Basics of Business Communication

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Business communication is the transmission of information among people within an organization for the organization’s commercial benefit. Business communication also involves the ways; a company uses to share information for the promotion of its services or products to their consumers.


Communication is a process whereby a message is successfully conveyed to the receiver. The message may include information, ideas, perceptions and symbols which are sent either with or without intention. It doesn’t have to be via spoken or written words only. A successful communication can have effect even by means of signs and gestures. The traffic lights or the sign boards that we see on the roads are also means of communication where the traffic authorities intend to instruct us using these signs to ensure safety.

The Communication Process

The process of communication goes through the following steps:

  • Sender- The person who initiates the communication process
  • Encoding- The sender gathers all the information that they intend to convey
  • Message- The information gathered by the sender takes the form of a message
  • Channel- The medium the sender chooses to convey his/her message
  • Receiver- The message is then delivered to the receiver
  • Decoding- The receiver then interprets the message and responds accordingly on which the communication process comes to an end.


Business communication involves the standard process of communication involving the aforementioned steps. It basically means the type of communication that aims at promotion of products and services and increasing sales and profits for a business, where the message can be conveyed through various channels of mass media or even personally.

7 Cs of business communication

Business etiquettes and skills play a major role in effective communication which requires what are known as the 7 Cs of business communication. An effective communication can be achieved only when the message is:

  • Complete
  • Correct
  • Concise
  • Concrete
  • Considerable
  • Courteous
  • Clear

Types of Business Communication

An organization can employ business communication in 2 ways:

  • Internal communication
  • External communication

Internal Communication

The communication taking place within the organization is called internal communication. For an instance, the interaction between an employee and the boss regarding the business strategies or product development schemes etc. Internal communication can either be upward, downward or horizontal. These types are determined by the system of hierarchy. The communication from the director of a company with their subordinates is downward and the vice versa of it would be upward. The interaction which takes place between the personnel of the same designation within an organization is referred to as horizontal internal communication.

External communication

External communication is all about the interaction of a business with the outside world i.e. other businesses, the buyers, public at large etc. This can be done by means of advertisement, promotions, offers with or without personal interaction. In external communication, the organizations are more particular about the communication formalities and skills because they can be overlooked within the four corners of the organization to some extent but outside they have to be duly regarded.

External communication meets another factor called competition where the communication skills of one organization if supersede those of the other can make the former win the battle. For an instance, markets are overloaded with advertisements and the most effective and influential ad attracts the most stakeholders.

Key Facts and Statistics

  • According to a survey by Gallup, 70 percent of the employees in the United States are disengaged at work. A one-on-one conversation with employees or surveys can be conducted to find out the reason of this disengagement.
  • As per the Mckinsey Global Institute, connected employees can improve productivity by 20-25% in organizations.
  • As per Prescient Digital Media, only 13 percent of employees daily participate on the company intranet and 31 percent of them have never used it.
  • According to a survey by International Association of Business Communicators (IABC), only 21 percent of employees keep their language of communication jargon-free and simple.
  • As per Alive with Ideas, 93 percent of communication professionals think creativity in internal communication is important but only 6% of them think it’s used fruitfully.
  • According to a survey by Globoforce, 69 percent of employees said that they would put more effort if their work were properly recognized and appreciated.
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