P1 Unit 6 Communication
6 Communications
6.1 Importance of Communications
Communications are important, whether they are between members of staff or between staff and customers and suppliers. The word ‘stakeholders’ is now frequently used to mean all those who have an interest in the organisation, whether it is management, staff, customers, suppliers, government, or other people affected by the organisation.
6.2 Director’s report
Part of the logic of the director’s report is to look at the organisation as a whole over a period, usually over the last year, and to set out a vision for the future. Many organisations now have a mission statement which sets out their overall objectives.
It is helpful if the objectives can be quantified e.g. we aim to sell 10% more in market X, we aim to sell 15% more in market Y.
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A car firm might say they are developing hybrid or battery cars, for example. The report might mention any background e.g. a construction company in their 2015 report will almost certainly mention that it has been a poor year for many companies and therefore what has happened is not necessarily typical of what is likely to be the general trend. The idea is that when shareholders are reading the report, they are not reading it in a vacuum. Some organisations might have sold their road haulage fleet in order to concentrate on core activities. Therefore, the number of employees in the organisation firm has gone down, even though the organisation as a whole is carrying on the same
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