advantages and disadvantages of different methods of communication

2.4 Internal and External Communication

2.4.1 Why Effective Communication Is Important

Effective communication is the lifeblood of any business. It enables:

• Clear understanding of goals, objectives and expectations.
• Efficient coordination of activities across departments and with external partners.
• Fast and accurate decision‑making (e.g., a telephone call can cut a stock‑replenishment decision from 48 h (email) to 2 h).
• Strong, trust‑based relationships with customers, suppliers, employees and other stakeholders.
• Reduced errors, misunderstandings and costly re‑work.
• Compliance with legal and ethical requirements (data‑protection, health & safety, confidentiality).
• Enhanced confidence of investors, regulators and the wider public.

2.4.2 Methods of Communication – Advantages & Disadvantages

Businesses use a mixture of internal and external communication methods. The table below summarises the main advantages, disadvantages, typical cost, speed of delivery and primary use of each method. Where a method can be used for both internal and external purposes, this is indicated.

*Cost figures are indicative (UK/Europe, 2025) and vary with volume, provider and location.

2.4.3 Barriers to Communication – Causes, Examples & Mitigation

• Language barriers – Example: A French subsidiary receives an English‑only instruction that is mis‑interpreted, leading to a production error.
  Mitigation: Use plain English, provide translations or visual aids where necessary.
• Cultural differences – Example: In a multicultural team, a direct criticism is taken as rude, causing resentment.
  Mitigation: Offer cultural awareness training and adapt tone/style to the audience.
• Physical barriers – Example: A noisy open‑plan office makes it hard to hear a presentation.
  Mitigation: Ensure suitable meeting rooms, good lighting and reliable equipment.
• Technological barriers – Example: Staff cannot access the intranet because of outdated browsers.
  Mitigation: Keep hardware/software up‑to‑date and provide IT support and backup communication methods.
• Psychological barriers (e.g., stress, low morale) – Example: An employee feels intimidated and does not raise a safety concern.
  Mitigation: Foster an open climate, encourage feedback and recognise achievements.
• Organisational barriers (e.g., hierarchical silos) – Example: A sales manager never receives production updates because information only flows upward.
  Mitigation: Adopt flatter structures, use cross‑functional teams and clear reporting lines.

2.4.4 Linking Communication to Other Functional Areas

Clear communication underpins every business function. The connections required by the syllabus are:

• Marketing – market‑research briefs, advertising campaigns, product‑launch announcements and customer feedback all rely on accurate messaging.
• Operations – production schedules, quality‑control instructions, health‑and‑safety alerts and inventory updates must be communicated precisely to avoid downtime.
• Finance – budgets, financial statements, audit findings and tax information are shared through formal written channels to ensure transparency and compliance.
• Human Resources – recruitment adverts, staff handbooks, performance‑review feedback and staff‑wellbeing initiatives depend on consistent internal communication.

2.4.5 Legal & Ethical Considerations When Communicating

• Respect data‑protection legislation (GDPR, Data Protection Act) – choose secure channels for personal or confidential information.
• Maintain confidentiality agreements with suppliers, partners and employees.
• Ensure accuracy to avoid misleading statements, especially in external communications such as advertising, press releases or financial reports.
• Follow company policies on acceptable use of social media, instant‑messaging tools and personal devices.
• Retain records of important communications for the period required by law or industry standards.

2.4.6 Choosing the Most Appropriate Communication Method (Decision Checklist)

When given a scenario, students should evaluate the following factors and then justify the chosen method (AO2/AO4).

1. Urgency – Is the message needed immediately?
2. Formality – Does the message require a formal, legal record?
3. Audience size – One‑to‑one, a small team, or a large group?
4. Audience location – Same site, different sites, or overseas?
5. Complexity – Does the message need visual aids, diagrams or real‑time interaction?
6. Cost & resources – Are there budget or equipment constraints?
7. Security & confidentiality – Is the information sensitive?

Simple decision‑tree (text version):

• If urgent + internal → Telephone or instant messaging.
• If formal + external → Letter, fax or formal written report.
• If visual explanation + remote participants → Video conference.
• If large internal audience + regular updates → Intranet/newsletter/notice board.
• If public image + wide reach → Press release/PR campaign.

Worked example (AO2):

“A new health‑and‑safety policy must be communicated to all factory staff within 24 hours.”

1. Urgent – needs to be received quickly.
2. Audience – all staff (large internal group) located on‑site.
3. Formality – policy is a legal requirement; a written record is essential.
4. Best method – post the policy on the internal notice board **and** send an email with a PDF attachment. The notice board provides a physical reminder; the email creates a digital record and can be acknowledged.
5. Justification – combines speed (email), formality (written record) and coverage (notice board), meeting the criteria for cost‑effectiveness and compliance.

2.4.7 Key Points to Remember

• Match the communication method to the purpose, audience, urgency, required record‑keeping and security needs.
• Consider cost, speed, reliability, potential for misunderstanding and legal/ethical constraints.
• Combine methods when one channel alone cannot meet all requirements (e.g., email + face‑to‑face).
• Identify common barriers and apply appropriate mitigation strategies.
• When answering exam questions, evaluate the most suitable method and provide a clear justification (AO4).
• Regularly review communication practices and adapt to new ICT tools and changing business needs.