Business Communications - Set -2

MASTER OF BUSINESS ADMINISTRATION - SEMISTER -1MB0039 – BUSINESS COMMUNICATIONS SET_2

Q1. List the differences between extensive reading and intensive reading .

Answer:

Reading is essentially a process of decoding messages, with a view to understanding a written

text. It has various purposes, such as reading for personal interest, pleasure or for gaining

information. A single text is not written for any one purpose, but could meet any purpose,

depending on individual needs.

Reading in the real sense is an active, rather than a passive process. Active reading means

reading to grasp the meaning. It is a skill which has to be developed and practiced.

Based on the purpose for which we are reading, there are five different types of reading –

1. Skimming – Quickly glancing over a text to get a general idea of the content

2. Scanning – Careful reading to find out specific details

3. Extensive reading – Rapid reading to get an overall understanding of the matter

4. Intensive reading – Reading slowly with concentration to get specific details

5. Silent or loud reading – This depends on whether we are reading to ourselves or reading to

others

Extensive Reading:

Our way of reading is influenced by the purpose of our reading. Most of us have the habit of

reading especially when we are free, or have a lot of leisure time. We might get hold of a novel,

a comic strip, or a magazine. When we read for the pure pleasure of reading, it is known as

“extensive” reading. However, it should not be given less priority, because it is extensive

reading. It is enjoyable, as well as informative. Here, we practice rapid reading to get a

global/overall understanding of the matter.

Intensive Reading:

When we read shorter texts like a research paper for getting specific details or information, we

read slowly with a lot of concentration. This is known as intensive reading. When you read a

book as a resource material for research, you read it intensively because the overall

understanding is not the objective or purpose of our reading. When you read an article in order to

write a review on it, you read it intensively. We use all the skills of reading when we do

intensive reading.

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA) 1


Q2. Explain the different advantages and disadvantages of intranet.

Answer:

An intranet is similar to a website, except that it is an internal network that is exclusive to a

particular organization. This means that only employees of the organization will have access to

it. This is as opposed to an “extranet”, which is also an internal or private website, but where

access privileges are also extended to external stakeholders of the company, such as customers,

suppliers, partners and others.

Although the intranet is better suited for large organizations where distributing information is an

enormous task, a number of smaller companies today are also using this form of internal

communication.

Simply defined, the intranet is a tool for distributing and sharing information of different types

within the company. For example, weekly reports, goals, human resources related information

such as employee benefits and declared holidays, interactive forms, vacation requests, supply

orders, company policies and even memos and notices can be posted on the intranet.

Apart from large organizations, the intranet is particularly suited for “virtual” companies that

have only an online presence, as well as companies with frequently traveling employees and off-

site workers, since communicating with such employees becomes a challenge.

Advantages and Disadvantages of Intranet

Like any other tool, the intranet has its advantages and limitations. Some of the primary

advantages are –

Discourages grapevine – Grapevine, or the informal communication network was

discussed in one of the earlier units. Although grapevine can be useful, it also leads to

rumors, in the absence of information passed on through the formal communication

network. When employees are misinformed, they become dissatisfied and de-motivated.

Using the intranet as an official channel to post information for all employees to see

discourages gossip and avoids creating a transparency gap.



Facilitates pre-meeting discussion – The intranet may be used to discuss and debate ideas

prior to a meeting, so that valuable meeting time is spent focusing only on relevant ideas.

Example – Suppose a sales team of five members are required to make a presentation to the Vice

President Sales, on how to increase sales during the current year. Instead of each salesperson

making a lengthy presentation during a meeting and then getting his ideas reviewed and

approved, a “discussion board” can be created using the intranet, a few days before the meeting.

The salespersons could post their ideas on the discussion board for the VP to review in advance,

so that only the most promising ideas are discussed during the meeting. This way, the

salespersons can come into the meeting more focused.

Saves time – The intranet is paperless communication and is therefore a big time saver.

A lot of unnecessary time wasted on filling out forms, leave requests, supply orders, etc.,

can be saved by doing this through the intranet.

Employees can get information on official holidays and other HR related information,

without having to interact with the HR manager.

Is superior to email – Sending some types of information through email can sometimes

create confusion and information overload. Let us take the above example of the sales

team making a presentation on how to increase sales. If five salespersons each have three

different ways in which they could increase sales and start emailing multiple versions of

their Power Point presentations for the VP to review, it could lead to disastrous results.

Instead, they could work on a shared file, by using the intranet. A central location could

be created for the most recent file.

While the intranet saves valuable time and money, it is not without its down side. Before an

intranet can be set up, a lot of groundwork needs to be done. You need to determine what you

want it to do and how employees will use it. Some of the disadvantages are –

Getting started – Building an intranet to your specifications can be expensive. A

consultant may have to be hired to give it the desired look and feel and to make sure that

it is user friendly and simple enough for all employees to use.



Developing and maintaining content – Once it has been set up, someone has to be

responsible for maintaining and updating the information on a continuous basis. In small

organizations, it may be sufficient to appoint one person to do this. In larger

organizations with multiple departments, it may be necessary to appoint several persons

to maintain and update information for the different departments.

Training employees – Once it has been set up, employees have to be familiarized and

trained on how to use the intranet. This involves investment in time and money.

Convincing “old economy” employees – Some employees may not be technology or

computer savvy and may be reluctant to use the intranet to access information.

Therefore, they may have to be convinced about the benefits of using the new

technology.



Q3. List the different principles of business letter writing

Answer:

Principles of Business Letter Writing:

Business letters are used primarily to communicate with external stakeholders such as consumers, intermediaries, government and bankers.

The principles of business letter writing are somewhat different from the principles of writing general letters. Business letters are much more formal than general letters. Before we go into the specifics of business letter writing, let us look briefly at some of these principles-

* Consideration and Courtesy – It is very important to retain the goodwill of customers and other external publics. A discourteous, rude letter can make you lose business. Therefore, the business letter should be extremely polite at all times and mindful of the “P”s and “Q”s, i.e., the words “please, thank you and sorry.” Even if you happen to get a rude letter from a customer, you must respond politely, in order to retain the customer.

If the company has been at fault, it is important to apologize to the customer for the mistake and for the inconvenience caused. The overall tone should not be negative. For example, avoid saying “We cannot grant your request.” Instead state it in a more tactful way, explaining the reasons for not being able to grant the request. If you are sending a job rejection letter to a candidate, it should be worded politely and in a positive tone.

Consideration means that you should appeal to the reader’s interest. The importance of stressing the “you attitude” rather than the “me attitude” was dealt with in an earlier unit. This is similar to the language of advertisements, which talk about the benefits of the product to the end user.

For example, instead of saying “We will be open 24 hours”, say “You can avail of round-the-clock service.”

* Directness and Conciseness – Business letters should be brief and to the point, avoiding unnecessary details and round about expressions. A typical Indian tendency is to be too wordy or “verbose”, using redundancies and unnecessary words. Business letters should give maximum information to the reader, using minimum words.

* Clarity and Precision – Business letters should be clearly worded, avoiding the use of jargon or technical terms, and slang words. Concrete words should be used, so that there is no ambiguity.

Example : Instead of saying “I received your communication”, it is better to be more precise by saying “I received your letter.”



The letter should include a single main idea and paragraphs should be used to elaborate on sub ideas.

* Appearance – Apart from the content, the format, layout and overall look of the letter should be equally appealing to the reader. Attention should be paid to the quality of paper used. The margins should be appropriate, including one inch on each side and one and a half inches on top and at the bottom.

A business letter should include the following standard components –

1. Date in the upper right hand corner

2. The “To” address above the salutation in the upper left hand corner.

3. The Salutation – When addressing a firm, “Messr” should be used before the name of the firm. Since business letters are formal, the appropriate salutation when addressing an individual is “ Dear Mr./Ms., followed by the last name, rather than the first name, which is informal. If the gender of the reader is not known, it is better to use a neutral salutation, such as “ Dear Customer or Investor.”

4. Sometimes, an “Attention Line” may be included below the salutation, in order to ensure prompt action. For example, “Attention : John Smith, HR Manager”.

5. A “Subject Line” indicates the purpose of the letter and is placed between the salutation and the first line of the letter.

6. The “Body” of the letter includes an explanation of the main idea(s).

7. The “Close” is the ending of the letter and should be polite and friendly, so as to retain goodwill. A standard close for a business letter is “ Yours faithfully or sincerely.”

8. Enclosures – Sometimes, a business letter may include an enclosure such as a pamphlet or a brochure, in which case this should be indicated at the end, below the signature line, as “Encl : 2”, meaning two enclosures.



Q4. Write short notes on (a) corporate identity advertising (b) institutional advertising

Answer:

Advertisements in the mass media such as magazines, newspapers and television are used by organizations to communicate with prospective customers, both about the organization, as well as its products. Advertising may therefore be categorized into two broad types – corporate advertising and product advertising.

Corporate advertising may be defined as advertising that sells the organization to its various publics. In this case, the organization is the product. Corporate advertising is more a public relations activity than a form of advertising, since it has no commercial purpose. Its aim is merely to inform and to build a positive image of the organization.

Product advertising on the other hand, aims to persuade prospective customers to buy the organization’s products or services. Its ultimate purpose is to sell the organization’s products.

We will discuss each of these two types of advertising briefly.

Corporate Advertising

While the overall objective of corporate advertising is to project a positive image of the organization as a whole, some of the specific objectives include the following –

* To create positive attitudes towards the organization – Sometimes, consumers may have negative perceptions towards an organization, based on the belief that the organization is not a responsible corporate citizen. For example, they may believe that that the organization is responsible for environmental pollution, or destruction of forests and other natural resources. In such a situation, corporate advertising aims to create a more positive attitude towards the organization, by correcting these beliefs.

Example – There was a negative perception among consumers that Nike was using child labor in some of its factories, to manufacture sports shoes. Corporate advertising helped to overcome these perceptions.

* To project the personality, culture and values of an organization – The Tatas and the Birlas have been the oldest and the most frequent users of corporate advertising, to communicate about their entrepreneurial ability, culture and values, as India’s leading industrial groups. Even countries may use this form of advertising to achieve similar objectives.

Example – Dubai advertises to project an image of itself as “a land of investment, sports and investment opportunities.”



* To safeguard corporate reputation – This form of corporate advertising is done when the company is going through a crisis. We discussed crisis communication earlier, in the context of shareholder communication, citing the example of Coke and Pepsi, during the pesticide controversy.

Example – During the pesticide controversy, Coke released ads featuring Aamir Khan going to the Coke factory and laboratory, along with the Managing Director, declaring that Coke was safe to drink and free of pesticides. This helped to an extent to restore their damaged reputation.

* To make an organization better understood – Sometimes organizations go in for this form of corporate advertising, in order to make themselves more visible and to make consumers aware that they have a presence in several areas.

Examples – The United Breweries Group ran a corporate advertisement to highlight the fact that UB was not only in breweries, but also had interests in healthcare (hospitals) and education.

The ITC Group also advertises to highlight their presence in areas as diverse as cigarettes, hotels, and ready-to-eat foods.

* To project the organization as socially responsible – This refers to corporate advertising for a social cause, that highlights the company’s role in social development. The objective is to communicate the company’s corporate social responsibility.

Example – The UB Group ran an advertisement with the message “Drinking and driving don’t mix.”

Types of Corporate Advertising:

Corporate advertising not only has different objectives, it has also become wider in scope, going beyond its traditional role of image building. Today, it encompasses many different types of advertising. Some of the most important ones include –

1. Corporate Identity Advertising – This type of corporate advertising is done purely to communicate the organization’s corporate identity, such as its name, logo (e.g. the Nike “swoosh”), trademark or brand name and slogan. When the organization’s identity changes, this is communicated through corporate advertising.

Example – The American fast food outlet, “Kentucky Fried Chicken”, changed its name to “KFC”, to remove the association with fried, greasy chicken. This name change was communicated through corporate identity advertising.

2. Institutional Advertising – This type of corporate advertising is aimed at special publics such as the media, suppliers and dealers, to correct communication problems with them.



Q5. Discuss the different types of business reports

Answer:

A business report may be defined as “an orderly and objective presentation of information that helps in decision making and problem solving.” It may be in oral or written form.

The key words in the above definition are “orderly”, “objective”, “information”, “decision making” and “problem solving.” “Orderly” means that a report flows in a logical sequence, for example, from a definition of the problem, to analysis, to recommendation of solutions. “Objective” means that a report is written avoiding use of the first person, so as to avoid bias. The passive voice is used rather than the active voice, so as to give less importance to the doer of the action.

Example : “A survey was conducted with a sample size of 100 respondents”. (Passive voice) and not “I conducted a survey among a sample size of 100 respondents” (active voice).

A report presents information or authentic facts and data. Subjective judgments and recommendations should be based on data.

Finally, a business report, unlike a scientific or academic report, should aid decision making and problem solving. For example, a report on the market feasibility of a new product should help management to decide whether to launch the new product or not.

A business report has certain unique characteristics –

*A report varies in purpose, length, format and complexity.

Purpose – The purpose of a business report may be to a) inform b) analyze or c) persuade. A report that seeks to merely inform the reader is simple and states facts with no persuasive intent. An example of a report with this purpose is a report on company policies and procedures. Other examples are sales reports, monthly departmental reports and project reports showing progress on projects.

Sometimes a report may have the twin purpose of informing as well as analyzing. Merely providing data may be meaningless, unless the data is analyzed and interpreted. All research reports, such as market research reports based on surveys, come under this category. The information gathered from a survey is analyzed and then presented in a meaningful form. A business report may also have the purpose of persuading or recommending a course of action. A research report may also make some suggestions, based on the data and the analysis of the data. A marketing strategy report submitted to top management and proposals to the government seeking funds for building a research facility, or for some other purpose, are other examples of persuasive reports.



Length, format and complexity – Business reports vary from simple one-page memo formats, to more complex reports such as “manuscript reports”, running to several pages. Research reports are the most complex and the longest of all reports. The purpose of the report determines the length, format and complexity. The different formats will be discussed in detail in a later section.

* Report quality is affected by quality and accuracy of the data

A report may be perfectly written but may still be of poor quality, if the data collected is not accurate, or if the process of data collection itself is faulty. For example, a research report may be well written and presented, but the sample selected for the survey may be too small, or not representative enough of the population.

Regarding accuracy of data, take the example of a report recommending purchase of an overhead projector for the company’s conference room. Suppose you have been asked to study the features of different brands of OHP’s and come up with a recommendation. If you recommend a brand of OHP based on its bulb life of 100 hours instead of 300 hours by mistake, your recommendation itself may be incorrect.

Types of Business Reports:

Reports may be classified based on several criteria, including their use (progress reports and financial reports), purpose (informational, analytical and persuasive reports), frequency of preparation (annual, monthly, weekly and hourly reports), length (short and long reports) and whether they are internal to the business, or are used outside the business.

The most common types of business reports may be divided into the following categories –

1. Periodic reports – These are reports that are prepared on a regular basis, for both internal and external audiences. Their purpose is solely to inform. Examples of this type of report are –

a) Routine management reports – These are reports such as equipment reports and sales updates and are prepared for internal audiences.

b) Compliance reports – These are submitted to external stakeholders, such as the government, stating compliance with regulations such as environmental norms.

c) Progress reports – These reports may be prepared for both internal audiences such as top management and shareholders, as well as for external audiences such as customers. A project report stating progress on a long-term project is an example of this type of report.

2. Proposals – Unlike periodic reports, the purpose of a proposal is to persuade. Proposals may be prepared for both internal and external audiences. Examples of proposals include



research proposals and marketing strategy proposals to top management, proposals to the government to grant funds for building a research facility and proposals to consumers to buy a company’s products.

3. Policies and Procedures – The purpose of these reports is solely to inform. They are also prepared only for internal audiences. Examples include reports on company policies and procedures, written by top management and sent to all employees. This is part of downward communication.

4. Situational reports – These are one-time, exceptional reports that are prepared when a unique event occurs. For example, if sales of the company has shown a significant decline, a study may be carried out to determine the reasons for declining sales and a report prepared on the findings. Similarly, a market feasibility study may be carried out before launch of a new product and a report prepared, based on the study. The purpose of such reports is usually to inform, analyze and persuade.



Q6. List the different steps involved in report preparation .

Answer:

Steps in Report Preparation:

Since reports are a key to the success of any business, they should be carefully planned,

organized, written and presented. A lot of groundwork should precede the actual writing of the

report. We shall briefly discuss the five main steps in report preparation –

1. Planning the report – The first question to be asked before gathering information and writing

the report, is regarding the type of report that is required. We classified reports into four main

types, based on the purpose, the audience to whom they are addressed and the frequency of the

report.

Secondly, it must be remembered that most reports are required by management to solve a

problem, or to make a decision. Therefore, the basis, or starting point for a report is a problem.

Reports are written after a problem is analyzed and a solution to the problem is found. The

problem may be of a day-to-day nature, such as determining which brand of overhead projector

to recommend for purchase. Or, the problem may be a negative one, such as sales of the

company showing a decline. In any case, the problem is the single fundamental issue to be

addressed in the report and should be clearly determined, right at the outset.

Once the problem has been defined, it must be broken up into sub issues or sub problems, by

asking the questions “what”, “ why”, “when”, “where” and “who?”.

Example – Suppose the purpose of a study is to survey clerical salaries in public sector banks in

Bangalore city, in order to determine whether salaries in your bank are competitive and

consistent. The problem may be broken up as follows –

What? – A study of clerical salaries

Why? – To determine whether salaries in our firm are competitive and consistent

When? – Current

Where? – Bangalore city

Who? – Clerical employees in public sector banks

Asking the above questions determines the exact scope of the study and reduces the problem to a

workable size.



The next step in planning the report is to do an “audience analysis”. We have seen that reports

may be addressed to internal or external audiences of an organization. Some of the questions to

be asked about the audience, or the reader of the report are –

Is the audience internal or external to the organization?

Who is the specific audience or reader? - for example, top management, customers or the

government? Reports written for the government and for top management should be

more formal than for other audiences.

Is the audience known to you?

What is the level of knowledge of the audience? Is the topic familiar to the reader? If the

report is of a technical nature and the reader is a layperson, the technical terms may need

detailed explanation.

What is the level of interest of the reader? If the report has been solicited or authorized,

the reader’s level of interest will be high. On the other hand, if the report is voluntary or

unsolicited, it may have to sustain reader interest.

The tone, length, complexity and degree of formality of the report will depend largely on the

reader’s characteristics. For example, reports addressed to peers would adopt a more

conversational tone, while reports on company policies and procedures addressed to subordinates

would adopt an emphatic tone.

2. Selecting a Method to Solve the Problem – After defining the problem and doing an

audience analysis, a method has to be selected to collect the necessary information to solve the

problem. Broadly, information may be gathered using secondary research methods, such as

books, magazines, newspapers, internet and other available sources, or through primary

research methods, such as surveys that provide first hand information.

3. Gathering and Organizing Data – Once the method of gathering information has been

selected, the actual process of gathering the information begins. Since this is time consuming and

expensive, only information that is relevant to the report and the study must be gathered. The raw

data should be evaluated for its usefulness and organized in a form that is meaningful to

understand. Tables, charts, graphs and summaries should be used to do this.

4. Arriving at a Conclusion – Once the information has been checked for its validity and

reliability, it must be interpreted and conclusions drawn. Correct interpretation of the data is



needed for the success of the report. Sound conclusions cannot be made if the interpretation of

the data is faulty. A common mistake made in the interpretation of data is the tendency of the

researcher to use subjective judgments, instead of objective reasoning based on facts.

5. Writing the Report – The actual process of writing the report should begin only after a

satisfactory solution to the problem has been found. As pointed out earlier, a well written report

that contains a bad answer is worse than a badly written report that contains a good answer.

Once you are ready to begin writing, certain procedures for writing should be followed –

Set a date for completion of the report and get started early – Begin by first

preparing an outline and writing an initial draft, which can be refined later.

Starting late is bound to affect the quality of the report.

Start with an easy section – It is best to start writing those sections of the report which

you feel are easier than others. This will help you to get into the rhythm of writing,

which will be carried over to the more difficult sections.

Write quickly, with the intention of rewriting – It is better to put down your thoughts

on paper in the form of a rough draft and to get this done quickly. Once this difficult part

is over, it becomes easier to improve.

Set aside uninterrupted writing time – A long block of uninterrupted writing time,

such as three to four hours a day, should be set aside for writing the report. Interruptions

can make you lose your train of thought.

Review and rewrite where necessary – Ideally, the report should be reviewed a couple

of times, to see if any improvement is needed. The first review should be to see if any

improvement in content is needed, while the second review should check for any errors

in writing style, grammar, spelling and punctuation.

Reports should also be written in a convincing manner, so that the reader accepts them as valid

and reliable. Some suggested techniques of conviction include the following –

State facts in an objective manner – Avoid using superlatives and emotional terms that

introduce bias in the research, or that suggest that you are passing judgment. For

example, avoid saying “There was an incredible increase in sales, compared to the last



year.” Instead, simply state the amount or percentage of increase. This will be more

acceptable to the reader.

Provide expert opinions – Although facts are more convincing than the opinions of

others, they may not always be available. In this case, the opinions of a specialist in the

field may be presented, highlighting the background and experience of the expert. This

can enhance the credibility of the report.

Example – “This is the opinion of an eminent lawyer, who has over three decades of

experience in dealing with similar cases.”

Use documentation – “Footnotes” are citations that are placed numerically at the

bottom of the page in the body of the report, along with the direct references. This is

one way of mentioning the sources of information presented in the report. A

bibliography, or list of references, explained earlier, is another way of providing

documentation. This helps to convince the reader that the information is based on reliable

sources.

Business reports should be carefully worded, adopting certain techniques of writing style –

Use “concrete” nouns – Business reports should use concrete nouns, rather than abstract

nouns as the subject of sentences, since they are easier to visualize.

Example – “Mr. Johnson authorized the study.”

Here, Mr. Johnson is a concrete noun and is easy to visualize.

Compare this with the sentence “Authorization for the study was received by Mr.

Johnson”. Here an abstract noun, “authorization”, is the subject of the sentence and is

harder to visualize. .

Avoid pronouns referring to the writer or reader – The first person pronoun “I” and

the second person pronoun “you” should be avoided in business reports, as far as

possible. The use of “I” risks placing more emphasis on the writer of the report, rather

than on the ideas.



Example – “I conducted face-to-face interviews with fifty respondents.” This draws

more attention to the report writer and should be avoided. It is better to emphasize the

idea that “Face-to-face interviews were conducted among fifty respondents”.

Use tenses correctly – If you are writing a research report and reporting or summarizing

some of the findings, the past tense is preferable.

Example – “Almost 80% of the respondents were not aware of the new product.”

“Of the remaining 20%, five respondents were satisfied with the product’s features.”

However, once the findings have been presented and you are drawing conclusions, the

present tense should be used.

Example – “The above figures clearly indicate the need for more advertising to create

awareness.”

Use “transition” sentences - The report should be written so as to flow in a logical

sequence. A transition sentence summarizes one section of the report and leads the

reader smoothly into the next section.

Example – “While the costs of this new initiative are more than what were anticipated,

the benefits outweigh the costs, as listed below.”

This sentence leads the reader from a discussion on costs to a section on benefits, as a

result of a cost-benefit analysis.

Define key terms carefully – Important terms and words should be defined properly,

explaining what the word means, rather than what the word is about.

Example – “A dictionary is a book containing an alphabetical list of all words in a

particular language” is a more complete definition than –

“A dictionary has to do with words in a language.”


Documents

Business Communications - Set -2