2.4. Internal and external communication
A subsection of Business Studies, 0450, through 2. People in business
Listing 10 of 18 questions
ATC is a very large exporting company with many offices throughout the world. The top management know that effective communication is vital in such a large business. Recently the management held a meeting to consider the ways communication operates in the business. Discussion focused on the ideas of one-way communication and communication feedback. What is meant by communication feedback? Identify two business situations in which one-way communication would be suitable. Situation 1: Situation 2: Identify and explain two ways in which information technology has affected how a business communicates with its stakeholders. Way 1: Explanation: Way 2: Explanation: ATC employs 10 000 staff throughout the world. Identify and explain three benefits that ATC might gain from delegating decision-making to its staff around the world. Benefit 1: Explanation: Benefit 2: Explanation: Benefit 3: Explanation: ATC has a policy of recruiting staff for the senior jobs from within the business. It is changing its policy so that external recruitment will be used to recruit senior staff in the future. Do you think that the change will benefit ATC? Justify your answer.
0450_w10_qp_11
THEORY
2010
Paper 1, Variant 1
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ATC is a large exporting company with many offices throughout the world. The senior managers know that effective communication is vital in such a large business. Recently the management held a meeting to consider ways of improving communication in the business. Discussion focused on the problems of one-way communication and the importance of feedback. What is meant by ‘one-way communication’? Identify two benefits of the telephone as a means of communication. Benefit 1: Benefit 2: Identify and explain two benefits to the management of receiving feedback from employees. Benefit 1: Explanation: Benefit 2: Explanation: ATC invests heavily in new technology in its business. Identify and explain three benefits that ATC may gain from this investment in new technology. Benefit 1: Explanation: Benefit 2: Explanation: Benefit 3: Explanation: As a large employer of people, ATC knows that it must follow all the laws that affect people at work. Do you think that such laws benefit both ATC and its staff? Justify your answer.
0450_w10_qp_12
THEORY
2010
Paper 1, Variant 2
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LWC is a large multinational mining business with operations throughout the world. The management knows that effective communication is important in such a business. Decision making is centralised at the Head Office of the company. What is meant by ‘effective communication’? Identify two advantages of using e-mails as a means of communication within a business. Advantage 1: Advantage 2: Identify and explain two barriers to effective communication that might exist within a business. Barrier 1: Explanation: Barrier 2: Explanation: Identify and explain three consequences to a business of centralising decision making at its Head Office. Consequence 1: Explanation: Consequence 2: Explanation: Consequence 3: Explanation: Do you think that multinational businesses are of benefit to your own country’s economy? Justify your answer.
0450_w10_qp_13
THEORY
2010
Paper 1, Variant 3
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K & P is a large group of shops selling televisions. The directors of K & P use an autocratic management style. Spans of control are narrow and communication is only one-way. Many workers leave K & P each year and this is a problem for the business. The motivation of the workforce is low as workers feel they are unimportant. What is meant by ‘autocratic management style’? What is meant by ‘span of control’? Identify and explain two disadvantages of one-way communication for K & P’s management team. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Identify and explain three methods that K & P could use to improve worker motivation. Method 1: Explanation: Method 2: Explanation: Method 3: Explanation: Should K & P try to reduce the number of workers leaving each year? Justify your answer.
0450_w13_qp_12
THEORY
2013
Paper 1, Variant 2
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VIS provides a range of insurance services including insurance for cars and electrical products. Last year retained profit decreased. The Managing Director blames higher taxation and also thinks that some markets have become more competitive. Customer complaints have also increased. The Managing Director plans to change the business organisational structure by removing both the regional directors and regional managers. She said: ‘Shorter chains of command may help. I know some employees may need training.' She cannot decide on a suitable method of communication to inform employees about the changes to the organisational structure. Identify two reasons why markets can become more competitive. Reason 1: Reason 2: Identify two methods of training that a business might use. Method 1: Method 2: Identify and explain two ways in which higher taxation might affect VIS. Way 1: Explanation: Way 2: Explanation: 1 8 Identify and explain two advantages to VIS of changing its organisational structure. Advantage 1: Explanation: Advantage 2: Explanation: Recommend the best method of communication VIS should use to inform employees about the changes to its organisational structure. Justify your answer. 1 8
0450_w17_qp_12
THEORY
2017
Paper 1, Variant 2
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BGR is a private limited company. It operates 6 cinemas in different towns. Effective internal communication is important for BGR. The Finance Director has been analysing BGR’s accounts and an extract is shown in Table 4.1. BGR plans to open another cinema and will need to recruit 10 new employees. The new cinema will cost $8m. The Finance Director has to decide whether BGR should issue new shares or use a bank loan to finance the expansion. Table 4.1 Extract from BGR’s Income statement for year ending 2020 ($000’s) X Revenue Cost of sales Gross profit Y Expenses Profit Define ‘cost of sales’. Calculate X and Y. X: Y: Identify four stages of the recruitment process. Stage 1: Stage 2: Stage 3: Stage 4: 1 9 Explain two reasons why effective communication might be important to BGR. Reason 1: Explanation: Reason 2: Explanation: Do you think issuing new shares is a better way for a limited company to finance expansion than using a bank loan? Justify your answer. 1 9
0450_w21_qp_11
THEORY
2021
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BEF is a large business based in country X. It uses flow production to manufacture a wide range of products including toothpaste and shampoo. All BEF’s products are currently sold in country X. BEF knows that having effective methods of internal communication are important. The Operations Director is analysing production data. An extract is shown in Table 4.1. BEF is considering exporting its products to country Y. Table 4.1 Extract of BEF’s production data for one of its products Average number of production workers Total output per week Define ‘flow production’. Calculate output per worker per week in 2020. Show your working. State four factors a business should consider when selecting an appropriate method of internal communication. Factor 1: Factor 2: Factor 3: Factor 4: 1 9 Explain one reason why the following factors might be important to BEF when deciding whether to export to country Y. Import tariffs: Language: Do you think it is better for a large business to produce a wide range of products than a small range of products? Justify your answer. 1 9
0450_w21_qp_13
THEORY
2021
Paper 1, Variant 3
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RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries. Identify two benefits to a business of using flow production. Benefit 1: Benefit 2: Identify two reasons why people work. Reason 1: Reason 2: Outline one advantage of RSL using each of the following methods of internal communication. Email: Telephone calls: Explain two leadership styles RSL’s managers might use. Leadership style 1: Explanation: Leadership style 2: Explanation: Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? Justify your answer.
0450_w24_qp_11
THEORY
2024
Paper 1, Variant 1
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Questions Discovered
18