Role of Communication in Business
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Introduction to Communication Role
Communication plays an imperative role while any business is being carried out. It is regarded as one of the major elements that assist in carrying out the operations of the organization in smooth manner. In relation to the subject concern a case scenario has been taken that has been reviewed thoroughly with the assistance of journal articles and newspaper columns. The case of financial crisis that has been experienced by Tesco in past has been taken into account. This was massive financial breakdown which has been faced by major retail brand. The report includes the summary of the entire topic in order to make it more understandable.
1) Summary of report from those sources
Tesco in the year 2014 has gained massive loss that has been demonstrated in the various articles as it was one of the critical topics of discussion for business. Due to such the company has to shut down its 43 stores that were located in several areas. This thereby results in job loss of nearly 2500 employees. This is another major fact that is being recorded (Tesco reports record £6.4bn loss, 2015). The reason due to which the crisis has occurred is because of shift in customers’ sources for shopping. The small retailers such as ALDI and LIDL have provided discounts to their customers. Further the trend related with online shopping has increased significantly. The firm was experiencing major financial loss. In order to put efforts towards overcoming this new chairman of Tesco Dave Lewis has bought alterations within their policies so as to survive in the adverse situation prevailing in the market. He stated that in case the firm has to make more investment even after suffering huge amount of loss then such would be done. It has been gained that this has resulted in enhancing the growth of the organization (Pritchard, 2013). Further improvement in sales of the business was recorded but such appeared only in case of large Tesco stores. This is due to the fact that individuals make purchase of wide range of products from single location.
2) Comparative analysis of the facts and opinions raised in these stories
There is existence of certain facts as well as opinions that have been presented. Facts are regarded as truth beside the entire information. However opinion is referred as the perception of an individual regarding particular issues. These play significant role in offering greater knowledge regarding Tesco. Analysis of the facts and opinions has been enumerated in the manner below:
In accordance with the Guardian, the company that is Tesco has made massive sales of £6.4bn which has been increased by certain huge written down over the value of their stocks as well as property portfolio. The same information is demonstrated over the mail column that is online. Journal article that was UK based presented that Tesco has suffered loss of £6.38bn. Another major fact provided that company has to handle its net pension deficit (Sternberg and Zhang, 2014). In accordance with Guardian detail knowledge has been provided about the figures that Tesco is required to pay. This includes £270 mn that needs to be paid so as to handle the deficit of pension.
However journal online that is reflected through mail presents that company is into net debt of £8.5bn that is massive liability which is required to be paid off.
Facts: The firm such as Tesco is conducting its operations without the director of finance since April when resignation was given by Laurie Mcllwee. It is due to the reason that new chief financial officer Alan Stewart started to work in September next year rather than December of particular year. Because of such statement chairman of Tesco Sir Richard Broadbent has declared his resignation as it has been confirmed by the supermarket that profit of the business have been overstated by £263 million. The firm has given suspension to eight senior executives over the issues and carried out investigation of the financial authority. Another fact relates with the statement that Tesco has suspended four senior executives and launched an investigation after it was disclosed that profit of the company has been forecasted and it has been overstated by jaw dropping £250 million.
Opinions: Following the incident Chief executive Dave Lewis has clearly presented that after the issue relating with overstatement, there were three immediate priorities that relates with recovering competitiveness of Tesco in UK. This is in order to protect and strengthen its balance sheet and conduct long journey that ensures building trust and transparency in the target market. In accordance with the opinion of Neil Saunders MD of retail consultancy Conlumino departure of Sir Richard would assist the entire course of Tesco in resolving the issue relating with accounting. Deloitte headed the independent investigation that is very crucial to determine whether rules and regulations were broken during while carrying out entire scandal.
3) Evaluation of key arguments in those two sources and other external sources
By making evaluation of the key arguments that have been kept into headlines through different information sources have been presented in the manner as under:
In accordance with the various journal articles it has been determined that company is bullying its suppliers. Further it is demonstrating harsh behaviour with them. Such fact has been criticized by the Tesco completely. This is in relation that they have not carried out any such activity. Other than such issue, further the company has also carried out certain fraudulent activities (Guffey and Loewy, 2010). It has been determined that company has stated its profitability to be £250mn. But this was revised later and actual figures were drawn which came to £263mn. From the statement provided by Dave Lewis it has been examined that such an issues does not result in benefiting any member of Tesco. Further no financial gains have been investigated. Moreover the personnel who were found to be involved in certain fraudulent activity were suspended from the organization. This was carried out after the research done by Financial Conduct Authority.
4) Analysis of content of different types of recorded business materials
In accordance with the video that has been taken into account it has been determined that there are several consequences that have resulted in downfall within the prices of oil. Due to economic breakdown existing within the economy the European zone is making efforts towards managing the key economy. Apart from this field country like Japan is going into greater recession situation. However Brazil is experiencing phase of being stagnant thus it is not affected by such situation. From the report of the journalist the oil prices has declined over 40% that acts as major issue which needs to be taken into consideration. As per the new reporters and economists it has been gained that this kind of fall in the oil prices would result in causing another major issue that would be in relation with deflation. This would further might affects the growth of the nation to a greater extent (Drop in oil prices could reshape world economy | Channel 4 News, 2015). For the purpose of overcoming such an issue Gulf nations and Saudi Arabia are required to increase the rate of supply in order to bring back the oil prices on the stable position. This would reduce the profitability margin of various suppliers that would lead to stability of all the industries as well as assist in resolving the situation related with deflation.
5) Producing accurate summary notes of lecture
The provided video has been regarded as the major reference material for the particular report. Certain information has been derived as it possesses significant value. Certain key points have been inferred after going through the video and hearing it is detail. The summary notes are presented in the manner below:
There is huge fall in the oil and petroleum cost. This has exceeded to the proportion of more than 40%. Such has resulted in creating major issue for the entire market of different nations that includes all the industries. The major reason that has been affected by the alterations in the oil prices relates with the decline in position of the economy. This is due to the reason of reduction in the flow of money within the market (Jacobson, 2009). This has become major factor that needs to be concerned by various industrialists. The country like Brazil is regarded as least impacted nation as it remained stagnant. However Europe and Japan have experienced greater impact that has resulted in financial breakdown. This is due to reason that these nations possess manufacturing industries that greatly depends on the oil which keeps on fluctuation within particular span of time.
6) Provide comprehensive analysis of notes taken
The video aims at understanding the impact of alterations that are bought within the economy. Further it also portraits the ways in which it affects the entire market. The impact of oil that is on the manufacturing and non manufacturing nations has been derived. Brazil is regarded as service industry thus it is not affected by these issues. But in case of Japan and other European nations such issues have resulted in affecting the nation to a greater extent. Customers are able to get huge benefits from the decline in the oil prices. But this has resulted in reducing the flow of money in the market to a significant level. Such is required to be stabilized. For this Gulf area who is the major oil producer has to increase the prices of supply. This is with the aim to increase the cost of oil (Freeley and Steinberg, 2013). Certain market leaders that are comprised of industrialists and well as key economists has stated that such condition offers individual users of oil with short term benefits. But in future this might results in causing scarcity of the resources. With the aim to resolve such issue for future there is greater greater need to increase the prices and keep a track on the condition of deflation. As such, this would assists in bringing back the damaged economy in its normal position.
A) Discussion of genre and focus of case study
The present report offers significant information in relation to the strategies which the firm has employed with the aim to differentiate its marketing position within the economy. The Genre of the text that has been selected is the individual business case. With this the reader is able to develop critical essential information with respect to the organization. Further it also includes data regarding business and its operations. With the assistance of descriptive case analysis detailed analysis of the facts as well as figures of the mentioned organization can be created (Hsieh and et.al, 2011). The case presents that focus of Aldi is on developing significant marketing mix in the economy so as to grab maximum sales for the business. Further it also includes creating loyalty of the customers to a greater extent. The greater emphasis of the company like Aldi is on providing superior quality of the products at reasonable price to the customers. The company has keep a balance over its marketing mix in a way that customer develop greater loyalty towards the firm. With this strategy company is able to raise its sales by 100% within three years time duration.
B) Structured written with supporting evidence to a non routine business problem
Aldi is regarded as leading discount supermarket chain that carries out its business effectively across the globe. The company was established in the year 1913 further in 1965 its retail operations were structured in an appropriate manner. The case scenario on creating value through marketing mix is efficient measure that assists in analyzing several strategies which can be used for the firm with the aim to attain success in the global market (Creating value through the marketing mix, 2015). The business case analysis presents the condition within the given organization in which the greater emphasis is on improving the sales of the business in the global market. This needs to be done in a manner that it results in creating an edge over economy. Marketing mix of the unit assist it in improving the position within the market through creation of awareness as well as greater benefits for the customers in an effective manner. The activities of promotion are considered as most effective tool as it assists in developing direct as well as indirect communication. Through this argument it can be inferred that Aldi is making use of excellent ways so as to market its products within the market place.
C) Description of cause and effect relationships pertaining to the case study
The business case analysis presents the positive cause as well as relationships relating to the strategies that have been employed by the organization. This has greater impact on the sales of the company to a greater extent. Market position of the firm can be strengthened with the assistance of AIDA model. Such has been presented in the manner below:
Awareness: The case presents several strategies that can be adopted by the organization with the aim to promote itself within international market (Lee and Jones, 2008). With the assistance of measures such as above the line, below the line as well as public relation firm is able to increase its sales by 100% within three years time span.
Interest: Quality services as well as deliverance of product at low cost in comparison with the competitors assists in grabbing greater attention and interest of the customer (Kavanagh and Drennan, 2008). The role of public relations as well as third party strategies acts as an aid in inviting huge range of public interests.
Desire: The pricing strategies as well as standards of quality that is being adopted by Aldi has created revolutionary impact on the retail market in the industry.
Action: The firm like Aldi has developed suitable marketing as well as strategies related with promotion in order to improve interest level of customers. This has resulted in gaining loyalty of the customers (McNaughton and et.al, 2008). With the corrective actions of the firm the market position of the firm like Aldi is enhanced significantly within the highly competitive market.
D) Application of hedging and caution to the analysis
Hedging and caution are referred to as suitable measures that can be used in academic writing. This is being used with the aim to present the uncertainty of the facts as well as figures. With this the report and context can be made less controversial. It has been confirmed that wide range of customers who prefer famous brands also like Aldi's brands. The company desires that its campaign of like brand needs to enhance its market share from 2.3% to 2.5%. This figure might seem to be small but single 0.1% is worth Euro 65 million revenue. The focus of Aldi is on keeping its store layout simple in order to reduce waste and minimize the cost (Cassidy and Eachus, 2000). This implies that company can lay emphasis on keeping lowest price of products for its customers. In addition to this the main focus of Aldi is on the edge of the town centre locations that possess sound visibility from the main road as well as not much competition. The above presented examples clearly present the use of hedging and caution language within business case analysis. Such assist the reader in gaining insight to relevant data. Further the use of suitable words assist in developing useful content and makes it less controversial.
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E) Accurate referencing using Harvard referencing system
Referencing is regarded as one of the major factor that assists in authenticating the content. Further it assist in reflecting the relevance of the text, facts as well as figures used (Tassabehji and Moorhouse, 2008). With the assistance of such measure the content can be reflected valid and thus it assist the reader in gaining insight to the crucial information used within the study. Example presenting the Harvard referencing style has been enumerated in the manner below:
- ALDI. Spend a little. Live a lot. 2015. [Online]. Available through: <https://www.aldi.co.uk/en/>. [Accessed on 30th September 2015].
- Tesco, Asda sales fall as discounters like Aldi, Lidl advance: Kantar Worldpanel. 2015. [Online]. Available through: <http://articles.economictimes.indiatimes.com/2015-08-25/news/65847223_1_discounters-aldi-and-lidl-kantar-worldpanel-asda-sales>. [Accessed on 30th September 2015].
F) Examination as why proof reading of report is important
The present report presents the case study that is Creating value through marketing mix a case of Aldi. The scenario offer detail and essential information with respect to the strategies that are being adopted by the organization with the aim create differential marketing position within the economy. Genre of the text that has been selected is the individual business case. With this the reader is able to develop critical essential information with respect to the organization (Credé and Kuncel, 2008). Further it also includes data regarding business and its operations. The descriptive case analysis assists in developing detail analysis of the facts as well as figures for the cited firm. Moreover it develops in depth understanding for both academic and corporate references.
From the present report it can be concluded that the role of communication skills is imperative while making selection of topic for business report. In relation to the present report a topic related with financial crisis experienced by Tesco has been taken into account. The report is effective in presenting the skills as well as capability that is needed to perform business activities. Thus assists the business in achieving greater success in long run course of time.
- Cassidy, S. and Eachus, P., 2000. Learning style, academic belief systems, self-report student proficiency and academic achievement in higher education.Educational Psychology. 20(3). pp. 307-322.
- Credé, M. and Kuncel, N. R., 2008. Study habits, skills, and attitudes: The third pillar supporting collegiate academic performance. Perspectives on Psychological Science. 3(6). pp.425-453.
- Freeley, A. and Steinberg, D., 2013. Argumentation and debate. Cengage Learning.
- Guffey, M. E. and Loewy, D., 2010. Business communication: Process and product. Cengage Learning.
- Hsieh, S. W. and et. al., 2011. Effects of teaching and learning styles on students’ reflection levels for ubiquitous learning. Computers & Education. 57(1).pp. 1194-1201.
- Jacobson, S. K., 2009. Communication skills for conservation professionals. Island Press.
- Kavanagh, M. H. and Drennan, L., 2008. What skills and attributes does an accounting graduate need? Evidence from student perceptions and employer expectations. Accounting & Finance. 48(2). pp.279-300.
- Lee, R. and Jones, O., 2008. Networks, Communication and Learning during Business Start-up The Creation of Cognitive Social Capital. International Small Business Journal. 26(5). pp.559-594.
- McNaughton, D. and et.al., 2008. Learning to listen: Teaching an active listening strategy to preservice education professionals. Topics in Early Childhood Special Education. 27(4) pp. 223-231.