Question:

Discuss the following:
(i) External Communication
(ii) Vertical Communication

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For each type give meaning, purpose and the way it takes place.
Updated On: Nov 3, 2026
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Solution and Explanation

Step 1: Plan the answer:
We need to discuss two types of business communication: external and vertical. Each carries 3 marks, so each gets a meaning, a purpose and the means used.

Step 2: (i) External communication: meaning:
It is the exchange of information between the organisation and people outside it, such as customers, suppliers, government agencies, investors and the general public.

Step 3: (i) External communication: purpose and means:
It helps in building business relationships, promoting products, sharing important information and keeping a good image of the organisation.
It takes place through advertisements, e-mails, letters, reports, meetings, press releases and social media.

Step 4: (ii) Vertical communication: meaning:
It is the flow of information between different levels of management within the organisation.

Step 5: (ii) Vertical communication: types and purpose:
Downward: from managers to employees, in the form of instructions, policies and guidelines.
Upward: from employees to managers, in the form of feedback, suggestions or reports.
It helps in coordination, supervision and effective decision-making.

Final Answer:
External communication is with people outside the organisation; vertical communication flows up and down between levels of management. \[ \boxed{\text{(i) Outside the organisation; (ii) Between levels of management}} \]
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