A commercial business letter is a letter written in formal ...

A commercial business letter is a letter written in formal ...

BUSINESS LETTER Karie Ann Gunderson EC/Accounting/March 2015 BUSINESS LETTER It is a letter written in formal language, used when writing from one business organization to another, or for correspondence between such organizations and their customers, clients and other external parties. They are used for different purposes; like placing orders, making inquiries, making credit request, requesting claims and adjustment, to apologize for a wrong or simply to convey goodwill. etc.

Even today, they are very useful because it produces a permanent record, they are confidential, formal and delivers persuasive, well-considered messages. Style of letter depends on the relationship between the parties concerned. 1. THE LETTER HEAD / THE SENDERS ADDRESS Includes the companys logo / symbol / name, address, ZIP, telephone number, fax number, email address and website of the company. Printed at the top center/left or the right side. SENDERS ADDRESS: It is usually given in the letter head, but if there is none, the

Senders Name, Address and Contact details can be typed. 2. REFERENCE Include a reference line to identify a file or case number, invoice number or any other internal identifying information, if your company requires one. Some companies have specific reference codes that they place either in a reference line below the date, or at the very bottom of the letter. REF.HMT/25/2005/114 3. DATE

1. 2. Date consists of the date, name of the month and the year. If the letter sheet includes a letterhead, type the date from 2 to 3 lines under the letterhead, else type it under the return address. Never send a letter without a date. The date is written in two styles. The British Method (ordinal numbers) : 4th July, 2012 The American Method (cardinal numbers) : July 4, 2012 Never write like 7-2-12 or 7/2/12 because it shows that the writer is careless or in a great hurry. 4. THE INSIDE ADDRESS

Includes the name and address of the firm or the individual to whom the letter is written. Written on the left side, beside the margin, two spaces below the date- line. Use Courtesy titles before names of the receiver such as Mr., Mrs., Shri, Smt., Miss, Ms, Messrs, Dr, Prof., Capt., Maj., Col., Gen. etc. The address can also begin with a job title or a department (if you dont know the name). For e.g. : The Sales Manager, The Accounts Department etc. 5. SUBJECT AND RECEIVERS REFERENCE NO

Subject is use so that the reader immediately knows what your letter is about. Use Subject or Re. Subject usually comes between Salutation and body. The receiver's references i.e. the receivers pervious letter number is mentioned under the heading reference. This will enable the receiver to easily take out a copy of his own letter from his files and understand the matter in the reply. e.g. Your Reference :MBM/SD/285/05 DATED 5th oct.2005

6. SALUTATION It is a compliment or greeting. Written beside the left hand margin, two spaces below the Inside address and two lines above the body of the letter. It is followed by a comma (,) or a colon (:). Salutation depends on the gender, type, number or the social status of the person addressed. Ex: Dear Sir, Dear Madam, Dear Amit Das, Dear Mr. John, Dear Nancy,

Dear Sales Manager, Dear Customer, Dear Ladies and Gentlemen, Respected Sir, 7. BODY Begins two spaces below the salutation. Contains the message or the information to be communicated. Most important, lengthiest, prominent part- written in correct, appealing and impressive style. Divided normally into 3 parts: Introductory paragraph

1) 2) 3) Middle paragraph Closing paragraph Double space between paragraphs. If letter exceeds one page, repeat the recipient's name, date, reference/subject line and put page number. Continue your letter three lines below the heading. 8. COMPLIMENTARY CLOSE It is written two spaces below the last line of the body.

It is a polite way of saying Good bye. It depends on the tone and degree of formality. Formal: Respectfully yours, Sincerely, Yours faithfully Informal: Cordially yours, Warm Regards, Best wishes 9. THE SIGNATURE AND DESIGNATION Written double space below the complimentary close. First comes Signature (pen written). Sign your first and last

name. Second line - type written name. Third line - business title. The signature acts as proof. 10. ENCLOSURES This line tells the reader to look in the envelope for more.

Write Enc./Encl./Enclosure below the signature block. e.g. : Enclosure Enclosures: 3 Enclosures : Check #231 for $500 If you don't enclose anything, skip it. 11. REFERENCE INITIALS If someone else has composed typed the letter for you, it is common for them to indicate so with initials. Typically it is your initials in upper case followed by the other

initials in lower case. SWA/KA - (composer/typist) SWA:KA 12. COPY NOTATION When other people are to receive a copy of the same letter, their names are noted either by their ranks or by alphabetically. Written just below the reference initials or the enclosure whichever is last. Type cc before the names if sending a carbon copy(to) and pc for photocopy (to). CC: Jim Blue, Jennifer Louis

LAYOUT 1. BLOCK Each line of every part begins at the left margin. At least one line space between each part. Time saving method and beautiful to look at, also known as American style. INDENT New paragraphs begin about 1.5 centimeters to the right of the left margin. 2.

3. This style is also known as Hanging style. This method consumes a lot of time, looks shabby , therefore out of practice. SEMI BLOCK/MODIFIED BLOCK Some parts are typed in block method and other parts are indented. Return address, date, closing and signature start just to the right of the center of the page or may be flush with the right margin. Most widely followed method in our country specially in govt. offices. TYPES OF BUSINESS LETTERS

Inquiry Order Refusal Acceptance Quotation Follow up or Cancelation Compliance Complaints, Claims, Adjustments Settlement Collection Agency

Sales letters GOOD / NEUTRAL NEWS LETTERS OPENING Mention the Best news or summarise the main idea. MIDDLE Explanations, details, reader benefits, background. END Use goodwill ending. Positive friendly, clear statement of action desired, motivation to action, willingness to help further, appreciation.

Examples of Good/ Neutral news letters: Approving Credit Acknowledgements Acceptance letters Letters of Appreciation, Congratulations, Condolence Confirmations, Granting favors and other requests. Summaries Adjustments Transmittals Announcements Goodwill messages Thank your notes

BAD / NEGATIVE NEWS LETTERS 1. 2. 3. 4. 1. 2. 3.

1. OPENING Buffer Begin with reader interest information. Agreement, Appreciation, Assurance, Compliment, Cooperation. Give good news (if you can grant any) MIDDLE Present negative element as positively as possible. Explanation and analysis of the circumstances. Decision, implied or expressed with resale and or helpful suggestions. END Positive, courteous, friendly, firm and forward looking ending.

Examples of Bad/ Negative News letters Refusing Credit. Refusing adjustments on Claims and Complaints. Answering Non-Sales related inquiries. Declining invitations and requests for favours. Announcing a bad news about prices or services. Rejection Letters. APPLY SEVEN CS OF COMMUNICATION 1. 2. 3.

4. COMPLETENESS: Letter should not lacks its purpose. Provide all necessary information. E.g. Order should not only mention quantity but also size, price, packaging, delivery, transportation charges, discount rates, payment item and condition etc CONCISENESS: Be to the point, avoid unnecessary repetitions and include only relevant material. CONSIDERATION: Focus on you instead on I or We, Show reader benefits and emphasize positive pleasant facts. CONCRETENESS: Use specific facts and figures, put action in verbs and choose image building words. 5. 6. 7.

CLARITY: Choose precise, concrete and familiar words. Construct effective sentences and paragraphs. Reader should understands the matter in first reading. COURTESY: Whether writing a complaint or a concern, be sincere, thoughtful, appreciative, courteous and respectful. Offer to do whatever you can, within reason, to be accommodating and helpful. CORRECTNESS: Use right level of language. Double check the facts, figures, dates, price, spelling and grammar. Maintain acceptable writing mechanics. Starting Referring to previous contact Making a request We are / I am writing

to inform you that ... to confirm ... to request... to enquire about Thank you for your letter of March 15. Thank you for contacting us. Thank you for your letter regarding ... With reference to our telephone conversation yesterday... It was a pleasure meeting you in London last month. We would appreciate it if you would ... In addition, I would like to receive ... It would be helpful if you could send us ... I am interested in (obtaining / receiving) ... Please let me know what action you propose to take. Offering help

Would you like us to ...? We would be happy to ... We are quite willing to ... Our company would be pleased to ... Giving good news We are pleased to announce that ... I am delighted in inform you that .. You will be pleased to learn that ... Giving bad news We regret to inform you that ... I'm afraid it would not be possible to ... After careful consideration we have decided (not) to ... Complaining I am writing to express my dissatisfaction with ... Please note that the goods we ordered on ( date )

have not yet arrived. We regret to inform you that our order n ----- is now considerably overdue. I would like to query the transport charges which seem unusually high. TIPS IMPORTANT: Draft your message, Revise, Edit, Rearrange and Proof read. Maintain proper margins. Use the right font size, style and colour. Strike the right tone: be brief and professional, don't be too blunt or flattery. Use a quality pen to sign the letter and thoroughly read before you send it Neatly fold the letter into thirds and post it in a clean envelope(with company logo). Neatly print/write your return address and the recipient's address on the envelope

REFERENCES BOOKS Bhatia, C. , Business Communication, Ane Books India, Anes Student Edition, 2008, PP 243 - 350 Locker, K and Kaczmarek, S., Business Communication - Building Critical Skills, Tata McGraw Hill, 3th edition, 2007, PP 128 - 190 Murphy, H. Hildebrandt, H and Thomas, J. , Effective Business Communication, Tata McGraw Hill, 7th edition, 2010, PP 156 276 WEB LINKS http://www.sc-s.si/blog/wp-content/business-letter.pdf http://www.mahidachintan.com/documents/Unit-8.pdf

http://www.mahidachintan.com/documents/Unit-8.pdf http://www.icosmos.com.tw/templates/images/files/9789861845586.pdf http://www.4hb.com/letters/business-letter-format.html

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