Communication — July 2020

KNEC Diploma in Sales and Marketing — Module I. Paper code: 2902/104

The sitting follows the original source filename recorded in the supplied archive index; the scanned question pages omit the examination heading.

Independent worked revision answers. These are not official KNEC marking schemes.

Question 1

Outline four rules of external communication in an organization. (4 marks)

Answer

  1. Communicate through authorised channels.
  2. Provide accurate and clear information.
  3. Use courteous language suited to the recipient.
  4. Protect confidential information and comply with relevant organisational procedures.

Question 2

List four measures which may be taken to make communication effective in an organization. (4 marks)

Answer

  1. Use a suitable channel.
  2. Organise clear and accurate messages.
  3. Encourage feedback.
  4. Reduce noise and other barriers.

Question 3

List three pieces of equipment that may be used to make a meeting effective. (3 marks)

Answer

  1. A public-address system where needed.
  2. A projector or display.
  3. A computer or conferencing device.

Question 4

Outline three ways of minimising barriers in oral communication. (3 marks)

Answer

  1. Use familiar language and explain technical terms.
  2. Speak audibly at a suitable pace.
  3. Reduce distractions and confirm understanding.

Question 5

State three barriers to effective non-verbal communication. (3 marks)

Answer

  1. Cultural differences in interpreting gestures.
  2. Poor visibility or inability to observe the cue.
  3. Conflicting or ambiguous expressions and body language.

Question 6

List three advantages of advertising on FM radio stations. (3 marks)

Answer

  1. Reaches listeners in a defined geographical or language market.
  2. Messages can be repeated at suitable times.
  3. Audio advertising can reach people who are not reading print media.

Question 7

List three informational items that should be contained in the body of an apology letter. (3 marks)

Answer

  1. An acknowledgement of the specific problem.
  2. A clear apology and appropriate explanation.
  3. Corrective action or arrangements to prevent recurrence.

Question 8

List three challenges that an interviewee may face during a job selection interview. (3 marks)

Answer

  1. Anxiety.
  2. Unexpected or difficult questions.
  3. Difficulty presenting relevant examples clearly within the available time.

Question 9

List three instances when oral reports may be preferred. (3 marks)

Answer

  1. An urgent situation requires immediate information.
  2. The audience needs discussion and clarification.
  3. A short routine update is sufficient.

Question 10

List three reasons why a manager may be reluctant to use information communication technology to pass information. (3 marks)

Answer

  1. Limited digital skills.
  2. Concerns about reliability or information security.
  3. Cost or poor access to suitable equipment and connectivity.

Question 11(a)

Explain four factors that may hinder transmission of information in an organization. (8 marks)

Answer

  1. Noise can obscure spoken messages or distract recipients.
  2. Unclear language and jargon make meaning difficult to understand.
  3. Equipment or network failure interrupts delivery.
  4. Unsuitable channels or excessive organisational layers can delay or distort information.

Question 11(b)

Explain four ways in which a chairperson may ensure the success of a meeting. (8 marks)

Answer

  1. Follow a clear agenda and keep discussion relevant.
  2. Encourage balanced participation and manage interruptions fairly.
  3. Summarise proposals and ensure decisions are reached under the applicable rules.
  4. Confirm actions, responsible persons and deadlines before closing.

Question 12

Montana Limited operates taxi services in Nairobi. The management has realised that their client base has been declining for the last one year. As the Assistant Manager you have been asked to investigate the matter. Assume that you have completed the investigations and write the report. (16 marks)

Answer

Illustrative examination answer. Dates, investigation details and findings are supplied for the exercise where the question does not specify them.

MONTANA LIMITED

REPORT ON A DECLINING TAXI CLIENT BASE

To: The Management
From: Assistant Manager
Date: 18 November 2024

1. Terms of reference
Management requested an investigation into a declining taxi client base during the last year, with practical recommendations.

2. Methodology
Relevant company records were examined. Staff and a sample of affected customers or participants were interviewed, and existing procedures were reviewed.

3. Findings

  1. Clients reported inconsistent pick-up times.
  2. Some passengers considered fares unclear or uncompetitive.
  3. Vehicle cleanliness and driver courtesy varied.
  4. The booking process was less convenient than competing services.

4. Conclusion

The decline results from a combination of service, operational and communication weaknesses. A coordinated response, with clear responsibility and progress reviews, is required.

5. Recommendations

  1. Introduce reliable dispatch and pick-up monitoring.
  2. Publish clear fare information and review pricing.
  3. Set vehicle presentation and driver-service standards.
  4. Improve booking channels and follow up complaints and repeat-customer feedback.

6. Follow-up

Management should assign each approved action to a responsible officer and review progress monthly against agreed performance measures.

Prepared by: A. Otieno
Assistant Manager
Signature: A. Otieno

Question 13(a)

Peal Limited intends to close some of its branches soon. As the Assistant Office Manager, write a letter to the customers informing them about the closure. (12 marks)

Answer

Illustrative answer; addresses, dates and the signatory are examination examples where not specified.

Peal Limited
P.O. Box 100, Nairobi

15 June 2020

Our Valued Customers
P.O. Box 200, Nairobi

Dear Sir/Madam,

RE: CLOSURE OF SELECTED BRANCHES

We wish to inform you that selected Peal Limited branches will close on 31 July 2020 as part of a reorganisation of our service network. Customers served by the affected offices will receive specific information about the branch responsible for their accounts.

Our Customer Service Department will assist with the transfer of outstanding enquiries, orders and records. Existing commitments will be handled under their agreed terms, and customers will be informed individually where arrangements need clarification.

Please contact Customer Service before the closure date if you have an unresolved matter or require information on the nearest continuing office. We regret any inconvenience and will provide assistance during the transition.

Thank you for your continued support and understanding.

Yours faithfully,
A. Otieno
Assistant Office Manager

Question 13(b)

Explain three benefits of thorough preparation for an employment interview by an interviewee. (6 marks)

Answer

  1. Understanding the employer and role makes answers more relevant.
  2. Rehearsing examples improves clarity and confidence.
  3. Planning documents, travel or online access reduces avoidable delays and stress.

Question 14: Reading passage

Cash flow management is essential for small businesses because it is the main factor that determines whether the business thrives or collapses. In accounting terms, cash flow means the difference between the amount of cash available at the beginning of a period, known as opening balance, and the amount at the end of that period, known as the closing balance.

Businesses that lack positive cash flow or those that pay more money out than they are bringing in are almost assured of collapsing sooner later. The businesses should not focus so much on profit but on cash flow. Once they achieve effective cash flow, profits will almost automatically follow. However, without positive cash flow, businesses are unlikely to tap opportunities or react to challenges effectively. Despite the fact that many decision makers understand the necessity of managing their cash flow, two thirds of small businesses still experience cash flow problems from time to time. These businesses can improve their positions using various strategies. To begin with, the businesses need to set cash flow targets by preparing and maintaining a forecast. Such targets enable credit controllers to put in place mechanisms to achieve their targets.

In addition, small businesses can ask for a deposit if the products they provide require substantial capital before delivery. This helps the business to manage liquidity by not tying a lot of its own money in the venture. Another strategy is prior agreement on payment terms. If a service provider or a supplier does not start off by stating what the payment terms are, then it is difficult

to know when they are going to be paid. Therefore, establishing clear payment terms from the outset is important.

Further, it is always prudent for a business to inform its bank whenever it encounters some unexpected issues which may impact on cash flow or capacity to meet financial obligations. Banks are important to a business because they offer essential financial services such as overdrafts and credit facilities. Hence, it is important for the business to win the confidence of the bank. Moreover, businesses should create a payment schedule to manage cash flow. Every business experiences a gap between invoicing and payment. One good way of ensuring cash flow stability is by establishing a direct debit as a business norm for collecting receipts. This enables the business to collect revenue without increasing the cost of collecting debt. It also seamlessly provides a stable inflow of cash from which all payments can be made.

Furthermore, use of technology can boost a business’ cash flow. For instance, there are software which can help entrepreneurs to run their businesses if they have limited time. Besides, quick invoicing is an important technique for cash flow management. A good example is giving vendor discounts for invoices paid within a shorter period than the one agreed in the contract. Making

payments easier is yet another way to entice customers to pay quickly. For example, an enterprise should deliberately try to avoid being paid by cheque for this may result in delay between the time the money is paid and when it is credited in the bank account. Online payment may be the better option here.

A small business can also seek favourable payment terms from vendors. Since vendors value their clients, they may have a strong incentive to help finance their customer’s purchases. In this case vendors can pay the business upfront and then wait for a short while for their customers to pay them. This strategy might make a big difference for a business’ cash flow management.

Business managers should therefore evaluate the various strategies available and determine which ones work best for their enterprises. Cash flow is the fuel that powers business and therefore understanding the options available equips managers to better run, maintain and grow

their businesses. ms

Adapted from Business Daily, Tuesday, August 14, 2018. Passage reproduced from the supplied examination paper for this comprehension exercise.

Question 14(a)

State the meaning of each of the following words and phrases as used in the passage: (i) positive; (ii) substantial; (iii) terms; (iv) impact on; (v) entice; (vi) evaluate. (6 marks)

Answer

  1. positive: having an excess of inflows over outflows in the context described
  2. substantial: large or considerable
  3. terms: agreed conditions
  4. impact on: affect
  5. entice: attract or encourage
  6. evaluate: assess carefully

Question 14(b)

In about 150 words, and according to the passage, write a summary of the strategies that can be used by small businesses to improve their cash flow positions. (12 marks)

Answer

Small businesses can improve cash flow by preparing and maintaining forecasts and setting clear collection targets. They can request deposits for orders requiring substantial advance expenditure, reducing the amount of their own funds tied up before delivery. Agreeing payment terms at the outset makes due dates clear. Businesses should inform their banks early about unexpected difficulties affecting financial commitments. Payment schedules and agreed direct-debit arrangements can make receipts more predictable and reduce collection effort. Appropriate technology helps monitor transactions when management time is limited. Prompt invoicing and carefully assessed discounts may encourage earlier settlement. Convenient payment methods, including suitable online options, can shorten delays associated with cheques. Businesses can also negotiate favourable arrangements with suppliers or other trading partners. Managers should assess the available strategies and select those suited to their operations, while monitoring receipts, payments and the resources needed to continue trading.

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