Introduction to Business Communication

Concept of Internal and External Business Communication

Internal Business Communication

Internal communication is the exchange of information within a business organisation, which helps to increase the efficiency of decision-making of business activities (Bovée, Thill and Raina, 2016). It is the structural framework which helps employees understand each other to achieve the objectives of the organisation effectively. Internal communication also helps to develop skills and knowledge to generate innovative and creative thoughts to increase the productivity of a business firm. For example,

Vertical Communication

This communication is used in a hierarchical structure of business, and it is formal communication which flows from top-level management to lower levels.

Horizontal Communication

This is informal communication, and it is used within the same level of management. Communication between inter-departments are horizontal in nature.

External Business Communication

External communication is the exchange of information between a business and any external source, which helps to increase the productivity of the firm. This helps to formulate effective strategies and let business to stay connected with the market to analyse competition. For example

Press Release

Communication is done with the public with the help of media to provide transparency about business activities to support business growth and achieve core competency.

Website

Businesses need to share information with customers and suppliers with the help of an official website to increase the efficiency of the business.

Importance of Internal and External Communication Strategies in Management

Effective internal communication helps a business organisation to increase shared values among employees to make them loyal and increase their efficiency in achieving their objectives. With the help of internal communication training of employees, if done effectively, it also decreases disputes and develops a healthy working environment (Zhao, Fan and Yan, 2016). Internal communication provides better customer service with the help of effective management strategies. This also increases the knowledge of managers to make effective policies for business. Get Assignment Help, and you can reach out to our Experts!

Effective External Communication helps to engage in better change management to increase the performance of the company to compete with competitors in the market. External communication strategies also help to develop relations with customers to understand their behavioural pattern, which provide support to formulate an effective marketing plan to increase customer satisfaction. External communication also helps to satisfy all external stakeholders by improving the quality of services and products to grow the business.

Examples of Effective Communication in Organisations

Buffer- This is a social media management company which promotes communications to increase trust and transparency in their business activities, which makes this business successful.

Credit Karma- The Company uses open open-door policy, which helps to increase communication among employees and also helps them to improve their morale as part of the team.

Examples of Ineffective Communication in Organisations

Yahoo- Due to ineffective communication company have lost many employees. The management of Yahoo announced an unclear message, which increased turnover and hence decreased the efficiency of the company.

Indicators of De-globalisation in the Current Global Environment

De-globalisation is the process of reducing the dependencies and connections between different countries. This discourages investments, decline in international trade, and increases import and export tariffs by the government. Due to Brexit, it has increased de-globalisation in the country and decreased its economic stability gradually. De-globalisation emerged due to increased inflation and higher interest rates, which decreased the ability of business organisations to compete in a global environment and led to failure. This has impacted several economies and discouraged globalisation.

Trade

Decline in global demand due to an increase in import and export barriers in many nations, which have discouraged international trade (Quinlan and et.al., 2019). The global Gross Domestic Product rose from 30 per cent to 60 per cent, which accounted for globalisation and helped to grow the nation effectively. Although due to the recession, the growth rate declined to 55 per cent, which shows the presence of de-globalisation and impacted the global growth index adversely. Order business assignment help from our experts!

Flow of Capital

Banks are the major factor in increasing the flow of capital in every nation, but due to a decrease in global demand, it resulted in a financial crisis globally (Van Grembergen and De Haes, 2018). New regulations and financial laws have also impacted the flow of capital to support business growth and the economy of the nation. This resulted in the downfall of GDP from 16 per cent to below 2 per cent.

Flow of People

The flow of people is essential to increase the manpower of the nation to move towards growth and productivity. As the trends show, people from poor countries travel to rich countries to improve their financial condition, which also contributes to the economic growth of rich nations. This provides skilled labour and talents in the country to increase efficiency to achieve the growth of the business. The rate of migration from poor to rich countries declined from 12 million to 4 million people in past five years.

Winner and Loser Businesses Due to De-globalisation

De-globalisation has also impacted many businesses positively and negatively and has discouraged them from working internationally (What is deglobalisation? 2020). Due to de-globalisation, major manufacturing units increased their growth within the nation a slight impact monopolistic market. It also helped increase job opportunities for the UK population to improve their standard of living. De-globalisation also helps companies to decrease the cost of international trade and increases profitability to grow faster within the country. This also helped businesses to retain employees from going across the country for job opportunities.

De-globalisation impacted the businesses which are operated in developing or poor countries. It also adversely impacted the jobs of people which are working in import and export businesses in the UK, and this also decreases the strength of businesses directly linked to international trade. Businesses which need low-rate capital were the losers as migrations from poor countries have decreased. Also, check out Business Dissertation Topics for your next dissertation.

Examples

1. Toyota was impacted negatively due to de-globalisation as the company lost all their suppliers and low-cost labour, which is required in manufacturing due to Brexit.
2. Royal Bank of Scotland suffered a lot due to disinvestments in the UK.
3. EasyJet also became a loser as the company had to calculate the cost and routes after de-globalisation from the UK.

Comparison Between Leadership Styles of Banks and Online Businesses

Leadership and management styles are essential in the banking sector as they help to manage their employees and motivate them to achieve their objectives effectively. Banking sectors adopt transformational leadership and management style, which helps to implement change in the organisation (Werhane, Freeman and Dmytriyev, eds., 2017). This helps banking sectors to set high objectives and formulate strict polices to achieve those objectives to increase the growth of banks. This also helps employees to push their capabilities and increase their set of skills and knowledge to reach their team goals. Banks also use a Transactional management style, which helps to motivate all employees by providing financial rewards according to the deadlines.

Online business uses Autonomous leadership styles due to high competition in the market, and the rapid increase of technology also requires effective teams. An online company treats every employee as their leader and also provides authority to make their decisions, which increases the ability to innovate and retain employees in the company. Employees in online companies are distributed in teams which have autonomous leaders and employees from different departments, which helps to decrease the communication gaps and make effective decisions to increase the ability of company. The focus of online companies is to provide better skills and knowledge to their employees, which motivates them to acquire leadership qualities and increase the productivity of the online companies. Struggling with your dissertation? Get our dissertation writing services at the best prices.

Leadership Styles and Examples

In my opinion, the most suitable leadership style for modern global organisations is the autonomous leadership style, as it helps to provide better opportunities to employees and helps to encourage them to develop their own cultures into small teams to attain the common objectives of the company effectively. This style also helps to increase the quality of employees' skills and knowledge, and provides them with effective responsibilities to increase decision-making. This leadership style is cost-effective and also removes middle-level managers from the management structures, giving better transparency of work.

Example

Spotify is one of the major online music streaming companies which has employed more than 2000 employees. The company has successfully implemented an autonomous leadership style with the help of dividing employees into squads, which are managed by the team squad members themselves (Erasmus, Strydom and Rudansky-Kloppers, eds., 2016). This helps to improve communication within organisation and helps to provide transparency of decisions to formulate effective strategies for the company. Each squad have all the types of skills and knowledge which are required to run a company.

Conclusion

This report concludes that internal and external business communication is essential for growth and expanding a business organisation in the market. Communication also helped to improve management activities and increase the efficiency of employees to achieve its objectives effectively. The report also discussed the impact of de-globalisation on different businesses, which helped to contribute to the economy of the nation earlier. This report helped to understand the importance of an autonomous leadership style to increase the growth of the business and motivate employees to be loyal to the company.

Also Read - Business Strategies of an Organisation

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