Standard Grade Business Management

Unit 4.5 – How do Businesses Communicate?

What is communication?

• Process by which information is passed from the sender to the receiver

Communication can be … Formal or Informal

• Formal – official communication, usually good quality and often to a large number of people. For example Annual accounts, Notices to all Staff

• Informal – casual communications usually to a smaller number of people. For example chatting to a colleague over coffee or messages left on notes

• Internal – takes place within a business. For example memos, email, staff notice boards, loudspeaker systems, internal phones

• External – between a business and the outside world, eg with suppliers, customers. For example www, press releases, letters, video-conferencing, advertisements, notices.

Communication can be … Internal or External

Methods of Communication

• Written

• Oral

• Visual

Written Communication

• Football club

Match tickets Letters to suppliers Memos to members of staff Leaflets – for advertising and

promotion Financial reports – end of year

reports for information for shareholders

Oral Communication

Football club TV/radio interviews Telephone conversations Announcements at matches Videos and DVDs

• Verbal communication is often immediate and useful for informing large numbers of people at the same time.

Visual Communication

Football Club Posters Photos Video and film Billboards Graphs and charts

• Sometimes visual is easier to understand at a glance. It can be attractive and appealing.

Electronic Communication

Football club Webpage Facebook Twitter Text messaging Internet E-mail Fax

• Appeals to many younger people. Very wide audience.

Why use ICT to communicate

• Speed of transmission

• Cost effectiveness

• Keep abreast of competitors

• To reach worldwide market

• Ease of communications with customers

• Efficiency in keeping records

Advantages and Disadvantages of ICT

Advantages Disadvantages

Speed and accuracy of passing on information

Can be expensive to install equipment and train staff

Communicate with many people

Data can be corrupt

Reduces waste (eg paper)

Systems can break down

Can improve decision making

Specialised ICT support needed

Selecting a method of communication

• You must be able to choose the most appropriate method of communication for a given situation. Eg which method would you choose for the following: Telling all staff about new health and

safety legislation Informing local customers of a

limited time promotion Launching a new product onto the

market

Mix of Communication Methods

At credit level, you should be able to describe and justify how a mix of methods of communication mey be used in a given situation, eg

•Launch of a new product•Delivering health and safety training•Consulting staff on their view about

relocating to a different area(consulting implies that the organisation requires feedback from staff)