Learning Outcomes:
Students should be able to:
• demonstrate knowledge and understanding of why effective communication is important in business;
• demonstrate knowledge and understanding of the following business documents:
− business report;
− business letter;
− agenda; and
− minutes;
• analyse and evaluate the following different ways in which a business can communicate digitally:
− social media;
− websites;
− intranet;
− video conferencing;
− Voice over Internet Protocol (VoIP); and
− email;
• evaluate the impact digital technology has on business communication;
Class Learning Activity:
How do you think people used to communicate 50 years ago?
How do we communicate with each other in the modern world?
How do you think these advances have changed the way businesses communicate?
What are the advantages/disadvantages to businesses?
What are the advantages/disadvantages to consumers?
Is the imparting or exchanging of information by speaking, writing or using some other medium. Some communications can be visual including...
Tables/Charts/Graphs
Signs/Maps
Illustrations/demonstrations
Pictures/ photographs
Film
To be considered effective a communication must be
Accurate
Up-to-date
Relevant
Presented in a form that the receiver understands
Delivered in the most appropriate way
Be on time
Precise and as short as possible
Be fit for purpose
The way in which a business communicates has a massive impact on it's Corporate Image. It can change the way consumers perceive the business and affect their choice to buy or not buy a particular good/service.
Clear communication will help customers to enjoy a positive relationship with the business.
Employees are better informed and better decision making takes place within the business improving business efficiency.
Staff understand their roles and responsibilities better and therefore are more likely to carry out their day-to-day activities.
Staff motivation improves as they have a clear understanding of the aims and objectives of the business leading to greater productivity and quality of work.
We live in a global world and many companies even small scale local ones now operate across different countries and even continents. Effective communication is essential when dealing with different cultures and languages and it is important to check that meanings translate accurately into different cultures.
When a business is communicating it is important to avoid the following as they can lead to confusion or even misunderstanding of the intended message.
Jargon – using language or abbreviations which are unfamiliar
Noise – distractions make the message difficult to hear and understand
Delays – communication should be as immediate as possible
Too many people – to achieve accuracy, communication needs to be given directly from the sender to the receiver.
Wrong channel – complicated instructions would be better written down. If detailed instructions are given over the telephone for example, they may not be understood fully
Inefficient use of equipment – electronic mail is an excellent means of communication but its benefits are lost if, for example, the receiver does not open the mailbox regularly
Poor technology – information may be lost or misunderstood if the quality of the reproduced message is poor.
Timing – information may be received about available goods or available services at a time when the receiver is not interested.
Poor feedback – if the receiver gives some feedback, it acts as proof that the message has been understood.
Language – different language and local dialect.
Cultural difference – message may be lost between countries due to cultural
Physical disabilities - such as hearing problems or speech difficulties
Class Learning Activity
What effect might poor communications have on the customers of a business?
What effect might poor communications have on the employees of a business?
What might be the consequences of poor communication for the business?
Poor communication by businesses can have many affects for both the employess and customers of the business and almost always result in negative results
Low Efficiency
Low Morale
Decreased innovation
Decreased productivity
Mistakes
Loss of profits and business
Loss of staff
Poorer quality
Conflict
Report
A report is a business document with detailed written information on a business activity. It is formal in nature and format is structured.
Business Letter
A business letter is used to communicate formally with customers / employees / suppliers etc.
It is usually word processed on letter headed paper and posted out.
Agenda
An agenda is sent to those attending a formal meeting before the meeting starts. It contains a list of topics to be discussed at the meeting. The meeting then follows this structure when it takes place. Agenda will commonly detail...
Date of meeting
Time of meeting
Location of meeting
Attendees
Minutes of last meeting
Matters arising
Topics listed for this meeting
AOB
Date of next meeting
Minutes
Minutes are a word processed record of the discussions, decisions and actions taken in a meeting.
They are formal in nature and keep as a record of what has happened for future reference. Minutes may include the following:-
Date
and apologies
Previous attendees minutes passed or amended
What discussions took place
Decisions made
Actions which need to take place
Date/time/location of next meeting
Class Learning Activity:
It is important to consider the audience of a communication and choose and appropriate channel for that audience.
What channel would you recommend to target the following customer demographics.
A new after shave aimed at young males.
Life insurance aimed at middle aged men.
A local bingo night in Omagh.
A new washing powder.
A new toy aimed at primary school students.
Digital communication technology have developed rapidly in recent years. This allows us and businesses many new ways of communicating. The following methods of digital communications are commonly used by businesses nowadays.
Social Media
Websites
Intranet
Video Conferencing
Voice Over Internet Protocol (VOIP)
Social Media
Social Media defined by the Oxford Dictionary:-
“Websites and applications that enable users to create and share content or to participate in social networking.”
Examples of Social Media:
Tumblr
YouTube
Snapchat
Advantages
Connecting – business are now posting information on their products or services via social media as a way of connecting with their customers.
Speed – businesses can post messages instantly to their customers
Advertising – businesses can post offers, promotions, competitions so that customer can like/ share / follow. Which advertises the company to their friends etc. Greater way to market their product to the world
Time – social media can be accessed 24/7 so customers can visit and see what is happening / find out information etc
Contact – to join social media you need to provide some personal information which makes it easier for businesses to communicate and target customers
Disadvantages
Information Overload – too much information being passed on / offers etc that customers can be switched off
Competition – it is much easier for customers to compare your prices / offers etc with rival businesses
Negative Comments – customers can make negative comments which are untrue or unfair
Privacy – businesses lose their privacy
Websites
Websites defined by Dictionary.com:-
“A website is a connected group of web pages with a common domain name, usually maintained by one person or organisation.”
Advantages
Can sell and advertise your product 24/7
Can communicate with a wider audiences
No need to communicate face-to-face, no need for high street premises
More information about the business can be communicated to customer
Commination can be instant if required
Communication can be via videos / demonstrations
Costs – instruction manuals downloadable rather than having to print etc
Disadvantages
Cost to construct / maintain / security the website
Website Optimisation – your business can get lost in the vast amounts of websites available unless you use a lot of money to promote it
Cost of staff / warehouse to run an online business
Intranet
Intranet defined by Business Dictionary:-
“An intranet is a private network of an organisation internet technology.”
An intranet is meant for the exclusive use of the organization and its employees.
Advantages
Intranet is an easy, economical and fast way of communication within a business
Reduces travel as employees can communicate via the intranet without having to travel from branch to branch etc
Intranet permits easier employee communications
Instant information - Once information is stored by one employee, it is available to all employees who have access.
Disadvantages
The intranet exposes corporate information to the risk of loss of privacy and even unauthorised access
Due to the easy of sharing information, the amount of emails may increase and pile up quickly, putting pressure on staff
Less interaction between staff leading to isolation of staff within the business
Video Conferencing
Video Conferencing defined by Cambridge Dictionary:-
“Video Conferencing is a system by which many computer users can communicate with each other all at the same time using webcams over the internet.”
Advantages
Reduce costs – no need for expensive travel
Reduced carbon footprint
Save time – no time wasted in travel
Can link to anyone in the whole at any time
Disadvantages
Cost of equipment – high initial cost of the equipment required
Reliant on internet speed – connectivity speed may cause break ups in sentences
Less personal - takes away the face-to-face communication in the one place
Voice over Internet Protocol
Voice over Internet Protocol defined by Dictionary.com:-
“Voice over Internet Protocol (VoIP) is a protocol for transmitting the human voice in digital form over the Internet or other networks as an audiostream, instead of using traditional telephone lines.”
Facetime
Skype
Teamspeak
Viber
Advantages
Cost – calls made via the internet no telephone needed, usually cheaper than normal phone call especially long distance calls, some even free
Easy to send documents - with VoIP, you can send large documents, videos and pictures to any contact using the included VoIP software.
Low Initial Investment - To get started, you only need your existing Internet connection, a free VoIP software and a microphone (if not built in) start-up costs are negligible.
Flexible – more flexible than telephone and generally better quality.
No geographical constraints – you can carry it with you everywhere
Disadvantages
Needs a good broadband connection
VoIP calls over computers or mobile devices may suffer from performance issues in case of poor hardware. A slow computer, for example, can affect your ability to load VoIP software, make calls and multi-task during calls.
Email defined by www.dictionary.com:-
“A system for sending and receiving messages electronically over a computer network.”
Advantages
It will be convenient and quick to send and receive messages.
Receiver does not need to be available to receive it they can read it at a later date
It can be sent 24/7
Emails can be sent to multiple recipients at once.
It saves time
It is relatively cheap to send emails in comparison to posting letters.
More environmentally friendly
There is a permanent copy for future reference
Disadvantages
Meaning can be misinterpreted
May get lost in spam
Can be sent too regularly and disregarded
Communications can fall victim to viruses
"Digital Technology is the best thing to have ever happened to business communication."Identify your top 3 arguments in favour of it, and 3 arguments against it.
Advantages
Enhanced quality / professional appearance
Enhanced circulation / keeping everyone up-to-date
Better decision making due to more up-to-date material
Faster production
Better use of resources / material can be altered and edited
Corporate Image – the public image of the business is enhanced
Internet has a vast range of materials and resources available to any business.
Benefits of email, 24/7 websites, help desk, 24/7 assistance
Availability of intranet / social media / video conferencing
Advertising much easier and less costly via digital technology
Business instantly reachable via apps, social media, websites etc
Businesses can communicate globally in an instant via VoIP etc
Disadvantages
Health and safety /ICT users may suffer from eye strain, backache etc
Capital costs – business have to spend a lot of money to install the new technology
Training costs – employees need to be trained or retrained
Information overload – which can result in customers / employees switching off
Reliance on technology – if the technology breaks down or you can’t connect to wifi the technology will not work
Hacking – the possibility of customer and employees personal data / bank details being stolen