The term business communication is used for all messages that we send and receive for official purpose
like running a business, managing an organization, conducting the formal affairs of a voluntary
organization and so on. Business communication is marked by formality as against personal and social
The success of any business to a large extent depends on efficient and effective communication. It
takes place among business entities, in market and market places, within organizations and between
various group of employees, owners and employees, buyers and sellers, service providers and
customers, sales persons and prospects and also between people within the organization and the press
persons. All such communication impacts business. Done with care, such communication can promote
business interests. Otherwise, it will portray the organization in poor light and may adversely affect
the business interest.
Communication is the life blood of any organization and its main purpose is to effect change to
influence action. In any organization the main problem is of maintaining effective communication
process. The management problem generally results in poor communication. Serious mistakes are
made because orders are misunderstood. The basic problem in communication is that the meaning
which is actually understood may not be what the other intended to send. It must be realised that the
speaker and the listener are two separate individuals having their own limitations and number of
things may happen to distort the message that pass between them.
When people within the organization communicate with each other, it is internal communication.
They do so to work as a team and realise the common goals. It could be official or unofficial. Modes
of internal communication include face-to-face and written communication. Memos, reports, office
order, circular, fax, video conferencing, meeting etc. are the examples of internal communication.
When people in the organization communicate with anyone outside the organization it is called
external communication. These people may be clients or customers, dealers or distributors, media,
government, general public etc. are the examples of external communication.