Topic 1:

Introduction to Business Letter

1. About Business Letter

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 letter depends on the relationship between the parties concerned. Business letters
can have many types of contents, for example to request direct information or action
from another party, to order supplies from a supplier, to point out a mistake by the
letter's recipient, to reply directly to a request, to apologize for a wrong, or to convey
goodwill. A business letter is sometimes useful because it produces a permanent
written record, and may be taken more seriously by the recipient than other forms of
communication.
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. There are many
reasons to write a business letter. It could be to request direct information or action
from another party, to order supplies from a supplier, to identify a mistake that was
committed, to reply directly to a request, to apologize for a wrong or simply to convey
goodwill. Even today, the business letter is still very useful because it produces a
permanent record, is confidential, formal and delivers persuasive, well-considered
messages.

2. The purpose of writing business letter

There are wide varieties of business letters like circular letter, inquiry letter, order
letter, collection letter etc. all these letters serve important and multidimensional
business purposes. The major purposes or objectives of writing business letters are
discussed below:
 To exchange information: The main purpose of business letter is to exchange
information related to business. Through it, business organizations collect and
convey business related information.
 To establish business relationship: By exchanging information through business
letters, new business relationships can be established with various parties and
existing relationships can be strengthened.
 To make inquiry: Another important objective of writing business letter is to make
inquiry about people, product, price etc. With the expansion of business operations
of a business, importance of business letter is also increasing.
 To take right decisions: Taking right decisions require accurate information. Since
business letter s collect information form reliable sources, executives can take
right decision using that information.
 To place orders: A common purpose of writing business letter is to place order for
goods specifying quantity, quality, price, payment method etc.
 To create goodwill: Goodwill is an important asset for any business. Businesses
can create goodwill by writing letters like order confirmation letter, adjustment
grants letter, inquiry letter, reply to inquiry letter etc.
 To save time and cost: Saving time and cost of communication is another objective
of writing business letter. Posting letter is cheaper and less time consuming than
making personal visits.
 To expand markets: Through writing various business letters like inquiry letter and
circular letter, business organizations can create new market for their products.
 To overcome misunderstanding: If there arise any misunderstanding between a
business and its stakeholders, business letter is written to overcome it.
 To settle transactions: By means of writing business letter s, concerned parties
can settle their transactions. For example, customers write claim letters to the
sellers for compensations, sellers write collection letters to customers for collecting
dues.
 To keep records: Another reason for the wide use of business letter is to keep
permanent record of information. Business letters help to develop an information
base in the organization and facilitate future decision making.

3. Type of Business letter

The term “business letters” refers to any written communication that begins with a
salutation, ends with a signature and whose contents are professional in nature.
Historically, business letters were sent via postal mail or courier, although the internet
is rapidly changing the way businesses communicate. There are many standard types
of business letters, and each of them has a specific focus
 Sales Letters
Typical sales letters start off with a very strong statement to capture the interest of the
reader. Since the purpose is to get the reader to do something, these letters include
strong calls to action, detail the benefit to the reader of taking the action and include
information to help the reader to act, such as including a telephone number or website
link.
 Order Letters
Order letters are sent by consumers or businesses to a manufacturer, retailer or
wholesaler to order goods or services. These letters must contain specific information
such as model number, name of the product, the quantity desired and expected price.
Payment is sometimes included with the letter.
 Complaint Letters
The words and tone you choose to use in a letter complaining to a business may be
the deciding factor on whether your complaint is satisfied. Be direct but tactful and
always use a professional tone if you want the company to listen to you.
 Adjustment Letters
An adjustment letter is normally sent in response to a claim or complaint. If the
adjustment is in the customer’s favor, begin the letter with that news. If not, keep your
tone factual and let the customer know that you understand the complaint.
 Inquiry Letters
Inquiry letters ask a question or elicit information from the recipient. When composing
this type of letter, keep it clear and succinct and list exactly what information you need.
Be sure to include your contact information so that it is easy for the reader to respond.
 Follow-Up Letters
Follow-up letters are usually sent after some type of initial communication. This could
be a sales department thanking a customer for an order, a businessman reviewing the
outcome of a meeting or a job seeker inquiring about the status of his application. In
many cases, these letters are a combination thank-you note and sales letter.

 Letters of Recommendation
Prospective employers often ask job applicants for letters of recommendation before
they hire them. This type of letter is usually from a previous employer or professor,
and it describes the sender’s relationship with and opinion of the job seeker.
 Acknowledgment Letters
Acknowledgment letters act as simple receipts. Businesses send them to let others
know that they have received a prior communication, but action may or may not have
taken place.
 Cover Letters
Cover letters usually accompany a package, report or other merchandise. They are
used to describe what is enclosed, why it is being sent and what the recipient should
do with it, if there is any action that needs to be taken. These types of letters are
generally very short and succinct.
 Letters of Resignation
When an employee plans to leave his job, a letter of resignation is usually sent to his
immediate manager giving him notice and letting him know when the last day of
employment will be. In many cases, the employee also will detail his reason for leaving
the company.

4. The Difference between Business Letter and Personal Letter

Business letter refers to formal written letter where business related issues and
information are exchanging with the suppliers, customers, banks, insurance
companies and other external parties of the organization.
On the other hand, personal letter is written for exchanging personal or family
affairs with family members, relatives, friends, lovers, teachers, students etc. is known
as personal letter. The differences between business letter and personal letter are as
follows:
 Nature: Business letter or commercial letter it is impersonal and universal in
nature. Personal letter it fully personal in nature.
 Purpose: Business letter is exchanging various business related issues and
information. Personal letter is exchanging personal or family related affairs and
information.
 Scope: Business letter scope is wide and contains various types of business
information. Personal letter scope is limited and contains only personal
information.
 Structure: Business letter follow officially recognized structure. Personal letter
does not follow any recognized structure.
 Formality: Business letter it maintains formal rules and procedure. Personal letter
it is informal.
 Size: Business letter generally it is concise in size and avoids irrelevant matter.
Personal letter it may be concise or large in size.
 Types: Business letter it can be categorized differently. Personal letter generally it
cannot be categorized.
 Salutation: Business letter salutation is sir, dear sir, dear Mr. x etc. Personal letter
salutation is Dear friends, my dear x, dear x etc.
 Language: Business letter language should be easy and simple. Personal letter
language may easy, poetic, emotional etc.
 Copy: Business letter copy of business letter is preserved. Personal letter copy of
personal letter may not be preserved.
 Method: Business letter it uses direct and persuasive method. Personal letter it
uses only direct method.

5. Part of Business Letter

- Date
The date is put at the top of the page for any business communication. The date is a
critical piece of information documenting when the correspondence was sent. This is
important for correspondence that may be kept for future reference.
- Address
The address of the person receiving the correspondence includes formal name, street
address, city, state and zip code. It is critical to double check the spelling of the
person’s name. A misspelled name is careless, unprofessional and can negatively
impact the response to the letter.
- Salutation
The salutation is the formal way of addressing the person. Common salutations
are Dear or To Whom It May Concern. This should include taking the time to identify
the person’s most commonly used name. For example, if the person’s name is Robert,
try to find out if he goes by Robert, Rob or Bob. Some people have sensitivities to what
name is used in addressing them.
- Introduction
The first few sentences of a letter are introductory in nature. The introduction section
introduces the subject of the letter. It is a summary in a sentence or two that explains
what the goal of the letter is. For example, “I am writing today to further explore a
vendor relationship with XYZ Corporation.”
- Body of the Letter
The body of the letter is where the bulk of information is shared. The body of the letter
explains in detail all aspects of what is being communicated. This would include detail
of the information being shared.
- Closing
The closing of the letter summarizes what the letter was about and any next steps or
action items. This section gives the reader a heads up that the communication is
coming to a close.
- Signature
The signature section has a complementary closing. Examples are Sincerely,
Warmest Regards, Respectfully Yours, Very Truly Yours, or Cordially Yours. Be sure
to gauge the audience when selecting a complementary closing. After the
complementary closing, space is left for the signature that goes above the typed name
and title of the person sending the letter.

6. Format of Business Letter and Template

A. Full Block Format
Full block style business letters have a formal appearance, however they can be
used in informal business situations as well as formal ones. If you are looking for a
single format that will work well in every situation, this is a good one to use.
Notice that the following business letter format is laid out so that it is easy to read. It is
also a template that is very easy to type, as there are no indents to worry about.
Full Block Format Business Letter Template
Your Name
Address
Address
Phone
Today’s Date

Recipient’s Name
Company
Address
Address
Address

Dear (Recipient’s Name),

This block format business letter template illustrates how quick and easy communications can
be to type. Notice that it looks very much like the semi-block letter format, except the
paragraphs are not indented. This is a format you can use for all business occasions.
Notice that all elements in this letter are left justified. This formatting provides a crisp, modern
look that many people prefer.
If you have any enclosures to include in this letter, make a note at the bottom left, a few spaces
below the signature block. Just write “enclosures:” and follow up with the names of any items
inside the envelope. A brochure, an application, or a copy of an invoice are some of the things
you might think about including.

Sincerely,

Your First name, Last name, and Title

B. Modified Block Format

Modified block style business letters are less formal than full block style letters. If you
are corresponding with someone you already have a good working relationship with,
the modified block style letter is a good one to use.
Notice that the following business letter format is written without indents. If you prefer
to use indents, try using the semi-block or modified semi-block format instead.
Modified Block Format Business Letter Template
Your Name
Address
Address
Phone
Today’s Date
Recipient’s Name
Company Name
Address
Address
Address

Dear (Recipient’s Name):

This modified block business letter format looks very much like the modified semi-block letter
format, except the paragraphs are not indented. Modified block letters are just a little less
formal than full block letters.
Notice that the sender’s address, the closing, the signature, and the signature block all start near
the center of the page. In some cases, people who prefer to use this format begin these elements
five spaces to the right of the center of the page.
If you have any enclosures to include in this letter, make a note at the bottom left, a few spaces
below the signature block. Just write “enclosures:” and follow up with the names of any items
inside the envelope. A brochure, an application, or a copy of an invoice are some of the things
you might think about including.

Sincerely,

Your First name, Last

name, and Title

C. Standard Format
Standard format business letters are quite formal. Because they include an optional
subject line, they are ideal for situations in which you need to create a formal response
or communicate about an account number or case number.
At the bottom of this template, you’ll see something the other business letter templates
don’t contain. Below the signature block are three lines of text indicating that a
secretary or assistant typed the letter for the sender, that a copy was sent to another
recipient, and that there are enclosures. In other business letter formats, “enclosures”
is written out. In standard format, the word is abbreviated.
Standard Format Business Letter Template
Your Name
Address
Address
Phone
Today’s Date

Recipient’s Name
Company Name
Address
Address
Address

SUBJECT: Type the subject here and underline it.

Dear (Recipient’s Name),

This standard business letter format looks very much like the block letter format. Notice that
everything is left justified.
You will notice that this template contains some elements that are different from those in the
other business letter formats on this page. First, there is a subject line. This element is optional,
and can be replaced with a “RE:” line that is used to reference something specific like a
previous communication or an account number. Be sure to underline this so that it stands out.
Additionally, this template has three other elements. On the line located beneath the signature
block, you will notice my initials in upper case letters. A colon separates them from my
assistant’s initials, which are written in lower case letters. This indicates that my assistant typed
the letter for me. If you type a standard business letter yourself, you do not need to include this
element.
Beneath the initials, you will see “cc:” followed by my business partner’s name. This indicates
that I have sent a copy of this letter to my partner. If you write a letter like this one but don’t
cc anyone, there’s no need to include this element.
Finally, you will notice the letters “encl” followed by a colon. This indicates that there are
enclosures. Interestingly, the standard business letter is the only one in which you use “encl”
instead of writing “enclosure” to show that a brochure, application, invoice, or other item(s)
are enclosed. As you may have already guessed, you can skip the “encl” if you haven’t included
anything with the letter in the envelope.

Sincerely,

Your First name, Last name, and Title

YN:an
cc: Business Partner, Other entity
encl: Business letter template
D. Open Format
The open format business letter has a clean, formal look just as the block format letter
does. It is suitable for all business communications. There is one major difference
between this format and the other business letter formats on this page: It contains no
punctuation after the greeting, and no punctuation after the closing.

E. Semi-Block Format
The semi-block format business letter is a little less formal than the block format letter
and slightly more formal than the modified block format letter. It works well in almost
all situations and is a good choice if you find yourself on the fence about which format
to use.
Semi-block business letters differ from most others in that the first line of each
paragraph is indented. Look at the modified semi-block business letter template if
you’d like to try another format with indentations. It is the least formal of all the formats
shown on this page.

Semi-Block Format Business Letter Template

Your Name
Address
Address
Phone
Today’s Date

Recipient’s Name
Company
Address
Address
Address

Dear (Recipient’s Name),

This semi-block business letter format looks very much like the block letter format,
except the
paragraphs have been indented. Semi-block format letters are just a little more formal than
modified semi-block business letters.
Notice that the sender’s address, the closing, the signature, and the signature block are
left justified.
The only elements of this business letter format that are not left justified are the first lines of
each of the paragraphs.
If you have any enclosures to include in this letter, make a note at the bottom left, a few
spaces below
the signature block. Just write “enclosures:” and follow up with the names of any items inside
the envelope. A brochure, an application, or a copy of an invoice are some of the things you
might think about including.

Sincerely,

Your First name, Last name, and Title

 ENGLISH CORESPONDENCE
Topic 1: Introduction to Business Letter

By:
Nadila Pratiwi 1615713013
Riska Nur Octaviani 1615713047
Ni Ketut Sutami Astiti 1615713054
Bima Nungki Anggrayni 1615713148

KEMENTRIAN RISET TEKNOLOGI DAN PENDIDIKAN TINGGI

POLITEKNIK NEGERI BALI
BADUNG 2018