UNIT 3 Business Communication

According to J. H. Hanson, “The letters which are exchanged among business in connection with business
affairs are called business letters.”
L. Rahman says, “Correspondence having commercial or business interest is known as commercial
correspondence.”
According to Prof. Taintor, “All letters written for business purpose are business letters.”
From the above discussion, it can be said that a letter containing the affairs related to trade and
commerce is called business letter. Business Communication

Objectives and functions of business letter

Every business organization has to maintain contact with its various partners like suppliers, customers,
government agencies and so on. Business letter serves as the bridge to communicate with the various
parties. The functions of business letters are multidimensional. The importance of business letter is
presented below through its various functions or Objectives-
 Building Goodwill: Another important purpose of a business letter is to sell the good reputation
and friendliness of a company. It acts as an ambassador of a country for the company. It aims at
building goodwill in customers-company relationship, holding present customers, reviving inactive
accounts and inviting customers to buy more and varied products.
 Records and References: Business letter are very useful as records and references of previous
transactions. In business, innumerable transactions or communications occur with a large number

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 of people that are not possible for a businessman to remember. When memory fails, business
letters act as previous records and can be used for future reference.
 Making a Lasting Impression: In case of oral communication, the impact of any message is felt
mainly during the time of hearing. And as soon as the next oral communication takes place, the
effect of the previous one is reduced. But a letter makes a lasting impression on the readers’ mind
as it stays with them and works effectively every time it is read.
 Building and Maintaining Business Relation: Business letters help to build and maintain business
relation among various parties like manufacturers, distributors, intermediaries, support services
and consumers.
 To Exchange Business Information: The prime objective of a business letter is to exchange
business related information between the parties involved. Most of the time business people send
letters to their counter-parties containing various business information.
 Widening the Approach: It is very difficult to send business representatives to all the places. But a
letter can be sent any place at any distance. Sometimes executives, professionals, politicians, etc.
are difficult to be approached personally. But a letter can find easy access to anybody. Thus a
business letter helps to widen the area of business operations and also the access to a large
number of people.
 An Authoritative Proof: A business letter also serves the purpose of evidence. A written
commitment binds the concerned parties to obey to the text of writing. A letter signed by a
responsible person acts as an authoritative proof of what is said in it. It can even be treated as a
valid document that can be produced as evidence in a court of law if any dispute arises.
 Others: Business letter also has some other functions beside the above ones. It provides legal
facility, saves time, helps to increase products, demand, helps to settle transaction easily and it is
accepted by all as a reliable media of communication.
In conclusion we can say that business letter is an indispensable means of communication for industry
and commerce. The multidimensional functions of business letter have given it a wide range of
acceptance to the business world. So, it must be furnished with due care. There are more information
about What is Upward Communication in Business?

Meaning of Business Letter:

Business people have to communicate with the customers, the suppliers, the debtors, the creditors, the
public authorities and the public at large as well as among themselves for the purpose of exchanging
their views and of sending and receiving information. This is required to initiate, carry out and to
conclude transactions.

Communication can be in two ways:

(1) Oral:
Either face to face or with the help of various machines and

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(2) Written:
By writing letters. This written communication is otherwise called correspondence. The word
correspondence has a sense of ‘similarity’ and ‘association’ in it. To correspond means to be in
conformity or agreement with something or somebody.

Advantages of Business Letter:

Communication through letters occupies the largest share in the total volume of communication
because of the following advantages:
(1) Letters are less costly than other means of communication.

(2) Letters can be sent to long distant places by post within a short time. Of course, letters may be sent
by messengers within neighboring areas.

(3) Letters are drafted after proper thinking and planning and so the subject matter can be presented in
a systematic and logical way.

(4) The ideas conveyed in letters are clear and free from ambiguity.

(5) The size of a letter may be big or small as required.

(6) Letters simultaneously provide evidence and exact copies can be retained.

(7) Same communication may-be made to a number of persons at a time, through duplicating or
printing.

(8) Many unpleasant and delicate matters which cannot be spoken face to face or through mechanical
devices can be written in letters in a discreet language.

(9) Letters are suitable for all types of communication.

(1) Components:
A business letter has the following components like any other form of communication.—A writer or
correspondent—He is the communicator. He has the primarily responsibility to make a letter purposeful
and effective.

(a) He must know the form and the style of writing letters. Different types of letters have different
styles. The secretary of an organisation, who is in charge of the office including the correspondence
department, is supposed to be well conversant with the art. There are experienced correspondence
clerks whose services are utilised for the purpose.

(b) He must have a command over the language and English is the main language used in the
commercial world. (The second internationally accepted language is French.)

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(c) He must be conversant with the facts on which he is writing a letter otherwise he cannot faithfully
express the facts and the viewpoints.

(d) He must also know the technical terms and phrases necessary to be used in particular types of
letters. He can take the help of different types of dictionaries available in the market.

(e) He must make planning before he sets forth to write a letter.

(f) In case he is writing a reply he must read the initiating letter very carefully.

(g) The drafting will depend much upon the nature of the recipient.

Sample Business Letter About Meeting

Company, Inc.

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123 Alphabet Drive
Los Angeles, California 90002
15 November 2012
Ms. Susan Smith
Supervisor of Product Development
Pet Supply Provider, Inc.
472 Canine Road
Los Angeles, California 90002
Dear Ms. Smith:
It was a pleasure meeting you at the conference last week. As we discussed, I sincerely believe that the
widget gizmo produced by Company, Inc. can greatly streamline your production process. If you are still
willing, I would like to bring some of the key members of my team along with me to meet with you at
Pet Supply Provider, Inc. We would like to give you an overview of our services and discuss with you the
best plan to suit your needs.
Meeting in person would allow us to fully evaluate your wants and needs. Our team is available to meet
any time this week or next. Please let me know, at your earliest convenience, when you would be
available.
Cordially,
Sam Brown
Vice President of Company, Inc.
555-555-5555
s.brown@companyinc.com

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Positive Business Communication
Successful businesses understand the power of positive business communication. Whether it is relaying
policy information to employees, advertising products and services to prospects or giving a presentation
about the company's strategic objectives to shareholders, communicating positively is about
communicating well. If your audience understands the message as it was meant to be interpreted, you
have done a successful job at communicating in a business environment.

Clarity

In business, getting straight to the point gets you positive results faster than being circuitous.
Customers, shareholders and employees are generally busy people with a myriad of responsibilities. If
decoding your message requires time and effort, you'll likely frustrate employees and create confusion.
Making sure your messages are clear, simple and digestible gets you the results you seek. Paraphrasing
responses can aid in creating clarity. It helps to show others that you are actively listening to what they
have to say and interpreting those responses as intended.

Vision and Mission Statements

A company's strategic objectives are embodied in its vision and mission statements. These goal-oriented
statements give employees, stakeholders, customers or prospects an understanding of what the

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company is about and what it hopes to accomplish. Companies will espouse a commitment to values
such as honesty, integrity and fairness in these statements to give everyone an understanding of what
the organization strives toward. Vision and mission statements, designed to inspire and motivate, are
quintessential examples of positive business communication.

Motivation

Positive business communication should be motivational. It should inspire others to action that
advances the company's objectives. A customer should be inspired to patronize your business just as
employees and managers should be inspired to improve productivity. Positive verbiage creates desire in
prospects. Your marketing and sales departments should be experts at positioning your company's
offering to attract new customers. Similarly, mid-level managers and company executives can use group
forums and electronic communications injected with humor, storytelling or congratulatory messages to
create an environment where employees feel inspired and valued.

Considerations

Before hosting meetings, provide an agenda of what will be covered so participants are clear on the
purpose for the gathering. Constantly engage your employees in a discussion of ways to fulfill the
company's vision and mission statements, and encourage feedback to determine ways in which a
positive business communication loop can be maintained. Pay close attention to how your management
team communicates with team members. The more involved you are in fostering a positive business
communication environment, the more success you will have in promoting a vibrant corporate culture.

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A negative message is any message to which the reader will have an unpleasant emotional reaction.
Readers find negative messages disappointing or threatening in some way. Such messages require
special care to avoid damaging the quality of the relationship because the negative message—the bad
news—will hurt the reader’s feelings or cause him or her to lose face.

Not all messages saying no are negative. For a message to be negative, the reader’s ego must be
involved in the outcome. If a reader requests information you and others in your organization are not
equipped to provide, for example, the reader’s feelings will not be hurt when you direct him or her
elsewhere. Treat messages of this variety as you would a message conveying positive information: state
the most important information first, and use it to help establish rapport with the reader.

A memorandum—usually known as a memo—is a document which is most commonly used for internal
communication between coworkers or members of a department. This wikiHow will guide you through
the process of writing a business memo.

Four Steps in Writing a Business Memo

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1. Create the Heading
Business memos that will be printed or emailed as attachments should begin with a heading that lists
the name(s) of the staff members who will be receiving it. If the memo will be included in the body of an
email, this section is not necessary because the email program will provide the information typically
included in a memo heading for you.

Example memo heading:

Memo To: fill in recipient name(s)

From: sender's full name

Date: date memo is sent

RE: specific subject line

CC: names of people who will be copied on the email.

Headings should include the full name (no nicknames) of the person or people who will receive the
document. You should also include your full name, and the date the memo was prepared. The next part
of the heading is the subject of the memo, which is usually indicated by "RE:", which stands for
"regarding." Make the subject as specific as possible. Instead of a general heading such as "New Policy,"
choose "New Policy for Scheduling Vacations." If the menu will be copied to other people, end the
heading with a CC: line.

2. Write the Body

The body of a memo includes three components:

 Introduction: This should be a short paragraph of two or three sentences that lets people know the
reason for the memo in a direct manner.
 Recommendations or purpose: This section gets to the meat of the message using key points,
highlights or background information. It may include supporting detail like facts and statistics, as
well as examples and reasons for the memo.
 Conclusion: The conclusion will make it clear what action needs to be taken and when it needs to
be completed or reiterates the timely news included in the memo.

3. Finalize the Document

Proof the memo carefully before you send it. Make sure that is free from typos and that the document
accurately conveys the point(s) you want to get across.

Use the following guidelines when evaluating what you have written and make changes as needed.

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  Audience-appropriate: Verify the document is appropriate for the education, background,
company status and needs of the recipients.
 Concise: Remove needless words and keep the memo to one page or less in most circumstances.
 Coherent: Make sure that the memo structure is simple and logical and that each paragraph is
limited to one idea.
 Readability: Make sure to keep paragraphs short and use bullet points to list key details.
 Terminology: Use appropriate terminology that the audience can be expected to understand.
 Factual tone: Verify that the tone is professional and that you have not included emotionally-
charged words.
 Appearance: Ensure the finished document is visually appealing and easy to read.

4. Distribute the Memo

When you are sure the memo is ready to go, hand-write your initials by your name on the 'from' line,
then copy and distribute the document to the recipient(s) if you are sending hard copies.

If you are sending the memo via email, you may want to convert it to a PDF document before sending,
so that you can be sure the format will carry through to everyone who receives it. One you have done
that, simply enter the appropriate email addresses, attach the memo and add a descriptive subject line.
You may also want to add a few lines of introductory text in the body of the email directing readers to
open the attachment before clicking 'send.'

Printable Memo Template

While you can apply the tips above to setting up and formatting a memo yourself, you may also find it
helpful to start from a blank template. If you'd like to do this, simply click the image below and a
customizable template that you can edit, save and print will open in a separate window. If you need help
downloading the template, check out these helpful tips.

What is a report

A report is written for a clear purpose and to a particular audience. Specific information and evidence
are presented, analysed and applied to a particular problem or issue. The information is presented in a
clearly structured format making use of sections and headings so that the information is easy to locate
and follow.

When you are asked to write a report you will usually be given a report brief which provides you with
instructions and guidelines. The report brief may outline the purpose, audience and problem or issue
that your report must address, together with any specific requirements for format or structure. This
guide offers a general introduction to report writing; be sure also to take account of specific instructions
provided by your department.

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The Purpose of Reports. Reports communicate information which has been compiled as a result of
research and analysis of data and of issues. Reports can cover a wide range of topics, but usually focus
on transmitting information with a clear purpose, to a specific audience. ... The scope and style
of reports varies widely.

What is a report?
A report is a methodical, well planned document which outlines and evaluates a subject or problem, and
which may include:

• The record of an order of events

• Explanation of the implication of these events or facts
• Evaluation of the facts or results of research presented
• Discussion of the consequences of a conclusion or course of action
• Conclusions
• References

Types of Report Writing

Everything must be in details. There are many types of report writing for organizations that are used for
various purposes. To format your report to serve varied needs, have a look at the primary report writing
types mentioned below.

Formal Report Writing

Formal Report Writing is pretty complex and time-consuming. Usually, it demands an immense research,
explanation, references, links, lists and many other things to make the primary point clear enough for
the readers.

This type of report writing is usually preferred for an important incident, issue or matter by big
organizations. Formal report writing is generally long and expensive.

Formal Report writing has an internationally accepted pattern that includes various components that
are mentioned below.

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Cover – The cover of a report is something that drives a reader’s attention first. The report’s cover
leaves a huge impression on the reader’s mind and he/she can get an idea regarding the report’s topic
or quality through the cover design.
There is a saying – ‘’don’t judge a book by its cover’’ but it is also true – what seems well, sells well and
hence the report writer must take care of the cover of the report with has a major role to depict the
report brief.

Title Of The Report – This component includes the report’s title and the name of the writer. Apart from
these things, the title can also have a date and the name of the organization for which the report has
been prepared.
The cover also has these things but putting them in details in the title section is mandatory.

Table Of Contents – This section includes headings and subheadings of the primary text written. This is a
very important portion of report writing. It helps your readers to reach desired sections in your report in
a hassle-free manner.
Summary – Here you basically provide the synopsis of the whole report’s primary text and you can also
call it an informative summary.
Many times, it is referred as ‘executive summary’. You can also use descriptive summary which is a
simple table of contents. The format is always decided by the organization.

Introduction – This is the most important section of the main text. The main text always includes three
components – introduction, discussion, and conclusion.
Here, you introduce the main text of your report in the most intriguing a detailed manner so that all
types of readers can get your point without much effort.

Discussion – In the discussion section, a report writer discusses the main story of the report. According
to your reader’s convenience, you decide the order of the report’s results.
You can also do a result to theory comparison here along with the analysis, evaluation and
interpretation of the data included.

Conclusion/Recommendation – You can present the summary of the discussion section here. Here, you
mention your findings and recommend the elements to your readers as per your overall evaluation.
Appendix – In the appendix portion, you can attach the graphs, lists, survey and suchlike stuff that are
related to your report and helps your readers to understand the report comprehensively.
Reference/Bibliography – You can cite your report’s references in this portion.
Informal Report Writing
This type of report writing is comparatively easier and less time-consuming than the formal report
writing. Here, you need to perform lesser research and it also includes lesser components.

The basic components of informal report writing include – Introduction, Discussion &
Reference/Recommendations. Different organizations include more components to this type as per their
requirements.

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Informal Report Writing can also be divided into few types – Credit Report, Feasibility Report, Progress
Report, Sales Activity Report, Financial Report, Personal Evaluation and Literary Report.

Importance of report

1. Decision Making Tool: Today’s complex business organizations require thousands of

information. Reports provide the required information a large number of important decisions
in business or any other area are taken on the basis of information presented in the reports. This
is one of the great importance of report.
2. Investigation: Whenever there is any problem, a committee or commission or study group
investigates the problem to find out the reason behind the problem and present the findings
with or without the recommendation in the form of a report. It is another importance of report.
3. Evaluation: Large scale organizations are engaged in multidimensional activities. It is not
possible for a single top executive to keep personal watch on what others are doing. So, the
executive depends on reports to evaluate the performance of various departments or units.
4. Quick Location: There is no denying the fact that business executives need information for quick
decision-making. As top executives are found to be busy for various purposes), they need vital
sources of information. Such sources can be business reports.
5. Development of skill: Report writing skill develops the power of designing, organization
coordination, judgment and communication.
6. Neutral presentation of facts: Facts are required to be presented in a neutral way; such
presentation is ensured through a report as it investigates, explains and evaluates any fact
independently.
7. Professional Advancement: Report also plays a major role in professional achievement. For
promotion to the rank and file position, satisfactory job performance is enough to help a person.
But for promotion to high level position, intellectual ability is highly required. Such ability can be
expressed through the report submitted to higher authority.
8. Proper Control: Whether activities are happening according to plan or not is expressed through
a report. So, controlling activities are implemented based on the information of a report.
9. A managerial Tool: Various reports make activities easy for the managers. For planning,
organizing, coordinating, motivating and controlling, manager needs help from a report which
acts as a source of information.
10. Encountering Advance and Complex Situation: In a large business organization, there is always
some sort of labor problems which may bring complex situations. To tackle that situation,
managers take the help of a report.

A Presentation Is...

A presentation is a means of communication that can be adapted to various speaking situations, such
as talking to a group, addressing a meeting or briefing a team.

Your method of making a presentation may be:

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1. By preparing a talk, making notes, memorizing only the ideas and illustrations, and speaking
extempore (that is without reference to any written material)

2. By memorizing an entire speech and delivering it

3. By reading out a speech (for example a company report) so that every word is spoken exactly as you
planned it

Elements of a Presentation:
In an oral presentation, the audience sees the speaker and hears him. Hence the standing personality
must corroborate the spoken words.

A speech on simplicity must be accompanied by the same quality in the speaker. A speech on confidence
should show this quality shining in the speaker’s gestures and posture, voice and delivery. Hence the
dictum “Dress before address” is only appropriate.

The essential elements of a presentation are:

1. Confidence

2. Sincerity

3. Mastery of the subject

1. Confidence:
In a way, standing before a group of people to speak for a length of time, and speaking with force and
conviction, is a difficult undertaking. You need to prepare yourself psychologically for the occasion and
be ready to stand your ground.

This is what confidence amounts to. If you are sure of yourself and sure about your message, you find it
easier to carry your audience with you.

2. Sincerity:
When does a preacher succeed in preaching? When he means what he says and has the interests of the
listeners in his heart.

A good presentation begins in the heart and reaches the listeners’ hearts. However, having sincerity and
being able to communicate it to the audience are not the same.

3. Mastery of the subject:

Every effective speaker vouches for this, that he went deep and wide into his subject. A good speaker
gathers more information than may be required for the speech.

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That is how he has a back-up, a reservoir of facts and opinions on which his speech stands. When you
say, “The farmer in Vidarbha is pushed to the wall,” let’s say you have at the back of your mind the
figures of farmer suicides and the circumstances and factors related to them.

4. A friendly feeling for the audience:

When you stand before a group of people, many of whom are strangers to you and with their own
opinions, you can be effective by radiating a friendly feeling.

A motivation speaker started her speech before a large crowd of restless youths with the resounding
words, “I love this audience.” This was said in a radiant tone and eye-to-eye contact with the listeners.
Instantly, a friendly bond was established.

Designing Your Presentation:

Structurally, a good presentation has an introduction, a body and a conclusion.

The speaker may organize his thoughts upon any of these formulas:
1. (a) State your facts

(b) Argue your facts

(c) Appeal for action

2. (a) Show that something is wrong

(b) Show it can be remedied

(c) Seek the listeners’ cooperation. Now we discuss the parts of a presentation.

Different types of visual aids

There are many different types of visual aids. The following advice will help you make the most of those
most commonly used.

PowerPoint (or equivalent)

Microsoft PowerPoint is probably now the most commonly used form of visual aid. Used well, it can
really help you in your presentation; used badly, however, it can have the opposite effect. The general
principles are:

Do Don't
use a big enough font (minimum 20pt) make it so small you can't read it
keep the background simple use a fussy background image

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use animations when appropriate but don't over-do the animation - it gets distracting
use endless slides of bulleted lists that all look the
make things visual
same

Overhead projector slides/transparencies

Overhead projector slides/transparencies are displayed on the overhead projector (OHP) - a very useful
tool found in most lecture and seminar rooms. The OHP projects and enlarges your slides onto a screen
or wall without requiring the lights to be dimmed. You can produce your slides in three ways:

 pre-prepared slides : these can be words or images either hand written/drawn or produced on a
computer;
 spontaneously produced slides: these can be written as you speak to illustrate your points or to
record comments from the audience;
 a mixture of each: try adding to pre-prepared slides when making your presentation to show
movement, highlight change or signal detailed
 White or black board
 White or black boards can be very useful to help explain the sequence of ideas or routines,
particularly in the sciences. Use them to clarify your title or to record your key points as you
introduce your presentation (this will give you a fixed list to help you recap as you go along).
Rather than expecting the audience to follow your spoken description of an experiment or
process, write each stage on the board, including any complex terminology or precise references
to help your audience take accurate notes.
 Paper handouts
 Handouts are incredibly useful. Use a handout if your information is too detailed to fit on a slide
or if you want your audience to have a full record of your findings. Consider the merits of
passing round your handouts at the beginning, middle and end of a presentation. Given too
early and they may prove a distraction. Given too late and your audience may have taken too
many unnecessary notes. Given out in the middle and your audience will inevitably read rather
than listen. One powerful way of avoiding these pitfalls is to give out incomplete handouts at
key stages during your presentation. You can then highlight the missing details vocally,
encouraging your audience to fill in the gaps.
 Flip chart
 A flip chart is a large pad of paper on a stand. It is a very useful and flexible way of recording
information during your presentation - you can even use pre-prepared sheets for key points.
Record information as you go along, keeping one main idea to each sheet. Flip back through the
pad to help you recap your main points. Use the turning of a page to show progression from

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 point to point. Remember to make your writing clear and readable and your diagrams as simple
as possible.
 Video (DVD or VHS)
 Video gives you a chance to show stimulating visual information. Use video to bring movement,
pictures and sound into your presentation. Always make sure that the clip is directly relevant to
your content. Tell your audience what to look for. Avoid showing any more film than you need.
 Artefacts or props
 Sometimes it can be very useful to use artefacts or props when making a presentation (think of
the safety routine on an aeroplane when the steward shows you how to use the safety
equipment). If you bring an artefact with you, make sure that the object can be seen and be
prepared to pass it round a small group or move to different areas of a large room to help your
audience view it in detail. Remember that this will take time and that when an audience is
immersed in looking at an object, they will find it hard to listen to your talk. Conceal large props
until you need them; they might distract your audience's attention.

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