Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter

Stimpson

Notes
Chapter 9: Internal and External
Communication

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Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter
Stimpson

What is effective communication?

It happens when a message is clearly transferred from one person to
another, who understands the content of the message.

Internal Communication
- This communication occurs between members of the same
organisation.
- The management will use this communication in guiding, instructing,
warning and encouraging workers.
External Communication
- This communication is between the organisation and other
organisations or individuals.
- The management will use this communication in:
a) ordering goods from suppliers.
b) sending information to customers about the product.
c) advertising goods and services.
d) asking customers to pay bills on time.

The Process Of Effective Communication

- Effective communication involves the following features:
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Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter
Stimpson

1. Transmitter/ Sender
This is the person starting off the process by sending the
message.
2. Medium Communication
This is the method used to send a message.
3. Receiver
This is the person who receives the message.
4. Feedback
This is the reply from the receiver, which shows whether the
message has arrived, been understood and acted upon.
One-Way & Two-Way Communication
- One-way communication involves a message, which does not call for or
require response.
- Advantage:
1. It is fast and direct
- Disadvantage:
1. No feedback from the receiver
- Two-way communication is when the receiver gives a response to the
message and there is a discussion about it.
- Advantage:
1. There is an involvement of discussion.
- Disadvantage:
1. Conflict in communication may occur.

Communication Methods
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Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter
Stimpson

1) Verbal Communication
- The sender of the message speaking to the receiver.
- Examples: one-to-one/ telephone/video conferencing/meetings
1.
2.
3.

Advantages:
Information can be given out quickly.
Opportunity for immediate feedback.
Seeing the speaker often reinforces message.

1.
2.
3.

Disadvantages:
Cannot know whether everyone is listening in a big meeting.
It can take longer to use verbal methods when feedback occurs.
An accurate permanent record of the message is needed.

2) Written Communication
- Letters and notices with the used of information technology (IT)
- Examples: Business letters/ Memos/Reports/ Notices/Faxes/Text
messages/Email and social networking sites
1.
2.
3.

Advantages:
Hard evidence of the message.
It is practical to use to explain complicated details.
A writtten message can be copied and sent to many people.

1.
2.
3.

Disadvantages:
Cannot know whether everyone is listening in a big meeting.
It can take longer to use verbal methods when feedback occurs.
An accurate permanent record of the message is needed.
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Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter
Stimpson

3) Visual Communication
- Examples: Films, videos, Microsoft PowerPoint/ Posters/Charts and
Diagrams/Photographs and cartoons
- Advantage:
1. Present information in an appealing and attractive way
- Disadvantages:
1. No feedback and the sender of the message need to use other forms of
communication to check that the message is understood.
2. Charts and graphs difficult to interpret.

Formal and Informal Communication

1. Formal Communication is when the messages are sent through
established channels using professional language.
2. Informal Communication is when information is sent and received
casually with the use of everyday language.

Communication Barriers
- These are the factors that stop effective communication of messages.
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Source: Cambridge IGCSE Business Studies, 4th edition, Karen Borrington & Peter
Stimpson

Examples:
-

Problems with the sender

Problems with the medium
Problems with the receiver
Problems with the feedback

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