IGCSE Business: Methods of communication (Cambridge 0264) – Revision Notes

These notes condense section 2.3 (Methods of communication) of the Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029. For full explanations and worked examples, read the study guide. Test yourself with the practice questions, tick off topics on the printable checklist, and see the course hub for the rest of the syllabus. If you are unsure where you stand, take a free diagnostic first.

Every candidate sits Paper 1 (Short Answer and Data Response) and Paper 2 (Case Study). Both are based on all the subject content, so this topic can appear in either. Money figures are in dollars ($) and all businesses are invented.

2.3.1 Why communication is important

• Communication is a message passing from sender to receiver, with feedback to confirm understanding.
• It gives clear instructions, supports better decisions, keeps customers informed, involves employees and deals with problems before they grow.
• Poor communication leads to mistakes, delays, lost customers and unhappy staff.

Internal and external communication

Type	Receiver	Examples
Internal	People inside the business	Manager to team; one department to another; staff noticeboard
External	People outside the business	Customers, suppliers, lenders, government, local community

Test: ask who receives the message. The method does not decide the type. An email can be either.

Methods: quick comparison

Method	Best for	Main strength	Main weakness
Meeting, face-to-face	Discussion, complex or sensitive matters	Instant feedback, body language	Costly in time; hard to gather everyone
Meeting, virtual	Groups in different places	Saves travel; live questions	Needs a connection; less personal
Email	Detailed messages to one or many	Quick, cheap, written record	May be unread; tone misread
Text message	Short alerts and reminders	Fast; usually read quickly	Little detail; needs a mobile phone
Social media	Reaching customers and the public	Wide audience; two-way contact	Public; mistakes spread; needs monitoring
Phone call (including mobile)	Urgent matters needing a reply	Immediate two-way; tone of voice	No automatic record; may not be answered
Letter	Formal or official matters	Permanent record; formal	Slow; postage and printing costs
Poster or noticeboard	General information for those on site	Low cost; stays on show	Might not be read; no feedback; not confidential

Method in steps: recommend and justify

1. Identify the receiver (one person, a group, the public) and whether they are internal or external.
2. Identify what matters most: speed, detail, record, privacy, feedback or cost.
3. Choose the method that best fits the main need.
4. Support your choice with two or three reasons drawn from the case details.
5. Say why one other method is weaker.
6. Add a judgement: what could change your choice?

Small worked reminder

Situation: a clinic must tell 40 patients by tomorrow that their appointments are moved.

• Recommended: text message, because it is quick, patients usually read texts soon, and the message is short.
• Reason against a letter: too slow for tomorrow.
• Reason against a poster: patients are not in the building.
• Judgement: if a patient has no mobile phone, a phone call is better.

Must-know distinctions

Pair	Difference
Internal and external	Receiver inside versus outside the business
Face-to-face and virtual meeting	Same room versus a video or audio link
Phone call and text message	Spoken, two-way and immediate versus short written message that may wait
Email and letter	Electronic and fast versus printed and slow, with postage costs
Poster and email	General display for people who pass by versus a message sent to named receivers
Barrier and problem	The barrier stops the message. The problem is its effect on the business
Reason and solution	Why the barrier arises versus what is done to reduce it

2.3.2 Communication barriers

A communication barrier is anything that stops a message being sent, received or understood as intended.

Barrier	Reason it arises	Problem it causes	Way to reduce it
Language differences	Different first languages; poor translation	Wrong actions; misunderstandings	Plain, simple wording; translation help
Jargon	Specialist words used with outsiders	Message not understood	Everyday language
Wrong method	Method does not suit message	Delay; message missed	Match method to need
Technical failure	Faulty equipment; poor signal	Message lost or late	Maintenance; back-up method
Long chain of communication	Many levels between sender and receiver	Delay; message altered	Fewer levels; direct contact
Information overload	Too many messages	Key message missed	Fewer messages; mark urgent ones
Unclear message	Vague wording; missing detail	Mistakes; rework	Check before sending
Poor listening	Distraction; noise; no attention	Instructions not followed	Quiet setting; listening training
Time and distance	Different time zones or sites	Delays; no live discussion	Agreed overlap hours
Attitudes and emotions	Anger, worry or distrust	Message rejected or misread	Calm tone; build trust
No feedback	Sender never checks	Errors go unseen	Ask for confirmation

Problems caused in general

• Mistakes and rework, which raise costs.
• Delays to decisions and deliveries.
• Customers lost to rivals.
• Poorer motivation and conflict between staff.
• Weaker decisions made on incomplete information.

Reducing or removing barriers: a quick rule

Match each fix to the barrier. Then say what it costs or what it risks. For example, back-up systems reduce technical failure but cost money, and fewer levels of management speed messages but may lessen managers’ control.

Command words for this topic

The syllabus lists calculate, consider, define, explain, identify, justify, outline and state as command words. Analyse, evaluate and recommend are included below because the syllabus assesses analysis and evaluation (AO3 and AO4) and asks you to recommend and justify.

Command word	What to do	Shape of a good answer
State, identify	Give a short fact	A word or phrase
Define	Give the meaning	One clear sentence
Explain	Give a point and the reason or effect	Point, because, so
Analyse	Break down causes and effects in a chain	Point, development, link to the business
Recommend	Choose an option	Choice plus reasons
Justify	Support a choice with evidence	Reasons from the case, with a rejected alternative
Evaluate	Weigh both sides and reach a judgement	For, against, final decision with a reason

Small worked reminder: a barrier

Situation: a bakery owner changes a recipe by leaving a note in the kitchen. Two night staff are on leave and use the old recipe, so a batch must be thrown away.

• Barrier: a method that did not reach everyone (a note) together with no feedback.
• Problem: wasted ingredients, wasted wages and late orders.
• Fix: email or text the change to every baker and ask each to reply to confirm.
• Judgement: the extra minute for replies costs far less than a spoiled batch.

Grouping barriers to remember them

Group	Examples
People	Poor listening, attitudes and emotions, language, cultural differences
The message	Jargon, unclear wording, too much detail
The method	Wrong choice, technical failure, no feedback
The structure	Long chains, time and distance, information overload

Use a group to find a second example quickly. If you have named jargon, a second barrier from a different group may show more range.

Quick self-test

1. Define external communication.
2. Is a phone call from a manager to a supplier internal or external?
3. State two advantages of a virtual meeting over a face-to-face meeting.
4. Give one disadvantage of using a poster to announce a change.
5. State one reason why a text message may be a poor choice for explaining a new safety procedure.
6. Explain why a letter might still be chosen in some situations.
7. Name two barriers that are caused by the method chosen.
8. A message passes through five managers and arrives changed. Name the barrier and give one solution.
9. A business sends 200 letters at a printing and postage cost of $0.50 each. Calculate the total cost.
10. State one problem caused when a supplier misreads an order.

Answers

1. Communication between the business and people or organisations outside it, such as customers or suppliers.
2. External, because the receiver is outside the business.
3. Any two: saves travel time and cost; people in different places can join; questions can be asked live; decisions can be made quickly.
4. It may not be noticed or read, and there is no way to check that people understood it.
5. A text has little space for detail, and there is no easy way to check understanding.
6. Any one: a permanent written record; formality for official matters; the receiver has no email or mobile phone.
7. Any two from: wrong method for the message, technical failure, information overload (too many emails), lack of feedback.
8. A long chain of communication; reduce the number of levels or allow direct contact.
9. 200 x 0.50 = $100.
10. Any one: wrong goods supplied; delay; extra cost of correcting the order; unhappy customers.

Where marks are usually lost

• Describing a method without tying it to the situation in the question.
• Writing “it is cheaper” with no comparison.
• Deciding internal or external by method instead of by who receives the message.
• Naming a barrier but giving no reason or problem when the question asks you to explain.
• Writing “poor communication” as an example of a barrier.
• Offering a solution that does not match the barrier.
• Recommending a method without saying why you rejected others.
• Repeating one point twice when asked for two different ones.
• Forgetting to add a judgement or conclusion on “recommend” or “justify” questions.

Frequently asked questions

How do you tell internal from external communication? Ask who receives the message: internal communication is between people inside the business, and external communication is with people outside it. The method does not decide the type, since an email can be either.

Why is communication important to a business? Communication gives clear instructions, supports better decisions, keeps customers informed and helps employees feel involved. Poor communication leads to mistakes, delays, lost customers and unhappy staff.

What problems do communication barriers cause? Barriers can cause mistakes and rework that raise costs, delays to decisions and deliveries, customers lost to rivals, poorer motivation and conflict, and weaker decisions based on incomplete information.

How should you suggest a way to reduce a communication barrier? Match the fix to the barrier, then say what it costs or risks. For example, asking staff to reply to confirm a message tackles a lack of feedback.

Official syllabus

Aligned to section 2.3 of the Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029, published by Cambridge University Press & Assessment (Cambridge International Education).