Business Letters

Unit III BBA N202

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Prof. Amit Kumar

Latter
Written communication or instrument that aff irms existence of a fact or obligation, or grant of a power or right.

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letter writing
Letter writing by itself is an art. It Is also a social and business asset. The ability to write a good and perfect letter can be as useful as the ability to talk well and the ability to maintain excellent inter-personal relationships. In business, effective communication through letters saves much time, trouble and inconvenience. It promotes understanding as well as business. The letter one sends on behalf of a company or an organization is a representative of the organization.
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Business Latter
Business letters are formal letters used for business-to-business, business-to-client, or client-to-business correspondence. There are a number of elements to a business letter.

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 A business letter is usually used when writing from one company to another, or for correspondence between such organizations and their customers, clients and other external parties. The overall style of letter will depend on the relationship between the parties concerned.

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Qualities of an Ideal Business letter

Simplicity of language: A business commercial letter should be written in simple language so that receiver can understand the meaning and the significance of the letter. Confusing and complex words must be avoided. Conciseness: Business letters should be brief but informative. It must be in such a size which is complete to provide effective message. The following rules may be followed to achieve conciseness in the message (I) Include only relevant facts. (ii) Avoid repetition as far as possible, (iii) Avoid trite and wordy expression. E.g. do not write a sentence like in close proximity to instead you write nearby, (IV) Organize the letter well.
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 Relevance: A good business letter should bear information which is relevant and state true fact. It should avoid irrelevant material that wastes readers mind and hides the important data. An effective business letter always aims at quality not quantity. Completeness: the writer of such latter must be careful to make a complete picture in the mind of receiver. Any incomplete or partial data must not be incorporated in a letter. In this regard the writer must have sufficient knowledge to organize the message in such a way that creates no confusion.
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 Specific purpose: The purpose of a business letter should be specific enough to justify the success of the message. Vague message will bring no action but wastage of time, effort and money. Clearness: Messages of a business letter must be readable and clear. Intention of the writer must be communicated properly in clear tone to the reader or receiver. Free from error: A letter containing any error creates bad impression regarding the sender and his status. So, any sort of error should be avoided and for that sender must be precautioned in using style, format, grammar and words.
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 Attractive Format: The format and style of a business letter should be good looking. As we know, readers first impression is largely influenced by the external appearance of the letter, so there should be effort to make the letter eye catching. Courtesy: Courtesy implies politeness & friendly behavior towards other then approached. It covers the important place in business communication. It costs nothing but its positive impact is much to facilitate friendly relation. The following principles help to promote courtesy: i. Answer the letter promptly. ii. Omit irritating expressions. iii. Apologize sincerely for an omission. iv. Thank generously for a favor.
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 Salesmanship: Every letter must carry salesmanship because such quality tells about the origin or source of a letter. As a result, good reputation builds up in the mind or receiver. The You Attitude: The you attitude is a writing style that emphasize readers rather than the writer. Is and we should be avoided and include as many yours as possible. e.g. Non You attitude: We welcome you to our shop for shopping. You attitude: You are welcome to your shop for shopping.

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 Tactfulness: This is the quality that goes hand in hand with courtesy. It is very important in handling complaints and adjustments and letters seeking credit. The objective of tactfulness lies in retaining the goodwill of someone even though his request has been rejected. The Positive Approach: Avoid nos and sorry as they are undesirable to all. They are unwelcome words. Instead there should be emphasis on positive thing. Even no can be written as another time and sorry can be said as I will try. Sincerity: Business latter must be written with due sincerity & honesty. The writer has to think about the interest of the receiver & must show due respect to it.

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Format of a Business Letter

Tel. Fax. Ref. To Name and address of the person to whom letter is sent Subject: Salutation, _______________________________________________________________ Opening part _______________________________________________________ ________________________________________________________ ____________________________________________________________________ Main part ___________________________________________________________ ________________________________________________________. ____________________________________________________________________ Concluding part ______________________________________________________ _______________________________________________________. Complementary close Name of the firm Postal Address E-mail: Website: Dated:

Signature (name) Designation Enclosures CCPS

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TYPE OF BUSINESS LETTERS

These are the few instances in which business correspondence takes place. Let us learn the details about some important business letters. i. Business Enquiry Letter Sometimes prospective buyers want to know the details of the goods which they want to buy, like quality, quantity, price, mode of delivery and payment, etc. They may also ask for a sample. The letter written to sellers with one or more of the above purposes is known as enquiry letter.
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Specimen of Business Enquiry Letter

Tel. 23241053 Fax.: 23244155 Ref. PR/F/2002/27 M/s Acron Electricals E-mail: elc@acr.vsnl.net.in 22/c, Main Road Website: www.acronelc.com Darya Ganj, New Delhi-2 Dated: July 27,2002

M/s Bharat Fans Bharat Complex Hyderabad Industrial Estate Hyderabad - 500032
Subject: Enquiry about the prices of fans

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 Dear Sir, We are dealing in retail trade of electrical appliances. We would be interested in selling your product, Bharat Fans through our retail showroom. Could you, therefore, send us your quotations and let us know the terms and conditions of payment. Thanking you, Yours faithfully, For M/s Acron Electricals Sd/ (A.B.Kumar) Partner.
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ii. Quotation Letter After receiving the letter of enquiry from a prospective buyer, the sellers supply the relevant information by writing a letter that is called quotation letter. These letters are written keeping in view the information asked for like price list, mode of payment, discount to be allowed etc. Businessman should reply to the inquiries carefully and promptly.
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Specimen of Quotation Letter

Tel. 508632-35 Fax. 508600 M/s Bharat Fans E-mail: bh@fan.vsnl.net.in Bharat Complex Website: http://www.bhfan.com Hyderabad Industrial Estate Hyderabad - 500032 Dated: August 10,2002

Ref.-SL/F/2002/12

M/s Acron Electricals 22/c, Main Road Darya Ganj, New Delhi-2

Subject: Your letter No. PR/F/2002/27

dated July 27, 2002

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Dear Sir, Thank you for your letter of enquiry. We would be glad to meet your requirements of selling our fan in your retail showroom. Our quotations are given in the price list enclosed. We offer 10% discount on order above Rs. 50,000. Besides, we allow a grace period of 45 days for payment of dues to our regular customers. We are confident that you will find our prices competitive and our terms and conditions reasonable. We look forward to meeting your requirements. Thanking you, Yours faithfully, For M/s Bharat Fans Sd/(Des Gupta) Encl: Price List & Terms and Conditions Sales Manager

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iii. Order Letter In the previous section, we have studied about letters of enquiry and reply to enquiry i.e., quotation letter. The prospective buyer after receiving the reply to his enquiry letter may decide to place on order with that business house which offers goods at minimum price and at favourable terms and conditions. Letters written by a buyer to the seller giving the order to purchase the goods is called order letter.
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Specimen of Order Letter

Tel. 3241053 Fax. 3244155 M/s Acron Electricals E-mail: elc@acr.vsnl.net.in 22/c, Main Road Website: http://www.acronelc.com Darya Ganj, New Delhi-2 Dated: August 22,2002

Ref. PR/F/2002/32 M/s Bharat Fans Bharat Complex Hyderabad Industrial Estate Hyderabad - 500032

Subject: Your letter of quotation No. SL/F/2002/12 dated August 10,2002

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 Dear Sir, Many thanks for your prompt reply to our enquiry letter of July 27, 2002. As we find your prices and terms quite reasonable, we wish to place a trial order as per the list enclosed. As pointed out in our enquiry letter, quality is important. Should the goods meet our expectations, substantial orders will follow. Payment will be made within the time limit prescribed in your quotation letter. Thanking You, Yours faithfully, For M/s Acron Electrical Sd/ (A.B.Kumar) Encl: Order List Partner

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iv. Complaint Letter A complaint letter is written when the purchaser does not find the goods upto his satisfaction. It is normally written by the purchaser when he receives wrong, defective or damaged goods or receives incorrect quantity of goods. It can also be written directly to the transit authority when the goods are damaged in transit. Thus, we may define a letter of complaint as the letter that draws the attention of the supplier or any other party on account of supply of defective or damaged goods.
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Specimen of Complaint Letter

Tel. 3241053 Fax. 3244155 Ref. PR/F/2002/27 M/s Acron Electricals E-mail: elc@acr.vsnl.net.in 22/c, Main Road Website: http://www.acronelc.com Darya Ganj, New Delhi-2 Dated: September 5, 2002

M/s Bharat Fans Bharat Complex Hyderabad Industrial Estate Hyderabad - 500032

Subject: Complaint regarding fans

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Dear Sir, I would like to draw your attention to the fact that some fans are found missing in the parcel, dispatched by you, which I received today. It appears that the following items were not included. Bharat fan super quality 3 (Three) Bharat fan standard 2 (Two) We will appreciate if the above fans are sent to us or the amount credited to our account. Yours faithfully For M/s Acron Electrical

Sd/(A.B.Kumar) Partner

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v. Recovery Letter The letter written by the seller for collection of money for the goods supplied to the buyer is called recovery letter. The aim of recovery letter is to collect money without annoying the customers. The letter should include information regarding the amount of arrears argument for payment, and last date for payment. The language of recovery letter should be polite, so that the customer is not offended and future transactions with him are not adversely affected.
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Specimen of Recovery letter

Tel. 508632-35 Fax. 508600 M/s Bharat Fans E-mail: bh@fan.vsnl.net.in Bharat Complex Website: http://www.bhfan.com Hyderabad Industrial Estate Hyderabad - 500032 Dated: December 10,2002

Ref.-SL/F/2002/12

M/s Acron Electricals 22/c, Main Road Darya Ganj, New Delhi-2

Subject: Recovery of dues

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 Dear Sir, We believe that the payment of our bill No. 1713 dated September 2,2002 must have escaped your attention. As the payment is due since long, we would appreciate if you send us your cheque immediately. Please let us know whether payment is being withheld for some special reasons. Thanking you, Yours faithfully, For M/s Bharat Fans Sd/ (Des Gupta) Sales Manager

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Bank Letters :
All businesses are doing financial transactions with banks. Business without Bank is a myth he are after. So, having business correspondence with banks is inevitable hereafter. We have to learn the business nuances of drafting letters to banks. Here are many such letters which bring into affect all the typical circumstances in which we have to do letter-correspondence with banks. From the first point of opening a business to the level of expanding the business to the international level, we have to seek the help of the bank. Banks do not only the role of financing our business operations but also the role of transforming our money to our customers and our workers. With the help of online transaction, we have to run our business. Here you will get all sports of help in the matter of letter-transactions with banks.
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 For Opening Saving A/c From : R.K. VIDESH, 2, Stephen Road, CHENNAI 600 005.

3rd October 1999

To :

The Manager, Central Bank, CHENNAI 600 002.

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 Dear Sir, I would like to open a Savings Bank Account in your branch. As per rules, you need an introduction letter given by a person who is already holding an account with your branch. In this regard, I am enclosing a letter from Mr. S. Krishnan residing at 2, Bends Road, Chennai 5. His Savings Bank Account number is SK 33923. Kindly allow me to open an account with you. Thanking you.

Yours faithfully,
R.K. VIDESH

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Account opening to the firm

ABC Company Limited 6, Pankaj Road, BANGALORE 560 030. Phone : 098 13245678 Fax : 098 - 13245678 9th December 1999 To :

The Manager, Syndicate Bank, BANGALORE 560 029.

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 Dear Sir, In the beginning of this month, I have opened a shop at the above address to deal with electrical goods.

I would like to open a Current Account in your bank. In this regard, I am enclosing an introduction letter given by Mr. S.R. Gopinath, Astro Electronics situated at 3, Nirmal Road, Bangalore 30, who is holding a current account with you. His account number is SRG 43262.
Should you require any specific details, please indicate. It will be my pleasure to furnish the same. I look forward to have banking operations with you for a long time to come. Thanking you.

Yours faithfully,
(K.S. MANJUNATH) Proprietor
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Letter Requesting A Customer to Close His Account :

National Bank 191 / N - Patricia Avenue Liverpool 600 020 Phone : 0011 - XXXXXXXX Fax : 0011 - XXXXXXXX May 5 - 2009 To :

Mr. Som Nath, 326 / H - Raman Nair Street, Maalyvalley 682 016.
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Dear Sir, I regret to inform you that a cheque for Rs.1200 drawn in your account has been returned unpaid for lack of sufficient funds on your account. For the last six months it has been necessary to return six cheques unpaid, for you had neglected to make provisions. You will appreciate that it is bad for you and quite damaging to the reputation of the Bank. I am, therefore, reluctantly compelled to request you to close your account. Yours Truly, For National Bank (V. RAJAN PETER) Manager

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