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Study of Ibrahim group

“Business communication”

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BUSINESS COMMUNICATION REPORT ON

IBRAHIM GROUP

BY

KAMRAN SAIF

F07MD035

Institute of Business and Information Technology

University of the Punjab

Lahore

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ACKNOWLEDGMENTAll acclamation to Allah who has empowered and enabled us to accomplish the task successfully

First of all we would like to thank our Allah Almighty who really helps us in every problem

during the project. We would like to express our sincere and humble gratitude to Almighty who’s

Blessings, help and guidance has been a real source of all our achievements in our life. We

would like to admit that we completed this project due to parents who pray for our success.

Last but not the least our team efforts, support, cooperation and encouragement showed by each

member in the group with each other.

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DEDICATION

Our PROJECT is dedicated to our beloved Parents, teachers, brothers, sisters and all of

our well wishers

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EXECUTIVE SUMMARYToday the world is defined by the term 'Information Age.' All businesses, both large and small,

require effective and efficient business communication solutions in order to continuously meet

their customer expectations and attain a competitive advantage, and therefore are successful.

Whether a company is large or small it is realized that, the right amount of financing, materials,

talent, and experience are not enough to succeed without a good communication system in place

that enables smooth transaction sealing. Communications is at the heart of regional and

international integration. The “IBRAHIM FIBER LIMITED” started with a cloth trading

business in the industrial city of Faisalabad. Late Haji Sheikh Mohammad Ibrahim, founder of

the Ibrahim Group. The Mission Statement Is “To build the company on the sound financial

footing with better productivity, excellence in quality and improved efficiency at lower operating

costs by utilizing blend of state of the art technologies”. Ibrahim Group acquired Allied Bank

Limited, one of the five largest commercial banks in Pakistan under the scheme of re-

construction of the Bank’s capital undertaken by The State Bank of Pakistan. The objective of

IFL is profit earning & growth through effective communication.

IBRAHIM FIBER LIMITED defines communication by focusing on three objectives A

(Attention), B (Brief), C (Clarity). Business communication channel mainly based on E-mail &

have in-house E-Mails system that is directly connected with Karachi & Lahore. This E-mail

system is design by their I.T department. The decision making approach is both centralized &

de-centralized. They communicate externally using medium such as conferencing, website, &

market mobilization. Ibrahim IT department is very strong. Ibrahim using following technologies

to communicate such as Oracle, Microsoft, HP, Siemens and Cisco Provides BlackBerry mobiles

phone to managers for communication Ibrahim build strong culture & discipline character. Have

Friendly environment within organization & professional outlook that shows their good repute &

image. Ibrahim industry has strong interdepartmental communication. In Future Ibrahim Fiber

Limited enhance their communication patterns & implement IT technology to enhance effective

communication.

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INTRODUCTION:

Ibrahim Group at a Glance:

The group started with a cloth trading business in the industrial city of Faisalabad. Late Haji

Sheikh Mohammad Ibrahim, founder of the Ibrahim Group, settled in Faisalabad after partition

of India in 1947 and re-established his ancestral business of cloth trading by the name of

“Ibrahim Agencies”. What is known in business today as Ibrahim Group with diversified

business interests from Spinning to PSF, Financial Institutions to Banking and Energy, started

off as a mere cloth trading agency just half a century ago. It was middle of the fifties, when

Sheikh Mukhtar Ahmed, present Chairman of the group, joined in this family business. It was

then, that he took initiative to integrate the business vertically upwards adding up yarn trading as

an additional line of business. Turning out to be a milestone in the future progress, it did not take

long before the group was widely reputed and respected in marketing of cotton and blended

yarns. Backed by this goodwill and experience in marketing, in 1980, manufacturing of own

blended yarn was initiated by establishment of Ibrahim Textile Mills Limited. With long term

considerations and a simple principle of “no compromise on quality “two more textile spinning

companies; A.A. Textiles Limited in 1982 and Zainab Textile Mills Limited in 1987 were

established. A power generation Company Ibrahim Energy Limited was incorporated in 1991 to

improve the efficiency of the existing manufacturing companies. All these manufacturing

companies have now been merged into Ibrahim Fibers’ Limited.

The Group diversified into the financial services by floating First Ibrahim Modaraba and also

established a leasing company; Ibrahim Leasing Limited. Subsequently First Ibrahim Modaraba

was merged into Ibrahim Leasing Ibrahim fiber limited Page 14Business Communication

Limited. Upon declaration of the privatization policy by Government of Pakistan, Ibrahim Group

together with other leading groups participated in the bidding to acquire controlling shares of

Muslim Commercial Bank Limited. Under the scheme of reconstruction proposed by State Bank

of Pakistan, Consortium of Ibrahim Leasing Limited, Ibrahim Group and its sponsors acquired

more than 75% of the shareholding of Allied Bank of Pakistan Limited. Management and control

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of the Bank was handed over to Ibrahim Group on August 19, 2004. At present Ibrahim Group is

holding more than 80% shareholding of this bank. One of the top five banks of Pakistan, Allied

Bank has more than 742 branches across the country with 7,139 employees and financial assets

of Pak Rupees 234 billion. The Group plans to inject its own dynamism and energy in the bank

to turn it into a premier financial institution of the country. After the acquisition of the bank

Ibrahim Leasing Limited has been merged into Allied Bank limited. The strength of the group

today stands manifold with entrepreneurial skills and visionary leadership of Sheikh Mukhtar

Ahmed added with fresh concepts and professional skills of Mohammad Naeem Mukhtar who

has done his MBA from the University of Wales, Cardiff, UK. and Mohammad Waseem

Mukhtar who has done his Bachelor in Computer Science and Masters in Total Quality

Management (TQM) from the University of Glamorgan, Wales, UK .

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Vision

To be a Sustainable, growth oriented company and achieve scale to remain competitive, in the

barrier free global economy.

Mission

To build the company on the sound financial footing with better productivity, excellence in

quality and improved efficiency at lower operating costs by utilizing blend of state of the art

technologies.

To accomplish excellent results through increased earnings this can benefit all the stakeholders.

To be a responsible employer and to take care of the employees in their career planning and

reward them according to their abilities and performance

To fulfill general obligations towards the society, being a good corporate citizen

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Ibrahim Fiber Limited

Businesses

1. Polyester

Immer AG Germany; market leaders in the Polyester Polymer capacities with nearly 30% share in the

world market has supplied the engineering and technology for Ibrahim Fibres Limited Polyester Plant and

has also guaranteed not only the designed capacity but the quality of finished goods to be in compliance

with world standards.

2. Textile

Spun Yarn Division of Ibrahim Fibers Limited consists of three projects;

TP1 (Ibrahim Textiles)

TP2 (AA Textiles)

TP3 (Zainab Textiles)

All these projects were operating as independent public limited companies and were listed on stock

exchanges in Pakistan till September 2000 before their merger into Ibrahim Fibers Limited.

These projects are equipped with Real Time Ring Monitoring System (RTRMS), Uster Ring Expert, Spin

Vision, and Coner Pilot for online monitoring and analyzing to facilitate production and efficiency while

maintaining quality parameters. Moreover, auto-doffing system has been installed on the spinning and

winding machines to automate the manufacturing process.

To maintain and to keep an edge we keep on adding latest machinery and technical know-how.

3. Power generation

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Ibrahim Energy Limited was incorporated as a Private Limited Company on 2nd June, 1991, converted

into a Public Limited Company on Feb 26,1992 and the power generation started from January 1994.

Ibrahim Energy now merged into Ibrahim Fibers Limited. Power generating capacity of the project is 31.8

MW based on heavy fuel oil.

The plant and machinery of the project comprises of 6 furnace oil generating sets, each having a capacity

to produce 5.3 MW, supplied by Nigata Engineering Company, Japan.

4. Financial services

Allied Bank

The consortium of Ibrahim Leasing Limited and Ibrahim Group assumed the control of the Allied bank in

August 2004 by injecting Rs 14.2 billion into the capital of Allied bank for acquiring 325 million

additional shares.

Milestones

Ibrahim fiber limited Page 17Business Communication

2008

Ibrahim Group acquired Allied Bank Limited, one of the five largest commercial banks in Pakistan under

the scheme of re-construction of the Bank’s capital undertaken by The State Bank of Pakistan. Ibrahim

Group injected equity of PKR. 14.2 billion Into the Bank against 325 million shares of the Bank.

Major Modernization & Replacement of the Back process equipment of Textile Plant 1 (Ibrahim Textile

Mills Ltd.)

2006

The expansion unit of Polyester plant started commercial production thus increasing the PSF production

capacity from 70,000 tons per annum to 208,600 tons per annum.

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2004

Four Group companies, Ibrahim Textile Mills Ltd., A.A Textiles Ltd., Zainab Textile Mills Ld. and

Ibrahim Energy Limited were merged into Ibrahim Fibers Limited.

2000

Commissioning of the Polyester Staple Fiber plant having an annual production capacity of 70,000 tons

per annum

1996

The Group commenced the start-up of Polyester Staple Fiber Manufacturing Plant having a capacity to

produce 70,000 tons of PSF per annum. The Group established Ibrahim Energy Limited, a 31.8 MW

power generation plant.

1990

The Group established the third Textile spinning plant, Zainab Textile Mills Limited, having a capacity of

38,400 spindles.

1984

The Group established the second Textile spinning plant, A.A Textiles Limited, presently having a

capacity of 40,128 spindles.

1980

The Group established Ibrahim Textile Mills Limited, a Textile spinning plant presently having a capacity

of 58,080 spindles.

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Chairman's Message

Chairman communicates his message

“By carrying out business activities with customer centric focus and by attaining the confidence

of our shareholders, customers and society, Ibrahim Fibers aims to be a Company making a

significant contribution to the national economy. We will continue to strive for excellence in all

spheres of our activities and to manufacture high quality products through the use of advanced

technology in our business operations, be an attractive organization to work with and a reliable

business partner.”

Mohammad Naeem Mukhtar

Chairman

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INTRODUCTION TO

COMMUNICATION

In this Field Study Report, we have discussed what is communication, channels of

communication, types of communication in an organization, interdepartmental communication in

an organization, policies regarding communication & decision making approach etc..For this

purpose we have visited and studied the functions relating to our topic of “IBRAHIM FIBER

LIMITED”.

IFL Stands for

I(Individually & collectively)

F(friendly & caring)

L(life styles with leading qualities)

That communicates the IFL Good Image & Repute both internally & externally

Communication

Communication may be defined as the transfer of information from sender to receiver, with the

information being understood by the receiver. The communication function is the means to unify

an organized activity, through transfer of information from one individual to another, or from

one system to another.

According to IBRAHIM FIBER LIMITED they define communication by focusing on three

objectives

A = Attention

B= Brief

C= Clarity

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Importance of Communication

Communications is the means by which people are linked together in an organization to achieve a common purpose. Indeed group activity is impossible without communication because coordination and change would not be effected. Sociologists and psychologists have also realized the importance of communication in interpersonal relationships, and have focused their study on communication networks.

IFL give more importance to communication because they emphasize On Attention, Brief & clarity of communication & IFL retain customers through proper communication.

Purpose of Communication

The purpose of communication in an enterprise is to effect change. In an organization, there can be two types of communication, i.e. internal and external. Internal communication means communication within the organization, whereas external communication is the communication

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with the outside environment. The following diagram depicts the purpose and function of communication in an IBRAHIM FIBER LIMITED organization.

As can be seen from the above diagram, the purposes of internal communication in an IFL are as follows:

Internal communication

Inside communication means giving and receiving information by all hierarchical levels. It

includes vertical communication covering downward communication, upward communication,

horizontal communication and diagonal communication. It includes communication flowing at

any intermediate level as well as at operating level, or top management level, because internal

communication is indeed required by all who work together in an organization to accomplish

common goal

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Requirements for Effective Internal

Communication

Internal communication must be recognized as an essential tool of management. It is a

way to achieve corporate objectives, build teamwork, and motive: It can make managers

become better leaders. This requirement recognizes that, employee attitudes and resulting

performance are improved by effective communication.

Great emphasis must be placed on communication and measurement Communication cannot be left to chance. There must be a plan who communicates that how to whom, for what purpose and to what effect.

Top management must establish a communication climate other divisions and

departments will reflect this climate

A long‐term investment in professional talent and communication programming must be made Programming and qualified people cost money, but it is well spent.

Written communication setup of

Ibrahim Fiber Limited

Written messages also take many forms. At one extreme are the scribbled notes and at the other

are formal reports. Regardless of the form, written messages have one big advantage they let us

to plan and control the message. The other advantages of written communication are that it can

provide records, references, and legal defenses when needed. Written messages can be

transmitted to a large audience through the mail or through mass media like newspapers etc.

Written communication is also useful in maintaining uniformity in policies and procedures.

However, disadvantages of written communication are that the feedback is not immediate,

effective messages are difficult to produce if the sender is not sufficiently skilled, and the written

communication may create heaps of paper which may become difficult to manage.

“IFL strongly focuses on written communication”

In the following about different common forms of written communication are explained

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LETTERS

The medium used for written messages to persons outside the organization is the business letters.

Business letters are substitute of personal visits and paper representatives of the writer. Letters

are written for many purposes such as appointment letters, promotion letters, termination letters,

Etc. Letters are also used for downward communication. Letters are written to the customers as

well as to other external agencies like suppliers, taxation authorities, governmental regulatory

bodies etc.

PARTS OF A BUSINESS LETTER

Memorandums

Memorandums are in contrast to the letters which are used for routine in day-to-day exchange of

information within the organization and also for downward communication. This medium is

basically intended to communicate to employees, the rules, regulations, and policies of the

company.

OFFICE MEMORANDA

Office memoranda are also used for downward communication. This medium is basically

intended to communicate to employees, the rules, regulations, and policies of the company as

well as to explain something.

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External communication

External communication is equally important as internal communication to provide a link

between the employees and the shareholders and other third parties. As a matter of fact, external

communication is considered as lifeblood of the modern business. External communication can

be arranged by oral or verbal communication as well as through written media. Telex, television,

telephone, tele‐printer, transmitters, STD, ISD, and other modern sophisticated communication

technologies can be used for external communication. Written media like letters, circulars,

notices, legal notices, newspapers, magazines, manuals, periodical reports, pamphlets etc., are

also used towards external communication.

External correspondence is mostly in written form except in extraordinary circumstances

resorting to telecommunication services. It is utmost necessary to build attitudes, develop

rapport, create confidence, win goodwill, morale support and influence, mutual understanding by

keeping them well informed. There are many broad areas outside the organization about which

information should be communicated

Internal communication in IFL

Internal communication of IBRAHIM FIBER LIMITED is mainly downward, but upward and crosswise communication is also encouraged.

Establish and disseminate goals of the organization. To develop plans for achievement of these goals.

To organize human and other resources effectively and efficiently. To select, develop, and apprise members of the organization. To control all activities.

External communication in IFL

External communication helps the managers of IFL to become aware of:

The needs of customers. The availability of suppliers. The claims of stockholders.

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The regulations of government The concerns of the communities

Channels of communication in IFL

Internal channels of IFL

E-mails

Faxes

Letters

Reports

Memo

Telephones

Conferencing

Meetings

Following are the channels that IFL use to communication within the organization. The most

important channel they focus to communicate is “E-MAILS”. All work is done through E-

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Mails.IFL have in-house E-Mails system that is directly connected with Karachi & Lahore. This

E-mail system is design by their I.T department who is responsible for controlling it & gives

access to each & every person within the organization. They communicate on daily basis

internally & externally both to Communication more clearly & correctly.

And the other work is done by using different channels that are letters, reports etc. Different

types of reports are prepared on suggestions or recommendations on personnel, activity

execution time and plans for overcoming the difficulties. Reports are made on daily basis &

weekly basis. Each & every department of IFL is responsible for submitting their report so that

information is update on daily basis. And communication will be more effective & efficient.

Minutes are prepared of every meeting for the purpose to implementation of the decision and

record.

External channels of IFL

Toll free number/U.A.N

Video conferencing

Audio conferencing

Web-site(static)

Newspaper

Marketing mobilization

letters

These are the channels that IFL uses to communicate with external environment that includes

customer, suppliers, stockholders & government etc IFL communicate with their customers in a

better way & correctly to retain their customers. Their objective is communicates clearly with

customers. For this they provide facilities to their customer such as a TOLL free Number through

this customer gets information regarding their products & services or anything they want to

know. By communicating in that ways IFL gain the loyalty of customers. Even no little

confusion occur in communication because while communicating with customer or making any

contract they confirm it many times. So less chances of miss-understanding occur.

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Letters are written to the customers as well as to other external agencies like suppliers, taxation

authorities, governmental regulatory bodies etc

Decision making approach

Two types of decision making approach that are

Centralized

De-centralized

Centralized:

The degree to which decision-making is concentrated at a single point in the organizations.

Organizations in which top managers make all the decisions and lower-level employees simply

carry out those orders.

IBRAHIM FIBER LIMITED follow the “Centralized structure” & all work in controlled and

checked by C.E.O He is responsible for major decision making.

De-centralized:

Organizations in which decision-making is pushed down to the managers who are closest to the

action, Employee Empowerment by increasing the decision-making authority (power) of

employees. IBRAHIM FIBER LIMITED also follows the de-centralized structure to get strong

FEEDBACK from employees.IFL communicate with their employees to get feedback and their

suggestions regarding company policies & procedures. This communication leads to high growth

and profit of the organization. That shows their good management teamwork because IFL can’t

take things guaranteed.

IFL Technology for communication

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During the last decade, digital technology has changed the world in profound and exciting ways.

Today we communicate instantly and no one questions the competitive advantages that come

when we can communicate and collaborate instantly with customers and business partners

around the world. Global supply chains enable businesses to manufacture products and move

them to market with incredible speed and efficiency. Mobile devices ensure that we are

productive no matter where we are. During the next decade, the world's information will be

digitized.

As organizations strive for increased profitability and growth, the pressure is on to provide faster,

better information to ever-increasing numbers of business users, analysts and decision makers.

Everyone wants the ability to reach information they can trust, when they need it, for effective

decision-making. Use of Information Technology based solutions fulfills these requirements

effectively. The end result is dramatic improvements in collaboration between users,

applications, and technology components, generating significant value for any business and

creating competitive advantage.

Technologies for communication

At Ibrahim Fibers Limited, we have adopted state of the art IT solutions available from various

giant in the Information Technology industry like,

Oracle

Microsoft

IBM

DELL

HP

Siemens and Cisco

That shows their strong communication with the organization as well as outside the

organization.IFL also provides “BLACK BERRY” mobile phones to their employees for

communication and for business purpose.IFL defined their HOTLINES Codes for different cities

to communicate for Karachi the code is 4200 & For Lahore the code is 5200.

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Use of Jargons

They also used Official Abbreviation or jargons to communicate in their organization

For Example

JA (Javaid Ashraf)

WP (Waseem Pasha)

AY (Asim Yaseen)

B/c in this way IFL can deliver the specific message to the specific person easily.

Professional & HR development

At Ibrahim Group, strength is derived from a firm belief in the potential of each individual

associated with the Company. Every department is managed by highly qualified team of

professionals with vast experience in their respective fields. Professional development courses

and training programs are frequently undertaken to groom every member of the team. The

standards prescribed by international institutions for the quality of management systems,

working conditions, hygiene and environment at the workplace are strictly adhered to.IFL

communicate with their employees through HRM department that is responsible for hiring,

recruitment, appraising, and performance management & give employee training. Through

communication employee will motivated both towards organization & towards their work.

IFL Communicate towards community

care

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Ibrahim Fibers Limited is committed to constantly strive for higher standards in health, safety

and environment. The Company strictly follows the safety standards at all levels and training is

provided under the supervision of qualified manager and various sessions are being held to create

safety awareness. Environmental issues have raised concern all over the world due to the rapid

industrialization and drastic increase in population. In this regard National Environmental

Quality Standards as laid down by Pakistan Environmental Protection Ordinance 1997 are being

strictly followed. The horticulture department, under the supervision of a qualified horticulturist,

has been established and every year a plantation campaign is launched by the

Company at all its locations to provide healthy and clean environment to all personnel.

Arrangements have been made to provide pure mineralized water, high standard foods and

medical care for all the employees working at the plant sites. As part of the organizational

culture of IFL, the Company fulfils its social responsibilities and apart from monetary

contributions to educational institutions and hospitals the Directors of the Company are directly

participating in the management of educational institutions and hospitals.

Formal & informal communication

Ibrahim fiber limited communicates in both ways formally & informally. They have friendly

environment in their company so that each and every employee feel free to share their ideas,

opinions etc.

Interdepartmental communication

IFL interdepartmental communication is very strong and effective because they communicate on

daily basis and updated data, exchange information as well.

For example in IBRAHIM FIBER LIMITED the Marketing department communicates with

other department. The figure is given below

Inter- cultural communication within

IFL

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IFL communicate in better way by following the culture. IFL emphasis on strong & effective

communication within organization that shows their strong culture

IBRAHIM FIBER LIMITED

Focuses on professional life style

Emphasis on effective style of communication

Focus on manners

Proper & professional dressing

Style of offices shows strong management

Strong culture

Use Good approach for communication

Follow moral values & ethics

Attentive

Focus on individual character or behavior

Build discipline character

Analysis of the organization in the light of communication

Strengths:

Business communication channel mainly based on E-MAILS

Friendly environment

Strong communication channels

Strong IT system for communication

less chances of error in communication

Weaknesses:

Lack or customer awareness through advertising

Technical personnel have less command on effective business writing.

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Recommendation Strategies for

Improvements

After having analyzed the deficiencies of IBRAHIM FIBER LIMITED we would now

recommend strategies to overcome these weaknesses in the following lines:

Repetition:

Repetition of a message, such as an advertisement, creates greater impact on the recipients. This

technique should be employed. It is important to note, however, that repetition should be only

where it is necessary.

Effective business writing:

While writing letters or other any type of written communication to others especially to

executives of organizations, be sure about the accuracy of figures, facts and words of the

correspondence.

Training:

Imparting of such training would greatly improve the communication skills of the engineers on

technical matters.

Conclusion:

Developing a communication strategy and its implementation in an efficient and effective

manner is quite beneficial for an organization.

Need to be transparent about your goals and values.

Consistency has to be maintained.

Need to adopt comprehensive & persuasive methods for that.

All this needs a long term focus.

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Key learning outcomes

Able to write all business correspondence

Able to demonstrate how important information technology in business communication

today

Have skill required in telephone communication

Ability to plan a group presentation

Able to design relevant visual aid for a presentation

Build confidence

Gain more knowledge about effective communication

Ability to communicate in effective way by using body language

Enhance the knowledge about how organization communicate with internal and external

environment effectively

Able to write a C.V

Able to explain the difference b/w formal & informal communication

Learn to enhance personality

Capable to become a good listener as well as good speaker

Capable to organize immense of work

Improve communication skills

Further enhance and develop written communication strategies

Acquire and incorporate relevant vocabulary in both written as well as oral tasks and

activities

Interact and participate confidently in group based tasks, discussions and presentations.

Use of an original vocabulary

Clarity and accuracy of the summary

Able to prepare ourselves for an interviews