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. developments in initial costs and sale trends

. overall profitability, and the respective contribution of each part of the business

. capital requirements, and availability of internal funds and the cost and sources of external capital

. manpower and skills requirements

. forecast of demand of the organisation’s markets

. the impact on business of any changes in the economic, political, social and legal environment.

Superior

Prep Line manager Prep

group group

Staff Subordinates

Staff

relationships relationships

Figure 1.9: Communication network

Communication channels and methods

The communication channel refers to the means by which information is communicated. The actual choice of communication channel depends upon a combination of:

. the need for an immediate feedback or response

. costs

. speed and urgency

. the number and location of the people who need the information

. the degree of confidentiality and security required

. the desired degree of formality

. convenience

. the complexity and amount of detail to be conveyed

. the type of information to be communicated

. the need to keep a record of the communication.
Business information can be communicated in many ways. Methods include:

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