Principles of Business Communication Report: Task 1-5 Analysis

This report delves into the core principles of business communication, providing a comprehensive overview of key concepts. It begins by examining different business markets, including business-to-business, industrial, and professional services, along with the nature of interactions between businesses. The report then explores business innovation, discussing models, sources of support, and the process of product and service development, including associated benefits, risks, and implications. Financial viability is analyzed, covering budgeting, consequences of poor financial management, and financial terminology. Furthermore, the report examines the use and management of budgets, marketing principles, sales processes, market research, and the relationship between marketing and sales. The analysis includes practical examples and real-world applications, providing a thorough understanding of business communication principles.

Principle of business communication

Table of Contents
INTRODUCTION........................................................................................................................3
TASK 1............................................................................................................................................3
P1.1Characterstick of different business market ........................................................................3
P1.2Nature of interaction between business with a market .......................................................3
P1.3 Set organization goal according to market .........................................................................4
P1.4Legal obligation of a businesses..........................................................................................4
TASK 2............................................................................................................................................5
P2.1Bussiness innovation............................................................................................................5
P2.2Use of model in innovation..................................................................................................5
P2.3Sources of support and guidance for business innovation...................................................5
P2.4Process of product and service development ......................................................................5
P2.5Benfits, risks and implications associated with innovation.................................................6
TASK3.............................................................................................................................................6
P3.1Finacial viability off budget for an organization.................................................................6
P3.2Consesewquences of poor financial management ..............................................................7
P3.3 Financial terminology ........................................................................................................7
TASK4.............................................................................................................................................7
P4.1 Use of budget .....................................................................................................................7
P4.2Mange a budget ...................................................................................................................8
TASK5.............................................................................................................................................8
P5.1Principle of marketing .........................................................................................................8
P5.2 Sales process.......................................................................................................................8
P5.3Feature and uses of market research ...................................................................................9
P5.4Value of brand an organization............................................................................................9
P5.5 Relationship between marketing and sales.........................................................................9
CANCLUSION ...............................................................................................................................9
REFRENCES ................................................................................................................................10

INTRODUCTION
This Workbook and the various activities within it, introduce you to the principles of
business: key skills are explored that will enable you to confidently tackle these elements of your
role or future role as a line manager. The activities will require you to consider theories and ideas
that align with each topic but, importantly, you will be expected to make parallels with your own
experience in the workplace, which will help in ensuring that you can lead and manage your
team effectively.
TASK 1
P1.1Characterstick of different business market
The world of business is an extremely large place and there are plenty of ways to run a
success company and make a profit if you understand the market. They’re many different types
of customer you can sell your products too but the main business markets can be broken down
into these 5 categories:
* business to business market
*Industrial market
* professional services and Financial services
* Government
* High Street
The business to business market is when one business simply sells it’s products to another
meanwhile the industrial market consists of companies transacting business in hard goods such
as machinery, materials, vehicles and supplies. Professional services include the delivery of
business needs such as marketing, information technology, management consulting and payroll
whereas financial services include banking, insurance, commercial credit and lending, and even
sometimes tax planning (Busco 2014).
P1.2Nature of interaction between business with a market
An example of the nature of interactions businesses can have between each other could
be a baker decides he’s going to open up a factory that makes and sells bread, he then interacts
with a multi million pound company such as Virgin Atlantic who’re looking for another business
to make sandwiches for their flight meals. They would most likely test his products then once
they were happy with the quality of his bread they’d agree a contract with the baker and both

companies would hopefully find the deal profitable. This is an example of how good interactions
between businesses can lead to great results for both parties.
P1.3 Set organization goal according to market
To be effective, businesses need to have goals. They set out what they want to achieve
and in what markets. However, it is often not until the plan to achieve the goals is put into action
that discoveries can be made that require changes to the plan or changing of the goals. That is
where successful and responsive businesses get significant advantage: they are constantly
examining the market and looking ahead to change their offerings and associated goals based on
what the market wants or needs, or because the have changed due to, for example, changes in
legislation or economic circumstances, etc. The more agile a business is in responding to the
market and realigning its goals, the better its chances of capitalising on market demands
(Cachanosky and Lewin 2014).
P1.4Legal obligation of a businesses
Whilst managers are not expected to be experts in the law, they are required to ensure
that they and their staff conform to all relevant current legislation affecting the business of their
company or organisation. There is a huge raft of legal obligations that need to be met, in a wide
range of business areas. It is worth saying that the Internet has made access to the relevant Acts
easier than it has ever been and when facing decisions that require some knowledge or insight
into the law then it is always best to read the source document 1 that is, the relevant Act.
Similarly, there is no substitute for qualified legal advice and that should be sought wherever
needed (Gawer and Cusumano 2014)
Some of the other areas for which businesses have legal obligations include:
 Submission of annual accounts.
 Bankruptcy
 Bringing an action and defending a Small Claim in the County Court
 Business leases
 Commercial agents
 Competition Law
 Compliance with the Equality Act 2010
 Contracts.
 Copyright and Designs.

 Data Protection
 Distance selling (Chang 2016).
TASK 2
P2.1Bussiness innovation
The simplest way to describe innovation in business is a new creative idea that is
designed to help improve your business. Whether that be to improve the working lives of your
staff, improve your profits or improve your products it’s something that will have a positive
impact on your company.
P2.2Use of model in innovation
Models of business innovation can help you identify opportunities to grow your business,
generate new creative ideas, find and successfully enter into new emerging markets and create
new systems and rules that will take your business forward (Herrera 2016).
P2.3Sources of support and guidance for business innovation
The government are constantly focused on improving business in the UK and offer help
to those businesses who’re in need. Here you can get support to get improve and grow your
business through ways of business innovation. Often local authorities also offer businesses help
to get going. Barney council offer a business start up plan which helps local people set up their
own innovative businesses (Li 2016).
P2.4Process of product and service development
A Strategic Approach to Managing Product Development Relatively few ideas are good
enough to be commercially viable. New product ideas may evolve by chance, or through a
systematic research and developmental approach. A purposeful approach is more likely to bear
fruit than leaving matters to chance. The process of development might include:
 Ideas Generation: An on-going systematic exploration for new product opportunities. !
Product Evaluation: leading to decisions as to what products merit pursuing/further
research. Initial Feasibility Testing: Potential buyers are introduced to the product idea and initial
buying intentions determined. Business Analysis: An examination of what profitability the new product offers and its
production feasibility, conventionally done via a feasibility study.

 Product Development: Where possible a prototype would be produced and designs
refined to meet any specific requirements identified in market research (Nickolayev and
et.al., 2015).
P2.5Benfits, risks and implications associated with innovation Benefits- Innovation can help businesses improve productivity and profitability, reduce
costs and be more competitive in a fast changing market environment. Innovation is the
main driver of business growth. Combining innovative products and services with
( mover advantag/) to capitalist on early sales to eager buyers can be vastly more
profitable than the profits that might come to later imitators of your product or service. Risk- Risks typically can be classified as business or operational risks, although some
risks fall into both categories. For example, a business risk arising from a quality failure
(an operational risk) could have significant adverse impact upon reputation, costing a
company in, say, reduced revenue (Loughran and McDonald 2014).
 Implications -Innovation certainly carries risk. Other than for some incremental
innovations there can be considerable need for allocation of time, money and resources
before positive returns can be realized. Moreover, there is no guarantee that there will be
a return at all. The risks can be managed which ultimately requires managers to apply
judgement as to, for example, what innovations to proceed with, which will be profitable,
which will give you competitive advantage most quickly, etc.
TASK3
P3.1Finacial viability off budget for an organization
Financial viability is extremely important in any business because making financially
viable decisions can determine whether your business is successful or not. Making sure
something is financially viable simply means to ensure it’s profitable and you can afford it. An
example in our organisation would be we purchased an IPhone for the news team to use as a
recoding device as well as a phone. It most likely cost around £300 but has helped us gather
hundreds of top quality interviews over the past 12 months, which will have hopefully increased
the amount of listeners we have and because of the increase in listeners more companies will
have decided to advertise with us so our revenue will have increased. That means it was
financially viable to invest in the IPhone even though it cost the company at the beginning (Pai
and et.al., 2015).

P3.2Consesewquences of poor financial management
To be financially viable, a business needs to have sufficient funds to pay its current
liabilities (bills) and to carry on trading. Any business that does not have access to sufficient
funds is trading is insolvent and trading illegally. If a business makes a loss then it needs to be
able to absorb that loss to enable it to carry on. For continued viability a business needs to be
profitable and needs to ensure that it has firm control over both debtors and creditors
P3.3 Financial terminology
To have a good understanding of business, it is important to have a working knowledge
of the terminology used in finance. Financial Management -Reports The principal statements of account or reports are the
profit and loss statement, the balance sheet and the cash flow statement. Reports that are
prepared by businesses fall into 2 categories 1 financial accounting and management
accounting. The 2 types of report have different aims and audiences. The Profit & Loss Statement-It is a summary of transactions over a period. It shows
income generated, costs incurred and either a profit or a loss for the period. It records
relevant transactions to determine various levels of Profit (or Loss) from the activities
over the period. In outline, the main sections of a P&L statement
 The Balance Sheet -This is a snapshot of an financial position at a given point. It shows
all the assets, liabilities and accumulated reserves giving the net worth.
TASK4
P4.1 Use of budget
A budget is a plan for income and expenses, which allows a business to operate within its
means. An internally focused plan, a budget is usually drawn up for each financial year based on
estimated sales and costs. The actual performance of the business can be monitored and
measured against this proposed plan. Different budgets can be created depending on what
particular aspect of the business requires focus. The most common budget operated at line
manager level would be a budget for a particular purpose: for example, a stationery budget or a
discrete project budget, which would be monitored and managed to ensure that the allocated cash
is not exceeded and any underspend is declared such that it can be redistributed as required
(Pauw And et.al.,2015).

P4.2Mange a budget
When managing a budget it’s important to leave some room for compromise, that way
you can allow for unexpected costs. For example if you work out that the next 12 months will
cost your company £100,000 in expenses, it’s good to then budget for a £120,000 so if some
expensive equipment then brakes and it costs you £10,000 extra to repair it,you’ll not go over
your budget. A budget can also change through out the year depending on profits, if your
company have a large increase in profits you may be able to afford to increase your budget to
match the growth of your business just as if your company have a dip in profits you may also
have to reduce your budget. The best way to manage a budget is to constantly keep an eye on
what you’re spending an review your budget regularly (Peuckert and Quitzow 2017).
TASK5
P5.1Principle of marketing
When managing a budget it’s important to leave some room for compromise, that way
you can allow for unexpected costs. For example if you work out that the next 12 months will
cost your company £100,000 in expenses, it’s good to then budget for a £120,000 so if some
expensive equipment then brakes and it costs you £10,000 extra to repair it,you’ll not go over
your budget.
P5.2 Sales process
In radio terms our process is as follows, our sales team will meet with potential clients
who may be interested in a radio add, they will then ensure they can produce what the customer
requires and give them a price. If the customer is happy they will send the add off to our
productions team to have it made, once the customer is happy with their finished add they will
choose alot for it to be aired and it will be on the radio. Our sales team will then bill the client
and ensure they’re happy with the work (Price, Wrigley and Straker 2015).
P5.3Feature and uses of market research
Market research is vital when setting up a business or preparing to sell a product. If you
don’t know the market you’re entering into it’s very likely you won’t find it easy to compete.
The way to conduct market research is to start by finding out who are your main competitors in
the market, so as an example if you were setting up a mobile phone company you may want to
look at O2 or EE. It’s important to think about what your competitors do well at as well as

thinking about what they could improve on. If a business can do well at the same things as its
competitors but at the same time offer something new and different then it’s likely to succeed.
P5.4Value of brand an organization
A brand name is a name or symbol that is used to identify a business or its products and
to distinguish them from their competitors. It is an aid to recognition of the business and/or style
of a product. Branding is a representation of your organizational values, which, typically, equates
to your business strengths (Poynter, Williams and York 2014).
P5.5 Relationship between marketing and sales
Sales is not marketing but it is a part of marketing. However, the overall aim of
marketing is to lead people to buy products and services and to make the business profitable.
Fundamentally, people cannot buy products or services unless they know of the company and
the products/services available from them. Making people aware of the products and services
offered is part of the role of marketers (Prasanna and et.al., 2015).
CANCLUSION
This report is concluded about The processes of business, marketing and sales are
interrelated. Business is the activity of obtaining and selling goods on a continuing basis.
Marketing is a subset of business and consists of the process of reaching potential customers and
preparing them for the sales process. Sales is convincing the the customer to to buy and then
exchanging the goods for money.

REFRENCES
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