An Informal Report About Different Types of Business Information, Their Sources and Purposes Used by Hmv

Topics: Source, A Great Way to Care, Start Pages: 7 (2503 words) Published: June 10, 2013
Introduction
Business information is important to an organisation because when the organisation has done its research it can make informed decisions for the future and move forward strategically by setting goals which improves HMV’s efficiency consequently increasing profits. Internal information comes from within the business, for example, meetings between staff and external information comes from outside sources of the business, for example, from the government. HMV uses an internal system which is linked to all the HMV stores in the UK. Whenever a customer purchases an item this system will notice and automatically order the item from its suppliers to be replaced. Information also allows HMV to keep close relationship with customers. On its website it keeps track of your preferred genre of music and films and will automatically recommend new music and films that you personally enjoy. Taking time to know your customers intimately means repeat custom and sales leading to higher profit. Finally, business information leads to competitive advantage. If HMV remains to follow our aims & objectives there are chances it will have the advantage over our competitors by keeping up-to-date and in the know.

Verbal Information
HMV uses verbal information. Verbal information is the type of information discovered through physically talking to another person; be it face to face or on the phone. Talking face-to-face is the best way to communicate over all other methods of communication because not only do you leave less space for misinterpretation but you can also understand an individual’s way of thinking by observing their body language which is a great way to get information across. HMV earlier in the year had settled a dispute with Russian billionaire Alexander Mamut through having meetings regarding a sale of the Waterstone’s business. HMV has received a £53 million cash offer for the Waterstone’s book chain from Mamut. Talking face-to-face has helped settle the dispute fairly and honestly and receive a quick rapid response from the opposing side. This information stemmed internally from the Finance Department who gave all our financial details and the purpose was to make informing future developments for the business and to re-organise our debts from our recent disappointing sales figures. Mamut is an external source of the organisation.

Using verbal information is a great way to communicate to gain information because it’s free so there are fewer costs incurred by the business which retains profit. Talking to someone is also a very quick process so disputes, for example the HMV and Mamut settlement, can be settled quickly and rapidly. There are no delays. With verbal information you can communicate through body language which makes the listener understand your emotions as well as what you are saying therefore what you’re trying to say to the listener, can be better understood. HMV executives sorting the selling of Waterstone’s may have used eye contact and certain facial expressions to get a point across and for Mamut to know that HMV meant serious business. In person you can listen to irritation and happiness in someone’s tone of voice and understand a situation better. Speaking leaves less space for misinterpretation therefore you do not have to repeat yourself and the message trying to be put across is clear however disadvantages of verbal information are it can be quickly forgotten if you do not note down what information was found and there is no hard proof evidence of the settlement for legal purposes. There is some scope for misunderstanding if the message was put across wrong which could have a bad spiralling effect on the business. The source of our information is from our finance team and Mamut which are both reliable and trustworthy because our finance team work in our favour and Mamut wanted to buy the Waterstone’s chain. The article was written for the Guardian and the Guardian is a trustworthy reliable source...
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