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COMMERCE GRADE 12 (NOTES)
Mr. Mbewe D.
Grandview Academy
Business Studies Department (2023)
COMMUNICATION
To operate effectively, firms require a lot of accurate
commercial information to move quickly between persons and
firms. Communication is an aid to trade that facilitates the
process of transmitting information from one person or firm to
another. This can be done in written, oral, visual or physical form.
Many organisations provide the means by which other
organisations can make contact. In Zambia, the Zambia
Telecommunication Corporation and the Zambia Postal Services
are examples of such firms that provide the means by which
other firms can communicate. In addition, there are privately
owned companies like Airtel, MTN, DHL, Post NET etc that provide
postal and telecommunication services.
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Importance Of Efficient Communication/Reasons For Communication
Effective communication is essential to a business for the following
reasons:
Internal communication enables managers to issue instructions to
their staff to tell them what to do. This enables the business to operate
smoothly and efficiently.
The staffs are also able to pass their grievances or suggestions to
management in an amicable way if there is a well-established and
reliable line of communication
Management can keep staff informed of what is going on so that
they are able to perform their work better. Workers need to be
informed of such things as working conditions, pay, holiday, safety
regulations, training opportunities etc.
It enables the firm to contact its customers to remind them either to
pay due accounts or to invite them to buy new products available
for sale.
It enables a firm to contact its supplies, to either place orders for
goods/raw materials or send payments for goods ordered.
It enables a firm to contact its suppliers in order to check and
establish the market price and conditions for purchase of goods.
It helps firms to discuss and settle problems, complaints, queries,
etc. with its suppliers or customers and or other businesses.
Worldwide communication systems widen the extent of overseas
(foreign) market by enabling foreign customers to be contacted
speedily by telecommunication services, or airmail.
It enables a management to organise market surveys and
business tours.
It enables management to call for and organise business
meetings.
It enables the headquarters of a firm with many branches to
keep in touch with its branches
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MEANS OF COMMUNICATION
A) POSTAL SERVICES
These are services provided by the post office for posting
and delivering of letters, parcels etc. They include the
following:
Types of Postal Services
1. First Class Post
This is a fast method of sending letters although it is
slightly expensive. Usually, letters posted by first class
services early in the day are sorted and sent very quickly
and may be delivered on the next working day. A trader
may use it when sending urgent and important letters,
business documents or even payments especially by
cheque.
2. Second Class Post
The post office also offers second-class post. It is a service used for
less urgent or perhaps heavy letters weighing more than 750g. It is
slower but cheaper and can be used for sending printed matter
such as catalogues, pamphlets, trade journals, minutes of official
meetings etc.
3. Airmail,
This is the type of mail that is conveyed by air from the office of
origin to the office of destination. Postage rate is a little higher than
for those conveyed by rail or car and it is charged by weight.
4. Surface Mail
This class of mail is conveyed over the surface by rail, road, and
boats in some areas. Postage rate is lower than that of airmail and
it is determined by weight. It can be use by businessmen to send
less urgent messages. The main disadvantage is that it is very slow.
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6. Express Mail service
Express Mail service provides fast and safe means of delivering letters and
parcels up to a certain size and weight. The word “Express” must be written
clearly in the top left-hand corner of the package. Mail is personally
accepted at post office and delivered to the destination. Charges for the
service are based on distance and weight. Individuals may use this service to
send special gifts to friends and family e.g. gifts, presents etc.
7. Registered Mail
This service is used for sending valuable items such as cash by post. They are
recorded at the time of posting and, the sender is given a certificate of
posting or receipt as proof of posting. Mail items in this category are handled
in a hand-to-hand delivery; right from the sender straight to the addressee.
The receiver must provide proof of identification and sign a post office slip
when receiving the mail as proof of delivery. The main advantage is that
registered mail is very safe. If a registered mail is lost, the post office will
normally pay compensation up to certain amount, proportionate to the value
of the package and the registration fee paid on posting.
8. Cash-on-Delivery
This service enables a trader to send parcels to customers by post
and ask the post office to collect the payment when delivering the
item. The money is then remitted to the trader by the post office, less
a small charge. It is widely used by mail order firms. This service
provides a safe guard to both sellers and buyers. sellers do not have
money tied up in bad debts and do not have to keep sending
reminders to debtors, while customers do not have to send off money
in advance, perhaps to obscure companies that may take months to
deliver the goods. .
9. Courier Services
This service is provided through courier service named Expedited Mail
Service (EMS). EMS operates along the line of rail. EMS mail is given
priority over other mail items in custom clearance and it is delivered
straight to the customers‟ home or office and not sent through the
postal boxes or bags.
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10. Financial Services
Postal services offer a variety of financial services that are convenient
and accessible to the general public. These services include basic
banking services such as savings accounts, money orders, and cash
deposits and withdrawals. Postal services may also offer more
advanced services such as loans, insurance, and investment options.
Additionally, postal services may partner with other financial
institutions to provide customers with access to their services. Overall,
postal services provide an important avenue for individuals who may
not have access to traditional banking services and can provide a
reliable and secure way to manage their finances.
11. Philately
Issuing of postage stamps and historic items of the post office is done
by the department of philatelic products. Historical stamps and other
items depicting postal events are sold at the post office, e.g. first day
cover envelopes and postage stamps.
12. Data Post
Data Post provides a speedy and reliable service for sending
business documents and goods. It is particularly useful for
exchange of computer materials such as tapes, diskettes
etc. This facility provides door-to-door overnight service for
delivering packages or parcels by road so that they can
reach their destination by next morning. Packages display
the data post sign and are given special security treatment.
It enables packets to be collected and returned at times
prearranged with the post office.
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Poste Restante
This service enables letters or parcels to be addressed to a post office for it
to be collected in person. The parcel or letter must be marked “poste
restante” meaning “to be collected in person” and addressed with the
name of the person to whom they are sent and the address of the main
post office in the town. The person wishing to receive this service applies in
person at the Post Office® branch where they would like to receive mail
from. The person then tells your friends, family and business contacts their
Post Office address as below. All mail sent to the Poste restante address
should include a return address on the back of the envelope
Here is how Poste Restante addresses can be written:
Your name POST RESTANTE Post Office name Full address of the Post Office
Postcode of the Post Office Country (if applicable)
The addressee then calls at the post office to collect the mail across the
counter. This service is particularly useful to sales people who continually
travel from one town to another. This service is operated both locally and
internally.
Business Reply Services
This service enables members of the public to send short
replies to businesses without having to pay for a stamp. It is
mostly used by customers for replying to letters of guarantee,
questionnaires and mail order forms. Before the service can
be used, a license must be obtained from the post office
and a deposit paid to cover the likely cost of delivering the
letters. The trader provides „Business Reply‟ postcards or
envelopes that the customers use for writing replies. When
they are delivered, the trader pays a charge over and
above the normal postage.
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Recorded Delivery
This facility provides a proof of both posting and delivery of letters.
Letters sent by recorded delivery are not posted in the posting boxes
but delivered to the counter where they are recorded and a receipt
given to the sender as a proof of delivery. The receiver signs a form to
say that the letter or parcel has been received. If lost or damaged a
small compensation is paid by the post office. It is mostly used by
traders who want to ensure that their debtors receive their bills and
by legal practitioners sending important legal documents by post
Freepost
Freepost is a postal service whereby a person sends mail without
affixing a postage stamp, and the recipient pays the postage when
collecting the mail. This service allows potential customers to write to
a business, in reply to its adverts, without paying postage. It is similar
to the business reply service except that no special envelope or
postcards are used. Instead the trader includes the word “FREEPOST”
in his address. The trader then pays postage on all the replies
received, plus a small charge. typical uses of freepost includes where
a business sends bulk mail to potential customers, the bulk mail
including envelopes or postcards that potential customers can return
to the business by freepost. In another typical use, magazines include
subscription cards that potential subscribers can return by freepost.
Because no stamp is needed, many people are encouraged to
reply. Usually the trader obtains a licence or approval from the post
office prior to using this facility.
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Private bags
Private bags are used for posting and receiving letters. Being
lockable, the bags offer security and can easily be handled.
When letters are received by the post office, they are locked in
the mail bag. The letters cannot be removed until the owner
collects the bag and opens it at his or her own place. Therefore,
private bags provide more security to the letters than post office
boxes.
Post office boxes.
A post office box is used for receiving letters and parcels. An
individual or organisation renting a post office box is given a key
to the box. Letters can be collected at any time. The hirer pays
an annual fee to the Post Office for renting the box.
Franking machine
Franking machines print postal impressions on envelopes. The
postal impressions show the amount of postage, place and
date of posting. Franking machines are used by
organisations that send many letters at once. They save time
in affixing postage stamps on each letter.
A franking machine can be bought or hired form a
company that sales or manufactures franking machines.
However, before the franking machine can be used, a
licence to use it must be obtained from the post office. The
post office sets meters for the franking machines. The hirer of
the franking machine pays the post office according to the
units of postage value used.
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The Continuing Need For Postal Services
Despite the abundant sophisticated telecommunication systems
currently available in Zambia, there has been a continuing need
for postal services. The following are the reasons:
a) Postal services are usually cheaper than telecommunication
services, and therefore there will always be people who will
prefer to use the cheaper postal services in comparison to the
expensive telecommunication service.
b) Postal services are used in sending goods in parcels over
distant places. It is not possible for one to send a parcel of
goods by telephone or by fax, telex or by internet.
c) Postal services do not require special equipment to transmit or
to receive messages. Thus postal services are usually used for
sending messages to the remotest areas.
TELECOMMUNICATION SERVICES
Telecommunication authorities provide several means by which
people or organisations can instantly communicate with each other.
a) The Telephone.
Telephone provides people engaged in commerce with speedy
means of contacting with other business people over any distance
either within the country or abroad.
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Uses of telephone services
Circumstances in which a telephone may be used
When a customer wants to inform the supplier of wrong type of
goods supplied, wrong quantity etc.
When a customer wants to contact the supplier for an immediate
response to a query.
When a customer wants to inquire on the availability of goods and
services from the supplier speedily.
When the supplier wants to inform the customer of prices of goods
and services and terms of payment speedily.
Advantages/Importance of a telephone
• It enables business people to immediately contact and speak to a
customer, supplier or another business over a transaction.
• It is helpful in clearing queries between suppliers and their clients.
• It helps business people to get the immediate reply when they
want it.
Disadvantages of a telephone as a means of speedy
communication.
A telephone does not provide a written confirmation of the
conversation.
A telephone is not reliable for messages that are highly
technical and complicated in nature. For example it may
not be advisable for a trader to place an urgent order for a
spare part for a complicated piece of equipment using a
telephone.
Language would be a barrier of communication on phone
if the users do not understand each other’s language.
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Telephone Services Offered For Business Use
Toll Free Service
This is a service which allows customers to make free calls to
specific numbers in an organisation, the number will allow the
organisation to pay for the calls that the customers make to
communicate with the business. A billing number will be assigned
to the company to provide for monthly rentals and call charges.
Customers can make a call to the organisation from anywhere
within the country. The main advantages are that it provides a
way of bringing customers closer to the company. It encourages
the customer to make more calls to the business in order to
comment, query, or place orders. This feedback is essential to
any organisation, since it provides information that will help
organisations to better position themselves in this competitive
environment.
Voice Mail
Voice mail is a telephone-activated and voice-prompted
system that allows you to leave and receive messages,
respond to messages and forward messages to another
person’s mailbox. It allows people to communicate at their
convenience. It has the following benefits:
Your calls are answered when you cannot.
Accuracy and confidentiality of message is maintained.
You never miss a call.
Continuous availability since it is within the telephone
network.
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Personal calls
A personal call is a telephone call that specifies a person to whom
the caller wishes to speak.
Local call
A local call is a telephone call to another telephone number within
the same area or within the same telephone exchange.
Trunk calls
A trunk call is a telephone call from one telephone exchange to
another distant exchange.
International call
An international call is a call made from one country to another
country e.g. from Zambia to South Africa.
Transfer charge call
A transfer charge telephone service enables telephone charges to
be transferred to the called telephone subscriber provided he or
she agrees to pay for the telephone call before it is made.
b) Cell Phones (Mobile/cellular phones)
The cell phone has emerged as one of the greatest wonders in the business world. So much can
now be done using a cell phone than was possible a while ago. It offers the following business
and personal uses:
It has a provision for sending and receiving short messages.
It is able to send and receive electronic messages with attachments.
It has memory capacity to store SMS and E-mails messages.
It has a provision for phone book where one can store important phone numbers.
It has storage capacity for photos, music and even work files.
It is able to keep a historical record of incoming calls, outgoing calls, voice mail, calls diverted
etc.
Many types of cell phones have an internet provision which can be used for obtaining the
latest market information, stock exchanges share prices, as well as browsing for goods and
services.
It can be used for online banking as it enables one to check on their account balances, bank
statements, make payments and even receive payments.
The development of social networking platforms such as WhatsApp and face book helps
businesses to have better reach of their potential customers
Smartphones enable businesses to use the various applications available on the application
stores much like they would use on the computer
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c) Telex
The telex or Teleprinters have been regarded as a combination of a
telephone and a typewriter. Subscribers to this service have a teleprinter
installed in their offices and are given a number in the same way as
telephone users. To send a message, the sender dials the receiver’s
number, and types out the message, manually on the teleprinter. The
message is automatically printed at the recipient’s office, even if there is
no one to receive it. Thus a message can be sent during the night and
await the arrival of the recipient at the office the next morning. It also
provides a written record; hence, it is good for messages requiring
written confirmation. The cost of sending a message on a telex machine
depends on the length of the message, the time taken to send it as well
as the distance of the receiver from the sender.
The Telex plus is a more modern development of telex. This enables a
subscriber to transmit the same message to up to 1000 different
destination, feeding the message into the machine only once.
d) Telemessages
These had replaced telegrams as a means of
communication quickly with people within the country
without a telephone or telex. The message that you wish to
send is dictated over the telephone to the operator. The
message is then transmitted by telex to the office nearest to
the addressee and Zam Post guarantees that it will be
delivered with the first class post the following morning. This is
not as efficient as the former telegram service, which
normally provided same day delivery. The overseas telegram
service remains.
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e) Prestel (Abbreviation of Press Telephone)
Prestel is a system, which allows a subscriber to have
information extracted from a computer through the
telephone network displayed on an adapted television set.
The subscriber can dial into any 300,000 pages of information
on a wide range of subjects. Many of these deal with current
events and are constantly updated, thereby providing
businessmen with immediate checks on such things as
commodity prices and interest rates.
Major developments include DATEL, the transmission of
computer information via telephone and telegraph systems,
and the provision of the data processing services for
commerce and industry through National Data Processing.
f) Fax (Facsimile)
This service enables a business to send exact copies of a
document to distant places using telephone lines. The fax
machine is plugged into the telephone network and therefore it
uses and the bills are added to the user’s telephone bills. It is
used for sending urgent documents as quickly as a telephone
call. The message is sent by first dialling the fax number of the
receiver. Once an initial contact is made, the document is put
on the fax machine for transmission. As the copy comes out of
the sending fax machine, the exact copy of the same document
is being obtained at the receiving fax machine. Thus documents
can be received 24hours a day even when it is after working
hours for as long as the machine is left on. It can transmit
documents whether printed, typed, hand-written or drawn plans.
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g) Electronic Mail (e-Mail)
Electronic mail refers to a variety of facilities, which allow
computer users to communicate with other distant
computers in different parts of the world. Businesses can use
it to rapidly exchange printed communication using
telecommunication links. Its greatest advantage over the
post and fax is that it is faster and more flexible and the
message can be as short or as long as you like. You can
send files, spreadsheets, graphics, database, and even
audio and video files via E-mail.
h) Confravision or Videoconferencing
This allows people situated at different distant locations to hold face to
face discussion, but without the inconvenience of everyone travelling to
the same meeting place. It provides studios which link up by sound and
vision, so that discussions can take place as if all those attending were
present in the same room. Its greatest advantage is that it eliminates the
need for time-consuming and expensive travel. In addition, it eliminates
the trouble of arranging overnight accommodation and having to face
the dangers, delays and inconveniences of long distance travel.
i) Radio Paging
This service allows a user to send a telephone number or message to
another user. It provides a beeper, which warns people of the message,
either, that they are required, for example, to return to their point of
operation or to their phone. Some systems are so advanced that they
provide a visual display on the pager, of up to 70 characters, called
message masters. It is commonly used in shops, factories, offices and
hospitals.
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j) Datel
This service provides a means of transmitting information
from one computer to another, using the public telephone
network. By this service, a firm can send information to
computers on sites in other parts of the country as well as in
many countries around the world. Through the use of
modems attached to the telephone network, data can be
transmitted quickly between various computers around the
world. Multinational companies and chain stores can use this
to transfer information on daily sales to be compiled at their
head offices.
k) International Telegram
This facility allows printed messages to be sent or received from
other countries. The message is given to the telecommunication
authorities by either telephone or telex for delivery to the
addressee. A message can be sent to an individual or to multiple
addressees and it arrives in a distinctive envelope. Its biggest
disadvantage is that it is very expensive; as a result, it is
appropriate to only use it for sending short messages.
l) Satellite
Satellites and their earth stations are essential for transmitting, for
example, television programs around the world. Sporting events
like the world cup soccer and Olympic Games can be seen live
and clearly around the world via the satellite.
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m) View Data
View Data is a type of information retrieval service in which a subscriber
can access a remote database via a common carrier channel. Data can
be requested and received on a video display over a separate channel.
The access, request and reception are usually via common carrier
broadcast channels. View data can be used by subscribers to make
bookings, place orders, access their bank accounts and send messages.
Individual businesses can have their own view data services allowing them
to link their various branches and offices using the Prestel computers.
Charges are based on telephone distance, complete time and frame
character for the information given.
n) Teletex
This is a new service faster than telex, which allows business letters to be
sent from one computer terminal to another in any part of the world over
the public telephone network. While the message is being sent or
received, the terminal can be used for some other function, such as word
processing.
o) VSAT Network
This is a point-to-point and or point-to-multiple point’s two-way data and
voice satellite based communication network that connects a company’s
headquarters with remote or branch offices via satellite. Vast stand for Very
Small Aperture Terminals. This service is flexible, fast and reliable for use by
large companies whose operation extends to areas, which have no
telecommunication infrastructure. In addition, the service is easy to install and
relocate.
p) Internet
The Internet is an arrangement of connected computers, which lets the
computer users all over the globe exchange data. It is essentially one
network, which is the sum of thousands of individual private and public
networks interconnected by satellite and fiber optic cable systems. The
principal components of the Internet are the World Wide Web (WWW) and e-
mail. With the passage of time, the Internet has become the most effective
business tool in the contemporary world. It can be described as a global
meeting place where people from every corner of the world can come
simultaneously.
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Uses/advantages of the Internet to people engaged in Commerce
Global Audience: Content published on the Internet is immediately available
to a global audience of users. This makes the World Wide Web a very cost-
effective medium to publish information.
Operates 24 hours, 7 days a week: Businesses do not need to wait until
resources are available to conduct business. From a consumer's perspective as
well as a provider's business can be done at any time. The fact that the
Internet is operational at all times makes it the most efficient business machine
to date.
Relatively Inexpensive: It is relatively inexpensive to publish information on the
Internet. Various organizations and individuals can now distribute information
to millions of users at very low costs.
Product Advertising: Businesses can use the World Wide Web to advertise
various products. Before purchasing a product, customers will be able to look
up various product specification sheets and find out additional information.
Businesses can use the multimedia capabilities of the World Wide Web to make
available not only various product specification sheets but also audio files,
images, and even video clips of products in action.
Easy Distribution of Product Catalogues: Businesses can use the
internet to distribute product catalogues. In the old days, putting
together a product catalogue used to be very costly in terms of
time and money needed to publish and distribute it. The World
Wide Web changes all this by allowing content developers to put
together a sales catalogue and make it available to millions of
users immediately.
Online Surveys: Internet can be used to conduct online surveys on
the World Wide Web at very low costs as compared to traditional
methods. For example, in order to fill out various needs of
customers or what they would like to see in a future product, it's
often necessary to compile a list of addresses and mail a
questionnaire to many customers. Results of such a survey can be
automatically updated to a database. This database can then be
used to keep a pulse on various opinions and needs of customers.
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Announcements: With the World Wide Web, businesses can distribute
various announcements to millions of users in a timely manner. Because
there is virtually no time lag from the time it takes to publish information
to making the information available to users, the Web is an ideal
medium to publicize announcements.
Provide Technical Support: Business organisations can use their Web site
to provide technical support to customers. Because Web pages can be
updated immediately with new information, various technical support
literatures can be immediately modified in light of new findings and
developments.
Obtain Customer Feedback: The interactive nature of the World Wide
Web is ideal for obtaining customer feedback. Businesses can easily set
up a computer based script to obtain customer feedback about a
product or service. Because customer feedback submitted by customers
can be read immediately, it's possible to respond to various customer
concerns in a timely manner, increasing customer satisfaction and
quality of customer service.
Immediate Distribution of Information: When information is
added to a Web site, it's immediately available for
browsing by millions of Internet users. The World Wide Web
is an ideal medium of information distribution because it
takes away the time lag associated with publishing
content and actually making it available to users.
Easy Integration with Internal Information Systems: Internet
information systems deployed on the Internet can be
easily integrated with internal information systems
managed with office productivity applications such as
Microsoft Office.
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Non commercial uses of internet
It is used for voice and video conferencing.
It is used for online news and weather services.
It is used for entertainment with the provision of music and videos.
It is used for online chatting by allowing people to carry on
discussions using written text.
It allows people to do education related research.
It allows for on-line learning where people can obtain on-line
course materials and have their examinations conducted online
without necessarily going physically to universities offering such
programmes.
Enables virtual social networking through different platforms such as
Facebook, Twitter, Whatsapp, TikTok, Instagram and many others
The disadvantages of Internet
Following are the disadvantages of Internet:
Spamming: Spamming denotes distribution of unsolicited e-mails in
large numbers. They are meaningless and they unnecessarily block
the whole system. These activities are treated as illegal.
Theft of personal details: While using the Internet, there is high
probability that your personal details like name, address and credit
card number may be accessed by con artists and used for
fraudulent purposes.
Virus threat: Virus is a program that interrupts the usual operation of
your personal computer system. PCs linked to the Internet have
high probability of virus attacks and as a result of this your hard disk
can crash, giving you a lot of trouble.
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