Businesses need to communicate with a range of different individuals and organisations. All the people involved in a business need to have access to suitable information in order to do their jobs effectively. A business needs to be co-ordinated so that the right things happen at the right time. Good communications are necessary for effective co-ordination between people and are extremely important in any business. It could lead to targets being achieved and everyone having a good understanding between each other. Communication means passing on information, or receiving it from somebody else. The correct form of communication must be used or problems could occur if this is not done carefully. Here are some examples of what might go wrong: 1. Delivering the wrong items to a customer 2. Delivering correspondence on the wrong date or to the wrong address 3. Management using incorrect data when making decisions 4. Staff misunderstanding each other Communicating to different individuals and organisations can be done in various ways. Internal and External Communication Each method is used in a relative way compared to what the task is, whether it is internal or external. Internal Communication is communication that takes place indoors e.g. between colleagues or members of staff. It includes verbal communication, e-mail, memos, intercom via telephones, computer network, notices and messages, and through meetings. External communication is communication that takes place outdoors e.g. communicating with suppliers, banks and customers. It includes fax, telephone, mobile, pager, video conferencing, the Internet, e-mail, and through a computer network. Formal and Informal Communication Formal communication takes place when employees use official methods/channels the business has set to pass information. An example of this would be writing reports of aspects such as sales performance or attending staff meetings. This is usually vertically upward and downward communication (between the different levels of authority). You would generally use formal communication, whether it is oral or written with people you do not know well e.g. to customers or the bank. Informal communication is when people within a business communicate using unofficial methods/channels. An example of this would be talking to a staff member/ colleague working in the same department or one which happened to be passing by. This can be seen as horizontal communication (colleagues on the same level communication with each other). Informal communication, whether it is oral or written, generally occurs between people you know well e.g. colleagues. Open or Restricted Communication With any form of communication, it is important to identify the purpose of the message as well as the people at whom the message is to be targeted. If the message is targeted at everyone within the organisation or groups outside and does not contain confidential materials, then the message is open for anyone to see or intercept. For example, a note on the notice board is a form of open communication, since it is there for anyone it concerns to see. On the other hand, if the message contains confidential materials, the likelihood is it will be targeted at only a few groups of users, either within a particular department or at certain levels of seniority, so that its use is restricted. For example, a meeting between the managers and directors. Methods of Communication used internally and externally in Tesco Tesco need to communicate with a range of individuals and organisations, including their customers, their competitors and their suppliers. Good communication in Tesco is essential if it is going to achieve its objectives and to operate effectively. Tesco have many channels of communication internally/externally between their functional areas. Communication is vital to Tesco because then everyone is clear about objectives, there is