IB Business Management SL 2.6.2 Barriers to Communication Questions

Practise analysing communication problems and communication in international businesses using IB Business Management SL questions and mark schemes.

Syllabus
First assessment 2024
Course
Business management SL
Level
SL

Exam points

  • Analyse communication problems and the impact of communication in business organisations.

IB Business Management SL 2.6.2 Barriers to Communication Questions question 1

[Maximum number: 5]

With the rapid growth in sales revenue since it was first established, LE has experienced some diseconomies of scale, especially in the administration of the business. Production occurs in 12 small factories located around the city of Algiers, rather than in one large factory. Coordination between factories and the administrative offices is, therefore, complicated, and the internet is sometimes unavailable.

Selected financial information for LE (all figures in €m):

LuxEclairage (LE)


LuxEclairage (LE) was founded by Maurice Dahman, an Electrical Engineer from Algeria. He has a degree in electrical engineering and is fluent in French. In 2007, after 12 years working for a large lighting business in Luxembourg, Maurice established LE. His business produces energy-efficient parts for various indoor and outdoor lighting.
LE has a unique selling point (USP): the lowest price in the market. Although most sales are in Europe, all production is in Algeria, where costs are much lower. As a result, growth in sales revenue has been rapid and significant, and LE has gained market share each year.
Selected financial information for LE (all figures in €m):

Table for Question IB Business Management SL 2.6.2 Barriers to Communication Questions question 1 — IB Business Management SL

With the rapid growth in sales revenue since it was first established, LE has experienced some diseconomies of scale, especially in the administration of the business. Production occurs in 12 small factories located around the city of Algiers, rather than in one large factory. Coordination between factories and the administrative offices is, therefore, complicated, and the internet is sometimes unavailable. Whereas French is the language used by managers and customers of LE, the workers generally speak only basic French and prefer to speak Arabic. In addition, patterns of non-verbal communication differ widely between Europe and Algeria.

Analyse communication at L E.

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