Importance of Communication in Business

This assignment examines the vital importance of effective communication in the business world. It delves into how strong communication skills contribute to successful business operations, citing relevant case studies like Tesco's financial struggles due to communication breakdowns and Volkswagen's emissions scandal resulting from poor crisis communication. The report emphasizes the necessity of reading, listening, writing, and speaking abilities for achieving business objectives and provides recommendations on utilizing various resources, including articles, reports, and videos, to enhance communication skills.

Business Analysis
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
LO1: Understand how to develop reading strategies to evaluate business sources and materials ......3
1.1 Summarizing information from business sources .....................................................................3
1.2 Comparing and contrasting opinions which demonstrates critical analysis of skills ...............3
1.3 Evaluating key arguments and supporting evidence by making use of separate business
sources ............................................................................................................................................4
LO2: Understand techniques to listen effectively and critically to business focused material and
develop note-taking skills ....................................................................................................................4
2.1 Analyzing the content of the different types of recorded business materials ...........................4
2.2 Producing accurate summary notes of the different business materials....................................4
2.3 Presenting the comprehension of complex recorded business materials ..................................5
CONCLUSION ...................................................................................................................................5
REFERENCES.....................................................................................................................................6
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INTRODUCTION
Business analysis is the process in which entity makes in-depth and critical analysis of
problem with an aim to identify suitable solution of it. Through this approach, firm becomes able to
deliver more value to the stakeholders (Arvidsson, 2010). Present report is based on different case
scenarios which will be discussed in detail. Here, clear understanding will be shown about the
emission scandal of Volkswagen. Thereafter, summary of the information from varied business
source will be provided. Also, contrasting opinions will be compared to showcase the critical
assessment of skills.
LO1: UNDERSTANDING THE WAY TO DEVELOP READING STRATEGIES
TO EVALUATE BUSINESS SOURCES AND MATERIALS
1.1 Summarizing information from business sources
For this task, business articles of Volkswagen in relation to the emission scandal has been
taken into consideration which are presented by BBC and Sky news. From the report provided by
BBC news, it has been identified that renowned German car company, Volkswagen is accused for
cheating the emission tests conducted in US as well as Europe (Sutter and Strassmair, 2009). In the
investigation made by Environmental protection agency, it has been ascertained that cars of the
brand has inbuilt software named as defeat device that can be detected when the car is tested. In the
reports presented by Sky test, it was made clear that Volkswagen had software that changes its
engines to a clear mode during the course of emission test which gives false results in terms that
vehicles meet the environmental benchmarks that are generally developed for diesel cars (Eijnden
and et.al., 2008).
1.2 Comparing and contrasting opinions which demonstrate critical analysis of skills
 Facts: Proofs associated with the report from Sky and BBC news states that objective of
company was to manipulate the emission test so as to hide the truth that Volkswagen cars are
emitting more pollution than the set carbon dioxide emission levels. The defeat device was
fitted on 3 litre diesel engines on the luxury cars like Audi, Porsche, etc. With this case,
company has broken trust of customers, government and the public.
 It was found out that car engine was having the cheating software that emit nitrogen oxide
pollutants up to 40 that is more than permissible limit.
 As accepted by the company, 11 million vehicles around the globe were fitted with cheating
software (Explanation of scandal of Volkswagen, 2016).
Opinions:
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 As per my opinion, the prime reason behind this scandal was that Volkswagen was under
pressure to increase sales of its diesel cars in US market to sustain in the long run to face
present cut throat competition.
 The other major reason for this step of company was to attract maximum customers who are
ready to pay premium price for buying a diesel car because of its positive impact on
environment and fuel economics.
1.3 Evaluating key arguments and supporting evidence by making use of separate business sources
Key argument from the article of BBC news is that Volkswagen has cheating software in its
diesel cars to give false results of the emission test. After the exposure of scandal, company was
forced to recall its cars and to cover the cost it had set, that is, the amount up to €6.7 bn. First
quarter loss for the same was €2.5 bn. It was identified that company will recall 8.5mn cars from
Europe, 2.4mn from home nation and 1.2 million in the UK. While in US, around 500,000 cars
were recalled as a result of emission scandal (Emission scandal of Volkswagen, 2016).
Similar article of SKY news stated that UK government is required to re test the cars to
compare laboratory results of company with actual one as per the VW scandals. After exposure of
scandal, Volkswagen was forced to recall around 482000 cars in the US alone. The entity was also
subjected to penalties of more than $18 billion. Scandal of Volkswagen was proclaimed as the
biggest corporate scandal of world till now (Welch, 2015).
LO2:
2.1 Analysing the content of different types of recorded business materials
The video is about “Tesco’s post record of £6.4 billion loss”. The stock value of company is
declining as a result of reduction in share prices. Reporter in video states that company has to do
massive write down on the value of its property portfolio. The chief executive, Lewis, had not
purchased stocks while he was supposed to hold 4 times of his basic pay in terms of share. Also,
board of directors were holding less than 350,000 pounds of share in the retail chain (Anderson and
Bray, 2015).
2.2 Producing accurate summary notes of different business materials
Main purpose of this video was to impact the downfall in share prices of Tesco. It was
ascertained that board of directors were not purchasing shares as they wanted their customers to
invest more. It was identified that pension deficit of company has enhanced significantly to around
£5 bn by making situation badly. Company also forecasted its half year revenue by £263 mn
(Broom and et.al., 2014).
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2.3 Presenting the comprehension of complex recorded business materials
It can be comprehended from the video that reduction in share prices has become the prime
concern for entrepreneurs. Decline in property value is the major cause of loss of company. The
entity claimed that performance of its European sale is declining due to competition faced by
discount retailers. Maximum loss was faced by Ireland followed by South Korea, Malaysia
(Coombs, 2014). The staff was requested to replace current defined benefit pension scheme with
cheaper one. Overall, trading profit was fallen to 60% in a year as company was not able to meet
the expectations at every level.
CONCLUSION
Summing up the entire report, it can be concluded that effective communication skills are
very important to execute business in a successful manner. It can be stated from the report that
various business articles, reports and videos can be used by person to amend its communication
abilities. In addition to strong communication skills, one must have reading, listening and writing
abilities to attain business aim in the best possible manner.
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REFERENCES
Books and Journals
Arvidsson, S., 2010. Communication of corporate social responsibility: A study of the views of
management teams in large companies. Journal of Business Ethics. 96(3). pp.339-354.
Broom, A. and et.al., 2014. The Troubles of Telling Managing Communication About the End of
Life. Qualitative health research. 24(2). pp.151-162.
Coombs, W. T., 2014. Ongoing Crisis Communication: Planning, Managing, and Responding:
Planning, Managing, and Responding. Sage Publications.
Eijnden, R. J. and et.al., 2008. Online communication, compulsive Internet use, and psychosocial
well-being among adolescents: a longitudinal study. Developmental psychology. 44(3).
pp.655.
Sutter, M. and Strassmair, C., 2009. Communication, cooperation and collusion in team
tournaments—an experimental study. Games and Economic Behavior. 66(1). pp.506-525.
Welch, M., 2015. Dimensions of internal communication and implications for employee
engagement.
Online
Anderson, J. and Bray, C., 2015. Tesco Posts $6.5 Billion Loss in Latest Hurdle. [Online]. Available
through: <http://www.nytimes.com/2015/04/23/business/international/tesco-posts-9-5-
billion-pretax-loss.html?_r=1>. [Accessed On 19th August 2016].
Emission scandal of Volkswagen. 2016. [Online]. Available through:
<http://news.sky.com/story/vw-emissions-scandal-uk-begins-investigation-10345251>.
[Accessed On 19th August 2016].
Explanation of scandal of Volkswagen. 2016. [Online]. Available through:
<http://www.bbc.com/news/business-34324772>. [Accessed On 19th August 2016].
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