Explain different types of business information, their sources and purposes Business information is one of the three main segments of the information industry. The primary forms of business information include: ·News ·Market research ·Credit and financial information ·Company and executive profiles ·Industry, country and economic analysis ·IT research ·Television Types of business information include Verbal information Verbal communication can either be done face-to-face or over the telephone. The best way to communicate is face-to-face because there is less space for misunderstanding and it allows for verbal and non-verbal messages.
The advantage of using verbal information is it’s easier to communicate verbally than any other way because you get to understand every detail that is being spoken by the other person and speech enables complex ideas to be expressed and discussed. Some people find talking is the most comfortable method of expression. For example, Drayton Manor communicates with their staff verbally at a staff meeting about the new plans for the business and the changes that is happening and this is an advantage because the staff get to ask questions about the changes and they can get there opinions across about the plans.
Also the employee will feel appreciated by the employer if they are being listened about their opinions which can lead the employee to stay in the business but the disadvantage is if Drayton Manor makes decisions about the improvement of the theme park without the employee’s knowledge then this can lead for the employee to resign the job. The disadvantage of using verbal information is that it’s not always possible for Drayton Manor to meet in person because with the constraints of time and budgets in business. Written information Writing is the use of physical symbols to represent words.
Words are the sounds that make up speech. This definition can be broadened to include other forms of physical representation, such as diagrams, graphs and charts. Written communication is when sending documents, such as email or business letter to an individual. The advantage of using written information is for the people who don’t know how to use a computer to find information so they prefer to use written information such as leaflet. The other advantage is that if the visitors of Drayton Manor don’t understand some of the staff accent, then they can easily give the leaflets to the visitors so they can read themselves.
For example, Drayton Manor visitor doesn’t know how to use the website to find information so Drayton Manor provides them with leaflets. The disadvantage of using written information is that the leaflet of Drayton Manor can have less information than the website so the customers won’t find all the information on the leaflet. On-screen information Business information on the TV is more convenient for most people as it is something that it always noticed of. TV has many ways of talking to people, audio and visual.
The visual may present data that is easy to understand for example charts may be colour coded, the audio may simply be a voice in the background or someone explaning what the documentary is showing. The advnatage for TV on screen information is that it is also easier for most people to understand points through visual rather than written. The internet has also become widely used and popular now in the 21st generation, it is used hugely by business and information systems as a mean to teach and inform people about the latest news. The advantages of this is that it is ore convenient for people to understand and it’s not making someone learn it’s optional whether they want to take the information in or not. The disadvantages would be that the internet can be unrealiable with some sources of information and the TV may include other sources of information that do not suit another particular information obtained from the same source. Sources of business information Internal areas of the organisation Finance The finance department of a company generates a variety of financial information that is helpful in decision making, including: Profit and Loss accounts providing details of whether the business is making efficient use of financial resources. ·Balance Sheet information providing details of a businesses assets and liabilities, as well as the liquidity of the business. ·Sales and purchases information setting out particular types of trading and accounts with particular customers and suppliers. ·Information about the purchase of assets and liabilities. ·Information about the wages paid out by a business. ·Information about costs. By providing a steady and up-to-date flow of information, a business is able to make appropriate decisions about: how to reduce costs ·how to increase sales ·how to raise profitability ·when to purchase new capital assets ·the best sources of finance, and duration, etc. The amount of sales, length of production, marketing campaigns, customer service all are types of business information from a business. All businesses have different types of informations, some businesses when they start up may study other business informations to see what is needed to become succesful. External areas of the organisation Market research is obtained from almost every organisation as it is an essential part for a succesful business.
Market research involves collecting, recording and making sense of all the available information which will help a business unit to understand its market. Market research sets out to answer the following questions: ·Who makes up the target audience? ·What do they want? ·When do they need it? ·Where does it sell best? ·How can it be taken to them? ·Why do they want/need it? ·What are our competitors doing? ·How is our market changing? In business, demand is always changing and therefore it is essential to know how things are changing.
Market research requires a special form of skill and therefore market research companies are often employed because they have the necessary experience and also because market research takes up a lot of time. Data gathering involves collecting as much market information as possible about the market, usually before any further steps are taken. It relies on desk research and field research. Data is divided into primary and secondary categories. Primary data are collected in the field. Secondary data are gathered from all the material that is at present available on the subject, and is always studied first when doing desk research.
This method involves the search for secondary data, whether published or unpublished. A good place to begin is with a company’s records of items such as production, sales, marketing, finance and other data. Other sources of secondary data are government publications on the Internet such as the government’s Expenditure and Food Survey showing what typical households spend their money on, and Social Trends outlining changes in social patterns in this country. Commercial research organisations such as Mintel also provide market research reports, many of, which are accessible on the Internet.
The Government also affects businesses and their informations. Such as economy policies. Taxation policy affects business costs. For example, a rise in corporation tax (on business profits) has the same effect as an increase in costs. Businesses can pass some of this tax on to consumers in higher prices, but it will also affect the bottom line. Other business taxes are environmental taxes (e. g. landfill tax), and VAT (value added tax). VAT is actually passed down the line to the final consumer but the administration of the VAT system is a cost for business. Another area of economic policy relates to interest rates.
In this country the level of interest rates is determined by a government appointed group – the Monetary Policy Committee which meets every month. A rise in interest rates raises the costs to business of borrowing money, and also causes consumers to reduce expenditure (leading to a fall in business sales). Government spending policy also affects business. For example, if the government spends more on schools, this will increase the income of businesses that supply schools with books, equipment etc. Government also provides subsidies for some business activity – e. g. n employment subsidy to take on the long-term unemployed. Also legal changes: The government of the day regularly changes laws in line with its political policies. As a result businesses are continually having to respond to changes in the legal framework. Examples of legal changes include: ·The creation of a National Minimum Wage which has recently been extended to under-18’s. ·The requirement for businesses to cater for disabled people, by building ramps into offices, shops etc. ·Providing increasingly tighter protection for consumers to protect them against unscrupulous business practice. Creating tighter rules on what constitutes fair competition between businesses. ·Today British business is increasingly affected by European Union (EU) regulations and directives as well as national laws and requirements. Purpose of business information The main purpose of business information is to to identify strengths, weaknesses, threats and opportunities. Internal business information can help the surrounding businesses and government to update their information systems and help them keep a track of things such as the economy.
It’s also important for start up businesses as the government are trying to promote young people to do this now as it’ll improve the economy. External business information from governments are there to help businesses, to allow loans etc. and help people set up more organisations to help the economy mainly in the UK as this is a big issue. It was recently October 2012 that they have seen the biggest rise of 1% in a while. It is also provided so businesses are operating legally and to the best ability. Also business information helps inform decision making to sole traders etc. f they want to begin a business and employ people, as unemployment levels in the UK are only decreasing the government are trying to get as many people in to jobs as possible. They are trying to persuade business start ups and obtain people opionions, attitudes and beliefs as it can help them sector information. Business information may be provided to promote a product, service or idea. It can be done through many ways, one of the most popular in todays day is internet and TV as these play a huge role in most of our everyday lives.