Communication is neither the transmission of a message nor the message itself. It is the mutual exchange of understanding, originated with the receiver. Communication needs to be effective in business. Communication is the essence of management. The basic functions of management ( planning, organizing, staffing, directing and control) cannot be well performed well without effective communication.

Business communication involves constant flow of information. Feedback is is integral part of business communication. Organizations these days are very large and involve large number of people and because of this effective communication play a key role in delivery information to ensure a shared responsibilities.Business communication can be two types: Oral communication - An oral communication can be formal or informal. Generally business communication is a formal means of communication, like meetings, group discussion, speeches etc. An example of informal business communication is grapevine. Written communication- written means of communication includes - agenda, reports manual etc.

The main components of communication are as follows: context, sender/encoder, message, medium, recipient/decoder and feedback. businesses must ensure that in this modern times, the company communication alone without the product quality can easily distinguish one organization to another, it is very important that any company must be aware of how they can deal with their customers.