This report examines the critical role of communication skills in a business environment, as outlined in Unit 3.26. It begins by introducing the theory of communication, defining key components such as sender, message, and receiver, and explores different communication methods including written, verbal, nonverbal, visual, and electronic forms. The report emphasizes the importance of both formal and informal communication, as well as the impact of technology on communication. It also addresses the principles of effective communication and potential barriers. The main body of the report then presents practical applications of oral communication, specifically addressing how to respond to an irate customer. Finally, the report includes an example of written communication in the form of a leave request letter. The conclusion summarizes the significance of clear and effective communication for fostering strong working relationships, improving business efficiency, and overall success. The report references several academic sources to support its findings.