Unit 4 Business

Communication
 Sources of information
Internal External
 Financial  Government

 Human Resources  Trade Groups

 Marketing  Commercially

 Purchasing provided
 Sales (businesses such as
 Operations MINTEL or Which?
 Administration
Who carry out
market research)
 Customer Service
 Research
Types of information
 Verbal
 Written

◦ Onscreen
◦ Multimedia
◦ Web based
Verbal Information
 this method of communication can range for
people talking to each other to a telephone
conversation
 Face to Face: this method of information is

good as there is less scope for

misunderstanding.
 Verbal communication is instant and people

often find this an easy method of

communicating
Written Information
This can be used in a variety of methods
ranging from application forms to charts and
presentations. Numerical information such as
profit and loss accounts come under written
information too.
 Written information can include; newspapers,

books and government publications

Written Information
 On Screen information can range from television
to graphics, text and animation.
 Multi media Information means a range of media
integrated with each other. Multi media can
include web pages to audio files. Multi media is
often used to describe DVDs and CDs
 Web Based information is beneficial due to the
speed of broadband, it is possible to view web
based information almost anywhere in the world.
Web based information is convenient as it allows
people to view it when it is suitable for them.
Purpose of Information
 Updating Knowledge
 Informing future developments
 Strategic Direction
 SWOT analysis
 Offering competitive insight
 Communicating sales promotion
 Inviting support for activities
Updating Knowledge
 This can be used internally to update new
staff or existing staff about changes to the
business in terms of policies, organisational
structures.
 This can also be used externally to enable the

business to understand how the market is

developing, what the economy is doing,
PESTLE factors.
Informing Future Developments
 Workforce Planning- deciding how many new
staff the business requires based upon the
future developments
 Keeping ahead of the competition- a

business needs to understand and know what

developments are likely to be made to enable
it to develop new products and to stay ahead
of its competitors.
Strategic Direction
 Strategic direction allows a business to
understand and decide on its purpose,
objectives and long and short term strategies.
 Information can help a business to

understand an appropriate direction to head

towards and enable a business to plan a
timescale and any resources it requires. A
business needs information from both
internal and external sources to effectively
plan.
SWOT analysis
 This method of analysis is used to identify
strengths, weaknesses, opportunities and
threats. A SWOT allows a business to look at
both internal and external influences and can
inform a business as to what action they
should take.
Offering Competitive Insight
 Businesses need to know what their
competitors are doing to ensure they keep up
with competition and try to stay ahead.

 Competitors activity can be analysed to

inform a business of their marketing mix and
to how to sell more effectively
Communicating Sales Promotion
 Businesses need to communicate their sales
promotion to their customers, they can do
this in a variety of ways. Information received
can help a business to determine buying
patterns and can help a business to promotes
their goods or services more effectively
Inviting Support for Activities
 Information is needed to support its
activities, this could be external, from
another company or internally from a variety
of functions within the business.
Reliability of Data Sources
 It is essential that businesses ensure they
understand how reliable, accurate and
truthful the data they have received is.

 Businesses should always ensure the data is

not biased.
Assignment 1
 This assignment looks at different types of
information.

 You need to choose a business that you know

very well or have access to.
D1
 Evaluate the appropriateness of at least two pieces of information used
to make important strategic decisions. You could investigate the
marketing decisions and decide if the decisions were appropriate. Look
at the methods of information you have chosen, evaluate why the
methods have been used. Include advantages and disadvantages and
whether you think the method is appropriate

 You need to make a conclusion as to whether your chosen business uses

appropriate information for important strategic decisions.

 Your evaluation must be based on at least two sets of information.

 You must justify your comments by looking at the alternative

information and sources that could be used by the business and
comparing the advantages and disadvantages of the alternative methods
to the methods chosen.