Cambridge IGCSE and O Level Business Studies
9 Internal and external communication
Answers to Coursebook activities
Activity 9.1 (page 124)
1 Everyone knows what to do in the event of fire. If there is no notice then lives might be lost and the
business sued for compensation.
2 So there is no confusion as to what is needed. If the wrong goods are supplied this might delay
production with possible loss of sales.
3 Business should respond quickly to convince the customer that it takes their complaint seriously. If
it does not respond quickly then the customer might tell other consumers and this will damage the
reputation of the business. Customer might decide to take legal action if the complaint is not dealt with
quickly.
4 There needs to be a permanent record of warnings to be used in evidence if the employee is later
dismissed for lateness. Without evidence the employee might claim unfair dismissal.
5 So that the customer receives exactly what they want – no misunderstanding. If the wrong goods are
sent then the customer will return these and might cancel their order. Could tell relatives and friends
about poor service and this could damage the firm’s reputation and decrease sales and profits.
6 All employees should receive the same information at the same time to avoid any misunderstanding. If
the message is not communicated to all employees at the same time then some employees might think
they are not going to get a pay rise and might become demotivated/leave/threaten industrial action.
7 Businesses need accurate information about how much money they have in the bank. If they do not
have correct information then they might spend more money than they have in the bank. Overdraft
will increase business costs due to interest they will have to pay on the overdrawn balance.
8 Accurate names and addresses of customers are needed if the business wants to contact them – perhaps
to send them direct mail. If information is inaccurate then the business will waste money sending
direct mail and other correspondence that cannot be delivered or is sent to the wrong person.
9 Consumers might use the website to find out information about what the business sells. If it is out of
date or the website is difficult to use, then customers will look elsewhere and sales will be lost.
10 Advertising is probably the most important contact between the business and consumers. If not
effective then consumers will not know that the product is available, what it does or where consumers
can purchase it. Sales will be lower than they might have been if the message had been communicated
more effectively through advertisement.
Activity 9.2 (page 125)
See table in Activity 9.5 answers for ways to communicate using the spoken word (oral).
Activity 9.3 (page 126)
See table in Activity 9.5 answers for ways to communicate using the written word.
Activity 9.4 (page 127)
See table in Activity 9.5 answers for ways to communicate using technology (electronic).
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Chapter 9 Answers to Coursebook activities
1
Cambridge IGCSE and O Level Business Studies
Activity 9.5 (page 121)
1
Types of communication
Oral
Written
Electronic
Conversation
Email
Email
Meeting
Fax
Fax
Interview
Memorandum
Video-conferencing
Telephone
Text message
Text message
Video-conferencing Noticeboard
Letter
Report
Visual
Bar chart
Graph
Photograph
Diagram
Note: some methods could appear in more than one column.
2 Answers might offer different responses to suggestions below – accept any sensible responses, which
will depend on the justification for the method selected.
a i Report – detail needed.
ii Bar charts, graphs – visual presentation easier to understand, detail not required.
b Letter – make sure all employees receive.
c Diagram/drawings and report – visual to show what it might look like and a report to provide
explanation and cost information.
d Memo or email – written record that can be used as a further reminder.
e Telephone – quick and easy, provides the applicant with the opportunity to ask questions.
Activity 9.6 (page 129)
Purpose of activity is to encourage students to ‘justify’ their choice, i.e. discussion is not just about
identifying the method but for students to explain why they think it is the best method. Suggestions below
are not the only methods that might be appropriate.
1 First warning might be verbal, but there should be a written record that this has been given in case
future action needs to be taken against the employee.
2 Follow-up might be a telephone call or letter depending on the seriousness of the complaint.
3 Advertisement on a noticeboard. Only need to bring this to the attention of existing employees. Cheap
and everyone has the opportunity to read the advertisement.
4 Advertisement in a newspaper/magazine – covers a wide area of the market and cheaper than a
television advertisement, which is more expensive, but has greater visual impact.
5 Telephone call or email. Need to contact the supplier quickly to speed up delivery.
6 Telephone call. Can speak directly to the customer and agree how and when payment will be made.
Reminder letter – this might be ignored.
7 Meeting with employees as a group or individually. More personal and can be used to explain the
reasons for redundancy and why they have been selected. Should be followed up with a letter as a
written record of the decision to avoid misunderstanding.
8 Meeting. Everyone gets the same message at the same time – avoids rumour and misunderstanding.
9 Report or email with data attached. Need to have written evidence to avoid any misunderstanding.
10 Minutes of meeting. Must be a permanent written record of any discussions and decisions taken to avoid
misunderstanding and to make sure that appropriate actions are taken and who is responsible for them.
Test yourself (page 130)
1 Information that is passed between two or more people with feedback to confirm that it has been
received and understood.
2 Oral, written, electronic, visual.
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Chapter 9 Answers to Coursebook activities
2
Cambridge IGCSE and O Level Business Studies
Case study (page 130)
a To avoid misunderstanding and prevent mistakes, to prevent rumours. Improves morale and
motivation, decision-making.
b Answer should consider how information is passed and whether there is opportunity for feedback.
Article suggests that communication is likely to be effective because there is a regular meeting for all
employees and an open session allowing employees to ask questions.
Activity 9.7 (page 132)
Receiver might not have a mobile phone with them, or might not check their messages regularly.
Factory might be noisy and a barrier to effective communication.
Letter might not be delivered or get lost in transit.
Employee might not pass the message on or might not pass on the whole message. Might not have
understood the message and pass on what they think it is.
5 Sender and receiver might not speak the same language. Might be technical problems with the phone
line that make it difficult to hear message.
1
2
3
4
Activity 9.8 (page 133)
1 Communication where there is a permanent record, e.g. letter, memorandum, email, etc.
2 Telephone, letter.
3 Have a meeting with Indira to give her a verbal warning – should be a written record of the meeting.
Send Indira a letter as a written warning about timekeeping.
4 Written communication to suppliers might not be received so might delay the supply of raw materials.
Without raw materials, Abdul might not be able to meet orders from customers and this could lose
him sales and reduce profits. Instructions to his employees might not be understood and they might
carry out tasks incorrectly. Customers might become unhappy with the quality of work and this might
damage the reputation of the business.
5 Customers receive goods on time and as ordered – improves the reputation of the business and
increases future sales and profits. Instructions are understood and correctly carried out – reduces waste
and improves quality. Raw materials are received on time. Any problems with employees are correctly
recorded and, if dismissal is necessary, then there is less chance of it being unfair and it prevents the
business from being sued.
Test yourself (page 133)
1 Wrong communication channel is used, noise, lack of trust between sender and receiver.
2 Answers will depend on barriers identified in the previous question. More careful choice of channel,
move to somewhere quieter, more regular meetings between sender and receiver to improve
relationships and encourage greater trust.
Exam-style practice questions (page 134)
1 a Information passed between two or more people with feedback provided by the receiver confirming
to the sender that the message has been received and understood. [2]
b Tables, charts, graphs, photographs, etc. [2]
c Noise, wrong medium used, language used too complex, communication channel too long, lack of
trust between managers and other employees, demotivated employees, etc. (1 mark per correct barrier
identified) [Total: 4]
d She could hold a meeting (1) with all part-time employees involved. This will give employees the
opportunity to ask questions (1), all employees will hear the same message at the same time (1).
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Chapter 9 Answers to Coursebook activities
3
Cambridge IGCSE and O Level Business Studies
e
2 a
b
c
d
e
She could write a letter (1) to them all. If she uses appropriate language then all employees will
receive the same message (1); this provides a permanent record of what decision has been made and
communicated (1). [Total: 6]
Effective communication means that instructions from the manager to employees have been received
and understood (1); if messages are not received or understood then tasks will not be properly carried
out (1). This might mean that Golden Sands Hotel’s customers receive poor service (1), they will not
return and will tell other people about the poor service they received (1). This damages the hotel’s
reputation (1), it will lose future sales (1) and profits will fall (1). (Maximum: 5) Answer should decide
the importance of effective communication to the success of the hotel and justify this with reference to
points made (1). [Total: 6]
Use of technology to send messages, e.g. email, texts, fax and video-conferencing. [2]
Meeting, memo, telephone, email, etc. [2]
Text refers to use of electronic communication methods, e.g. using a fax machine (1). Advantage of
this method is that factory managers receive an exact copy of the original document from head office
(1). Telephone (1), message is communicated quickly and immediate feedback can be obtained from
the factory managers to check that the message is understood (1). [Total: 4]
Barriers to effective communication might include noise (1), wrong choice of media (1), mistrust
between sender and receiver (1), complex language (1). (Maximum 2 for identifying barriers to
effective communication) Noise – message not heard properly or important parts of the message not
heard (1), task not completed or incorrectly completed (1). Mistrust between sender and receiver –
receiver does not listen to the message properly, or does not pass the message on to other employees
(1), tasks not completed, causing late delivery of orders to customers (1), loss of sales/damage to
reputation (1). (Maximum 2 for each explanation) [Total: 6]
Advantages and disadvantages of each method should be identified. Letter – all employees get the
same information (1), permanent record so employees can look at the message several times to check
understanding (1). However, employees in the two factories might not receive their letters at the same
time (1), could result in rumour (1) or employees in one factory thinking they are less important
than employees in the other factory (1). Meeting – all employees hear the same message at the same
time (1), opportunity to ask questions (1). However, meeting might have to be during working hours
and this will reduce output (1). Can all employees from both factories get to the meeting venue (1)?
Company A might have to hire a venue for the meeting for 600 employees and this increases costs
(1). Answers should decide which method is ‘best’ and justify this with reference to points made (1).
[Total: 6]
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Chapter 9 Answers to Coursebook activities
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