2.3 Methods of Communication
Gloria is a sole trader. Her business provides house-cleaning services. Gloria uses telephone calls to communicate with her 4 employees. She wants to expand the business by offering a repair service. Gloria plans to carry out some market research. She has been told producing a business plan can help reduce risk. Gloria would also like to reduce her workload and is considering taking on a business partner.
Outline one advantage and one disadvantage to Gloria of using telephone calls as a method of communication with her employees.
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BGR is a private limited company. It operates 6 cinemas in different towns. Effective internal communication is important for BGR. The Finance Director has been analysing BGR’s accounts and an extract is shown in the below table. BGR plans to open another cinema and will need to recruit 10 new employees. The new cinema will cost $8m. The Finance Director has to decide whether BGR should issue new shares or use a bank loan to finance the expansion.
Extract from BGR’s Income statement for year ending 2020 ($000’s) | |
Revenue | X |
Cost of sales | 180 |
Gross profit | 720 |
Expenses | Y |
Profit | 400 |
Explain two reasons why effective communication might be important to BGR.
Explain two possible methods of internal communication that a small business could use to inform workers about a possible expansion. Justify which method should be chosen.
Consider the benefits and limitations of the following three methods of communication FO could use.
Mobile (cell) phone
Letter
Which method of communication would be most suitable when contacting suppliers about a late delivery? Justify your answer.
Refer to the following insert when answering the question
Consider how the following three barriers could make communication less effective between SSE’s head office in country Z and its new factories in other countries.
Problem with the medium used
Problem with the sender
Problem with the receiver
Which barrier would be the easiest to overcome? Justify your choice.
Refer to the following insert when answering the question
