The Influence of Social Media on External Communication in Retail

This dissertation investigates the influence of social media on external communication within Australian retail organizations. It begins by establishing the background of social media as a communication tool and its increasing importance in business. The research delves into the Australian retail industry, highlighting its economic significance and the challenges it faces, including communication gaps and increasing competition. The study emphasizes the significance of effective communication for supply chain management, brand awareness, and stakeholder engagement. A problem statement identifies the need for improved communication using social media within the retail sector. The research methodology includes a detailed literature review, data analysis of social media usage by major retailers like Coles, ALDI, and Woolworths, and a discussion of the findings, concluding with recommendations for future work and addressing the research objectives related to productivity and innovation in retail communication. This paper is available on Desklib, a platform offering study tools and resources for students.

Running head: USE OF SOCIAL MEDIA FOR EXTERNAL COMMUNICATIONS
Use of Social media for External Communications
Name of the Student
Name of the University
Author Notes

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Table of Contents
Chapter 1: Introduction....................................................................................................................3
1.1 Background of the study........................................................................................................3
1.2 Background of the Chosen Industry.......................................................................................4
1.3 Significance of the Research..................................................................................................6
1.4 Problem Statement.................................................................................................................7
1.5 Rationale of the Research......................................................................................................8
1.7 Research Objectives...............................................................................................................9
1.8 Research Questions..............................................................................................................10
1.9 Structure of Dissertation......................................................................................................10
Chapter 2: Literature Review.........................................................................................................11
2.1 Advantages and disadvantages of implementing social media in external communication 11
2.2 Perspectives of employees on organization external communication.................................13
2.3 Rising Complexity of the Australian Retail sector..............................................................15
2.4 Employment issues related with Communication problems................................................16
2.5 External Communication issues in the Australian Retail sector..........................................17
2.6 CSR communications through social media........................................................................18
2.7 Application of Social media data for competitive intelligence............................................19
2.8 Conceptual Framework........................................................................................................20
Chapter 3: Research Methodology................................................................................................22
3.1 Aim of the Study..................................................................................................................22
3.2 Research Philosophy............................................................................................................22
3.3 Research Approach..............................................................................................................24
3.4 Research Design...................................................................................................................25
3.4 Participants...........................................................................................................................26
3.5 Research Strategy.................................................................................................................28
3.6 Justification for the Chosen Research Strategy....................................................................29
3.7 Data Collection methods......................................................................................................30
3.8 Accessibility issues..............................................................................................................30

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3.9 Ethical consideration............................................................................................................31
3.10 Procedures..........................................................................................................................32
3.11 Data analysis......................................................................................................................32
3.12 Gantt chart..........................................................................................................................33
3.13 Summary............................................................................................................................35
Chapter 4: Data Analysis and Discussion......................................................................................36
4.1 Introduction..........................................................................................................................36
4.2 Collection and analysis of data............................................................................................36
4.3 Analysis of the collected data..............................................................................................37
4.4 Facebook Data analysis for Coles, ALDI and Woolworths.................................................43
4.5 Discussion............................................................................................................................50
Chapter 5: Conclusion, Recommendation and Future Work.........................................................56
5.1 Conclusion...........................................................................................................................56
5.2 Addressing the objectives....................................................................................................61
5.2 Recommendations................................................................................................................62
5.3 Future Work.........................................................................................................................62
References......................................................................................................................................64

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Project Title: the influence of using social media as a tool of External communication in the
retail organizations of Australia
Chapter 1: Introduction
1.1 Background of the study
In the modern age of digitization, the social media is considered to be one of the central
parts of the communication tool. With the evaluation of the digital communication channels, the
social media has gained high level of popularity among people in all parts of the society. It is
also currently used as a tool of external communication in all major business organization. One
of the major advantages of the use of the social media is due to the fact that it is one of the
easiest ways to spared information in all parts of the globe (Haddud, Dugger and Gill 2016). The
social media communication provides the opportunity to connect with wider range of external
audience. Hence, it is one of the essential elements of establishing effective public relationship.
Most people are currently engaged in the use of the social media as they are able to keep in touch
with various family members and friends in all parts of the globe. Hence, one of the main
features of the social media that it is usable both in the forms of formal and informal
communication channel (Ruck and Welch 2012, p.295). Consequently, social media has also
become an integral facet of external communication in many major business organisations,
which can be used as an essential marketing tool. It is also considered as an essential tool for
generating brand awareness among the public by providing essential brand information and
brand management (Schivinski and Dabrowski, p.189).
One of the important elements of business that determines the rate of success is
dependent upon the effectiveness of the business communication tool. Effective modes of

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communication in the workplace are one of the essential criteria that ensure that employees in
the workplace are able to maintain high level of coordination. With the introduction and
advancement of the digital technology, new tools and framework has been introduced that has
improved upon the level of efficiency. As stated by Mehmet and Clarke (2016), in their research
paper marketing operations strategy of business and the functioning are highly dependent upon
the effectiveness of the communication tools that are being implicated in the following cases. As
per mentioned by Huy and Shipilov (2012, p.73), the emails are believed to be one of the
essential part of the communication tools that are used as one of the easiest modes of
communication. The managers of a business organization can use the email channels as one of
the easiest and widely used business tools. This is also one of the effective ways to reach out to
every clients and external stakeholders and receive feedbacks from them. Official documents that
are needed for all types of business transactions can be transferred with the help of the email
documents. Web message is another mode of the business communication, where the clients and
the managers of an organization in different parts of the globe are able to interact among
themselves to discuss about organizational issues (Haddud, Dugger and Gill 2016). The
managers within the sales department use this form of communication to attract the customers
and also listen to the demand of the clients. There is also the tool of instant messages that is
believed to be one of the easiest ways to communicate to bulk number of employees in very
period of time.
1.2 Background of the Chosen Industry
The Australian retail industry is believed to be one of the fastest developing sectors
within the economy. The effective use of the tools of business communication is believed to be
one of the major causes of success of the sectors over the recent times. There are nearly 140,000

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retail business organizations in Australia that accounts for nearly 4.1% of the total nation’s GDP.
This also accounts for 10.7% of the total employment within the Australian economy and is
considered to be the largest industry source of employment within the nation (Zarkada-Fraser
and Fraser 2015). The overall the expenditure within the retail sector has decreased by 35% that
has resulted in the revenue shortage. This shortage occurred mainly within the period of last 4-5
years due to frequent change in the demand levels of the customers (Mehmet and Clarke 2016,
p.93). In the recent past, the retail industry within the nation of Australia is struggling to expand
as the consumers are not willing to spend more within the retail products. The trading conditions
of the companies are also worse as they are not able to meet up with the expectations levels of
the customer. With the introduction of the online forms of business, there are new forms of
challenges in the matter of business communication. The intensity of the competition also has
increased as more number of companies is entering into the respective market segment.
The retail industry within Australia comprises of wide ranges of job roles, which is
needed to deal with the diverse ranges of products in the market. There are specialty department
are within the retail sectors that includes the furniture, electronic and electrical shops. The long-
term and frequent structural change with the retail organization is causing huge challenges within
the industry. It is also important to mention that the communication gap is also one of the major
issues that have been main cause of challenges within the industry.
The retailers with the industry of Australia need to have effective levels of business
communication that can help in the matters of improving the supply chain. They will able to deal
with the quality issues that are often encountered by the customers. As mentioned by Bailey et
al. (2015), the customers often face the issues of search costs in the process of acquiring the

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information about the new feature details. Comparative information is also one of the important
matters that can help in the process of providing the details and unique features each product.
The retail companies are making use of aggressive marketing tools in the form of social
media marketing, where the companies can provide optimized information to the public about
the product and service features. It is also possible to inform the external stakeholders about the
elements of change management that are implemented in the due course of the organization
(Dutot, Lacalle Galvez and Versailles 2016). Therefore, higher levels of clarity are being
maintained about the latest marketing and business policies.
Due to the presence of International and local players within the Retail Industry, where is
tough level of competition. In order to sustain in the tough competitive environment, most of the
local companies are implementing innovative business communication techniques with the help
of social media, with the aim of better understanding the market condition and the demand of the
customers. Due to the introduction of online platform within the Retail Industry, communication
plays an even more critical role as the customers have better option to connect with the company.
In the given context, the success rate of the retail organizations is highly dependent on their
ability to maintain relationship with the external stakeholders that includes the supply chain
managers for better procurement management. The opportunity to better communicate is also
one of the major competitive advantages for all online retail stores. The customers are also able
to get better details of product feature and pricing strategy. Logistic service is also able to
provide better service with the help of online communication media. The social media can be one
of the effective tools that are used for providing information related to the supply chain
management.

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1.3 Significance of the Research
The current research work is highly significant in the context that it will help in the
matters of improving the matter of communication within the retail sectors of Australia. The
main purpose of the research is to incorporate the usage of social media to improve the levels of
internal communication. Essential data will be collected from the employees and other external
stakeholders of the retail industry that will help to identify the loopholes within the process of
communication. The existing literature related to the communication tools that are used within
the existing retail industry will be discussed. It will also analyze the importance of social media
that can be used as the communication tool within the business of the retail industry. Within the
current scenario of the business environment within the retail industry, it is essential to improve
upon the communication process that can help in uplifting the overall productivity. Improving
the official business relationship is also required in the context of understanding the importance
of external supply chain network. With the use of social media, it will be possible to make use of
advanced level of information that is needed to implement effective business plan. The findings
of the current research will help to provide the advanced level of information that can be used for
all future studies and implementing effective external communication plan for business.
1.4 Problem Statement
In the current era of digitization, where the world is connected through social media, the
use of same is highly essential in business operations and HR management. As the range of the
retail industry of Australia increased, more number of employees has been deployed. There is a
huge challenge for the industry to properly communicate with all employees and provide them
with all proper information. There are also issues for communication with the external

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stakeholders that includes supply chain managers and logistics operators. The flow of essential
information is not well maintained within the internal and external stakeholders.
The current issue that are faced by the communication department of the retail industry is
mostly due to the inability to use the social media. Hence, it is not possible for the management
to deal with the issues related to lack of information among the stakeholders. The research in the
given context will help in popularizing the usage of social media within the internal department
of Australian social media.
1.5 Rationale of the Research
What is the research issue?
As the level of competition is increasing within the retail industry, communication plays
a major role in determining the efficiency rate. With the improvement in the infrastructure of
communication technology, most of the business transactions are executed with the help of
advanced communication forms.
Most of the retail organizations within Australia have not been able to implement the
communication techniques to make most use of the latest communication technology (Bashir,
Papamichail and Malik 2017).
Why it is an issue?
Without the usage of proper communication techniques, it is not possible for the retail
industry to meet up the increase in the business demand of the retail industry. Without the usage
of social media, it is also not possible for the retail industry to understand the needs and the
demand of the customers. Hence, the industry is facing the issues due to lack of improper

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communication. This is also one of the major business coordination issues between the internal
and external stakeholders
Why it is an issue now?
The recent issues in the communication industry are mostly due to the increased levels of
competition. Without the usage of proper communication tools, it is not possible to gain
competitive edge. Proper flow of information is required for the all types of change management
that frequently occurs within the external business environment of the retail sector. Hence,
currently, many business organizations within the retail industry are not able to deal expand their
business due to lack of communication issues. In most of the cases, the communication issues are
causing challenges in the operational functions of the retail industry.
What can the research shed light on?
The aim of the current research is to highlight upon the recent communication issues that
are encountered by the retail industry. In the given context, the purpose of the research is to
highlight upon the importance of using social media as an external communication tool. Proper
data will be collected from primary and secondary sources, which will help in the purpose of
understanding the potential of the social media as the external communication tool. It will
therefore be possible to implement the social media tools in the current context of high levels of
competition within the social media. It can also help to establish external communication
channels that are needed for the development of the marketing tools used in business.
1.6 Research Aim
The aim of the current research is to explore the importance of social media as an
external communication tool within the Australian Retail sector.

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1.7 Research Objectives
 To identify the external communication issues within the retail industry of Australia
 To highlight upon the importance of social media as business operational tools
 To explore the applicability and significance of social media as an external
communication tool in Australian Retail sector
1.8 Research Questions
 What are the external communication issues that are encountered by the Australian retail
sector?
 What are the importance of social media as a tool for business communication?
 What are the significances of social media tool in the context of external communication
within the retail sector of Australia?
1.9 Structure of Dissertation
Chapter 1: Introduction and Back ground to the topic, Rationale and Research Aim, Objectives
Chapter 2: Development of the relevant Literature Review
Chapter 3: Framing of proper Research Methodology
Chapter 4: Data Analysis and Findings
Chapter 5: Conclusion and Recommendations
1.10 Summary
The current chapter has discussed about the background of using social media as a part of
external communication tool. It has also helped to identify all types of issues within the external
communication that are encountered by the Australian retail sector. Proper research objectives
and questions have been framed that will help to draw proper conclusion of the research.

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