Introduction to Business

This report provides an introduction to business and covers topics such as communication in leadership and management, de-globalisation and its impact on business, and comparison of leadership styles. It also discusses the importance of effective communication strategies and the role of leadership in achieving organizational goals. Study material and solved assignments on these topics are available on Desklib.

Introduction to Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Communication in leadership and management..........................................................................3
TASK 2............................................................................................................................................4
De-globalisation and its impact on business................................................................................4
TASK 3............................................................................................................................................6
Comparison of leadership styles..................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business involve various activities are undertaken in order to promote sales of products
and services of the company in exchange for money or to earn profit. This report explains
internal and external channels used by different organisation for business communication. This
report also explains that external and internal communication strategies are central to
management. Present report also discusses the indicator of de-globalisation in current global
environment and the winner and loser of de-globalisation. It also explains about leadership
styles such as democratic, Autocratic and Laissez Faire applied in banks and online companies. It
explains the importance of leader in influencing its team member for coordination of objective
towards organizational goals by effective use of different leadership styles.
TASK 1
Communication in leadership and management
Business Communication refers to exchange of information within the organization or outside
the company. Internal communication is exchange of information, ideas, views, opinion between
the employee and employer for achievement of organizational goals. For example : ASDA
Company uses internal communication channel to provide information about the policies and
procedure is able to bring change in the organization. Whereas Marks and Spencer use internal
communication to give invitation for meeting to employee. Thus, M&S by using internal
communication company is able to effectively motivate, increase morale and coordinated the
effort of individual employee towards achievement of organizational goals (Mavlanova,
Benbunan-Fich and Lang, 2016). On the other hand Sainsbury company use internal
communication for assignment of role and responsibilities and in coordinated of work towards
organisational objectives .External communication involves exchange of information outside the
organization that is between organization or clients, dealers, government etc. For example: Tesco
Company has easy and speedy access to feedback of its clients through social sites and effective
use of external communication channel for communication. Whereas Effectively external
communication channel of Sainsbury help it in increasing its brand image and customer loyalty
(Plouffe and et.al., 2016). ALDI use external communication to provide various information such
profit, sales of the company to investors, government etc. So, both external and internal
communication channel play an important role in the success of the organization.

Central management decide various strategies for effectively internal and external
communication channel because it helps management in gathering information, raising
awareness and training employees (Lewis, 2019). It also helps in collection of information that
are crucial for making decision for achievement of organizational goals. By using effective
communication strategies company is able to assign various role and responsibilities to
employees in the organization and control in case of any deviation. Strategies of internal and
external communication are central to management as it help in development of communication
plan, communication tools to be used in communications. Internal and external communication
strategies also helps management in setting Liaison committee by identifying various
shareholders and citizen, in setting format and number of time meeting should be held, Invitation
of participate suggestion to solve problem and by inviting experts (Grandien and
Johansson,2016). Thus, effectively strategies of internal and external communication help in
achievement of company goals set by central management. The various method used by the
different organization for effective and ineffective business communication that had lead to
improve their internal and external communications explained through following examples:
Tesco project was to increase the standard of working by using effective communication is able
to assign responsibilities to employees and coordinate effort of individuals, bring sense of
belongingness thus motivate employee towards achievement of company goals. On the other
hand Marks and Spencer project was to update its technology but its was not able to do so due to
ineffective communication channels. Company by making more use of technical words in its
communication and unclear statement in message has lead to miscommunication and delay in
decision-making.
TASK 2
De-globalisation and its impact on business
De-globalisation it is situation when the economic trade and investment decreases between
countries thus diminish integration and interdependence among nations (Ang, 2018). De-
globalisation was mostly in historical period as there were less trade and investment between
various countries but now days mostly countries exchange their product and service due to
globalization. The indicators of De-globalisation in current global market are:

Trade: It refers to exchange of goods and service in the economy so that the company can
expand its market share and increases its profit. Due to exit of UK from European Union UK had
suffered overall trade deficit of -£66 billion as UK (Statistics on UK-EU trade. 2019) is the
largest trading partner with European Union. This has adversely affected functioning of Tesco
also due to decrease in its export and import of product and thus reduces its market share and
profit margin.
Flow of Capital: It refers to flow of money within the economy in the form of investment and
trade of product in various countries (Tauschand Heshmati, 2018). The capital flow of UK is
high as recorded and financial account is also showing surplus of 35873 GBP Million. Due to de-
globalisation and Brexit the capital flow of UK has decreases which decrease the purchasing
power of customers.
Decrease in Flow of people: UK population has been increased by 0.6% in 2018 (Migration
within the UK, 2019). Due to Brexit, UK is not member of European Union any-more due to this
people are restricted to enter UK. Thus, due to de-globalisation there are decreases in flow of
people in the economy.
De-globalisation means decreases in trade of the country with other countries thus due
Brexit the trade of UK has been affected (Kunert, 2018). UK has faced tremendously decrease in
import and export of product and service as largest trade partner of European Union. Due to De-
globalisation some companies are able to expand their business whereas other company could
not able to survive. Tesco functioning has been adversely affected due to de-globalisation in UK
as cost of import of raw material increase and market share of the company decrease due to
decreases in demand of export.

Illustration 1: Deglobalisation
(Source: Swarup B.,2019)
Thus it can be stated that de globalisation has adversely affected UK economy it has
decrease its trade and flow of capital and people in the economy. It has resulted in high debt for
government and as well as people in the society.
TASK 3
Comparison of leadership styles
Leader is one who influence, guide, lead the group of people to perform particular task in a
particular as per its specification (Almutairi, 2016). There are various styles of leadership or
management style to be followed by leader while influencing people in the organization.
Leadership or management style are democratic or participative, bureaucratic management,
Autocratic management and Laissez free management.
The leadership style followed by bank is autocratic and bureaucratic management as they need
more safety of their information. The bank follows bureaucratic and autocratic management as in
it the manager has total control over decision-making and various authority. There is no
delegation of authority and the employee are closely monitored and supervise work by manager

for privacy and safety of crucial information of banks. But at the same time Autocratic leadership
increase burden on leader and may affect employee performance. So, leaders should adopt
participate leadership to increase employee satisfaction and reduce burden of manager so that it
can devote time in taking important decision. Thus, leadership or management style by
maintaining safety of its information is able to retain its customer’s loyalty and satisfaction.
On the other hand, Google is online company it follows democratic or participative
management and laissez-faire management in its operation. Leader follows democratic style of
management thus it consults employee before making decision but the final decision is taken him
by only. This style is used because it helps in providing quality service to its customer as the
leader assign the responsibilities to the employee as per manager decision. It also follows laissez-
faire that helps in bringing new ideas, thoughts in the organization thereby motivating and
initiating, creating feeling of belongingness and enhancing employee performance. The
employees are given authority and responsibilities to perform task as per their requirement so no
further delay is caused in completion of task. Thus, both bank and online company follow
different styles of leadership or management in its operation for achievement its objectives.
There are various styles of leadership or management and the most suitable among all is
Democratic or participative leadership in modern global organization. In democratic or
participative leadership style the leader take decision by taking into account opinions of
employees. So, in it final decision is taken by leader while concerning view and ideas of
employee so it boosts employee morale and loyalty that help in increasing quality of product. For
example: Tesco is global organization as it operates its business worldwide and it has use
participative leadership to influence employee of the company. Due to its wide operation and
number of employee involved it has use participate employee so that the employee can easily
share its ideas, view, opinion and have a sense of belongingness. Thus, it has increase the
creativity and efficiency of employee thus help in the success of the company by maintaining
quality of its products and brand image.
CONCLUSION
From the above report it can be concluded that different organization uses different
channels of communications to effectively coordinate various activities for attainment of
organizational goals. The strategies of Internal and external communication are central to
management as by effective strategies of communication help central management in taking

crucial decision for the company. This report also concluded that various indicators of de-
globalization has affected success of business and its survival adversely. This report also
summarized that leader follows different style of management to influence people in the
organization and the most suitable style of leadership is democratic or participative in global
organization.

REFERENCES
Books and Journals
Ang, A. P., 2018. Globalization and its impact on the welfare state concept in developed and
developing countries. Estudios de Deusto: revista de la Universidad de Deusto. 66(1).
pp.117-132.
Almutairi, D. O., 2016. The mediating effects of organizational commitment on the relationship
between transformational leadership style and job performance. International Journal of
Business and Management. 11(1). p.231.
Grandien, C. and Johansson, C., 2016. Organizing and disorganizing strategic communication:
Discursive institutional change dynamics in two communication
departments. International Journal of Strategic Communication. 10(4). pp.332-351.
Kunert, S., 2018. Mastering uncertainty with the Competing Values Framework–insights from
multilevel research on employee motivation, team climate, leadership style, and
organizational culture.
Lewis, L., 2019. Organizational change: Creating change through strategic communication.
John Wiley & Sons.
Mavlanova, T., Benbunan-Fich, R. and Lang, G., 2016. The role of external and internal signals
in E-commerce. Decision Support Systems. 87. pp.59-68.
Plouffe, C. R. and et.al., 2016. Does the customer matter most? Exploring strategic frontline
employees’ influence of customers, the internal business team, and external business
partners. Journal of Marketing. 80(1). pp.106-123.
Tausch, A. and Heshmati, A., 2018. The Effects of Globalization on the Environment. UKH
Journal of Social Sciences. 2(1). pp.25-40.
Online
Migration within the UK. 2019. [Online]. Available Through:
<https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/
migrationwithintheuk>.
It's too late for hand-wringing – globalisation is already dead. 2019. [Online]. Available
Through:<https://www.theguardian.com/business/economics-blog/2016/dec/02/too-late-
for-hand-wringing-globalisation-dead>