CAIE A-Level Business A2 7.2 Business Communication Questions

Practise analysing communication methods, barriers and process changes through clarity, speed, feedback, access and employee response in the organisation's operating context.

Exam points

identify the sender, message, channel, receiver and feedback issue behind a communication outcome
analyse a method or barrier through speed, clarity, record, access and employee understanding
apply the communication effect to coordination, morale, error, customer service or cost

Covered syllabus points

7.2.1—Purposes of communication 7.2.2—Methods of communication 7.2.3—Channels of communication 7.2.4—Barriers to communication 7.2.5—Management communication role

[Maximum number: 8]

Analyse two benefits to OV of the methods it uses to communicate with employees.

Level	AO1 Knowledge and understanding 2 marks	AO2 Application 2 marks	AO3 Analysis 4 marks
2			3–4 marks Developed analysis • Developed analysis that identifies connections between causes, impacts and/or consequences of two points. • Developed analysis that identifies connections between causes, impacts and/or consequences of one point.
1	1–2 marks • Knowledge of two relevant points is used to answer the question. • Knowledge of one relevant point is used to answer the question.	1–2 marks • Application of two relevant points to a business context. • Application of one relevant point to a business context.	1–2 marks Limited analysis • Limited analysis that identifies connections between causes, impacts and/or consequences of two points. • Limited analysis that identifies connections between causes, impacts and/or consequences of one point.
0	0 marks No creditable response.	0 marks No creditable response.	0 marks No creditable response.

Analyse two benefits to OV of the methods it uses to communicate with employees.

Figure for Answer to Question 1 — CAIE A-Level Business A2

Note:

- Only reward benefits.

- If more than two benefits are referred to, reward the best two.

- L2AN (3 marks) is possible for just one point made.

2

Responses may include:

AO1 Knowledge and understanding

Definition of internal communication and/or possible methods (max K 1 mark)

- Definition or explanation of internal communication - communication between different people or groups within the organisation - and possible methods including meetings, reports, notice boards, memos and email.

- Definition of one and/or two-way communication.

- Communication with employees could also be through external methods such as press reports and social media.

Benefits of internal communication used by OV (max K 2 marks)

- Avoid misunderstanding of what is required.

- To allow coordination of activities within a business.

- To enable employees, have some input into business decision-making.

- To give managers feedback from other employees.

- To motivate employees or avoid demotivation.

- To avoid the spread of rumours and fake information.

- Cut costs.

- Low labour turnover.

AO2 Application

Limited application, ${ }^{\mathrm{APP}}$ applies knowledge to OV once.

Developed application, ${ }^{\mathrm{APP}}+{ }^{\mathrm{APP}}$ applies knowledge to OV twice.

Max one ${ }^{\mathrm{APP}}$ for application for the first benefit and max one ${ }^{\mathrm{APP}}$ for application for the second benefit.

Application is making use of relevant case information not just repeating it.

- Aluna meets with factory workers each week. Two-way communication encouraged in meetings - discussion of operational problems.

- Open-plan office giving team members access to directors.

- Intranet to provide company information and plans to employees.

- Monthly bulletin with contributions from employees.

- Inclusive culture that OV has developed.

2

AO3 Analysis

Limited analysis AN - candidate shows one link in the chain of analysis.

Developed analysis $\mathrm{L2}^{\mathrm{L2N}}$ - candidate shows two or more links in the chain of analysis.

- Greater commitment from workforce if they feel that their concerns are heard. This could result in lower labour turnover and higher productivity ${ }^{\mathrm{AN}}$ and therefore reduce costs and lead to an increase in profit. L2 AN

- Employees more likely to provide ideas for improving operations resulting in more efficient production and lower costs AN. This can result in higher profit. L2 AN

- Less chance of misunderstanding leading to industrial action and disruption to production ${ }^{\mathrm{AN}}$ and therefore dissatisfied customers leading to a reduction in sales.

L2AN

- Development of a positive organisational culture resulting in greater efficiency in use of resources.

- Communication methods used will motivate employees (Herzberg, Mayo) and therefore increase productivity AN which will reduce unit costs and increase profit.

L2AN

Accept all valid responses.

[Maximum number: 8]

Analyse how two barriers to communication resulting from LT's online operations may impact the business.

Level

A01 Knowledge and understanding 2 marks

AO2 Application 2 marks

AO3 Analysis

4 marks

3-4 marks

Developed analysis

- Developed analysis that identifies connections between causes, impacts and/or consequences of two points.

- Developed analysis that identifies connections between causes, impacts and/or consequences of one point.

1

1-2 marks

- Knowledge of two relevant points is used to answer the question.

- Knowledge of one relevant point is used to answer the question.

1-2 marks

- Application of two relevant points to a business context.

- Application of one relevant point to a business context.

1-2 marks

Limited analysis

- Limited analysis that identifies connections between causes, impacts and/or consequences of two points.

- Limited analysis that identifies connections between causes, impacts and/or consequences of one point.

0

0 marks

No creditable response.

0 marks

No creditable response.

0 marks

No creditable response.

Note:

- Only reward barriers.

- If more than two barriers are referred to, reward the best two.

1

Indicative content

Responses may include:

AO1 Knowledge and understanding

Limited knowledge ${ }^{\mathrm{K}}$ will be demonstrated through knowledge of the concept of barriers to communication or knowledge of possible impacts of barriers.

Developed knowledge ${ }^{\mathrm{K}}+{ }^{\mathrm{K}}$ will be demonstrated through knowledge of the concept of barriers to communication and knowledge of the possible impacts.

Knowledge of barriers to communication

- Definition of barriers to communication - factors which may prevent a message being clearly transmitted between the sender and receiver(s).

- Generic barriers such as noise, language, distance, technology failure.

Knowledge of impacts of barriers to communication

- Generic impacts such as information not getting through or misunderstandings.

AO2 Application

Limited application, ${ }^{\text {APP }}$ applies knowledge to LT once.

Developed application, ${ }^{\mathrm{APP}}+{ }^{\mathrm{APP}}$ applies knowledge to LT twice.

Max one ${ }^{\text {APP }}$ for application for the first barrier to communication and max one ${ }^{\text {APP }}$ for application for the second barrier to communication.

- LT based in Asia but offers tours by local guides in many countries, there are likely to be some language and cultural barriers.

- The on-line business model relies on internet infrastructure for communication between customers, LT and guides.

- Time differences may also be an issue, for example if there are last minute changes to tour details.

- The LT booking system also relies on honest information being put up on the website about guides and tours.

- It may be a serious problem if information about customer tour requirements gets 'lost' in the system.

PUBLISHED

1

AO3 Analysis

Limited analysis AN - candidate shows one link in the chain of analysis.

Developed analysis L2AN - candidate shows two or more links in the chain of analysis OR offers a two-sided analysis.

- Development of application points, in terms of the likely impacts on LT when communication is not effective and impact on future sales and revenue.

- Barriers such as language and culture may result in misunderstanding of customers' needs and wants leading to dissatisfaction, bad reviews on social media and 'trip advisor' type sites. AN leading to lower future sales. L2 AN

- Any incorrect or misrepresented information also may mean that tours do not meet customers' expectations ${ }^{\text {AN }}$ leading to bad reviews and damage to reputation. L2 AN

- Failure of internet infrastructure has the potential to mean that tours cannot be booked, may also cause lack of consumer confidence, AN as well as loss of revenue. L2 AN

Accept all valid responses.

[Maximum number: 8]

Gordy Building Supplies (GBS)

GBS sells sand, gravel and other building materials in country Q. GBS is a partnership between Gordy and his Aunt Mo. The building materials are extracted from land owned by Mo. Gordy manages all business functions apart from finance, which is Mo’s responsibility. Both are committed to owning and operating an independent business.

GBS has 13 employees who are only trained to extract and prepare materials for distribution to building industry customers. Gordy tells employees exactly how to carry out their tasks and expects them to follow instructions without question. Time spent in meetings is minimised and Gordy believes this improves productivity. Employees have flexible part-time employment contracts. Inventory of extracted materials is low, but GBS is able to react quickly to seasonal fluctuations in demand. GBS is profitable and Gordy is thinking of expanding the business. He believes that country Q’s economy will continue to grow by 8% each year if interest rates remain at 5%.

Communication process innovation

Currently Mo and Gordy use paper-based systems to process customer orders. Gordy wants to improve GBS’s efficiency. His ideas are focused on a coordinated information technology (IT) system that links customer orders and distribution. This will include:
• a smart phone app to be used by customers to place orders with GBS
• introducing barcodes to enable orders to be tracked.

Investment in new grinding machine

Demand for GBS’s products is increasing and output needs to increase. A new machine for grinding rocks into gravel and sand would speed up production and reduce unit costs. It would require a skilled operator. Mo used her experience and data from the machine’s manufacturer to prepare discounted cash flows. (See Table 1.1.) The investment will cost $110 000 and will have no residual value after five years. Mo has calculated the total profit will be $45 000.

Analyse two disadvantages to GBS of its proposed communication process innovation.

Level	AO1 Knowledge and understanding 2 marks	AO2 Application 2 marks	AO3 Analysis 4 marks
2			3–4 marks Developed analysis • Developed analysis that identifies connections between causes, impacts and/or consequences of two points. • Developed analysis that identifies connections between causes, impacts and/or consequences of one point.
1	1–2 marks • Knowledge of two relevant points is used to answer the question. • Knowledge of one relevant point is used to answer the question.	1–2 marks • Application of two relevant points to a business context. • Application of one relevant point to a business context.	1–2 marks Limited analysis • Limited analysis that identifies connections between causes, impacts and/or consequences of two points. • Limited analysis that identifies connections between causes, impacts and/or consequences of one point.
0	0 marks No creditable response.	0 marks No creditable response.	0 marks No creditable response.

Analyse two disadvantages to GBS of its proposed communication process innovation.

Level

2

3-4 marks

Developed analysis

- Developed analysis that identifies connections between causes, impacts and/or consequences of two points.

- Developed analysis that identifies connections between causes, impacts and/or consequences of one point.

1-2 marks

Limited analysis

- Limited analysis that identifies connections between causes, impacts and/or consequences of two points.

- Limited analysis that identifies connections between causes, impacts and/or consequences of one point.

0 marks

No creditable response.

2

Note:

- Only reward problems / disadvantages.

- If more than two problems are referred to, reward the best two.

- L2AN (3 marks) is possible for just one point made.

All annotation ( $\mathbb{K}$ ase $|\mathrm{AN}|^{[2]}$ ) should be in the left margin.

Indicative content

AO1 Knowledge and understanding

- Definition or explanation of process innovation (max K 1 mark).

- Application or introduction of a new technology or methods/systems that increase efficiency.

- Examples include new IT systems, use of blockchain, automated payments or inventory, robotics.

- Possibility that the changes form part of an ERP system.

Possible disadvantages include (max K 2 marks):

- Cost of the proposals and need for finance.

- Possible employee resistance to change.

- Cost of training employees.

- Technology may fail.

2

AO2 Application

Limited application, ${ }^{\mathrm{APP}}$ applies knowledge to GBS once.

Developed application, ${ }^{\text {APP }}+{ }^{\text {APP }}$ applies knowledge to GBS twice.

Max one ${ }^{\text {APP }}$ for application for the first problem and max one ${ }^{\text {APP }}$ for application for the second problem.

- Number of employees (13) - will need training.

- Low inventory.

- Proposal includes coordinated IT system linking customer orders and distribution.

- Tracking of orders of sand & gravel.

- Gordy is thinking of expanding the business.

- Finance needed for new grinding machine.

AO3 Analysis

Limited analysis ${ }^{\mathrm{AN}}$ - candidate shows one link in the chain of analysis.

Developed analysis L2AN - candidate shows two or more links in the chain of analysis.

- A new IT system could be expensive to implement resulting in cash flow problems AN .

- Employees may feel they have less control as a result of the process innovation. This may result in conflict and disturb current effective working relationships and employees may leave AN increasing recruitment costs L2AN.

- Employees will need training which will increase costs and reduce profit in the short term L2AN.

- Opportunity cost of investment which could delay the purchase of the new grinding machine ${ }^{\text {AN }}$ therefore reducing the ability of GBS to meet increasing demand L2AN.

- The app could crash causing customers to be unable to place orders ${ }^{\text {AN }}$ and going elsewhere to purchase building materials ${ }^{\mathrm{APP}}$ resulting in a loss of sales and therefore profit.

Accept all valid responses.

All question bank results loaded

Covered syllabus points

Question 1

Question 2

Question 3