Merce and B.commumication Notes
Merce and B.commumication Notes
Merce and B.commumication Notes
E-COMMERCE
&
BUSINESS COMMUNICATION
BY
GOBIND KUMAR JHA
“ Don’t take rest after success because lips are waiting to say that
last success was your luck” – APJ Abdul Kalam
9874411552
Unit – 1
Fundamentals of E-Commerce and E-Business Models
Definition: - “Any economic or business activity that uses Information and Communication Technology (ICT)-
based applications to enable the buying and selling of products and services and to facilitate the transaction of
business activities between and among organizations and individuals.”
Going a further, E-commerce may be additionally defined as –
“the sharing of business information, maintaining business relationships, and conducting business
transactions by means of telecommunications networks.”
We may now go for a wider spectrum of E-commerce. Besides a wide range of online business
activities for products and services, E-commerce also pertains to –
“any form of business transaction in which the parties interact electronically rather than by physical
exchanges or direct physical contact.”
(iii) E-merchants:
Scope of E-Commerce:
The scope of E-commerce may be stated as below:
(i) Carrying on planning jobs electronically through internet, irrespective of whether it is marketing,
production or financial planning;
(ii) Carrying on organizing company’s business through electronic methods;
(iii) Carrying on production and marketing activities through electronic devices;
(iv) Buying and selling of goods and services through a computer mediated network;
(v) Carrying on all other business activities including e-payment through Internet.
Marketing Forces:
Technology Forces:
Importance of E-Commerce:
The following are the importance of E-commerce:
1. Wide application
2. Online transactions
3. Exchange of financial data
4. Introduction of different models and websites
5. Consideration of technical issues
6. E-tailing
7. Market research
8. Access to global market place
9. High speed
10. Increase in income
Components of E-Commerce:
The following are the components of E-Commerce:
Seller;
Transaction Partner;
Consumers;
Companies/Business;
Government;
Internet.
Limitations of E-commerce:
It may now be concluded that according to the transaction partners or parties e-commerce can mainly
categorized into categories or models as follows:
(i) Business-to-Business (B2B);
(ii) Business-to-Consumer (B2C);
(iii) Consumer-to-Consumer (C2C);
(iv) Consumer-to-Business (C2B).
E-Governance
E-commerce: E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the
Internet, especially the World Wide Web. Often the terms e-commerce and e-business are used
interchangeably. But it is safer to view e-business as an objective and e-commerce as the means of achieving
this objective.
E-Governance Models:
1. The broadcasting model:
Unit – 2
Electronic Customer Relationship Management
(E-CRM)
From Relationship Marketing (RM) to Customer Relationship Marketing (CRM):
The concept of Relationship Marketing was first mooted by Leonard Berry in 1983. He deemed it to
consist of attracting, maintaining and enhancing customer relationships within the organization. As the years
rolled on, companies started more and more entering into a meaningful dialogue with person to person
customers. In the process of doing so, new organizations form as well as new technologies were used,
eventually giving birth to what we know as Customer Relationship Management (CRM). The prime difference
between RM and CRM is that the former does not accept the use of technology whereas the latter uses
Information Technology in implementing RM strategies.
Primarily, Customer Relationship Management (CRM) is a business strategy enabled by the advances in
technologies. Worldwide implementation of customer information, Enterprise Resource Planning (ERP)
system, Sales force automation and integrated selling point systems – all together have made customer
information available readily and massively.
With the concept and definition of CRM as explained above, we may conclude that in order to
implement CRM in an effective way, one may need to consider the following factors –
Create a customer focused corporate culture in the organization.
Adopt customer-based managers to assess customer satisfaction.
Develop an end-to-end process to serve customers.
Recommend questions to be asked to help a customer solving problems.
Tracking all aspects of selling to customers and prospects.
Information of ECRM:
Electronic Customer Relationship Management (ECRM) has developed into the latest model in the
world of Customer Relationship Management. ECRM is now more and more transforming into a business
necessity for companies that have taken to web technology. Web-enabled companies can no more reply on
traditional strategies that have brought them to where they are today.
Objectives of ECRM:
Pre-implementation Considerations:
The concept of Electronic CRM (ECRM) is derived from Electronic Commerce (e-commerce). ECRM
makes use of net environment, i.e., intranet, extranet and internet. The trend of the upcoming Internet can be
seen as the foundation of what we know as e-CRM today.
When companies integrate their customer information, there are three e-CRM strategy components:
1. Operational: Because of sharing information, the processes in business should make customers’ need as
first and seamlessly implement. This avoids multiple times to bother customers and redundant ECRM
process.
2. Analytical: Analysis helps company maintain a long-term relationship with customers.
3. Collaborative: Due to improved communication technology, different departments in company implement
or work with business partners more efficiently by sharing information.
Scope of ECRM:
Mobile CRM:
The mobile-CRM is becoming popular for reasons which are mainly three –
(i) The devices used by the consumers are improving in multiple ways which allowed for this advancement.
Displays are larger and clear and access time on networks are overall improving.
(ii) Secondly, the users are also becoming more sophisticated to adopt the technology which is nothing new
to them.
(iii) Thirdly, the software developed for applications in m-CRM has become worthwhile and useful to end-
users.
The following lines outlines the potential hazards with ECRM implementation:
(i) Mismatch between a company’s and vendor’s CRM software. Every effort must be made to find a vendor
whose product is flexible enough to emulate the company’s best practices and does not force the
company to adopt the vendor’s best practices. Therefore, each company should select the solution which
best handles the critical customer-facing functions and maintains robust links to the existing ERP system.
(ii) A poor understanding of the company’s business processes.
(iii) The ECRM implementations that take more than ninety days have a high failure rate and the company
should be skeptical about implementation that are considerably longer than 90 days.
(iv) Vendor stability should be a criteria used in selection. It is necessary to check the financial stability of the
vendor to assess whether or not it is likely to be able to survive a softening economy.
(v) Rejection by end-users is always a possibility when business functions are retooled.
(vi) Size of project. Some ECRM implementations have failed, because their initial scope was too broad.
MCQ Statement
1. Customer Relationship Management is about acquiring the right customer, instituting the best processes
and motivating employees.
2. The main drawback of CRM is implementing CRM before creating a customer strategy, rolling out CRM
before changing the organization to match and stalking, not wooing, customers.
3. Customer touch point is any occasion on which the brand and product is used by end customers.
4. Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose
off goods, services, ideas or experiences to satisfy their needs and wants.
5. A consumer buying behavior is influenced by cultural and social factors, personal factors.
6. Cultural factors exerts the broadest and deepest influence on buying behavior.
7. Socioeconomic system classifies urban households into 8 broad categories.
1. CRM technology can help in designing direct marketing effort, developing new pricing models,
processing transactions faster.
2. Data mining uses sophisticated mathematical and statistical techniques such as neutral networking and
cluster analysis.
3. The marketing messages committed to customers wishes is a part of permission marketing.
4. The method used to assess real cost of providing services to an individual customer is activity based
accounting.
5. Culture is the fundamental deter-minant of a person’s wants and behavior.
6. Indian marketers use a term called socioeconomic classification, which is based on the education and
occupation of chief wage earner.
7. Aggregate value of customer’s base is classified as shareholder value.
8. Percentage or number of customers who move from one level to next level in buying decision process is
called conversion rates.
9. A person or company that yields a revenue more than incurred costs of selling and serving is called
profitable customers.
10. Programs designed for customers which is limited to any affinity group are classified as club membership
programs.
11. First step in analysis of customer value is to identify customers value attributes.
12. Number of customers or potential customers who will help in company’s growth is classified as customer
base.
13. Any occasion on which brand or product is encountered by end customers is called customer touch point.
Unit – 3
Supply Chain Management (SCM)
The Supply Chain Management (SCM), covers all aspects of business from the flow of materials,
through distribution channel, to the end-users, each and every aspect of which is covered by the management
system – whether it is material sourcing, product designing, production planning, order processing, inventory
management, transportation and warehousing and above all, customer service. In such a long process,
business partners and customers connect together through the Internet to participate in business trading as
well as in communication and interaction.
The supply chain begins with the need for a computer and embraces all kinds of activities required to
meet customer demands and to fulfill customer desires. All such activities are associated with the flow and
transportation of goods from the raw materials stage through to the end-users as well as associated with
information stream and funds flow. The supply chain consists of four stages, such as –
(i) The supply network,
(ii) The internal supply chain (i.e. manufacturing plants),
(iii) Distribution systems, and
(iv) The end-users.
In going up and down the stages, there exist four flows, such as –
(i) Material flow,
(ii) Service flow,
(iii) Information flow, and
(iv) Funds flow.
The supply chain is designated as e-supply chain, when it creates three linkages using internet
technologies.
(i) E-procurement links the supply network and manufacturing plant.
(ii) E-distribution link the manufacturing plant and the distribution network.
(iii) E-commerce links the distribution network and end-users. There are two different types of supply chain.
One is responsive supply chain and the other is efficient supply chain. The purpose of responsive supply
chain is to react quickly to market demand and the purpose of efficient supply chain is to co-ordinate the
material flow and services to minimize inventories and maximize the efficiency of the manufactures and
service providers in the chain.
Real-time Processing:
Return on Investment:
(i) Sourcing;
(ii) Production;
(iii) Distribution.
1. Competitive Priorities;
2. Manufacturing Strategies.
Planning,
Forecasting,
Replenishment.
As guidelines for effectively implementing CPFR, eight steps, as given below, are suggested:
Step 1 : Develop collaborative arrangement
Step 2 : Create joint business plan
Step 3 : Create Sales forecast
Step 4 : Identify exceptions for sales forecast.
Step 5 : Resolve/collaborate on exceptional items
Step 6 : Create order forecast
Step 7 : Identify exception for order forecast
Step 8 : Order generation.
The above eight steps will guide companies to successfully implement CPFR.
1. Logistics is an integral part of supply chain management. An emphasis on using the supply chain to deliver
value to customers who are actively involved in product and service specification explanation best
represents outbound logistics.
2. Intangible needs are an output to a single organisation’s transformation process.
3. Procedural is not a flow that moves up and down the supply chain.
4. Systems are not a key element of the operations function.
5. A company’s channel decisions directly affect every marketing decision.
6. Intermediaries play an important role in matching supply and demand.
7. Financing is not a key function that intermediaries play in completing transactions.
8. In marketing terms, we say that the number of intermediary levels indicates the length of a channel.
9. Hybrid marketing systems are also called multichannel distribution systems.
10. Producer is not a typical supply chain member.
11. Customer power is not key attributes of supply chain management.
12. The product/service dev. Function is not a core function of an organization.
13. Lean production involves elimination of all types of waste.
Unit – 4
Digital Payment Systems (e-Payment Systems)
1. Acceptability
2. Convertibility
3. Anonymity
4. Untraceability
5. Flexibility
6. Reliability
7. Efficiency
8. Security
9. Usability
10. Scalability
1. Electronic Cash (E-Cash) Form of Payment System: the electronic cash or e-cash is a new concept in online
payment systems. It combines computerized accessibility and convenience with security and privacy which
is an improvement on paper cash. It is so versatile that it opens up a host of new markets and widens
application. With some interesting and features, e-cash presents an attractive alternative for payment
even over Internet.
Properties of E-Cash: to be specific on the point, e-cash must contains the following four properties:
(a) Monetary value,
(b) Inter operability,
(c) Retrievability, and
(d) Security.
23 Special Thanks to Mr. Jay Rudra Jha (Ex-student)
GOBIND KUMAR JHA 9874411552
Operationality of E-cash: E-cash is based on cryptographic systems called “digital signatures” which
involves or entails a “pair of key” that work together – one for looking or encoding and the other for
unlocking or decoding. Messages encoded with one key can be decoded with the other key only and not
any other. The encoded key is preserved secret or private while decoding key is made public.
E-Cash System Mechanism: E-cash is portable. The portability means that it must be freely transferable
between two parties in all forms of e-commerce transaction. In fact, e-cash is an electronic or a digital
form of value storage and value exchange which has limited convertibility into other forms of value and
it requires intermediaries to convert.
2. Electronic Cheque Form of Payment System: Electronic cheque is the second form of electronic tokens
designed to accommodate different individuals and entities preferring to pay on credit or through some
mechanism other than cash. The procedure is that the buyers must register with a third party account
server before writing electronic cheques. The account server also provides a billing service. The registration
procedure varies depending on the particular account server and may require a credit card or a bank
account to give a back up service to the cheques.
3. Automated Teller Machine (ATM) Form of Payment System: ATM performs the most important function of
a bank. It is made up of plastic card replacing cheque and avoiding personal attendance of the customers,
banking hours restrictions and paper-based verifications. ATM is used for electronic fund transfer and as an
electronic fund transfer terminal, ATM is capable of handling cash deposit, transfer between accounts,
balance enquiries, cash withdrawal and pay bills. It may be both online or offline. The online ATM enables
the customer to avail banking facilities from anywhere anytime. The offline ATM facilitates Internet banking
or e-banking which means any user with a personal computer and a browser which enable him to get
connected to his back and/or website to perform any of the virtual banking functions.
4. Credit Cards and Debit Cards Form of Payment System: Credit Card is a post paid card. The credit card
holder is empowered to spend wherever and whenever he intends to buy anything within the limits fixed
by his banks. Credit card is a very popular tool of online purchase payment. Credit card is made of plastic
whose holder is granted a revolving credit limit. The card normally contains cardholder’s name, account
number and many other information encoded on the magnetic strip. As a medium of payment tool, the
Credit Card has been widely accepted by merchants and consumers throughout the world.
5. Smart Card Based Electronic Form of payment System: Smart Cards are getting renewed lease of life as a
mode of online payment. They are essentially credit card sized plastic cards with the memory chips and in
some cases, with microprocessors embedded in them so as to serve as storage devices for much more
information than credit card with in-built transaction processing capability.
6. Mobile Banking Form of Payment System: today’s corporate world being very hectic, it very often becomes
difficult to keep track of everything related to finance and banking. Now through Mobile Banking, one can
access his bank account and carry out transactions through mobile.
Operationality: the process of online marketing involves three market segments which are as
follows:
(i) Cyber buyers
(ii) Cyber consumers
(iii)Cyber surfers
As a viable alternative to traditional payment system, digital payment mechanism need certain
characteristic features, such as, -
Acceptability
Convertibility
Flexibility
Reliability
Efficiency
Security
Usability
Salability
In spite of cost effectiveness and efficiency attainments, the spread of electronic payment systems
were faced with so many hazards or hurdles as are given below:
Privacy
Security
User – friendliness
Requirements of E-payment:
Irrespective of the type of payment mechanism adopted, digital payment mechanisms have to fulfill
certain basic requirements which are pertinent to discuss here as below:
1. Fungibility or Acceptability
2. Convertibility
3. Flexibility
4. Reliability
5. Efficiency
6. Security
7. Confidentiality (Trust)
8. User Friendliness
1. Integrity
2. Non-repudiation
3. Authentication
4. Confidentiality
5. Reliability
State Bank of India and all other public sector banks, like PNB, UCO bank, UBI, CBI etc. and the leading
private banks, such as – ICICI, HDFC, IDBI, Axis Bank etc. have been authorized by RBI to undertake
Government businesses and those banks are offering the following electronic mode services for transfer of
funds –
1. National Electronic Fund Transfer (NEFT)
2. Real Time Gross Settlement Scheme (RTGS)
3. Electronic Clearance Scheme (ECS)
4. Core Banking Solutions (CBS)
MCQ Statement
1. Smart cards are plastic cards the size of a credit card that contains an embedded chip on which digital
information can be stored.
2. Paisapay is facilitated in eBay.co.in
3. Electronic check is a method of transferring money from one person’s account to another.
4. If you need to transfer money to another person via the internet, then use can use financial cybermediary,
electronic check, electronic bill presentment and payment.
5. A combination of software and information designed to provide security and information for payment is
called digital wallet.
6. Financial electronic data interchange is used in B2B to pay for purchases.
7. Digital cash, electronic cash, E-cash are electronic representation of cash.
8. Trust card is introduced by BSNL and itzcash.
9. PaisaPay is offered only by eBay.in
10. The E-payment mechanism widely used in B2B is E-cheque.
11. Credit card is also known as plastic money.
12. E-cheques are prepaid.
13. Proximity smart card is read only.
14. Contact smart card uses a sim like structure for reading and writing data.
15. Authenticity is A stands in CIA of smart card.
16. Confidentiality is C stands in CIA of smart card.
17. E-banking is also known as Net banking.
18. E-cheque is not an offline payment mode.
19. Cash on delivery is not an online payment mode.
20. E-cheque is an online payment mode.
21. A digital signature is an authentication of an electronic record by tying it uniquely to a key only a sender
knows.
22. The responsibility of a certification authority for digital signature is to authenticate the public keys of
subscribers.
23. Certification of Digital signature by an independent authority is needed because the authority checks and
assures customers that the public key indeed belongs to the business which claims its ownership.
24. One of the problems with using SET protocol is the bank has to keep a database of the public keys of all
customers.
25. In electronic cheque payments developed, it is assumed that most of the transaction will be business to
business.
26. In Electronic cash payment a customer buys several electronic coins which are digitally signed by coin
issuing bank.
27. In Electronic cash payment a customer withdraws “coins” in various denominations signed by the bank,
the bank has a database of issued coins, the bank has a database of spent coins.
28. Digital Cash has characteristics of anonymity, security, confidentiality.
Unit – 5
Enterprise Resource Planning (ERP)
Importance of ERP: ERP is the acronym of Enterprise Resources Planning, the most important of which is the
Enterprise while Resources and Planning parts of the acronym do not have so much of importance and impact
as Enterprise. It is the Enterprise which combines both Resource and Planning into a single and integrated
software programme based on a single database so as to enabling various departments to share information
and to impart communication with each other.
Before embarking on ERP, the major factors that have to be considered are as follows –
1. Infrastructure Resource Planning
2. Local Area Network (LAN)
3. Department of Server
4. Introducing new PCs
5. Need for adequate training facilities
6. Human Resource Planning
7. ERP Education
8. Commitment to release the right people
9. Top Management’s Commitment
10. Ability and Willingness
11. Reasonably well working Manual Systems
The keys to the successful implementation of ERP are related to –
(a) Securing top management’s commitment for implementation of ERP
(b) Forming cross-functional task forces for linking project management with business units
(c) Carrying an assessment exercise of hardware requirements
(d) Making deployment in a step by step introduction rather than all at once
(e) Starting early planning on user training and support
(f) Streamlining decision making to move implementation quickly.
Advantages of ERP:
Unit – 6
New Trend’s in E-Commerce
Social Commerce
Backdrop of Social Commerce: With the popularity, acceptance and growth of social media enhanced, social
commerce, as a follow-up action, has been quickly emerged as a new phenomenon. It occurs when customers
show hesitant decision making behaviors at the point of time of purchasing goods and services although most
agreeably decision may be influenced by other people. Social commerce, in such situation, represents a shift in
customers’ thinking from individual decision to collaborative decision. Since the social web provides a
discussion platform for customers, such collaborative decision could be easily facilitated and because of such
discussion platform provided by the social web for customer’s discussion, it can be leveraged by companies to
lean the discussion to their advantage and influence customers’ purchase decision.
Advantages:
1. Cost-related;
2. Social Interaction;
3. Interactivity;
4. Targeted market;
5. Customer service.
Disadvantages:
1. Time intensive;
2. Trademark and copyright issues;
3. Trust, privacy and security issues;
Digital Marketing
Introduction: Simply speaking, digital marketing means the promotion of products or brands through one or
more forms of electronic media. Although it has been around for quite some time but it has not been so far
well-defined. It is easy to say what does it include and what is does not include. If encompasses banner
advertising, Search Engine Optimisation (SEO) and pay per click. Yet, it is very narrow a definition because it
also includes e-mail, RSS, voice broadcast, fax broadcast, blogging, video streams, wireless text message and
instant messaging. It has a very wide scope. On the other hand, it does not include more traditional forms of
marketing, internet marketing or web marketing which are different in name but synonymous in concept.
Despite, why is digital marketing emerging so significantly and so more importantly.
Digital Marketing Plan: Any digital marketing plan is a strategic document which takes the current situation of
a particular organization to set some mid-term goals and to determine the strategy and means to accomplish
them. This strategic document also describes the responsibilities, time frame and control tools for monitoring.
For many teams there are different sets of people who work on SEO and social media separately.
However, this scenario is changing lately.
(i) The two may still officially belong to separate teams, but social media marketing will need to be more
informed on the SEO strategist’s agenda so that the SEO strategy may go hand-in-hand with content
promotion.
(ii) SEO strategists too need to know how to work with social media marketers in order to receive the social
signals it needs to make sure that their company ranks high in search.
E-mail as a Form of Digital Marketing: As a form of digital marketing, e-mail marketing is an online marketing
technique which uses e-mail to send advertisements or commercial information. This is a communication tool
used to attract new customers to make loyal to the brand. Any e-mail communication is considered as e-mail
marketing if it helps build customer loyalty, trust in a product or company or brand recognition. E-mail
marketing is an efficient way to stay connected with the clients while promoting business. It helps reaching
the target markets easily and quickly without the need for large quantities of print space, television or radio
time or high production costs.
Mobile Marketing as a Form of Digital Marketing: Mobile marketing is marketing on or with a mobile device,
such as a smartphone. Mobile marketing can provide the customers with time and location sensitive,
personalized information which promotes goods, services and ideas. Mobile marketing is similar to advertising
delivered over other electronic channel, such as, graphic and voice messages.
SMS messaging is currently the most common delivery channel for mobile marketing.
Search Engine Marketing is the second most common channel, followed by display-based Campaigns.
(i) Digital Marketing can make reduction of cost and thus save money and help to stretch marketing budget.
(ii) Digital Marketing can save time and cut steps in the marketing process.
(iii) Digital Marketing provides customers with an alternative option to purchase.
(iv) Digital Marketing removes the time and distance barriers to get ways for stretching business in the
overseas countries.
(v) Digital Marketing is very much information-rich and interactive.
(vi) Digital Marketing removes entry-barriers and offers equal opportunity for access.
(vii) Digital Marketing can be constantly and continuously available because the online information server is
always on the job, twenty four hours a day and 365 days a year.
1. The sell goal of a business-to-business website involves an interactive dialogue with a virtual sales person.
2. The speak goal of a business-to-business website involves gaining permission from a website visitor to
engage in future dialogue by e-mail and other communication channels.
3. Business-to-business (B2B) e-commerce involves commercial transactions between an organization and
other organizations (inter-organisational marketing).
4. Youtube brand channel is an example of business-to-business services offered by Google which gains
advertising revenue through hosted videos.
5. A portal which is an online platform operated by a third party and is open to buyers or sellers in a
particular industry is a B2B independent e-marketplace.
6. Raw materials is production related procurement.
7. The west way to improve search engine ranking is with a blog.
8. Timeline is the latest major change in functionality added to facebook.
9. Rackspace is the Hosting Company that is used for all external consumer facing sites.
10. Sitecore is the new content management tool for SWEET.
(BUSINESS COMMUNICATION)
UNIT – 1
INTRODUCTION
Communication:
In Common Sense, Communication is a kind of bridge that fills the gap between two persons. In other words its
simply means sharing the ideas, views knowledge, feeling etc. between two or more persons.
Features of Communication:
Communication tries to minimize the gap between the persons and it helps the human being to come closer to
each other.
1. Two Persons:- There must be at least two persons for the completion of communication, since no single individual
can exchange the ideas with himself, there must be at least two persons one is known as sender and other is
receiver.
2. Exchange of Ideas:- Communication cannot be thought of it there are no ideas, feelings, informations to share
between two persons.
3. Mutual Understanding:- There must be a good mutual understanding between sender & receiver that mean
receiver should understand the message in the same spirit as it is given by sender.
4. Direct & Indirect Communication:- A communication may be direct or indirect that mean it is not necessary that
both sender and receiver will be there face to face, it may also be through indirect sources.
5. Continuous Process:- Communication is a continuous process since it never ends it continues throughout the life, as
soon as the people leave they communicate.
6. Use of Words, Symbols etc:- There are many ways to share the ideas, message, views from one person to another
person, it may be through words spoken, written or through symbols.
Business Communication:-
The word business communication consists of two different words having its own specific meaning so in total we
can say business communication is the process whereby the various informations, views, messages related to business
organisation are being shared from one business house to another.
b) Existence of two or more person: There must be at least two persons to complete the communication process.
It is an exchange facts, ideas, messages, opinions and information by one person to the in the business world.
Here one person is known as sender and the other as receiver.
c) Factual: Usually, a business communication includes facts and figures in place of overall idea. Important date,
place, time and information should clearly mention in the message.
d) Clear and Brief: The language used in the message should be clear, brief and lucid. It must be freed from
ambiguity. Sometimes charts, diagrams, symbols and figures are used to clarify the information contained in the
message.
e) One way/Two ways process: Business communication may be one way or two ways process. In the one way
communication process the sender conveys the information and the receiver received that message. While in
two ways process the sender and receiver interchanging their views and information.
2. Idea or Message:- Every Sender needs some message or ideas to pass it. Message is the subject matter of
communication. It is a kind of thought that processes in our mind. It may be thought, feeling, ideas, views etc.
4. Communication Channel:- The person who is interested in communication chooses the suitable channel of
communication through which he or she wants to communicate. Generally there are many channels of
communication but sender always prefers that channel which suits the interest of both persons.
5. Receiver:- Receiver is the person who receives the message or symbols as sent by sender. He or She tries in a
best possible manner to understand the message as given by Sender.
6. Decoding:- It is the process of breaking the message or understanding the message in such way so that meaning
of message should be exactly as sent by sender.
7. Feed Back:- Feedback is the process to give reply or response to the sender that receiver has received the
message. Feedback may be positive or negative.
(i) Rhetorical Model: Under this model, the speaker draws the attention of the audience and tries to convey
his/her speech to them. The prophet of this model is a Greek Philosopher Aristotle who presented this nearly
2300 years ago. This model has five elements – the speaker, the message, the audience, the occasion and the
effect. His advice the speaker to prepare their message for the audience.
(ii) Propagandistic Model: The principles of this model are to convey informal to all. Usually, few rules and
principles are conveyed through this method. This method is generally used by the business concern or religious
institution to communication information to their followers.
(iii) Negotiable Method: Under this method the negotiator establishes the message by discussion for
communication and influencing his/her subordinates. This method is generally used for labour management or
for establishment of international relationship and legal process.
(iv) Communication Model: The latest development in the field of communication is the communication model.
With the help of this model the senders can transmit the information and message to their subordinate or
audience through the communication process. Feedback system may introduce to judge the effectiveness of the
communication. Due to that reason, this model is accepted in most of the area.
(v) Attention – Interest – Desire – Action (AIDA) Model: The founder of this model is Strong. The interest of the
recipient of information and messages arises out of the attention and desires of him/her arises out of his/her
interest. Finally the ultimate action arises out of the desires of the person. Under this model the sender used
various model for transmitting their message to the recipient.
(vi) The Mathematical Theory of Communication Model: The founder of this model is Claude F. Shannon and
Warren Weaver. The model was made by them in the year 1947 but published in 1949. This model analyses the
process of communication of message and put emphasis on the accurate transmission. It consists of four
elements: (a) Source of information, (b) Transmitter or sender who sends a message though signal, (c) Receiver
who received and decode the signal, and (d) Destination i.e. where the message to be send.
Internal External
Upward Face to Face
Downward Written
Horizontal/ Lateral By Phone
By E-mail
Social Networking Services
Internal: - When the communication takes place among the various staffs of the organisations inside the business house
regarding the concerns of the employees, such communication is known as Internal Communication.
Types of Internal:-
1. Upward:- It refers to type of communication where the informations flows from lower level to level that mean the
information must originate at the bottom level and move towards top level.
2. Downward: - It refers to type of the communication where the information flows from top level to lower level.
Generally the informations that flow contain instructions, policies, objectives, mission etc.
3. Horizontal: - In this type of communication, the communication takes place between the people of same rank in
the organisation. Generally the basic purpose of horizontal communication is to share the knowledge between or
among each other and to achieve common goal.
External: When the communication takes place with the external parties of the organisation where business related
informations are passed to the persons staying outside the business, such communication is known as External
Communications.
1. Face to Face:- It is the oldest & the best way of communication where the physical attendance of both the parties are
required for the flow of information under this form. There is better understanding & less misunderstanding.
3. Phone: - When communication is done through the phone then the sender or receiver do not have to meet physically
but, the very common disadvantage of telephonic communication is the technical problem which leads to loss of
message.
4. Email: - E-mail refers to the electronic mail. It is a kind of written communication but through electronic means. It can
be considered as the fastest way of communication but it also have technical difficulties.
5. Social Networking Sites: - It refers to those services through which people get connected to the society. It can be also
considered as the easiest means to get connected with the external parties.
Principle of Effective Communication: - Only Communication does not serve the actual purpose because
Communication must be effective, since the effective communication is the part and parcel of any business organisation.
An effective Communication must have following principle features:-
1. Clarity of Purpose: - The message to be delivered must be clear in the mind of sender that mean a sender must know
the purpose of communication.
2. Completeness: - The message of Communication must be concise that mean the unnecessary words all details should
be avoided the best message always have maximum information with minimum words.
3. Conciseness: - The message delivered must be concise that mean the unnecessary words all details should be
avoided the best message always have maximum information with minimum words.
4. Feedback: - The sign of effective communication is the proper feedback. Feedback has a big implication in the world
of communication, since it indicates the receiver has received the message in the same sense and in the same time. A
good feedback must always be specific.
5. Empathy: - Empathy is a situation when a sender or speaker put himself into the shoes of listener that mean to be
sensitive to the needs of listener. A sender must understand the feeling or emotions of listener while communicating
to him.
6. Multiple Channels: - A Communication to be effective must be done using various channels that mean a sender must
be dynamic to adopt the changes.
Barriers of Communication:-
There are many restrictions or compliments due to which message as send by sender does not reach infact. The barriers
to the communication can be classified into following broad categories:-
1. Organisational Barriers.
2. Individual Barriers.
3. Semantic Barriers.
4. Other Barriers.
2. Individual Barriers: - It refers to those barriers which we created by either sender or receiver. It may be of following
types.
a) Difference in Personalities: - The mismatch of personality also acts as barriers to the communication since each
individual have different personality.
b) Perception: - Perception is the unique way of understanding the message. Due to difference perception
effective communication.
c) Fear: - Fear of attack, criticism & insult also turns out as barriers to the communication.
d) In Attention: - When receiver do not attend the sender in a full fledge manner than also Communication is not
effective.
3. Semantic: - A common barriers to each & every Communication is the language problem that mean when same
subject matter have the different words or different meaning due to language difference. This is known as Semantic
Problem.
4. Other Barriers: - Apart from above problem there are many barriers which reduces the effective Communication
Such as:-
a) Over loaded information: - Too much information at a time does not created effective communication, Since
the receiver develops a monotonous attitude.
b) Faulty or Incomplete Expressions: - It message is not properly or effectively communicated or expressed then it
creates a barriers to the Communication.
2. Communicate according to the need of the Receiver: - The sender must pass only those informations which are
relevant by the receiver that mean the level of understanding and ability of receiver should be understood.
3. Consult others before Communication: - Others must be consulted at the time of planning the communication. Its
main advantage will be that the ideas of others will contribute towards the effective Communication.
4. Beware of Language, tone & Continent: - The sender must be aware of the language since the fact of message
should be framed in clear and beautiful language. The tone of message must not also attack the feelings of the
receiver. The continent of message should not be overloaded by technical words.
6. Be a good listener: - Both sender & receiver should be good listeners. Both should be ready to listen to each other
with positive attitude, patience and open up mentality.
Characteristics of Conflicts:
The characteristics of conflicts are stated below:
a) Conflict does not appear. Conflict emerges.
b) Conflict is like a virus when it appears it begins to spread like crazy.
c) Conflicts are insensible by differing values.
d) Conflict is energized through opposing interests.
e) Conflict is fueled by poor communications.
f) Conflict boost up when trust breaks down.
g) Conflict is decomposed by incompatible goals.
h) Conflicts are encouraged by differing personalities.
i) Conflict is not breakdown in communication but a process that is ongoing. The communication is not like a car
that can break or cease to function. It entails communication about disagreement.
j) Conflict inherently involves some sense of struggle or incompatibility or perceived difference among values,
goals, or desires.
Unit – 2
Types of Communication
Communication
Formal Communication: - The Formal Communication is the exchange of official information that flows
along the different levels on the basis organizational hierarchy, authority and accountability and conforms to
the prescribed professional rules, policy, standards, processes and regulations of the organization.
Informal Communication: - According to Bovee and his associates, “Informal communication is the flow of
information without regard for the formal organizational structure, hierarchical or reporting relationship.” So,
grapevine or informal communication is the process of spontaneous exchange of information between two or
more person at different status without following any formal relationship and chain of command in the
organizational structure. It may overlaps routes, levels and positions. It is direct, spontaneous, flexible and
unofficial in nature. It arises due to the personal need of the members of the organization.
Unit – 3
Tools of Communication
Introduction:
In Now-a-days, the advancement of technology has resulted into the transfer of message to all corners of the world or to
any destinations just with a single touch. There are many modern tools of Communication in now-a-days whether the
business house is small or large.
(i) Fax: - It refers to the modern tool of communication whereby the sender of fax message prepares the copy on a
sheet. Generally no larger than A4 Size which can be fed into the machines. He dials the destination number gets the
fax tone and feeds the message into machines. The receiver receives the message in the same form.
Features of Fax:
1) Device of transmission: It is consider as the latest device for transmitting diagram, message, circulars, etc.
2) Two inter-related telephone: It is connected with two inter-related telephone line.
3) Fast Transmission: It is the most quest mode of transmitting message and information from one place to another
place instantly. As such, the cost of transmission and reception decline.
4) Tools for exchange information and message: It is the device that helps to send information and message both
internally or outside the organization.
5) Written communication: As through FAX only written materials are transmitted, so it is a tool of written
communication.
6) Memory: The machine can store the message in the memory, if there is proper device connected with for printing
the page.
Advantages of FAX:
1) Speedy transmission: Sketch, diagram, message in type form and information can be transmitted at
exceptionally high speed. Important decisions and instructions can be quickly conveyed to the branches
and other offices.
2) Less costly: It can provide written and permanent document at least cost.
3) Accurate transmission: It can transmit information, message, etc. same to same from one place to another
in the form of telegraph. The receiving machine decrypts the signals and uses its in-built printer to produce
an exact photocopy of the matters transmitted.
4) Overcoming time zone barriers: As it facilitates to have hard copy of the document, so it can able to
remove the time zone barriers easily.
5) Feedback of the message: It can ensure feedback of the message easily within a short period of time.
6) Virus free: It is virus free process of transmitting information from one place to another through
telephonic lines.
Disadvantages of FAX:
1) Costly Device: It is a costly device. It has incremental cost once a concern has paid the fees for access.
2) Poor Quality of Outcome: Sometimes receive copy is not clear and makes it too difficult to read the
message.
3) Space Constraint: FAX machine needs telephone line, papers power and separate space for itself and
printer.
4) Non-changeability of message: It is quite impossible to change the message which has already been
transmitted.
5) Absence of Privacy: Letter sent through FAX suffers from lack of privacy. So, it can be used only for those
documents which are not confidential.
(ii) E-Mail: - E-mail stands for electronic mail through which the written messages along with few small media
could be sent from Sender to Receiver. There are many ISP (Internet Service Providers) who allows to
create e-mail id for free. Both the sender & receiver need an e-mail id to communicate under this modern
tool of communication. E-mail addresses are often found in lower case. The format of a typical e-mail id is
[email protected]
Features of E-mail:
1) Modern means of communication: It is a modern means of communication through computer network.
2) Speedy Transmission: It can send message instantly from one computer to another in any part of the
world.
3) Medium of sending information: It used to send messages, pictures and data files from one computer to
another electronically over computer network.
4) Remittance of written message: It can send only written message between individuals or groups of
individuals.
5) Paper free network: For sending message it does not use any paper. Thus, it is environment-friendly and it
can save lot of trees from being cut down.
6) Gift of internet: It is a gift of internet. Because without using internet we can’t send message from one
computer to another.
Advantages of E-mail:
a) Speed: It can transmit the message very fast to anywhere. There are almost no time gaps between
transmitting the message and its receipts through internet.
b) Less Costly: It costs very little for sending message to far off countries. It turns to be cheaper
alternative to telephone conversion.
c) Efficiency: It can increase the efficiency of the organization by making neat, prompt And timely
communication.
d) Flexibility: It provides flexibility in the sense that hardware and software used for e-mail are also used
for other purpose.
e) Future Reference: Important e-mail can be preserve for future reference either in floppy disk or in the
hard disk of the computer.
Disadvantages of E-mail:-
(i) Security Problems: There is no guarantee of privacy of this system. Hackers can make an access to
one’s e-mail unless it is in coded form. For that reason many concern restrict the access to the e-mail
and to the internet because of security risk and possibilities of abuse.
(ii) Regular Checking: The efficiency of this system depends on the regularity of the user’s in checking e-
mail. It is not possible to know, when the recipients checks the mail. It could lies in the mail box for
days if the recipients don’t check the mail.
(iii) Personal Work: During office hours personal e-mail may also sent and the employee may check and
read it. This will in turn goes against the interest of the organization by way of increasing cost and
wastage of time.
(iv) Restricted Use: It can be used by only those who have computers or android phone.
(v) Dependent on telephone connection: If for any reasons if telephone connection is interrupted than it
is not possible to sent e-mail because of non availability of internet service.
(vi) One way system of communication: It is one way system of communication. It does not permit the
interaction as a telephone link does.
Video - Conferencing: - It is one of the modern tools of communication with audio-visual impact under
video conferencing one can hear or see others even without being close to them that mean various people
staying at different places can be connected together at the same time. It needs expensive electronic gadgets.
Generally it is used when variety of opinion is required at the same time on the same subject matter.
Unit – 4
Drafting
AGENDA
This is to notify that the 23rd Board Meeting of the company will be held on Friday, 11th January, 2019 at the
registered office of the company at 4p.m. to transact the business mentioned in the agenda annexed
herewith. Your presence is highly solicited.
AGENDA
This is to notify that the First Board Meeting of the Company will be held on Monday, 11 th January,
2019 at the registered office of the company at 4p.m. to transact the business mentioned in the agenda
annexed herewith. Your presence is highly solicited.
AGENDA
Minutes of the 23rd Board Meeting of Bipasa & Co. held on Saturday, 10th January, 2018 at 4 p.m. at the
registered office of the company.
1. Directors Present at the meeting a) Mr. S. K. Puri
b) Mr. Sohan Gandhi
c) Mr. Mohan Modi
d) Mrs. R. Kour
e) Mrs. Kusum Gupta
f) Mr. Tomes Robinson
Mr. S. K. Puri took the chair to preside over the
meeting.
2. Confirmation of the minutes of the last Mr. Amar Singh, the secretary of the company read out
Board Meeting the minutes of the proceeding of the last board
meeting was held on 11th October, 2017. The minutes
were, thereafter confirmed.
3. Payment of interim dividend Resolved that an interim dividend of 10% be paid on
the paid value of equity shares.
4. Forfeiture and re-issue of shares Resolved that the shares of those shareholders who
failed to pay the consecutive call money, their shares
will be forfeited and re-issued to another person at a
discount of Rs. 2 per share.
5. Appointment of Auditor Resolved that Gupta & Gupta Company be appointed as
the auditor of the company at a fees of Rs. 1,00,000 per
annum in place of our existing auditor Khan & Singh
Company who has resigned.
6. Redemption of Debentures Resolved that the 10% debentures of Rs. 80,000 be
redeemed at two installments after six months each.
7. Miscellaneous, if any No special point has been raised and discussed.
8. Data of the next meeting Resolved that the next board meeting will be held on
March 15, 2018 at 4 p.m. at the registered office of the
company.
9. Vote of Thanks The meeting ended with vote of thanks to the chair.