Business Correspondence

What is a Business Letter or Commercial Letter?

 1. A business letter is usually a letter from one company to another, or between such organizations and their customers, clients, and other external parties. The overall style of the letter depends on the relationship between the parties concerned.

2. The letter that contains business-related issues and information is called a business or commercial letter. It refers to the letter in which business or people exchange information with various business firms, customers, suppliers, employees, banks, insurance, companies, government agencies, and business associations aimed at selling or buying goods, obtaining information, placing orders, making an inquiry, etc and other related issues. Some important definitions of a business letter are given below:

 Importance of Business Letter

Business letters are used to sell products, make inquiries about customers or prices of goods, seek information and advice, maintain good public relations, increase goodwill and perform a variety of other business functions. With the continuous growth of commerce and industry, the usefulness and importance of business letters are also increasing gradually. Some points highlighting the benefits or importance of a business letter are given below:

 1.  Exchanging business information: Letters are the most economic and convenient means of exchanging information. With the help of letters, executives can easily exchange information with customers, suppliers, investors, government offices; regulatory authorities, etc.

 2.  Establishing business relationships: Business letters play important role in establishing and maintaining relationships with various parties. Business letters reduce the distance between a business and its customers, suppliers, creditors, and other public groups.

3. Legal acceptance: A business letter is an acceptable document in the eye of law. It can be stored and produced as documentary proof.

4. Increasing goodwill: Business letters, like inquiry letters, circular letters, order acknowledgment letters, adjustment grant letters,s, etc help to increase the goodwill of a business with the customers.

 5. Saving cost and time: Business letters relieve the busy executives from visiting personally their clients and other concerned parties. Therefore, valuable time and costs can be saved.

 6. Assistance in local and international trade: Bothe local and foreign trade essentially requires the help of various business letters. Through letters, businesspeople make inquiries about products and prices place orders for goods collect dues make and settle claims, etc.

AIDA

ATTENTION    -A- catch readers' attention

INTEREST       - I - build readers' interest by further explaining the benefits

DESIRE            - D- builds readers' interest by giving additional supporting details

  ACTION             -  A- motivate the reader to take the necessary next step

In some letters, persuasion is used when we suspect that the reader will not be interested in carrying out what is expected of him

 So opening remarks in such letters is to draw the attention of the reader for example---- Every sixth second a child is born.

Written Communication

 Written communication is very common in business situations, therefore, we should have good communication skills.

1-Writing strategies

All businesses activities are envisioned, planned, implemented, and analyzed in some written word or form

 It is through written communication like reports, summaries, or memos that vital information is communicated

 Writing reveals one's ability to think clearly and use language effectively

It gives us sufficient time to think, consolidate, shape, and present ourselves

2-Following are effective writing strategies---

 >Know your audience so that you know the best language to use.

> Tone- reflex writer attitude and approach.

> Avoid using jargon (technical terms)

> Non-discriminatory language

 Example--- "Managers and their wives are invited".

( This is discriminatory language).

"Managers and their spouses are invited".

 ( This is not discriminatory language).

> Appropriate language-- keep writing plain and simple

> Grammar-- spelling and sentence structure.

3-Business Letters

> A business letter is a written communication between two parties

 For example, a businessman writing to a supplier, a customer writing a letter to a company

> Business letters are also called commercial correspondence as it is used for conducting business transactions

4-Need for letter writing----

>Acts as a representative of an organization.

> Provides information on the subject.

> Provide valuable legal evidence.

. For future reference for organizational and individuals provides and promote goodwill

> Provides enlargement of business helps in the expansion of business

5-Functions of letter writing---

a- Promotional function--- expands markets by tapping new areas

b- Informational function-- available for future references

c- Legal function---useful as legal documentation

d- Goodwill functions--- build a good rapport

6-Layout or style of writing-----

- The layout should be impressive and attractive

- It depends on the wall of

- Arrangement of printed method

- The way the letter is folded

- Envelope its quality and its layout

- Addresses name and address,

- Stamping

7. Do's and don'ts of business letter

> business correspondence should be

 >effective

> should cause the right impact on the reader

> should achieve the purpose for which it has been written

> it should have a well-organized structure

> we should avoid using jargon and idioms

> we should use accurate grammar and punctuation

 Do's

1.  correct traditional layout
2.  avoid mistakes as it shows the sender as a negligent person
3.  use the best paper and black ink
4.  do start and end with an interesting phrase without being floury
5.  mailing and actual date should be the same

 Don'ts

1.  don't use a personal style
2.  don't use stitches
3.  don't forget correct grammar uses punctuation
4.  essential steps are
5.  are drafting editing checking to proof 
6.  don't use capital letters  or italics

 7 C's of letter writing

1- Clarity

2- Consciousness

 3- Correctness

4- Cordiality

5- Conviction

 6- Completeness

7- Courtesy

Formal Letter with Standard Elements

In present-day, the transformation of information has been replaced by Electronic Communication therefore effective letter writing requires a strong command of language along with knowledge of various popular letter formats and a good choice of words

 One should directly address the issue in a letter

Structure of Letter for Standard Elements----

1- Letterhead--- it contains the name, address, telephone number email ID of the company

2- Inside Address-- it has the receiver's address

3- Solutions-- always address a person as Dear Sir or Dear Madam

4- Main message--It is the main content of the letter that occupies maximum space

 5-Complimentary Closure-- It has for example your sincerely with best regards, etc

6- Signature Block --This has the signature name and title of the sender

7- Attention line---- used when the inside address does not have the name of the individual

8- Subject---- it tells at a glance the main purpose of writing a letter

 9-Reference line-- it contains the sequence no. of the letter

10-Enclosure Notification---- it contains the list of documents

11-Copy Notification--It tells about who else is receiving a courtesy copy

12-P.S--- It stands for postscript i.e., an afterthought to the letter

 

Formats for Business Letter

 As far as formatting of a letter is concerned, given below is the standard format of any business letter:

 •   Letterhead: Most companies have a specific letterhead that you will need to type letters on. This may make it necessary to adjust the margins so that words are not printed onto the letterhead area.

•     Name and address: Always try to have the name of someone that the letter should go to, even if you have to call to find it out.

•     Date: This is the date that the letter was written. It should be written out, such as January 15, 2008.

•      Reference: This gives a short description of what the purpose of the letter is. For example, one might write "lost invoice" or "account number 23654" or something like that.

•      Salutation: If you do not know the person, use a more formal one, such as Dr. Brian Lowden.

•      Subject matter/body: Single-space and left justify for modified block and block style letters. Have one blank line between paragraphs. The first paragraph should have a friendly opening and state the purpose of the letter. The subsequent paragraphs should support the purpose you stated in the first paragraph.

•     Closing: This should be "thank you," "sincerely," or something similar.

•     Signature: This is the actual signature of the person the letter is from, which may be different from the person who wrote the letter.

•      Typist initials: These are the initials of the person who typed the letter. These are not the initials of the person from who it is from. If they are both the same person. then this line is not necessary. Usually, the first initials would be that of the writer, and the second initials are of the typist and are in lowercase. For example JW/sc.

•      Enclosures: List here anything else you may be sending, such as a brochure, samples, etc.

 Each of these areas has a proper place, depending on which type of letter you are creating. What goes in each area also may vary, depending on whom the letter is being sent to and who is writing it. There are three main styles of business letters: block, modified block, and semi-block styles. Each is written in much the same way, including the same information, but the layout varies slightly for each one

 FORMAT OF BUSINESS LETTER

 “sender’s address.

Sender's phone number

 Date

RE: what the letter is about

 Recipient's Name Recipient's company name Recipient's address

SUBJECT:      

 Dear Name:

In this type of block letter, all the paragraphs line up at the left margin. There is no indenting of the paragraphs. The margins should be set to 1-1.5" all the way around the page. If you are using company letterhead, you will need to account for that in figuring the margin where the letterhead is placed on the page.

You only need to single-space between sentences. Leave an extra open line between paragraphs. Keep in mind that these sample letters are a guideline. People often customize to meet their preferred style.)

Sincerely,

 Signature

here

 name, add title

 [Identification initials] Enclosures:

cc: Name

Business Letter--- Layout

As in all professional writing, business letters should be brief but clear. The relationship between the writer and the recipient should be stated at the outset. If action on the part of the recipient is requested, then that action should be specified. The tone of a business letter depends on the recipient: if it’s someone with whom you’ve worked closely for several years, the tone may be warm and friendly, but in general business, correspondence tends to be formal. Even if your letter is registering a complaint, your tone should be polite.

Business letters, written on standard business letterhead, should be written in a block format, with everything beginning at the left margin.

1.  Date: Month (spelled out), day (followed by a comma), year

2.  Inside Address: The inside address belongs two lines after the date (this is the same address that appears on the envelope). It includes the recipient’s name preceded by “Mr.,” “Ms.,” “Dr.,” etc.; the title of office (“President”) follows the name on the same line if the title is short; then the full address: street, city, state (official abbreviation only), ZIP code

3. Salutation: “Dear” followed by the title, last name, colon. “ave “To Whom It May Concern” for recommendations and testimonials, and avoid “Gentlemen” and “Dear “ir”; they’re gender-specific.

 4.  Body of letter: The body of the letter begins two lines below the salutation and uses short, single-spaced paragraphs. State the purpose for and any connection with the recipient in the first paragraph. Describe what’s wanted in the middle of the letter’s body, and request specific action at the end of the body.

 5.  Close: Insert the closed two lines below the last line of the letter. Capitalize the first word; conclude with a comma.

6. Signature: Leave three lines of space after the close for the signature. The signature should be signed in ink with the signatory’s name typed one line below and the title typed one line below that.

 7. Identification marks: If the letter is typed by someone other than the writer, then the typist’s initials should be inserted below the typed name of the signatory; capitalize the writer’s initials and use lower case for the typist’s.

 8. Enclosures: “Enclosures” (or “Encl.”) indicates that additional material should be included.

9. CC:  Copies: List other recipients alphabetically (or by rank).

Classification of Business Letters 

or

Types of Business Letters:

•  Business Letters are social and business assets
•  Effective communication through letters save much time trouble and inconvenience

Business letters can be classified into the following categories:

1. Purpose: Classification of business letters on the basis of purpose, the business letters are divided into two parts

1.  Information letter which is further divided into two parts :

1. routine inquiry letters and 
2. special purpose letters 
3. Sales Letters
1.  Problem Letters - Complaint Letters
2.  Goodwill Letters -  Letters for Greetings,  Thank you Letters, Condolences Letters
3. Official Letters - These letters include all letters sent to government departments semi-government departments and official bodies

2. Subject: On the basis of the subject business letters are classified as Enquiry Letters, Order Letters, Credit Information Letters, Collection letters, and personnel appointment letters

3. Others:      types of business letters include:

a.            Routine claim letters 

b.            Routine request for credit letters

c.            Routine request and inquiries letters

Types of Letters : 

The routine letters for business transactions are:

1.         Enquiry Letter (inviting quotation)

 2.         Reply to the inquiry (Sending Quotation)

 A letter of Enquiry is one of the most important types of business letters. When a buyer wishes to get some information about the quantity, price, availability, etc of goods to be bought or about the terms of sale, payment.etc

 The letter written in response to the inquiry letter is called the Reply letter. Inquires must be replied to promptly. A response letter provides the answers or information requested in a letter of inquiry. The objective is to satisfy the reader with an action that fulfills their request

Inquiries for information about services or goods are received and sent in business all the time. When you write a routine letter of inquiry, you can follow these guidelines:

Write clearly and precisely what you want — a catalog, price list, quotation, sample, general information, etc.

Do not mention the price limit at which you want to buy a particular product. If you do so, the supplier may raise the quotation to the limit you state.

 Suppliers usually state their terms of payment when they reply to your inquiry. So you need not ask for them unless you hope for a special rate.

Try to keep your inquiry as clear and concise as far as possible.

An inquiry letter must be acknowledged promptly as it means potential business. If you receive it from an established customer, reply to it with much appreciation. If you receive it from a prospective customer, reply to it by saying that you are happy to receive it and state your hope for a lasting and friendly business relationship. Here are some examples of correspondence exchanged for inquiry

Enquiry Letter Sample: 1

Myako Departmental Store

305 Youngman Road Ottawa, Ontario (301) 321-5845

info@miyako.com

 

20 August 2014

Reference No.-----------

Reliance Electric Company

579 Lake Center Drive 

Upper Marlboro, MD 20773

Subject             -          

 Dear Sir/Madam

I have a large departmental store in Ottawa and I am interested in the electric hair dryers you have advertised in the Daily Mirror.

 Please send me a copy of your illustrated catalog and price list. As I need this product urgently, I would appreciate an early reply.

 Id. marks         

Yours sincerely,

William Smith Purchase Manager

Reply to the Above Enquiry Letter

-----------------------------------------------------------------------------------------------

 

Reliance Electric Company

579 Lake Center Drive

Upper Marlboro, 

MD 20773 

Phone: (301) 321-5248

E-mail: info@reliance.com

21 August 2014

Reference.No.

 Miyako Departmental Store

305 Youngman Road Ottawa,

Ontario

Subject             -          

 Dear Mr. William

Thank you for your letter inquiring about electric hair dryers. I am happy to enclose a copy of our latest illustrated catalog and price list.

You may have shown your interest in our latest electric hairdryer, the RX55 model. This specially designed model is easier to use and gives more comfort than earlier models. You will find detailed information on our terms on the price list page of the catalog.

 Your consideration to place a trial order to test the efficiency of the product would be highly appreciated. We assure you of our best services and shall deliver the products within a fortnight of the receipt of your order.

 If you have any questions please contact me on 2356987.

 Yours faithfully Jennifer Gomez

 Identification marks/ symbols Enclosures:-

 Enquiry letter no,2

 Sales Manager

 15 February 2013

Distro cloud Corporation 

Pasundan Raya 

Street, No. 15 

Jakarta 1240

 

FAHRI CLOTHES & CO

Jln. Kapten Muslim No.20

Medan INDONESIA

Subject:           

Dear Sirs,

 We are a boutique located in Bekasi, and we were interested in your distro cloud shirt medium-size product.

Therefore, we will appreciate it if you can send us a very detailed explanation of the product complete with your catalogs, price list, terms, a sample of design, and payment.

We would also to know if you are offering any trade discounts.

If you can quote us your favorable prices, we would like to place our order as soon as possible.

We are looking forward to hearing from you. soon.

 Yours faithfully, 

FAHRI CLOTHES &CO

 Ahmad Fahri

 Purchase Manager Identification marks Enclosures

 

Reply of Enquiry letter

 Distro cloud Corporation 

Pasundan Raya Street, 

No. 15 Jakarta 1240

16 January 2013

FAHRI CLOTHES &CO

Jln.Kapten Muslim No.20 Medan

INDONESIA

 Subject:            -           -

 Dear Mr. Ahmad Fahri

We thank you for your inquiry about our Distro cloud shirts product.

We are enclosing our catalog together with prices and terms, for your review and are confident that this catalog will provide many of

the answers you have inquired.

We are also pleased to inform you that we will allow you a 10% discount on orders of 60 pieces.

We hope you will find our prices and terms satisfactory and expecting your order as soon as possible.

If there is additional information you would like to know regarding our products, please do not hesitate to contact us. We will be most happy to be of assistance.

 Yours faithfully,

For Distro cloud Corporation

Ismail Marzuki Sales Manager

 Identification marks Enclosures

 

------------Order Letter ---------

 An order letter, also called a purchase order, is a formal letter issued by businesses to order goods or services from a vendor. This letter functions as a contract between the buyer and the seller

The letter which conveys the message for the supply of goods is known as a letter of order. In other words, the letter by which a buyer formally requests a seller to supply goods is known as an order letter.

The letter that is written by a potential buyer to the seller requesting him to deliver goods is known as an order letter. By writing inquiry letters, buyers can collect necessary information about the price, quality of goods, and terms of sale. If the buyer finds the quoted price, quality of goods, and terms of sales satisfactory, he places an order to supply goods at his address. The seller delivers the goods according to the buyer’s order.

 In modern times, sellers supply printed order forms to the customers and customers place orders by filling up those printed order blanks. In this case, the printed order sheet or blank is considered as the order letter.

 

*Factors to be considered while writing order letter--------

 An order letter is also treated as the formal contract between the buyer and seller.

Considerable factors for drafting order letter --------------------------

The following factors should be considered in drafting an order letter.

1.         Detailed description of the goods.

2.         Mention the delivery time.

3.         Provide specifications of the goods regarding size, color, style, quality, etc.

4.         Shipment forwarding directions i.e. the root of the transportation.

5.         Mode of payment.

6.         Mention the discount factor.

7.         Formal request for timely delivery.

Complaint Letter

 Letters that are written by the customers to the sellers about their inconveniences created by some unexpected situations are known as complaint letters

 In a simple way, the letter written by the customers to convey their complaints to the seller of goods or to the transport authority is termed a complaint letter. In the process of supplying ordered goods to the customers, different persons and parties are involved. Therefore, there is every possibility of inadvertent mistakes being committed by someone. This may create inconvenience to the customers and even cause them financial loss. Therefore customers write letters to inform their inconveniences to the seller or to the transport authority. The letter written for this purpose is a known complaint letter.

 Causes of drafting a Complaint Letter

 After placing orders, customers expect that sellers will deliver the products accordingly. If the seller fails to do so, customers write a complaint letter. Such a letter is usually written for the following reasons or causes:

 •           Merchandise not received.

•           Part of the merchandise not received

•           The merchandise received was not received

•           Delivery of defective products

•           Goods received in a damaged condition

•           Quantity of goods is not what was ordered

•           Goods delivered to wring address

•           Delivery of goods is delayed

•           Impoliteness of office staff of the seller

•           Delivery of mix-up products

•           Clerical or bookkeeping errors

•           Mistakes in the bill

•           Charging a high price

•           Price included for goods returned

•           Reminders for payment of bill already paid

•           Poor quality of packaging

•           Faulty insurance coverage

•           Missing products during transportation

•           Carelessness of transportation authority

•           Ignoring the provisions regarding brokerage, commission, and discount

Specimen 1 :

: M/s. Anna Food Products Ltd. has placed an order on December 05, 2013, to Mr. Michel Flour Mills Ltd. For 2000 bags of flour to be sent within December 15, 2013. Mr. Michel Flour Mills has accepted the order but the delivery of shipment was delayed for 3 (three) days, to the complaint letter to the Manager, Mr. Michel Flour Mills Ltd. 10, Washington, New York, for the delay.

 Collection letter block layout

> collection letters are also called the dumbing letters, these letters are written to ensure the collection of accounts receivable

 >collection letters are written again and again for settlement of accounts

> these letters are written to customers to buy your credit and or who do  not pay on time

> the party who has to pay the money is called the customer, and the party who has to collect the money is called the collector

> in this letter we should not offend the customer we should not put the request to collect the 

COMPLAINT LETTER 1.

 M/s. Anna Food Products Ltd. 302, TUCSON AZ 85705, USA

Ref. ………………………………       December 20, 2013 Manager

Michel Flour Mills Ltd.

10, Washington, New York Dear Manager

We have placed an order on December 05, 2013, for 2000 bags of flour to be sent within December 15, 2013. You have sent an order acknowledgment letter and promised to deliver the shipment within the stipulated time. But it is unfortunate that the actual delivery was delayed for 03 (Three) days.

 

Due to your delay in sending the shipment, we could not maintain our promise to our customers. Recurrence of this problem will force us to business elsewhere.

 

We expect that you will take the matter seriously and will take the necessary steps to prevent its recurrence. We are looking for future business.

 

Thanking your

 

Yours faithfully (Mr. Jonson)

Manager Anna foods

 

ID MARKS/ SYMBOLS

 

ADJUSTMENT LETTER

 A letter that carries a favorable response against any reasonable request or claim is known as an adjustment letter. It is an acknowledgment to the claimant informing him that his claim is under due consideration.

 INTRODUCTION

 Due to a mistake, error, or fault with the delivery of goods, the buyer makes claim to the seller explaining the reason for the claim properly. If the seller wishes to keep his customer’s business, it is important for him to answer complaints as specifically and as quickly as possible. So, a letter is written by a seller to a buyer or customer informing him of the action taken in response to his (customer) letter of claim; such a letter is known as an adjustment letter.

 Dissatisfied customers write a complaint and claim letters either to the seller of goods or to the transportation authority, while the recipient of the complaint or claim letters writes adjustment letters. A customer writes a complaint letter if he finds anything unsatisfactory with the product he purchased. In the complaint letter, the customer simply expresses his cause of dissatisfaction. But, the customer writes a claim letter if he suffers from any financial loss. In the claim letter, the customer makes a specific claim along with the logical cause behind the claim. After receiving the claim letter from the affected customer, the seller will write the Adjustment letter either granting or rejecting the claim. In both cases, the letter should be written in a friendly and wormy tone.

 Adjustment letter sample 1.

 Bangladesh Textiles Mills Ltd.

Narayangong, Dhaka

 

10th Feb. 04

 

Marketing MangerBexi-Clothes Corner South Plaza,

Dhaka-1215.

 

Ref: Your letter dated 5th Feb. 04.

 

Dear Sir,

 

We thank you .for your letter of 5th Feb. 04 along with/ sample of cloth for examination. The report that we have received just today shows that the consignment forwarded to you was the wrong one full of defective clothes. It was a mistake because of our despatch section and we regret this mistake which has caused you both embarrassment and inconvenience. We have already sent the replacement by passenger train. You can be sure of the quality of cloth now sent.

 

You can, of course, return the clothes to us and debit our account for the loss caused to you. We again regret the inconvenience to you and assure you that such mistakes will be avoided in future.

 

Yours faithfully

 

M. Ashraf Sales Manager

Bangladesh Textile Mills Ltd.

 

Id marks/ symbols Enclosures

Adjustment letter example 2

Emporium Tea Ltd.

Golf Club Road, Tongi, Gazipur

25th July, 04,

 

Manager

State Tea Corner

25, Dhanmondi, Dhaka-1211

 

Ref: Your letter dated July 21, 2015

 

Dear Sir,

 

We have received your letter of complaint dated July 21, 04 regarding the shortage of quantity. It is probably the first time that we get such a complaint from a customer regarding the shortage of quantity.

 

Whereas you are our valued customer, we cannot deny any human error made by our dispatch workers. As a large concern in the country, we have to deal with large quantity each day and therefore a sudden error is possible. We, therefore, are dispatching the shortage quantity as per your order.

 

We expect your co-ordination as before.

 

With thanks.

Yours faithfully

 

Salam Ahmed Sales Manager

Emporium Tea Ltd.

 

Identification marks Enclosures

Job Application Letter

 A job application letter (also known as a cover letter) is a letter you send with your resume to provide information on your skills and experience. This letter is your chance to “sell” yourself to an employer, explaining why you are an ideal candidate for a position.

 The letter of application is intended to provide detailed information on why are you are a qualified candidate for the job you are applying for

Your application letter should let the employer know what position you are applying for, what makes you a strong candidate, why they should select you for an interview, and how you will follow up.

In another word, an application letter is also called as a cover letter. It is considered to be an important document that you can send with your resume. In this document, you can add information related to your skills and experiences. This letter basically gives the reason to the employer to appoint you because it states your qualification for the particular job.

TYPES OF APPLICATION LETTER

 1.         SOLICITED --A solicited cover letter is something you draft when you're applying for a posted job opening or responding to an employment ad. Start off the letter by introducing yourself and stating why you're writing. For example, "I'm writing in regard to the open marketing manager position posted on your website

2.         UNSOLICITED     --An unsolicited cover letter is used to pitch yourself to a potential

employer, either for an existing job opening or as a way of introducing yourself to a company you'd like to work with. The former is known as "prospecting," and is used to let an employer know who you are and what kind of job you're looking for

 

FORMAT OF JOB APPLICATION LETTER

 

From:

    (Your name)

         (Your address)

 Date     (date of writing letter)

 

To,

            (employer’s name)

            (employer’s address)

 

 Dear Mr. /Ms   (name of the concerned person),

 

I have come across your advertisement regarding the post of  (mention post)

in         (mention where you saw the advertisement) dated      (mention date of advertisement).

 

I am a graduate in        (mention subjects) from           University (name). Currently, I

am working in ………………….(name of current employer) as a       (designation). I have

around years of work experience.

 

I am sending all my certificates including my resume for your perusal. Please inform me through email or call me on the telephone number given in the resume if I am short-listed.

 

Your organization has a good reputation in the industry and I want to be a part of this esteemed organization. If I am selected, I shall put in all my efforts and become an asset to the organization.

 

Looking forward to hearing from you,

 

Thanking you,

 

Yours Sincerely,

 

 (Your name)

 Enclosures:--

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