Important role of running business



In today's world we can see that communication plays an important role for running a business organisation smoothly. Without proper communication in an organisation no business would be able to achieve its success. Communication is the transmission of information from a source or a number of sources to the receivers. The information can be communicated in any form of a message. For example, a customer goes to a supplier and may request a for new part with information on which that part is to be used on a piece of equipment. The supplier will then give instructions on how to use the part by communicating to the customer and also will be sending a delivery note, invoice, and communicate to the customer by setting out instructions for using the part, as well as sending a delivery note, invoice, and further sales literature. Increasingly these interactions will be carried out by electronic media such as through a website, e-mail communications and other means.

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In a communication the sender will encode the message and it will be decoded by the receiver, in between the sender and receiver there is transmission media. Effective communication depends on:

  1. Proper clarity of the message.
  2. The medium used to transmit the message. The medium is the means of communicating e.g. e-mail, telephone, letter, etc.
  3. Any distracting 'noise' that prevent the message from effectively getting through. For example, if the recipient receives lots of e-mail messages, they may fail to give proper attention to the sender's message.
  4. The ability of the receiver to decode the message. For example, they may not be able to understand the instructions given.

Communication is the passing on of ideas and information. In business we need good and clear communication. The contact may be between people, organisations or places and can be in a number of forms such as speech, writing, actions and gestures. Organisations need to be structured in such a way as to maximise the benefits of communication processes. There are two types of communication in an organisation. They are:

  1. External communication.
  2. Internal communication.


The external communication organisation takes place within the organisation and also the outside world. It deals with the stakeholders and the customers. The different forms of external communications are written communication and oral communication.


Internal communication deals within an organisation. It takes place between the managers and the employees and not the outside world. There are different forms of internal communication like the e-mail which is a written communication, company database, company websites, face to face interactions where it is a direct communication with the other employees in the organisation, meetings, telephonic communications, memos which is sent by e-mail today and notices. With an effective internal communication there can be better understanding and relationship between the management and the employees, and so the employees can view and share their ideas among the management. This helps the employees to have a strong feeling that the management is always their to help them.

According to Jane Sparrow, General Manager of Sony, Europe says that not to rely on employees taking action to read the internal news because the e-mail inboxes might be flooded and only a small percentage of the staff check the corporate website and intranet regularly and he suggest that the only way to make them read the corporate information is by grabbing their attention.

For a company like Vodafone they promote better communication through intranet in a fast changing world. It works like internet but the access is restricted to the people within the organisation. Sending too many emails and texts, message may overload and can be a problem, and so Vodafone prioritises messages to its employees to ensure that they are received in a targeted and timely way through their phones, e-mail and other media. Vodafone also uses a firewall to prevent SPAM (or electronic junk mail) to safeguard the employees. Here the communication flows vertically from senior employees to junior employees which helps the senior managers to be in touch with the employees concerns and ideas and horizontally across the teams and departments.

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Kellogg's uses internal communication in many different ways to communicate to their staffs. They distribute house magazines to all the working employees in Kellogg's which indicates the balance of food and exercise right. Also they have supplied a pedometer to each of its employees to encourage them to do more walking. And all these activities have helped the Kellogg's staffs to understand the business objectives and why the business has created them.


Change plays an important role in our day to day life and also mainly in the field of any business organisation. A change always occurs in any business organisation. There is no business organisation that moves forward without a change. Changes in an organisation can lead to the good and bad of the company, where the good side is they make huge profit and the bad side is many employees will lose their work.