INSTITUTE OF TECHNOLOGY & SCIENCE (I.T.S.

BUSINESS COMMUNICATION
(KMBN-107)

BUSINESS LETTERS AND REPORTS

UNIT-3(Part-1)

ASTHA SHUKLA
Asst. Prof
ITS , Ghaziabad
 Business Correspondence (Letter
Writing)
• Letter writing is an art of correspondence which does impress readers and
helps to establish cordial (or friendly) relation between parties.
• When we write a letter to an organization or receive a letter from an
organization, all this comes under business correspondence.
 Principles of Effective Business
Correspondence
• Courtesy
• Consideration
• Conciseness
• Clarity
• Precision
• Directness
 Business Letters
• A business letter is a vehicle of message which connects two different
persons, two companies and two organisations in business context.
• A business letter is a professional, formal letter that is sent by one
company to another. These letters can be used for professional
correspondence between business clients, employees, stakeholders as well
as individuals.
 Essentials of Business Letter
1. Answers of business letters should be as quick as possible.
2. Answers should be clear, exact and complete.
3. In order to avoid, annoyed readers, the subject matter should be
tactfully written.
4. There should be no ambiguity in words.
5. In order to save time, the answers should be concise.
6. Writer should follow positive approach.
 Kinds of Business Letter
1. Formal Letter
2. Informal Letter
3. Official Letter
4. Circular Letter
5. Employment Letter
 Format of Business Letter (Elements of
Structure of a Business Letter)
1. Heading 8. Body
2. Date 9. Complimentary close
3. Reference 10. Signature
4. Inside Address 11. Identification marks
5. Attention line 12. Enclosure
6. Salutation
7. Subject
 Styles of Presentation of Business Letter
• Indented Style – In it each new element is indented two or four spaces. It
requires more time to type.

• Complete block Style (Full block style) – All parts of the letter, except
the printed letter head, are aligned with the left margin.
Indented Style
Complete-block Style
 Enquiry Letter
• 1. Inviting Quotations – letter of enquiry in which you ask them to quote
their rates and terms of payment for the goods your firm or company
wishes to buy from them.
• 2. Sending Quotations – your response to a letter inviting quotations
should be carefully drafted and should fully take note of each item in the
enquiry.
 Points to remember : Inviting Quotations
• Describe your needs like shape, size, quality. Etc.
• Request the seller to quote his prices and terms of payment.
• Ask him for a sample if necessary
• Give idea of quantity you intend to buy.
• Indicate the time by which you would like the goods to be supplied.
• Ask if the goods are guaranteed and if so, for what period.
• Ask what accessories and spares, if any, would be supplied and how much they cost
• Ask about installation of goods and repair of goods
• Ask the seller to indicate the period for which his quotations will be valid.
Sample: Inviting Quotations
Points to remember : Sending Quotations
• Mode and terms of payment
• Place and time of delivery
• Method of transport
• Charges on account of sales tax, insurance etc.
• Packing and forwarding charges
Sample: Sending Quotations
 Order Letter
• After you accept a quotation, the next step is to order the goods to ensure
efficient and prompt handling of your order
 Points to Remember: Order Letter
• Place a clear and firm order.
• Mention color, quality, quantity, size, identification number etc.
• Mode and terms of payment
• Mode of transport
• Mention the goods should arrive within reasonable period of time
• State full address of the place
• Mention for proper packing and insurance of product
Sample: Placing the Order
 Sales Letter
• It is one of the important instrument of sales promotion, despite
unprecedented advancements in advertising through the print and
electronics media.
• To be effective it should catch the attention of the reader, excite his
interest and curiosity and induce him to buy the goods or services offered.
• The main body of the letter should provide convincing arguments and
evidence to vouch for the quality of the product.
 Circular Letter
• It is written to transmit a message to a number of persons simultaneously.
• As the message does not need to be created again and again, it save time,
money and effort.
 Claim/Complaint Letter
• It is written to bring the mistake or damage to the notice of the supplier or
provider and to ask for rectification and compensation.

• An ADJUSTMENT letter is a response to a claim letter.

• In writing both these types of letters utmost tact and courtesy is required.
 Employment Letter
• Employment letters fall under a broad category of documents relating to
employment. They can address a wide variety of topics and originate from
various sources.
• Some letters may also come from hiring authorities within an organization
regarding a past, present or prospective employee. The recipient of this type of
letter is usually the employee themselves, a prospective employer or another
authority requesting information.
• Examples- Offer Letter, Appointment Letter, Job Acceptance Letter, Promotion
Letter, Resignation Letter etc.
 Banking Correspondence Letters
• Official banking letters can be handwritten or printed. With the emergence of new technology
and means of communication, letters are exchanged through emails and faxes in printed forms.
• Different types of business letters which are penned in Banking are as follows-
1. Letters of inquiry like Requests for Loans/Overdrafts etc
2. Letters of claim/complaints like Complaint Letter, Claiming the loan amount, etc.
3. Letters of approval/dismissal like a letter for Approval of loans etc.
4. Letters of recommendations Asking for contacts of previous creditors/suppliers, collaterals, etc.
5. Letters of promise like Payment in the future for the loan.
• Banking correspondence is exchanged:
i. between a bank and their customers
ii. between a head office of a bank and its branches or employees
iii. between at least two different banks.