7.2 Business Communication

2026 Syllabus Objectives

By the end of this topic, you should be able to explain:

Situations in which communication is essential
The standard methods of communication used in business: spoken, written, electronic, visual
The strengths and weaknesses of the different methods of communication
How communication works within a business
The difference between one- and two-way communication; the difference between vertical and horizontal communication
Problems associated with different channels of communication
Barriers to communication and how to overcome them
The role of informal communications within a business
Ways in which communication can influence the efficiency of a business
Ways of improving communication in a given situation

Communication is the successful transfer of a message from a sender to a receiver, in a way that is understood and acted upon correctly.

Effective communication must be:

There are two broad types of communication in business:

Internal communication — messages exchanged between people within the same organisation (e.g. a manager emailing a team member)
External communication — messages exchanged between the organisation and outside groups (e.g. a business writing to a supplier or customer)

Inside a business, communication is needed in the following situations:

Situation	Why Communication Is Needed
Coordination	Departments like marketing, finance and operations must stay aligned. For example, a meeting to plan a product launch ensures all teams are ready at the same time.
Motivation and morale	Keeping employees informed about company plans helps them feel valued and engaged. For example, announcing a new computer system through a training session keeps staff confident.
Decision-making	Managers and employees exchange ideas and give feedback so that well-informed choices can be made.
Delegation and instructions	Managers need to communicate tasks clearly so that staff know exactly what to do and how to do it. For example, emailing new safety procedures to all staff.
Performance management	Communication is used for appraisals (performance reviews), giving praise, providing feedback, and setting targets.
Problem-solving	Open dialogue between employees helps resolve issues quickly before they grow into larger problems.

Outside the business, communication is needed for:

Purpose	Explanation
Customer relations	Businesses must communicate clearly with customers to meet their needs, handle complaints, and promote their products or services.
Supplier coordination	Arranging delivery times, negotiating prices, and discussing quality standards all require communication with suppliers.
Investor confidence	Shareholders and potential investors need accurate financial and strategic information to trust the business.
Legal and regulatory compliance	Businesses must respond to government or legal bodies to show they are following the law.
Public image and PR	Promoting a positive reputation through media, social platforms, or advertising requires well-managed external communication.