Page 125 - Cambridge IGCSE Business Studies

9: Internal and external communication
Stakeholders: see Chapter 5,
page 62.
KEY TERM
Communication media: the
methods used to communicate a
message.
KEY TERM
Feedback: the receiver’s
response to a message.
Figure 9.2 Eff ective
communication cycle
There are two main types of business communication:
■ Internal communication is where employees communicate with each other. This
may be with colleagues, managers or subordinates in their own department or
with other departments in the business. Communications may include giving
and receiving information, giving instructions or discussing day-to-day business
activities. At a senior level, it may include meetings about the business’s objectives
and discussing ideas for products and services.
■ External communication involves communicating with people and organisations
outside the business – the business’s stakeholders. This may include selling goods
and services to customers, dealing with complaints, sending information about the
business to shareholders, ordering goods from suppliers, sending press releases
about the latest products and services to the media, liaising with government
agencies over tax and regulations, and negotiating with trade unions. Businesses
may also have to deal with pressure groups who may be concerned about their
activities.
Communication takes many forms and uses many different types of communication
media, for example letters, faxes, text messages, leaflets, video-conferencing and
face-to-face conversations. The type of media used will depend on the purpose of the
communication. For example if a manager wants to give a final warning to a worker
about their timekeeping, this should be a letter so that the worker understands the
seriousness of the warning and there is a written record of the warning being given.
Effective communication and its importance to business
123
Communication between two or more people or groups of people will only be
eff ective if:
■ the message is sent using the correct communication media
■ the message is sent to and received by the right person
■ the receiver understands the message
■ the receiver provides feedback to the sender to confirm they have received and
understood the message.