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Importance of Communication in Commerce

Communication is the process of conveying information from a sender to a receiver using a medium. Effective communication occurs when the information is understood the same way by both parties. Communication is important for businesses to exchange documents, minimize confusion, ensure better control, obtain market information, and enable international trade. Factors like the nature of information, number of recipients, speed, cost, and need for records influence the choice of communication method. Common methods include internal communication within an organization and external communication with customers and suppliers using various oral, written, visual, and electronic forms.

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Tahmid Raihan
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100% found this document useful (2 votes)
278 views5 pages

Importance of Communication in Commerce

Communication is the process of conveying information from a sender to a receiver using a medium. Effective communication occurs when the information is understood the same way by both parties. Communication is important for businesses to exchange documents, minimize confusion, ensure better control, obtain market information, and enable international trade. Factors like the nature of information, number of recipients, speed, cost, and need for records influence the choice of communication method. Common methods include internal communication within an organization and external communication with customers and suppliers using various oral, written, visual, and electronic forms.

Uploaded by

Tahmid Raihan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Chapter 10.1 - Communication

Chapter 10.

CHAPTER 10.1
COMMUNICATION

LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE


Chapter 10.1

COMMUNICATION

Communication: it is the process of conveying information from a sender to a receiver with the use of a
medium. Example: We are using Zoom Cloud Meetings to communicate throughout the class.

Effective communication: in which the communicated information is understood the same way by both
sender and receiver.

IMPORTANCE OF COMMUNICATION IN COMMERCE

• Need for exchange of documents in trade.


• Minimize confusion and misunderstanding between buyer and seller.
• Ensure better business control.
• Businesses can get reliable and cheap information about their markets & customers through
surveys and feedbacks.
• Frequent travelers need to develop a contact with their offices.
• International trading is not possible without efficient communication system.
• Modern banking is also dependent on communication system.

CHARACTERISTICS OF EFFECTIVE COMMUNICATION

• Rapid
• Accurate
• Suitable for Global Transmission

FACTORS AFFECTING THE CHOICE OF COMMUNICATION

1) The nature of the communication


2) The number of people that need to communicated with
3) Whether speed of delivery is important
4) Whether the cost is significant
5) Details of information being communicated
6) Whether a record is required
7) The importance of visual appeal

LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE


Chapter 10.1

METHODS OF COMMUNICATION

• Internal Communication: This is the range of communications that take place within the
organization. This may include telephone messages, emails, memos or even verbal instructions.

• External Communication: This is the range of communications that take place between the
employees of a company and customers or suppliers outside. This may also include telephone
messages, emails etc.

FORMS OF COMMUNICATION

• Oral/Verbal Eg: Meetings, instructions


• Written Eg: Memo, Letter
• Visual Eg: Video, Displays, Signs, Graphs, Charts
• Electronic Eg: Email, Internet

ORAL/VERBAL COMMUNICATIONS

• Face to face communication is a direct oral communication (Office Meetings)

Advantage Disadvantage

Discussions can take place which should improve Meetings can sometimes become to lengthy with
decision making lot of discussions but very less achieved
Immediate feedback is possible if participants are Some people in meetings are very unresponsive
willing Immediate feedback is received and does not participate and share their views
Opportunity to ask question on the message Some people become very dominating and
communicated controlling in the meetings
People who dislike meetings have a very bad
It encourages team work
influence on others
Detailed information can be shared and No written proof is kept if the discussions are not
understood much more clearly kept noted

LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE


Chapter 10.1

• Teleconferencing is an indirect oral communication (Zoom, Skype, Google Meets)

Advantage Disadvantage

Discussing sensitive issue might not feel as


Sharing new ideas instantly with colleagues
comfortable as felt in a face-to-face meeting
Immediate feedback is possible if participants are Facial expressions & body language cannot be seen
willing if video is not turned off.
Opportunity to ask question on the message No written proof is kept if the discussions are not
communicated kept noted

It encourages team work Limited to a group of people only.

Detailed information can be shared and


understood much more clearly
It can save a lot of time and cost as there is no
need to travel
Very quick method to get a response to an urgent
problem

WRITTEN COMMUNICATIONS

• Majority of the communications within organizations are in written form.


Examples:
- Reports
- Memos
- Letters
- Notices

When using written forms of communication, the communicator must ensure the following:

- Whether it is suitable for the recipient to understand the message.


- It is presented and written in a proper professional format.

LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE


Chapter 10.1

REPORTS

Their uses Advantages Disadvantages

Excellent for providing detailed Provide structured, logical and May be difficult for some people
information that can be referred detailed information presented to use as it might need specialist
to frequently. in an easy to use format language skills or knowledge.

Example: Financial Reports, It may become very long and


Project Progress Reports, may never be referred to
Research Findings Report etc. properly.

MEMOS

Their uses Advantages Disadvantages


Fastest method of
They may get delivered to the
communication internally in an Provides the person receiving
wrong person and end up in
organization to ask for specific the memo with a written
information being never
information, instruction or permanent record.
communicated.
action.
Memos usually contain the
It is a fairly quick way of
names of the people being Slower than other forms of
communication in a written
communicated to, the subject communication such as emails.
format.
and the date it is being sent.

THANK YOU!

LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE

 
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE 
Chapter 10.1 
 
CHAPTER 10.1 
COMMUNICATION
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE 
Chapter 10.1 
 
COMMUNICATION 
Communication: it is the process of conveying info
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE 
Chapter 10.1 
METHODS OF COMMUNICATION 
• 
Internal Communication: This is the ra
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE 
Chapter 10.1 
• 
Teleconferencing is an indirect oral communication (Zoom, Skype,
LECTURER: N. NEWAZ KARIM. ACCA AFFILIATE 
Chapter 10.1 
REPORTS 
Their uses 
Advantages 
Disadvantages 
Excellent for provi

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