Business communication

(1) Distinguish between Micro environment and macro environment.

Answer: The marketing environment consists of a micro environment and a
macro environment.
There are some differences between micro environment and macro
environment.
Differences Micro environment Macro environment
Definition The micro The macro
environment is environment is
basically an internal or considered as an
nearly environment of external or general
a company in which it environment of the
operates. company that can
create an impact on
the working of the
whole business of the
company.
Element of factors The six main elements The six main factors of
of the micro macro environment
environment are i.e. include demographic,
customers, suppliers, economic, natural,
media or public, socio-cultural,
employer, share- technological, political
holders, competitors. -legal.
Functioning Factors may function Factors may function in
in the term of the form of
strengths and opportunities and
weaknesses of an threats to the external
organization . market.
 (2) Write a short note on cultural environment.
Answer: “Cultural Environment” is a set of beliefs, practices, customs, and
behaviors that are found to be common to everyone that is living within a certain
population. Cultural environment shape the way that every person develops,
influencing ideologies and personalities. Cultural environments are determined by
the culmination of many different aspects of cultural that influence personal
choice and behaviours.
The element of cultural environments are language, social norms, religion, ethics,
socio economics, moral values, traditions, attitude, social organization. It has
significant social and cultural values some of the cultural environment is
protected or otherwise defined or particularly valuable. It also can effect business
decision making. Cultural values, sub – cultures, shifts in secondary cultural values
etc.
(3) Define merger. Mention different types of merger. Is there any
difference between merger and acquisition? How?
Answer: The merger means the fusion of two or more than two companies
voluntarily to form a new company.
Horizontal merger: The companies that are in direct competition and shape the
same product lines and markets. A horizontal merger decreases competition in
the market. A horizontal merger decreases competition in the market.
Vertical Merger: A vertical merger is a merger between two companies that
produce separate services or components along the value chain for some final
product. It is a merger between two companies in the same industry but at
different stages of production process.
There have some differences between merger and acquisition.
Basis for comparison Merger Acquisition
Meaning The merger means the When one entity
fusion of two or more purchases the business
than two companies of another entity, it is
voluntarily to form a new known as acquisition.
company.
Terms The merger is considered An acquisition is
 as friendly had planned. considered as either
voluntary or in voluntary
and can be hostile.
Scenario Two or more companies Acquiring a company is
that consider each other always larger than the
on equal terms usually acquired company.
merger.
Purpose A merger happens to To consolidate an
decrease competition as instantaneous growth.
well as to increase
operational efficiency.
Power The power difference is The acquiring company
almost nil between two gets to dictate terms.
companies.
When we compare merger and acquisition, we may come to a decision that a
merger is always better than acquisition. But just like how each coin has two
sides, both have their own strengths and weaknesses.
(4) Which important rights have been recognized through “Bill of Rights”?
Briefly state these rights.
Answer: The important rights have been recognized through
bill of Rights” such as-
 Consumer bill of rights
 Homeless bill of rights
 Taxpayer bill of rights
 Academic bill of rights
 Veterans bill of rights
 Library bill of rights
 Environmental bill of rights
 Creator’s bill of rights
 Donor’s bill of rights etc.
 (5) What do you mean by economic system? Write the salient features of
capitalism?
Ans: An economic system refers to how the different economic element will solve
the central problem of an economy. What, how and for whom to produce.
An economic system is a system of production resource allocation and
distribution of goods and services within a society or give geographic area. An
economic system is a type of social system.
There are most general economic system are:
1. Capitalism
2. Socialism
3. Modern economy/ mined economy
4. Communism
5. It minimizes the role that the state plays in the economy.
6. It equalize the level of control found in the economy
7. People become the driver of economic success.
8. Optimum use of resources
9. Competition and efficient production.
10.Economic development
11.Encouragement to private sector
12.Social welfare
Capitalism/ Capitalist Economy:
A capitalist economy is an economic system in which the production and
distribution commodities take place through the mechanism of free markets. It
is also called as market economy or free trade economy or capitalism.
Salient features of capitalism:
1) Private properly and freedom of ownership
2) Right of private properly
3) Price of mechanism
4) Profit motive
5) Competition and co-operation go side by side
6) Freedom of enterprise, occupation and control
7) Consumer’s sovereignty
8) It arises class conflict
9) Leading role of joint stock companies
10)Important role of the entrepreneur
7) What do mean by mixed economy? Write the merits and demerits of
mixed economy.
Answer: In a mixed economy both public and private institution exercise
economic control. The public sector functions as aa socialistic economy and
the private sector as a free enterprise economy. All decisions regarding what,
how and for whom to produce are taken by the state. The private sector
produces and distributes goods and services. It is also called as “modern
economy”. There are some merits and demerits of mixed economy:
Merits Demerits
Encouragement to private sector Unstability
Freedom Ineffectiveness of sectors
Optimum use of resources Inefficient planning
Advantages of economic planning Lack of efficiency
Lesser economic inequalities Delay in economics decision
Competition and efficient production Corruption and black marketing
Social welfare More wastages
Wconomic development Threat of nationalism

8) Franchising is an agreement between two partis in which one party passes

some rights to the other party mention these rights.
Answer: Franchising is an agreement between two parties in which one party
passes some rights to the other party.
 Rights include:
 Right to use the trade mark
 Right to use the name.
 Right to use systems, methods and reseaches.
 Right to use packing material
10)Which parties are normally treated as stake holders?
Answer: The parties are normally treated as stake holder are given below:
 Customers
 Employees
 Suppliers
 Bankers
 Government
 Citizen action public
 Law enforcing authorities
 Society at large etc.
11) Show the communication process in a figure with briefly defining its
element.
Answer: Communication is the process of sending and receiving
information among people. Communication is a two way process one party
beco9me play a rules of server and another party in receiver and interact
with each other for implementing the decision figure of communication
process is given below:
The Communication process
Transmission phase
Message → Encoding → Medium Decoding

Sender → Noise → Receiver

Decoding → Medium → Encoding → Message

Element of communication process:

1) Sender: Sender is the party sending the message to another party.
Source is the sender of the message.
2)Thoughts: Sender encodes the thoughts or information exists in the mind
of sender. This can be concept, idea,, information, the sender at first
develop an isea, which he/she wants to transmit.
3) Encoding: Encoding is the process of formulating the points, thoughts
ans meaning senders want receivers to group. In this step sender want
receivers to grasp. In this step is sender converts the idea into a message by
using suitable wants, charts, symbols, pictures etc.
4) Message: Once the idea has been encoded into a form acceptable for
transmission it is considered a message. Message is a idea on experience.
That a source wants to spare in the communication process.
5) Media/channels: media is the communication channel though which the
message moves from sender to receiver.
6) Decoding: decoding is the process by which the receiver assigns meaning
to the system encoded by the sender.
7) Receiver: receiver is the party receiving that message send by another
party.
8) Response: response is the reaction of the receiver after being expressed
to the markets.
9) Feedbacks: Feedback is key components in the communication process
because it arises the sender to evaluate two effectiveness of the message
and take corrective action to clarity a misunderstood message.
10) Noise: Noise is the unplanned states or distortion during the
communication process which results in the receivers getting a different
message than one the sender sent.
11) Barriers: a barrier is something such as a rule, law or policy that makes
it difficult or impossible for something to happen or be achieved.
12) What do you mean by communication? Mention some important
features of communication.
Answer: Communication is the activity of conveying information through
the exchange of thoughts, message as by speech, visuals, signals writing or
behavior.
In simple word communication is the process of transmitting information
from one person to another.
Features of communication:
1) Persons
2) Message
3) Formal/Informal
4) Verbal, Pera verbal or non verbal.
5) Upward, downward or Horizontal
6) Eegular activity
7) Exchange process of message
8) Different media
9) Levels of communication
10) Feedback
13) What do you mean by business communication? Mention some
important feature/nature of communication.
Answer: Business communication is a process of transmitting data,
information, idea, thought, opinion organizational goal. Communication
accrued between two or more businessman for organize and monitoring
business properly.
Business communication is a process of sharing information between
people withing and outside. Its exchanging information in other to promote
organizational goal and reduce error. Some important feature of
communication is given below:
1) Person and parties involved
2) Message
3) Formal/informal
4) Upward, para-verbal and non-verbal
5) Upward, downward, horizontal
6) Exchange process of message
7) Regular activity
8) Different media
9) Level of communication
10) Feedback
14) Most of the communication flow within an organization is downward,
because it is merited by various advantages.
Downward communication is the flow of information and messages from
higher level inside an organization to lower one.
The most basic form of downward is giving subordinates order and
instruction to get work done. It contains the communication of senior to
junior. “Most of the communication flow within an organization is
downward, because it is merited by various advantages. The following
advantages are given below:
 Organization desipline
 Efficiency
 Effective communication of goal
 Ease of delegation
 Distortion
 Lowers morale
 Less time consuming
By using downward communication and organization is merited by these
advantages. That’s why most of the communication flow within an
organization is downward.
16) “Decoding is the explanation of message” elaborate statement.
Answer: Decoding is the explanation of message. This statement is
elaborate below: Decoding is the process by which the receiver assigns
meaning to the simples encoded by the sender. The sender first
encoded his thoughts and ideas. Then, he must need to decode
message. For those purpose it can be said that decoding is the
explanation of message.
18) Define the barrier in business communication? Mention different
types of barriers in business communication.
Answer: Barriers of communication are the difficulties involved in the
process of communication which distort the message being properly
understand by receiver. Barriers prevent the communication from being
effective. Now matter how good the communication system in an
organization is unfortunately barriers can be and often do occur. There
are many types of barriers in business communication. These are,
1) Physical barriers
2) Physiology barriers
3) Emotional barriers
4) Semantic barriers
5) Organization structure barriers
6) Cross cultural barriers
7) Personal barriers
8) Perceptual barriers
9) Mechanical barriers
19) Mention the psychological barrier in business communication.
Define closed mind as a psychological barrier.
Psychological barrier can be described as the cause of distinct
communication because of human psychology problem. There are many
types of psychological barrier on of them is given below:
1) Poor communication skill
2) Poor pronunciation
3) Over confidence
4) Lack of attention
5) Poor retention
6) Premature evaluation
7) Not enough/ lack of emotion
8) Loss by transmission
9) Information overload
10) Jargon and acronym
11) Difference in language
12) Cultural difference
When a person is close minded, the person will have fined opinion on
many things which the person resolutely believes.
20) Mention some ways to overcome barriers of communication.
Answer: Constant organization efforts is needed to overcome the
barriers which are unconsciously built up by different people in the
organization.
Ways to overcome barriers:
 Health centers: Many organization provide medical aid,
gymnasium, and recreation for the staff in an effort to keep down
stress level.
 Rules and regulation: Some rules and regulation like compulsory
vacation after a certain number of months, years are also meant
to ensure that employees avoid stress and figures.
 Language and Words: Semantic and language barriers can be
overcome only by being careful with the use of language and by
using words/sentence which have clear meaning.
 Delivering message skillfully
 Focusing on the receiver
 Ensuring appropriate feedback
 Be aware of senders own state of mind
 Use simple word and understandable language.
 Use some symbols, chart, graph etc.
 Calling attention and motivation
 Understanding the tradition and customs
For the success of an organization an organization must be need
to overcome these barriers.
21) There are seven common principles 7c’s of effective
communication mention this 7c’s why they are called 7c’s?
Answer: Effective communication is defined as the ability to
convey informational to another effectively and efficiently.
Effective communication is a process of enhancing ideas, thought,
knowledge and information such the purpose or intention is
fulfilled in the best possible manner. There are 7 common
principle of effective communication seven c’s are the most useful
qualities of effective communication. Seven c’s of effective
communication is given below:
1) Completeness
2) Conciseness
3) Consideration
4) Clarity
5) Correctness
6) Concreatness
7) Courtesy
22) Elaborate two significant principles. Popularly known as ‘conciseness’ and
‘concreteness’ used in effective communication.
Answer: Two significant principles popularly known as s
Conciseness’
1) It serves to both sender and receiver on time and expense
2) Must avoid wordy message but these contains necessary information.
Two significant principles popularly known as ‘concreteness’
1) Your receiver must know exactly what is required or desired.
2) Message should be specific instead of general.
24) What is non verbal communication? Write the ways/elements of non-verbal
communication.
Answer: Non-verbal communication means all communication that involve
neither written nor spoken words but occurs without the use of words.
Elements of non-verbal communication:
1) Posture (slouching)
2) Appearance (untidiness)
3) Head movements (nodding)
4) Hand movements (waving)
5) Eye movements (winking)
6) Facial expression (frown)
7) Body contact (shaking hands)
8) Closeness (invading someone’s space)
9) Sounds (laughing, crying)

41) The pattern of contacts among the members of the organisation and flow of
information among them is communication network. Network helps managers to
establish contacts in different patterns through communication flows. The
network depends upon the magnitude of the organisation, nature of
communication channels in the organisation and the number of persons involved
in the process. There can be many patterns of communication network.

The most frequently followed networks are the following:

1. Vertical Network:
The vertical network is usually between the superior and subordinate and vice
versa. It is two-way communication. The immediate feedback is possible in this

type of communication network. It is formal network.

2. Circuit Network:
Under this network two persons communicate with each other. Say Mr. ‘A’ sends
message to Mr. ‘B’. After receiving message Mr. ‘B’ communicates the feedback
message to Mr. ‘A’. So communication takes the form of a circuit. Therefore it is
known as circuit network. It is similar to vertical network but in circuit network ‘A’
and ‘B’ are not necessarily superior and subordinates.

3. Chain Network:
This network of communication follows the organisational hierarchy and chain of
command. All subordinates receive commands or instructions from their superior.
B, C, D and E, F, G are the subordinates to A in the organisational hierarchy and
receive commands from ‘A’ which follows the way shown in the diagram.
 

4. Wheel Network:
ADVERTISEMENTS:

Here all subordinates receive commands from one superior. This is highly
centralized type of communication network where each subordinate receives
commands or instructions from a single authority or superior ‘A’ and wants the
immediate feedback.

5. Star Network:
Under star communication network all members of the group communicate with
each other and exchange information. This network is a must for group
communication or where teamwork is involved. This network channel of
communication is open to all members of the group. The members communicate
with each other without hesitation.
The effectiveness of the above networks of communication channels depend
upon their users i.e. the managers at all levels, their subordinates and other
members of the organisation and above all the seriousness with which all these
human resources make use of the facilities provided to them by the organisation
to accomplish its objectives.