Methods of communication — practice questions

Phase 1 — Senior managers: Live video call (electronic + verbal) — allow Q&A, show empathy; written talking points follow.

Phase 2 — Affected staff: Face-to-face (or video if remote) individual meetings with HR — written confirmation of terms.

Phase 3 — Remaining staff: Town hall + written FAQ on intranet — reduce grapevine rumour (7.2.3).

Avoid: Mass email only — cold, leaks early, damages trust.

Step 1: Calculate Total Cost

• Postal Letter: 50,000 customers × $1.20/letter = $60,000
• Email: $500 (flat fee)

Step 2: Calculate Number of Customers Reached

• Postal Letter: 50,000 customers × 60% = 30,000 customers
• Email: 50,000 customers × 25% = 12,500 customers

Step 3: Calculate Cost Per Customer Reached

• Postal Letter: $60,000 / 30,000 customers = $2.00 per reached customer
• Email: $500 / 12,500 customers = $0.04 per reached customer

Step 4: Recommendation and Justification While email is drastically cheaper per customer reached ($0.04 vs$2.00), its total reach is less than half that of postal letters. For a critical safety recall, maximising reach is the primary objective, not minimising cost. The formality of a written letter also conveys the seriousness of the issue more effectively than an email, which may be missed or ignored. Therefore, the postal letter is the more appropriate method despite its higher cost, as the potential legal and reputational damage from failing to inform customers outweighs the $59,500 cost difference.