Page 131 - Cambridge IGCSE Business Studies

9: Internal and external communication

■ The cost of media – letters are more expensive than other methods because of the
postage charge. However, email, text messaging and telephone calls all require
investment in equipment and regular payments to the phone service or internet
provider.
■ How important it is to have a written record of the communication – if this is
important, then the method must be a written one (such as letters, memorandums
or reports) or electronic (such as email or text messaging).
■ If the message requires discussion – meetings, telephone calls and video-
conferencing are all ways for people to discuss and debate a message.
■ How confidential the message is – a letter addressed to the person concerned is
the best method for communicating a confidential message.

ACTIVITY 9.6

Work in pairs to discuss which type and medium of communication might be the most appropriate for each of the following
circumstances. You must justify your choice.

1 A warning to a worker about poor quality of their work.
2 A complaint from a customer.
3 A promotion opportunity to be recruited internally.
4 A 25% sale price reduction.
5 Late delivery of components from a supplier.
6 A customer who has not yet paid for goods supplied two months ago.
7 Ten production workers who are to be made redundant. 129
8 Explaining plans for the future of the business to the workforce of 50.
9 The marketing manager wants an assistant to provide him with past sales data.
10 A record of the discussions that take place at the monthly Board meeting.

Communication media Advantages Disadvantages

Letters Written record Postage costs
Confidential
Memorandum Written record Only used for internal communication

Email and text messaging Written record Cost of equipment
Might not be confidential
Telephone Can discuss message to make sure it is Cost
understood Not face-to-face
Meetings Everyone gets the same message Time-consuming
Allows for the possibility of discussion Costly if people have to travel from diff erent
and feedback locations
No written record unless minutes are taken

Interviews Confidential Time-consuming
Allows for possibility of discussion and feedback No written record unless minutes are taken
Video-conferencing Reduces travel cost Cost of equipment
Less time consuming as no need to travel Problem with different world time zones

Charts and diagrams Information is easier to understand Loses some of the detail

Table 9.2 Advantages and disadvantages of the most common communication media used in business