Business update: it is issued weekly through the internet site. It contains news about Sainsbury and also the other business. It gives all the information about how Sainsbury is doing with its financial records.
Internal and external communications
Internal communication is communication that takes place within an organisation. The two popular internal computer networks in organisations are peer-to-peer and client server networks.
Forms of internal communication
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Verbal information- is communicated in face-to-face interactions, through telephone messages or recorded messages using answering machines and voicemail. It is quick
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Written information- they cover a range of documents that are exchanged within an organisation. It takes time to process and requires extensive filing.
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Electronic information- it is rapidly replacing other forms of communication.
Examples of internal communications in Sainsbury:
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Head Office and Store Managers: they are likely to contact through telephone as they are at different locations. It will be time consuming and that urgent changes can be made quickly. Emails wouldn’t take long time to send but it will take time in login in and out. However they can use emails for customer’s queries and complaints etc.
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Marketing Department and Finance department: they will want to talk to finance about the budget they will be spending on producing new adverts for Sainsbury’s. To do this they are likely to use emails or have meetings to show why they need to produce new adverts. Emails would take longer and time consuming where as meeting will discuss things at greater depth. Graphs and pictures can be shown in the meetings. Telephone also can be the quickest form.
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Store Manager and Finance department: Finance department needs to talk to managers to let them know how the stores are doing. They would use reports and meetings. Meetings would allow them to discuss things if they are in loss. They can show figures and compare them to other years, and how they need to improve.
External communication takes place between the organisation and the outside world. Organisations need to communicate with range of stakeholders including shareholders, customers, government officials, suppliers and the community.
Forms of external communications
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Telephone- it is the popular form of communication. It advantages are fast, and allows people who would find it difficult to meet to converse. The advantages of telephone:
1) Can make instant contact (as long as the person is there).
2) Relatively cheap (especially internal calls).
3) You get an immediate reaction or response to your query.
4) You can tell what the person is feeling.
The disadvantages of telephone:
1) The person you need may not be available.
2) There is no record of the conversation as a reminder or proof later.
3) Complicated messages could be misunderstood or misinterpreted.
4) A message may not be passed onto to the correct person.
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Internet- a worldwide computer networks that effects International business massively. The advantages of Internet are: it saves time. It is rapid, quick. Information needed is free. Other resources can be found. Most of the information is usually up to date. Readers can save their work, and do changes with it. Computer files can also be saved and modified.
The Disadvantages of Internet: sometimes information can’t be found on the Internet. If looked for some information they may be the same. Sometimes information can be false and erroneous. The information can be looked into broader perspectives. Sainsbury uses Internet to show its customers about their company. They use Internet to show customers their product offers. Sainsbury allows Internet to promote and advertise their goods and services, developing a wider spread of customers. They also can compare prices with other shops product. Sainsbury have websites that anyone can have access to it. As many people like to access through the Internet it may be beneficial to Sainsbury.
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Faxes- a form of external communication that has experienced massive expansion over years and it is capable of sending both written and visual information. The advantages of Faxes are they can send information electronically over the phone lines. It can be copied for others. Can be read at leisure. Can make changes and send later.
The disadvantages of Faxes are: it takes time to produce the work. Delivery may take time. Other may read it.
Sainsbury might use fax to inform suppliers.
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Video conferencing- Video conferencing makes possible face-to-face meetings with people who are geographically separated. The advantages of video conferencing are: saving time and travel experiencing. Ready access to supplementary sources of information. Enabling people who work from home to communicate with others. Instant feedback can be received. Voices can be used to add emphasis or show feeling
The disadvantages of video conferencing are: to set up needs correct equipment. It may also be costly. Everything must be organised in advance. The reception can be sometimes unclear.
Examples of external communication include:
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Sales department and Suppliers: to ensure that suppliers are constantly supplying food and they should never run out of food in Sainsbury. They use the electronic interchange- every item scanned on a till to be recorded and passed onto suppliers so that they know what to send. Sainsbury would have to spend more time ordering goods so this is much easier to use. However they could use Fax or telephone if they need to order goods urgently.
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Sales department and Customers: they are responsible to pay for necessary resources. Sainsbury can have good communication with its customers is through websites. Customers can look for the price of their products, they can check their market share and etc. it is much easy to use and can access through any time. They can also look through advertisement though televisions, billboards etc. they may want to communicate to customer through letters for example for to reply to an inquiry and send some voucher offers etc.
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Head office and Shareholders: Sainsbury’s colleagues will want to know about the profit and loss of Sainsbury. After talking to finance department the board of directors will use a letter to keep their shareholders informed. They will put the financial figures on the websites so that their shareholders can have access to it any time.
Upward and downward communication
Downward communication generally tells employees what to do.
Managers created systems the rules the work and communicated these down to the junior employees. When manager receives information on their performance in the store he must send the information downward to its colleagues. Employees in downward communication tend to get less involved and easily get de-motivated. There are some advantages of this communication:
- Senior managers set target and objectives and makes sure they are carried out.
- Instructions can be clear and work can be carried out properly.
- Cost may be lessening, as fewer mistakes will be made.
- It promotes morale among all employees.
The disadvantages of downward communication:
- Sometimes there is not enough encouragement or to guide them.
Upwards communication tends to help inform manages what is going on in the organisation and can be used as a decisions making tool. Upward is really important because:
- Good ideas may be bought up from people who deal with day-to day issues.
- People who work at the bottom of organisations are very talented and have more ideas that are worth listening for.
- Managers can be known of the problems that occur.
- Can get feedback from the decisions being made
- If people are being asked to communicate they might feel motivated.
- It is efficient
The disadvantages of upward communication
- It needs managerial control
- There are more high officials in the downward.
Upward and Downward Communication to Sainsbury: Human Resources may want to employ more employees so they need discuss things to Finance department like whether they can afford to take on these new employees.
Open channels & Restricted channels
Open channels are refereed to as information being targeted to everyone within the organisation or groups outside and does not contain confidential materials, and then the message is open to everyone to see or interpret. (E.g. bill boards, magazines etc). The advantages are that people might read most the information. It can be fast, quick.
Restricted channels are information that is confidential; it might be targeted to fewer people. For example in a school or college a staff briefing will normally take place behind closed doors, where no students are allowed.
Informal and Formal Communication
Formal communication in an organisation is communication that takes places through the recognised channels. This takes place within the official’s channels that is the line of communication approved by senior management. Within a channel any form of communication is regarded as formal. Communication channels are established by the organisation and are accepted and recognise by employees and managers.
Informal communications are one that takes place that are not part of the officially recognised networks of the organisation. Informal communication can also serve as motivating forces because they are based on individual initiative. Informal communications builds relationships among staff members and volunteers, and face-to-face interaction is the primary way people communicate informally.
Sainsbury may use formal communication when they receive equipments. They may want to inform its employees how to use the equipments.
Technology is developing quickly and Sainsbury is taking advantage of it. As they have done things already for example for the stock taking as they are using scanned till at the checkout so that the sold goods need to be ordered again. This has lowered mistakes and less time will be consumed.
ICT has totally transformed ways of communicating within business. It allows business to achieve their objectives etc.
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Cost: Installing ICT will save employees time. It will make customer service more efficient and easy. It can also improve knowledge and skills of employees. To install the new technologies in Sainsbury it costs a lot of money however from the profit money they get, that should be able to cover the costs. With these new technologies they can improve their ways of service. A way to do this Sainsbury had installed self service till, anyone can use it. It is much easier and they will not have to wait for queues. To communicate to its customers Sainsbury will use letters which will be cheaper but extra money is required for postal and papers. With the profit money they have they can install computers to email their customers as it will be cheap, efficient and there will be quick respond to inquiries.
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Speed: With new technology arriving Sainsbury can save time and run and efficient. The use of email has replaced many communications that previously were carried out by letters, faxes and phone calls. This has saved time as letters take time to receive at other end, and replying back may take days. There is also the risk of having strikes and that would delay if there was urgent letters. However with emails it is received quickly and sent quickly. Sainsbury would want to communicate with its suppliers quickly. This can be done during employees use the tills to sell the products to customers which involves scanning at the checkout, to be recorded and the information is then sent to the stockroom so they know which products needs to be ordered. This lowers mistakes and will take less time. With tills so expensive Sainsbury has benefited, means customers won’t have to wait too long for queues.
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Easy of Use: employees need to know how to use the new equipments, they should be trained. As they use the equipment in time they will feel more confident using it. With automatic equipments it will save them and the customers more time. This will improve employee’s skills & knowledge. ICT will lower the mistakes and can be corrected easily. Emails sending are also easy to use. Sainsbury may want to use fax machine to contact their suppliers and this is just easy, they just have to enter the phone number and paper to print. This is easy to use and it is fast. The new tills will need a lot of training so that employees can improve the customer service efficiently and become more confident in using them.
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Presentation: To advertise products Sainsbury needs to write down things clearly and understand by customers. ICT allows them to advertise properly and design various posters etc. if they are not produced and advertised properly they will not be successful. Posters must be eye-catching; noticeable that will attract customer’s attention. They must not lead customers mislead information. Presentation can help Sainsbury decide what products they need to sell with offers. ICT allows to be typed and have multiple copies and be sent to shareholders. This saves them time whereas they would be writing for each shareholder. ICT is effective for Sainsbury and other business. It has improved the communication and other things. It is efficiency and speed of communication is becoming fast and cheap. Overall it creates good impression of the business.