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Business Studies IGCSEPDF 14
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Decentralised organisation:
An organisation where decision-making power is passed down to lower levels in
the hierarchy.
● Communication:
The process of transferring a message from a sender to a receiver.
● Internal communication:
Communication between people inside the same organisation.
● External communication:
Communication between the business and individuals or organisations outside
it.
● Vertical communication:
Messages passed up or down the hierarchy (e.g. manager to worker).
● Horizontal communication:
Messages passed between people at the same level in the organisation.
● Formal communication:
Official messages passed through the approved organisational channels.
● Informal communication:
Unofficial discussions that take place outside formal communication channels.
● Effective communication:
Communication where the message is received, understood, and acted upon
correctly.
● Barriers to communication:
Factors that prevent messages from being received or understood properly (e.g.
noise, poor language, or technology failure).
➢ Unit 3: Marketing
● Marketing:
Identifying customer wants and satisfying them profitably.
● Customer:
A person, business, or organisation that buys goods or services from a
business.
● Consumer:
A person who uses goods and services for personal use, not for resale.
● Customer loyalty:
When existing customers repeatedly buy products from the same business
rather than switching to competitors.