MODULE -4

BUSINESS LETTERS & REPORTS

MODULE OBJECTIVES
Introduction to business letters

Types of business letters

Writing routine & persuasive letters

Writing reports
Purpose, kinds & objectives of reports

Short & long report writing proposals

Structure & preparation of memo

INTRODUCTION
Business letters are important & indispensable part of the business communication.

Communication through exchange of letters is known as correspondence.

Writing good business letters is an art that all people should master. when writing a business letter, the writer produces a onesided conversation with the reader. Every business, irrespective of its size & structure has to establish rapport with customers , suppliers, Govt agencies through letters.

What is a Business Letter?

A business letter is a letter written in formal language, usually used when writing from one business organization to another, or for correspondence between such organizations and their customers, clients and other external parties.

What is personal letters

Personal letters are less formal & frank intimate form of communication

FUNCTIONS OF BUSINESS LETTERS

PROMOTIONAL FUNCTION. INFORMATIONAL FUNCTION LEGAL FUNCTION GOODWILL FUNCTION

PURPOSE OF BUSINESS LETTERS

Record & reference

Evidence of contacts

Public relations

Business in remote

PARTS OF BUSINESS LETTERS

Letterhead or Heading Dateline Inside Address Salutation Reference Body Complimentary Closing Signatures Reference initials
Enclosure Attachment

PARTS OF A BUSINESS LETTER

Heading
Writers complete address (Return Address) Current date
1 - 1 1/2

Inside Address
Receivers complete name, title, company and address (Letter Address)

However
If you have a letterhead, you dont need the Return Address

Software Connections
1551 Riverwalk Pensacola, FL 32507 (904) 555-4422

DATE LINE
Should appear like 1-NOV-2012 December -12-2012 Never write the date as below 12/12/12

Salutation
Begin with Dear: Use Mr. or Ms. before the receivers name Use Dear or Attention followed by an appropriate title, such as Customer Service Department or Sales Manager. Use Dear Sir or Madame or Ladies and Gentlemen. Include BOTH genders for a general audience.

RULES OF THUMB
AVOID ABBREVIATIONS EXCEPT FOR STATES AND TITLES.

(Mr., Mrs., Ms., etc. FL, NJ, OH)

PLACE A SINGLE WORD TITLE AFTER THE NAME SEPARATED BY A COMMA. Mrs. Ameeth, President PLACE A LONGER TITLE ON A SEPARATE LINE. Mrs. Raghavendra, Executive Director of Safety

BODY
1 - 1 1/2

Body Single-space paragraphs, double-space between paragraphs. Two paragraphs.

QUAD

Avoid long phrases.

DS

Avoid making business

DS

letters longer than one page. Heading on Page 2.

Complimentary closing
Complimentary closing
Use Sincerely, Sincerely yours, or Yours truly. Capitalize only the first word; end with a comma.

Signature lines
Signature lines
Leave four lines for your handwritten signature Type your name and title below the signature line.

Type the words Enclosure(s) two lines below the typed signature.
Sending a copy of the letter elsewhere? cc: PLUS the person or department name. This line goes beneath the enclosure line.

Reference initials
Reference initials
consist of the keyboard operators initials keyed in lower case a double space below the signature block. Double spaced after the typed signature line Lowercase initials Sincerely, Examples: /ged HE:ged Mrs. G. DeGraw, GED President

Mrs. G. DeGraw

REVIEW
PARTS OF A PERSONAL-BUSINESS LETTER:
Return Address (includes DATE) Inside Address Salutation Body Complimentary Close Reference Initials Enclosures (if any)

123 Pine Street Oak Ridge, NJ 07438 October 30, 2005

ABC Company 345 Spruce Street Whatever, IL 01233

Dear Mr. Brown: Insert the part of the body of the letter here. The body of the letter should tell something about what you hope to convey. It should also have a closing paragraph in it. There should be at least two sentences per paragraph. Sincerely,

Mrs. DeGraw
Mrs. DeGraw, Chairperson /ged Enclosure

How Business Letters are Organized

Business letters are more personal than most other forms of technical writing. They emphasize the reader/writer relationship by the use of such pronouns as I, we, and You. Business letters share some organizational features with technical reports. They need to: orient the reader to the topic at hand, explain why the writer is writing, provide enough information to help the reader understand what he/she is to do. To be able to provide this information, you need to generate ideas, analyze your audience, decide what you need to say, and define your problem.

Basic Letter Formats

There are three common formats for the business letter:

1. The unblocked format.

2. The semi-blocked format. 3. The blocked format. 4. The simplified letter format.

The unblocked format

The first line of the paragraph is indented a few spaces.

The writer's address, the date, the closing, the writer's signature , and the typed version of the writer's name and job title are indented two thirds of the way across the page.

The semi-blocked format

The first line of the paragraph is lined up with the left margin There is an extra blank line between paragraphs to signal the start of a new paragraph. The writer's address, date, closing, and signature are indented as in the unblocked format.

The blocked format

The first lines of paragraphs and all the other address, date, closing and signature information are lined up with the left margin. There is an extra blank line between paragraphs.

The simplified letter format

Sometimes, the writer does not know the name or marital status of the reader. As a result, he/she will have a problem writing a salutation Dear..). This has given rise to a new letter format called the simplified letter format. In this format, the salutation is omitted.

The subject line replaces the salutation and is typed in all capital letters.
In other respects, this format resembles the blocked format, with every line beginning from the left margin.

30

You require information about any matter of interest to you It must

Contain an effective technical writing style Involve audience through pronoun usage Avoid grammatical errors Must contain the essential letter components

31

 Introduction

Tell

your reader why are you writing Inform reader about subject matter
What are you writing about? OR What info do you want?
32

Discussion
Specify

your needs Ask precise questions List specific topic of inquiry Quantify your questions

33

Conclusion

Must be precise Mention when do you want a response Provide a specific date for response Explain why do you want response by the given date

34

Block formate

HIMALY PUBLISHING DEPOT

MILLER ROAD, BANGALORE
DATE : 19-Dec-2012

Letter No AC/38 M/S Arun Book Depot, Main Bazar Mysore Dear sir, You are well known publisher and book seller in the region. We are interested in selling your publications in the city. Kindly send your price list and state the terms and conditions of doing business with your on wholesale basis. We like to place order with you, subject to the suitability of your temrs and conditions. We are looking forward to here from you at the earliest sincerely Mubarak Mulla HIMALY PUBLISHING DEPOT

Once the enquiries, quotation are developed according to the enquiry stating various terms & conditions. Some time offers are made. Acceptance of offere constitute valid contract.

Quality and quantity of goods Modes and terms of payment Methods of transportations Place and time of delivery Charges on account of sales tax, freight and insurance. Packing and forwarding charges.

Tata McGraw-Hill Education Pvt Ltd Banashankari III Stage Bangalore 15-jan-2012 M/S Jiwan Book Depot M.G.Road Bijapur

Full block format

Dear sir,
We are pleased to receive your letter dated 12-Jan-2012.. Enquiring about the terms and conditions regarding trading with us. Thank you very much for the interest you have shown in our publications. Latest catalogue and price list of our publications have been enclosed here with. We allow 25% discount of the catalogue price for cash sales and 20% for credit sales if payment is made within 2 months. Packing and forwarding charges will be borne by us if the order exceeds Rs 20,000.

Sincerely Ramayya Kakhandaki (proprietor).

After making inquiries form various sources and receiving their quotations, a comparative statements is prepared to evaluate the price, qualities terms and conditions of sale. Routine items the purchase manager selects the supplier and places order with him

Thank the party for his order. Mention the time and date of dispatch of goods. State the total amount, an attached copy of invoice. Specify the mode of dispatch. Express the hope that quality of goods will satisfy the customers.

S.K.Traders Rajkumar road Bangalore To, M/s Guddoddagi Home appliances BLDE Road Bijapur

Semi block formate 26-March-2012

Dear sir, We thank you for your quotation of 20-march -2012 we find both qualities and prices satisfactory. I am plased to palce an order with you for the following appliances at the prices and on the terms quoted QUANTITIY ITEM PRICE (price per piece) 20 Mixer Rs 12,00 40 Speakers Rs 1000 15 Refrigerator Rs 12,000 Above prices to include delivery by railway with a cash payment discout of 5% We place the order on the understanding that the goods will be dispatched to reach us not later than 10-April-2012 Yours Sincerely, Amol pawar ( Proprietor )

4 CIRCULAR LETTERS
Circular

letters are used when the same information

and message is to be conveyed to large number of people (all stake holders)

The

message will be sent to people who have common it is wide circulation, it requires a great care

interest
Since

while drafting.
The

purpose of circular letter may be to market the

product or idea to inform ( change of business, place, policies, change of logo etc.

BUSINESS CIRCULAR ARE WRITTEN

Opening

of new branch office

Change

of address of business premises.

in the sales price retirement or death of a partner etc

Reduction

Admission,

Rathod Appliances Ltd 12 Big Bazar Road Pune

Date 20-Dec-2012

Dear Sir, we are grateful to you for reposing your valuable trust in our products due to which our company continues to grow form strength to strength owing to expansion of our activities and growth of business all with your sincere co-operation, we have decided to shift from our old premises at Big Bazaar Road to new premises Rathod Appliances Ltd 28 Sampige Road Malleshwaram Banglore you will feel pleasant to visit this new premises well furnished attractive decorated and fully air conditioned to provide speedy and excellent services. remember our phone numbers remain the same 444654. right us at our new premises for any enquiry. cordially yours Manjunath Bajantri Managing Director

5 COMPLAINT LETTERS
Things

do not take place according to our expectations. things suddenly and accidently

Unexpected

happen.
A

letter written to bring mistake to the notice of the responsible person is called complaint letter letter written to take action on them is known as adjustment letter

The

THE PURPOSE OF WRITING COMPLAINT LETTER

To

inform the supplier about defects', deficiencies or delays.

To

get the fault corrected or to get compensation

In contemporary world of business customer are considered as king. Most companies stress on customer service and quality products. No organization afford to lose the customer. Our purpose of writing a letter should be bring in to their knowledge. DRAFTING COMPLAINT LETTER 1. Make accurate & clear statement 2. Be factual , concise & exact in describing the problem 3. Express what is inconvenience has caused 4. What initiatives are required to rectify the error. 5. Be courteous

PATIL TRADERS RAJKUMAR ROAD , BANGALORE Date 20-Dec-2012 To, M/s Kumar Enterprises Sadar Bazar , Delhi. Sub: your consignment No 5, dated 10 Nov-2012 Dear Sir, Thank you for dispatching 30 cromption fans to us by our order No 75 dated 1Nov-2012. but I regret to inform you that out of those, 5 sets are badly scratched and damaged in transit because of insufficient and incomplete packing. We feel that usually such mistake happen because of oversight. But return these damaged sets. We shall be grateful to you if you kindly replace these sets and send new ones at the earliest. Sincerely yours, Nagesh Manager

6 ADJUSTMENT LETTER
The retention of the customer is the ultimate test of a good adjustment letter. The adjustment letter should be desinged to restore the customer confidence for the organization. The aim should satisfying the twin objectives of preserving customer trust and maintain firms integrity. WHEN CUTOMER IS RIGHT Thank the customer who gave opportunity for improvement. Admit the fault frankly. Regret the negligence in sincerely. Letter with positive statement

AKASH PRINTERS Rajaji nagar, Bangalore Date 12-Jan-2012 To, M/S Sunder Traders Ltd M-18 Cannaught place New Delhi. Dear Sir, We deeply regret that you received copies of annual report with printing mistakes overlooked by us. We accept your proposal of reprinting these 2000 copies at half the printing rates. We shall first make corrections in composed matter and than get your final approval before printing them. We assure you that within 3 days of your approval report will be printed without any mistake. Thank you for your co-operation and patience in this matter sincerely yours, Akash copra proprietor.

7 STATUS ENQUIRY AND CREDIT LETTERS

Buying

and selling on credit are very common in modern business, industry and commerce. is a facility through which goods can be bought and sold without cash payment. credit accelerate sale, yet it involves the risk of bad debts payment that result in loss to the business.

Credit

Though

Seller

has to get consent before giving credit to the buyer.

Assessing

about creditworthiness is called status enquiry letter.

WHAT CREDIT LETTER SHOULD CONTAIN

Product

or goods to be purchased. of arrangement of credit.

Indication

Reliability

and promptness of payment.

Explain

the terms and conditions of credit.

Rajnikant Steel Ltd Mysore Road, Bangalore

Date 30-July-2012 To, M/S Amit Chowdhry Steels,

13, Mukerjee Nagar,

Kolkata. Dear Sir, We are the leading supplier of steel iron in the region and supply the steel rodes to various retailers and house builders. We like to palce an order of Rs 5,00,000 for the various items manufactured by you. But because of tight market conditions, we may be in a position to make you advance payments. Will you kindly supply us goods at three months credit? If you agrees we can order the goods according to market prices. Please let us know if you can provide the credit facility of 3 months Yours Sincerely, D.V.Rajnikant

Managing Directors.

8 COLLECTION LETTERS
Collection

letters aim at collecting the dues without affecting the business relations. impatient & rash approach affect the customers relation. write a series of collection letters from early polite, stronger, final collection.

An

Co

WHAT SHOULD BE MAINTAINED

State the unpaid bills clearly with dates, number and amount unpaid. Photo copies of the bills. Respect their business obligations.

STRONG COLLECTION LETTERS

Give

reference of the reminder or request already sent. Ask him why they have not made payment. Hope we will receive payment immediately.

FINAL COLLECTION LETTERS

Refer to the past attempt made to collect the amount. Explain that customer is responsible for the unfortunates situation.

Rangaswami Enterprises Miller road, Chennai

Date 16-Nov-2012 To, M/S Vikas Traders Mysore Road, Bangalore. Dear Sir, We just want to remind you that your account shows unpaid amount of the following bills Date of Bill Bill No Amount March 6, 2012 804 Rs. 6,200 July 12,2012 903 Rs. 4,300 Sept 6,2012 1802 Rs. 4,500 Most probably it is just an oversight on your part. We know that it is a small amount and could easily escape your attention. We have enclosed here with the photo copies of bill. Please remit the amount due at you earliest sincerely S.Rao

PERSUASIVE LETTERS INTRODUCATION

In

the present ear of competition, persuasion skill has assumed great importance.
Be

it is sales manager, job seeker or fund raising manager has to convinces through persuasive letters.

TYPES OF PERSUASIVE LETTERS

Circular letters. Sales letters Fund raising letters Job application letters Reports with recommendations Solution letters Performance appraisal letters Collection letters

PURPOSE OF PERSUASIVE LETTERS

Motivating

the reader for desired action. the mental resistance.

Removing

Providing

complete information so that the reader knows exactly what to do. health relationship with organization.

Creating

APPROACHES TO PERSUASIVE LETTERS

A) DIRECT APPROACH
Explanation

for direct request. Looking for favorable response in straight way manner Courteous close.

B) INDIRECT APPROACH
The

situation is complex and complicated, It requires more effort to persuade the reader. It is a problem-solving pattern

LETTERS APPLYING OR OFFERING FOR AGENCY

To

expand the market of products in distant areas, manufacturer appoint agents to sell their products on commission basis. What are point are considered while applying for agency Reference of the advertisement Financial standing of your business Area where agency. Mention your business contact, storage and distribution facilities, showrooms etc. Terms and conditions and commission, bearing expenses,

SEE WORD FILE FOR OFFERING AGENCY

EXAMPLE

SALES LETTERS
Sales

letters are part of publicity and advertisement complain. This letters helps in educating and persuading the customer. Benefits of the products need to be highlighted. A good sales letter, like a successful advertisement, captures the attention of the reader. The purpose of every sales letter as of every advertisement is to convert the reader in to a customer

TWO MOST EFFECTIVE FORMULAS FOR ORGANIZING SALES LETTER ARE :

AIDA A=Attention I= Interest D= Desire A=Action IDCA I= Interest D= Desire C= Conviction A= Action

PARTS OF SALES LETTERS

Introductory

paragraph

The

body Concluding paragraph

SEE WORD FILE FOR EXAMPLE

DRAFTING POSITIVE AND NEGATIVE

MESSAGES
INTRODUCTION
Positive

messages are written to impart pleasant information to the reader like acceptance of request, acceptance of order, dispatch of goods etc. positive message include good news letters.

The

It

must be pleasant tone, complete message.

PURPOSE OF POSITIVE MESSAGES

To

give good news to the reader. To give detailed information Removing the negative perception To build the image of the writer

OCCASIONS FOR WRITING POSITIVE MESSAGES

Sending quotations and offers Acknowledging order and its execution. Acceptance claims and adjustments. Accepting credit Letters granting or accepting agency Letters stating introduction of new product, obtaining agency etc. Accepting job application or employment letters Conveying favourable reply Congratulating or appreciating someone.

V.S.Raman Managing Director.

Date 26-Dec-2012

To, Mr.Rohit Sharma Managing Director Ahmebabad Dear Mr. Rohit Sharma Congratulations! I feel immense pleasure to know that you have been appointed Managing Director of the Bharth Textile mills. Because of your hard work and exceptionally leadershi8p qualities. You have attained this position. Because of your untiring efforts, Bharat Textile Mills has grown form very humble beginning to leading industry in the region. We hope that the industry will flourish under your dynamic leadership Wishing you good luck and bright future cordially V.S.Raman

DRAFTING NEGATIVE MESSAGES

A negative message is a message written to convey an unpleasant and unfavourable information without provoking the annoyance of the reader. It is difficult to write bad news, reader will get angry in long run image of the company will be tarnish. This kinds of letters must be written with extra care and caution. Negative messages can be grouped under two categories 1. Unfavourable replies : when the information is undesirable, refusing credit, declining credit 2. Unfavourable unsolicited message: penalty for not following rules & procedures, conveying the news of death

POINTS TO BE CONSIDERED WHILE DRAFTING

NEGATIVE MESSAGES

Consideration and courtesy are top most requirement for bad news letters. In case of death of partner, indirect approach would be better.

In case of hike in prices give complete narration for hike.

Closing with a positive statement.

TYPES OF NEGATIVE MESSAGE OR BAD NEWS

LETTERS
Refused

requests Credit refusals Refusing adjustment to claims Revocation of agency Announcement of policy changes.

EXAMPLE FOR NEGATIVE LETTER SEE WORD FILE

REPORT WRITING

INTRODUCTION
Every

business needs variety of reports for

various reasons.
Top

level feasibility report level & operational level quarterly sales

Middle

& production report

Share Govt

holders need annual report.

requires various reports to meet

compliances.

report presentation and summation of facts and figures either collected or derived.

It

is a logical and coherent structuring of information, ideas and concepts.

WHAT IS BUSINESS REPORT

Business

reports are systematic attempts to answer questions and solve problems.

Business

Report is an impartial, objective, planned presentation of facts to one or more persons for specific, significant business purpose. report facts could relate to events, conditions, qualities, progress, results, products, problems, or suggested solutions.

The

PURPOSES OF REPORTS
Provide information
Type of Report

Informational report contains objective statistical data or facts. Writer does not interpret or draw conclusions from data

Analyze data and information

Analytical reports may suggest possible interpretations of data or offer solutions to problems

Persuasive reports present and interpret data and suggest a course of action Persuade

 Written by one person, sent internally to one or more people Memos Give brief, general information

Progress or interim

Describe status of projects State work done, to be done Identify potential problems

Offers proof that business meets government regulations Compliance

OBJECTIVES OF REPORT
Measuring

executive performance. Help in combating changes Provides information. Helps in controlling. Helps in co-ordinating. Record keeping. Recommends action.

ESSENTIAL OF GOOD BUSINESS REPORTS

Clarity. Consistency. User oriented. Objectivity. Accuracy. Bravitty Interesting. Relevant.

KINDS OF REPORTS