Business Communication and Global

Perspective
Business Communication Assignment

MBA – I (Evening)

Prepared by:

HARIS MAHMOOD MUGHAL

 GLOBAL COMMUNICATION

Global communication is the process of transmitting and receiving information on a world-

wide scale. 

People have been communicating on a global scale for centuries (Lubbers & Koorevaar, 2000).
Isolation and distance have always been factors in the study of Australian history (Wiseman,
1998)and until recent times it was difficult to communicate with other countries, with factors
such as distance, time, and language barriers being major restrictions, however with
the evolution of technology, global communication has become increasingly easy, faster, clearer
and more effective (Lubbers & Koorevaar, 2000). The evolution of global communication can be
linked closely to the evolution of technology. As new creations, such as the internet are
continually being invented, improved and converged with other products, they are enabling new
modes of interaction.

At present, Global Communication has become increasingly important as new technologies are
evoking fundamental changes in the character of our society. Evolving technology has changed
life on social, cultural and political levels. New technologies are changing:

 the way people work and how business' are run

 how people are able to interact and relate
 the way people learn, create and process information; and
 It continues to alter the way a person views their community and their standing in the
world.

Global markets now offer the ability to produce cheaper products, access to consumers in
foreign countries, new sources of finance and income, new sources of technology and access to a
world of people with know-how. (Stevens, Miller & Michalski, 2000). One example of this is
the internet which has altered the world drastically in the last ten years. Never has social
interaction with people around the world been as easy as it is at present. Not only can a person
automatically send an email to any area in the world, but they can send simultaneous copies to a
variety of locations or post a message able to be retrieved by anyone with access. There is also
the option of video conferencing and the ability to access the internet from a multitude of facets
such as the usual Personal Computer (PC), a mobile phone, and even a refrigerator. With all of
this reach, there are plenty of limitations to technology as well. The internet for example is only
available to a small number of people, focused in Western nations. NUA has estimated that
worldwide there is a total of 605.60 million users online as of September 2002. With the world
population estimated at 6,232 million in 2002 this means that under 10% of the population are
connected, while over 90% do not have access. In the last several years powerful companies in
the computer and communication world have acquired a global status. These companies have
outlets in most forms of communications including telecommunications, the internet, film,
publishing and television. One such company is AOL Time Warner, with interests in specific
areas, such as America Online Internet, Time Warner Book Group, Time Inc. Publishing, Time
Warner Cable, Home Box Office Television Network, New Line Cinema Film Company, Turner
Broadcasting; and Warner Bros. Entertainment. If the past is any indication of things to come,
the evolution of technology is likely to continue to increase the ability to communicate globally.
Few areas of life are unaffected by new technologies as they are so integrated into Western
society (Marx & Roe Smith, 1994).

 In the 1960s and 1970s in America, television began to replace newspapers as the public's
preference for news
 In the 1990s cable television became more popular than network television
 The internet has recently become a major news source for people for its continuous
updating and availability. (Anonymous, 2004)
These trends have been reflected in Australia and as new and affordable technologies emerge,
communication is bound to be improved. Once price and service costs are affordable as well as a
need for the new application arises, there is a surge in purchasing of the technology. Once again
take for instance the internet, which was not an urgent need 10 years ago yet can you imagine
life without it now? Kapor and Weitzner (1993) suggest the world is headed for an International
Public Network (IPN) as far as the internet is concerned, to seek a proper balance of local
content and global information. They suggest that government policy has a continued role in the
expansion of networks both locally and world-wide. Whatever the outcome, the last 50 years
have seen drastic developments in global communication, that looks set to continue and improve
in the future

LIMITAIONS OF GLOBAL COMMUNICATION

Historically people have communicated globally thorough geographic proximity, military

conquest, political alliances and economic change, however for thousands of years communities
had little need for long distance communication because they lived close to one another. (Greig,
2000) Today communication is no longer restricted to a geographical place, with
communication technologies connecting parts of the world together into an electronic web.
(Frederick, 1993) However, according to Frederick, the continual expansion and influence of the
global society faces two essential problems: 

The control of global information and communication by transnational corporations

Government monopolies still control a huge share of the world’s air waves and
telecommunication flows. (Turner & Cunningham, 2002) Another limitation is the control of
information and communication by a handful of immense corporations. (Wiseman, 1998) The
primary reason this happens is that fully integrated corporate control of media production and
distribution reaps vast profits and creates huge corporate empires, such as those belonging to
Kerry Packer and Rupert Murdoch.

The increasing disparities between the worlds info-rich and info-poor populations.
Between the rich and poor there are immense disparities in virtually every medium. The third
world is penetrated by western media however they have little access of to forms of
communication on a global scale. The percentages below are a representative of the disparities in
the world of global communication

Others

Language, Culture and traditions are among the other factors which limit global communication

Hofstede's Five Dimensions of Culture (Global Business Communication Determined by

Five Variables)

According to Hofstede, each culture must deal with questions that can be resolved according to a
series of dimensions, which results in a unique gestalt for each society, depending on the
intensity of its tendency towards one or another end of each culture dimension spectrum.

The Five Dimensions

Individualism/Collectivism: 

The point here is whether people see themselves at a very deep level as part of a group, or as a
single, independent actor. Hofstede emphasizes that the groups are “natural” ones, such as family
or clan, not just any group that one happens across. Also, it is important to realize that the
dimension does not indicate that some people “like” to be in groups. It is a question of human
self-identity.

Uncertainty Avoidance: 

(Note that the dimensions are not given in any particular order, they work together to describe a
culture.) In some cultures, people prefer to have everything spelled out in detail so there will be
few, if any surprises. In cultures where Uncertainty Avoidance is low, people have more relaxed
expectations and are not anxious when some factors of a situation are unknown.

Power Distance: 

Hierarchy is a feature of most human life, but in some cultures, the relative gap between high
and low is wider, making for a society in which people respect the powerful, and there is lower
expectation of movement between classes, castes, or levels. In cultures where Power Distance is
low, people tend to expect that those in power will have earned it, rather than simply gaining
power by virtue of position.

Aggressiveness:

Within this system, there is a gender gap, and women’s values are said to be more similar across
cultures. Women are said to value gentleness and consensus seeking, and in cultures with a low
Aggressiveness dimension, men also share these values. However, other cultures have more
distinctive values for men: competition, assertiveness and “looking out for Number One.” In
such cultures, the values of women also move somewhat towards the Aggressiveness end of the
spectrum, although not as much as men’s do.

Long Term/Short Term Orientation:

Long-term planning, thrift, and industriousness are valued in cultures with Long Term
orientation, whereas living for the day, celebration, and concerns like “saving face” are more
important in those with Short Term orientation. The Long Term end of the continuum is
associated with what are sometimes called Confucian values, although cultures not historically
connected with this influence can also have a Long Term orientation.

TECHNOLOGIES ENCOURAGING GLOBAL BUSINESS COMMUNICATION

Technology effects change and the aspect that makes modern information technology more
important a development than any other in the history of technological evolution is its ability to
effect change. (Saxby, 2000)

What is different about the modern process of globalization is the extent to which time and space
have been compressed by new information, communication and transportation technologies
(Wiseman, 1998).

Globalization is far from a new process. Exploration, trade, pilgrimage and migration have led
individuals and societies to move around since the beginning of history (Grieg, 2000).

The late nineteenth and early twentieth century’s saw a particularly high level of international
trade flows, as well as the initial impact of electronic communication technologies such as the
telegraph and telephone (Wiseman, 1998).

There have been so many influential inventions that have impacted the way people communicate.

Some of the most important inventions that have a major impact on the way people
communicate. The last twenty years have seen a major influence in communication technologies.
Some of the most influential for communication on a global scale are:

The Mobile Phone

 The development of mobile phone technology has been influential on global
communication.
 The prevalence of use of mobile phones was evident in 1998 when 44% of Australian
households had access to some type of mobile phone. (Australian Bureau of Statistics, 2002)
 That use has continued to grow, with 72% of households having access to a mobile phone
in 2002. (Australian Bureau of Statistics, 2002)

Computers and The Internet

 The percentage of Australian homes with access to a computer has increased from 44% in
1998 to 61% in 2002. (Australian Bureau of Statistic, 2002)
 The Internet is a network of computers that offers information to people.
 The internet has risen quite strongly as a new media. The percentage of Australian
households with access to the Internet at home has increased, rising from 16% in 1998 to
46% in 2002. (Australian Bureau of Statistics, 2004)

The Communication Satellite

 A communications satellite is a radio relay in the sky. Signals are transmitted from
antennae on earth, amplified, and retransmitted back to an earth station. The history of
satellite communications is directly connected to man's quest to conquer outer space.
(Reaching Out, 2004)
 Experiments involving artificial satellites began in the late 1950's. (Reaching Out, 2004)
 The first satellites were used mostly to measure space environments and blaze a path for
communications, weather, and navigation satellites and manned spaceflight. (Space Today,
2004)
 Satellites are now used in communications and television broadcast, weather forecasting,
navigation, observing land, sea and air and other scientific communications. ((Space Today,
2004)

Overcoming Communication Barriers in Global Sourcing

Most global sourcing experts will agree that communication is one of the key factors in the
success of IT development.  Even though so many people know that communication is
important, it still creates problems for outsourcing companies. Communication with a global
sourcing provider has its own set of unique challenges.  When referring to communication, it is
more than just language.  The outsourcing company must find a way to handle the different time
zones, distance and multiple locations. 
It is common for an outsourcing company to not place a high priority on communication.  When
communication goes wrong in global sourcing, cultural differences are often blamed.  However,
usually there is more to it than just cultural differences.  If information cannot be communicated
to the correct people, at the right time, there is a strong potential of the project being delayed or
not properly developed.  Before a project is sent to a global sourcing provider, a communication
plan must be created that will address how and when communication will take place.

Establish a communication infrastructure. 

Will correspondence take place via email or telephone?  Who is the point of contact?  When
communicating with the vendor, it may be wise to invest in high quality digital communication
lines, to ensure a clear connection.  Some outsourcing companies have also found it helpful to
create a toll free number that can be used for team members.  Direct telephone numbers and
extensions, plus email addresses should be exchanged among those involved in the project.  By
having an established communication infrastructure, team members will know how to contact
each other and there should be minimal to no delay in relaying information.

Determine the frequency of communication. 

How often should virtual meetings take place?  Who should be included in each meeting?  As the
global sourcing provider and outsourcing company work together, it is important to determine if
regular conversations will occur, which will go over the project status and address any issues that
may have arisen.  The frequency of such meetings should be determined in advance to avoid any
complications or schedule conflicts.  This interactive communication will effectively relay
pertinent information to those involved in the project.  After a team meeting, there should be
some type of follow up report, outlining what was discussed in the meeting.  This information
should be dispersed to the meeting participants.

Create methods for communication. 

In addition to telephone and email, what other methods will be used in communication?  Status
reports, newsletters and Intranets are all helpful tools for communication.  A dedicated Intranet
can be used to communicate project goals and expectations to ensure the success of the project. 
However, whatever method of communication is used, it is vital that all team members and
project managers read the information.  Even though a lot of effort may be put into creating great
information, if it is not read, it is useless.