land. We haven't much chance of surviving, but we... be lucky.

14) The engines were not working properly. The pilot said he thought there... be some ice on the wings.

15) He said there wasn't much chance of surviving, but we... be lucky.

16) He told me that planes flying in cold countries in winter... have problems because of ice on the wings.

 

3. Complete these sentences with the modal verbs (must or may).

17) Park notice: All dogs... be kept on leads.

18) If you said that, he... be very offended.

19) Warning: No part of this book... be reproduced without the publisher's permission.

20)... I see your passport, please?

21) Farmers... get up early.

22)... I play the guitar right now?

 

4. Replace didn't need to with needn't +Perfect Infinitive where it is possible.

23) It is sweet of you, but you really didn't need to buy me flowers.

24) It's a good job we didn't need to be here earlier.

25) It was strange that we didn't need to show our passports.

26) You didn't need to come and pick me up; I could have got a taxi.

27) There was a sofa in the other room; you didn't need to sleep on the floor.

28) I didn't need to use cash; I had my credit card with me after all.

5. Fill in the gaps using the modal verbs must, have to, to be to.

29) I... be late for work tomorrow, because I have a lot to do.

30) I... get up early tomorrow because it's a holiday.

31) You... come to the station to meet me. I could have got a taxi.

32) I wondered what... to happen to us.

33) We agreed that the one who came first... to reserve seats.

34) You... take the medicine until your cough is cured.

35) It looks like raining. You... take your raincoat.

6. Insert the modal verbs shall/should or will/would.

36) All the candidates... remain in their seats until the end of the examination.

37) I... let him do that again! (negative)

38) He... smoke when I'm trying to eat.(negative)

39) This car... start and run on leaded petrol! (negative)

40) She... always try to help you.

41)... you open the door for me?

42) He... do as I say!

43) What on earth... we do here?

44) But that it... have been you who saw me drunk!

45) Terry was anxious that I... stay to dinner.

46) Ethel... talk about what doesn't concern her!

47) Was it possible that Dick... turn his thoughts from his work?

 

from Практическая грамматика английского языка для среднего и

продвинутого уровней. Под ред. Л.М. Лещёвой. Часть ІІ.

GRAMMAR TEST: CONDITIONALS

 

Choose the correct answer.

1) If she... not so slowly she would enjoy the party. A) were B) is C) will be

2) If you... my library book I will have to buy a new one. A) will lose B) lost C) loose

3) If she... you were in hospital she would have visited you.

A) had known B) knew C) would have known

4) I wish I... rich. A) would be B) were C) had been

5) I wish I... his opinion before. A) would know B) had known C) knew