Communication is an important thing that should be practice in business organizations. What is means by communication is, it is means that the information that transferred from one source to another. Communication will go through a process before it is can be accepted by the receiver from the sender. It is important to make a clear process of communication in order to make the good communication between the sender and receiver. The process of communication is consists sender, encoding, message, channel, receiver, and decoding. Encode means that the receiver will translate the information that had been send to them into a message that transform into the idea or concept that will be understand by the receiver. While decoding means that how can the audience or the receiver understand the information or message and interpret them.
Our group had choose PepsiCo as the company to analysis their communication activities. Every company in this world has their own communication activities styles in order to run their business and to transfer information either among workers or between business person to customer. As for PepsiCo, they are using formal communications in their business in order to transfer the information or messages among workers. Formal communications are used for the business related things that may be in oral or written.
PepsiCo using this kind of communications while changing the information or messages in order for the employee to perform their duties while follow it. For example, PepsiCo Chairman of the Board of Directors and Chief Executive Officer, Indra K. Nooyi has given a request to make a meeting regarding their products promotion which is less sugar beverages and less salts snacks.
The message should be arrive to all of her worker that related to the promotions of the products.Formal communication should follow the formal channels which is also follow an organization’s hierarchy of command. There are three directions through formal channel which is Downward Flow, Upward Flow and Horizontal Flow. Downward Flow means it is go through from the decision maker who is Chief Executive Officer (CEO) and managers to the subordinate. It is also have a risk which is it could be the message could be insufficient or unclear. As for the Upward Flow, it is means that, the messages or information is running through from the subordinate to the superiors.
The problems that could occur in this flow is the process of the communications could be in the risk and having distortion. Horizontal means that the communications happened among the worker in the same level. It could arise the issues such as ego involvement and prejudice. But, PepsiCO is using more Upward Flow as they are more receiving messages from the superior in order to discuss about the business.PepsiCO also practice intercultural communication.
Intercultural communications often used within an organization that consists of the individual that came from varieties of religious, technical backgrounds, social, and ethnic. It is important to know how to practice the intercultural communications because the culture of each business person that came from varieties of countries are not same. It could arise the misunderstanding issue if we use the wrong style of communications to them. As we know, PepsiCO is collaborating with the company from other countries to expand their business market more such as Mexico, Russia, Brazil, the Middle East, India and China.
In order to do so, they need to use the intercultural communications along knowing the culture of each customers in each countries to make sure that they had produced the snacks and beverages that suit the customers’ taste from each of those countries especially.Next is face to face communication. Face to face communication are happen when the participants are changing the messages or information, thoughts and feelings in the same physical space. Face to face communications could happen through formal meetings, discussion with boss and annual evaluation.
PepsiCO is using more of face to face communications when exchanging the information or messages through the formal meetings. The Board of Directors of PepsiCO are doing the meeting and exchanging their information and thought using face to face communications about the financial conditions that affected and increasing cost, also about the shortage of raw materials. They have doing formal meetings among Board of Directors and related workers who manage this thing through the formal meetings. This is when face to face communication happen among members in the organization of PepsiCO.
It is also happened when the subordinates or workers in financial department went to go to meet their boss to discuss about the things that they should do in order to complete the task about the increasing cost for raw materials and other costs of business.