Introduction to Business: Internal and External Communication, De-globalization, Leadership Styles

This report provides an introduction to business, focusing on internal and external communication, de-globalization, and leadership styles. It discusses the concepts of internal and external business communication, the importance of communication strategies in management, indicators of de-globalization in the current global environment, winner and loser businesses due to de-globalization, and a comparison between leadership styles in banks and online businesses. The report concludes with the importance of autonomous leadership style and its impact on business growth.

INTRODUCTION TO
BUSINESS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(A) Concept of Internal and External Business Communication.................................................1
(B) Importance of Internal and External Communication Strategies in Management ...............2
TASK 2............................................................................................................................................3
(A) Indicators of De-globalization in Current Global Environment............................................3
(B) Winner and Looser Businesses Due to De-globalization......................................................4
TASK 3............................................................................................................................................4
(A) Comparison Between Leadership Styles of Banks and Online Businesses..........................4
(B) Leadership Styles and Examples ..........................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Effective management is the process of controlling and directing individual according to
rule and regulations implemented in an organization. It helps to communicate with individual or
group of individual to increase their efficiency of understanding objectives of business
organization. Effective management also helps to motivate employees to work effectively and
decrease cost of operations to increase profitability and market share. This report has a detailed
study about management theories which helps to understand driver of change in de-globalisation
organization. In addition, this report discuss internal and external communication channel
strategies which helps to facilitate success or failure of de-globalised business organization of
UK.
TASK 1
(A) Concept of Internal and External Business Communication
Internal Business Communication
Internal communication is exchange of information within business organization which
helps to increase efficiency of decision-making of activities of business (Bovée, Thill and Raina,
2016). It is the structural framework which helps employees to understand each other to achieve
objectives of organization effectively. Internal communication also helps to develop skills and
knowledge to generate innovative and creative thoughts to increase productivity of business firm.
For example,
Vertical Communication
This communication is used in hierarchical structure of business and it is formal
communication which flows from top-level management to lower level.
Horizontal Communication
This is informal communication and it is used within the same level of management.
Communication between inter-departments are horizontal communication in nature.
External Business Communication
External communication is exchange of information between business and any external
source which helps to increase productivity of firm. This helps to formulate effective strategies
and let business to stay connected with market to analyse competition. For example
Press Release
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Communication is done with public with help of media to provide transparency about
business activities to support business growth and achieve core competency.
Website
Business need to share information with customers and suppliers with help of official
website to increase the efficiency of business.
(B) Importance of Internal and External Communication Strategies in Management
Effective internal communication helps business organization to increase shared values of
employees to make them loyal and increase their efficiency to achieve their objectives. With help
of internal communication training of employees if done effectively which also decreases
disputes and develops healthy working environment (Zhao, Fan and Yan, 2016) . Internal
communication provides better customer services with help of effective management strategies.
This also increases knowledge of managers to make effective policies for business.
Effective External Communication helps to engage in better change management to
increase performance of company to compete with competitors in market. External
communication strategies also helps to develop relations with customers to understand their
behavioural pattern which provide support to formulate effective marketing plan to increase
customer satisfaction. External communication also helps to satisfy all external stakeholders by
improving quality of services and products to grow business.
Examples of Effective Communication in Organisations
1. Buffer- This is a social media management company which promotes communications to
increase trust and transparency in their business activities which make this business
successful.
2. Credit Karma- Company uses open door policy which helps to increase communication
of employees and also helps them tom improve their moral as being the part of team.
Examples of Ineffective Communication in Organisations
1. Yahoo- Due to ineffective communication company have lost many employees.
Management of Yahoo announced an unclear message which increased turnover and
hence declined efficiency of company.
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TASK 2
(A) Indicators of De-globalization in Current Global Environment
De-globalization is the process of reducing the dependencies and connections between
different countries. Which discourages investments, decline of international trades, increase in
import and export tariffs by government. Due to Brexit it increased de-globalization in country
and decreasing its economic stability gradually (What are the indicators of deglobalization?,
2020) De-globalisation emerged due to increased inflations and higher interest rates which
decreased ability of business organization to compete in global environment and leads to failure.
This has impacted several economies and discouraged to be globalized.
Trade
Decline in global demand due to increase in import and export barriers in many nations
which have discouraged international trades (Quinlan and et.al., 2019) . The global Gross
Domes tic Product rose from 30 percent to 60 percent which accounted in globalization and
helped to grow nation effectively. Although due to recession growth rated declined to 55 percent
which shows the presence of de-globalisation and impacted the global growth index adversely.
Flow of Capital
Banks are the major factor to increase flow of capital in every nation but due to decrease
in global demand it resulted in financial crisis globally (Van Grembergen and De Haes, 2018).
New regulations and financial laws has also impacted the flow of capital to support business
growth to support economy of nation. This resulted in downfall of GDP from 16 percent to
below 2 percent.
Flow of People
The flow of people is very essential to increase the manpower of nation to move towards
growth and productivity. As the trends shows people from poor countries travel to rich counties
to improve their financial condition this also contributes in economic growth of rich nations.
This provides skilled labour and talents in country to increase efficiency to achieve growth of
business. The rate of migration from poor to rich countries declined from 12 million to 4 million
people in past five years.
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(B) Winner and Looser Businesses Due to De-globalization
De-globalization have also impacted many businesses positively and negatively and have
discouraged them to work internationally (What is deglobalisation?.2020). Due to de-
globalization major manufacturing units increased their growth within the nation as slight impact
monopolistic market. It also helped increase job opportunities for UK population to improve
their standard of living. De-globalisation also helps company to decrease cost of international
trades and increases profitability to grow faster within the country. This also helped businesses to
retain employees from going across country for job opportunities.
De-globalisation impacted the businesses which are operated in developing or poor
countries. It also adversely impacted the jobs of people which are working in import and export
business in UK and this also decreases the strength of businesses directly linked to international
trades. Businesses which need low rate capitals were the losers as migrations from poor countries
are deceased.
Examples
1. Toyota was impacted negatively due to de-globalisation as company lost all their
suppliers and low cost labour which is required in manufacturing due to Brexit.
2. Royal Bank of Scotland suffered a lot due to disinvestments from UK.
3. Easy jets also became looser as company have to calculate the cost and routes after de-
globalisation from UK.
TASK 3
(A) Comparison Between Leadership Styles of Banks and Online Businesses
Leadership and management styles are very essential in the banking sectors as it helps to
manage their employees and motivate them to achieve their objectives effectively. Banking
sectors adopt transformational leadership and management style which helps to implement
change in the organization (Werhane, Freeman and Dmytriyev, eds., 2017). This helps banking
sectors to set high objectives and formulating strict polices to achieve those objectives to
increase growth of banks. This also helps employees to push their capabilities and increase set of
skills and knowledge to reach their team goals. Banks also uses Transactional management style
which helps to motivate all employees by providing financial rewards according to the deadlines.
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Online business uses Autonomous leadership styles due to high competition in market
and rapid increase of technology also need effective teams. Online company treats every
employee as their leader and also provide authority to take their decisions which increases ability
to innovate and retain employees in company. Employees in online companies are distributed in
teams which have autonomous leaders and every employee of different departments which helps
to decrease the communication gaps and make effective decisions to increase the ability of
company. The focus of online companies is to provide better skills and knowledge to their
employees which motivate them to acquire leadership qualities and increase productivity of
online companies.
(B) Leadership Styles and Examples
In my opinion the most suitable leadership styles for modern global organization is
autonomous leadership style as it helps to provide better opportunities to employees and help to
encourage them to develop their own cultures into small teams to attain common objectives of
company effectively. This style also help to increase the quality of employees skills and
knowledge and providing them with effective responsibilities to increase decision-making. This
leadership style is cost effective and also removes middle level managers from the management
structures giving better transparency of work.
Example
Spotify is one of the major online music streaming company which has employed more
than 2000 employees. Company has successfully implemented autonomous leadership style with
help of dividing employees into squads which are managed by the team squad members itself
(Erasmus, Strydom and Rudansky-Kloppers, eds., 2016). This helps to improve communication
within organization and helps to provide transparency of decisions to formulate effective
strategies for company. Each squad have all the types of skills and knowledge which are required
to run a company.
CONCLUSION
This report concludes that internal and external business communication is very essential
in growth and expanding business organization in market. Communication also helped to
improve management activities and increasing efficiency of employees to achieve its objectives
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effectively. Report also discussed impact of de-globalisation on different businesses which
helped to contribute in economy of nation earlier. This reported helped to understand the
importance of autonomous leadership style to increase growth of business and motivate
employees be loyal to company.
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REFERENCES
Bovée, C.L., Thill, J.V. and Raina, R.L., 2016. Business communication today. Pearson
Education India.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Park, Y., El Sawy, O.A. and Fiss, P., 2017. The role of business intelligence and communication
technologies in organizational agility: a configurational approach. Journal of the
association for information systems. 18(9). p.1.
Quinlan, C., and et.al., 2019. Business research methods. South Western Cengage.
Van Grembergen, W. and De Haes, S., 2018. Introduction to the Minitrack on IT Governance
and its Mechanisms.
Werhane, P.H., Freeman, R.E. and Dmytriyev, S. eds., 2017. Cambridge handbook of research
approaches to business ethics and corporate responsibility. Cambridge University Press.
Zhao, J.L., Fan, S. and Yan, J., 2016. Overview of business innovations and research
opportunities in blockchain and introduction to the special issue.
Online
The industries hit hardest by Brexit. 2020. [Online]. Available Through:
<https://www.worldfinance.com/home/the-industries-hit-hardest-by-brexit>.
What is deglobalisation?.2020. [Online]. Available Through:
<https://www.rsm.global/insights/finding-opportunity-in-change/what-is-
deglobalisation>.
What are the indicators of deglobalization?. 2020. [Online]. Available Through:
<https://iasscore.in/topical-analysis/deglobalization-an-introduction>.
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