Module 8

Business Letters

At the end of this module, you should be able to:

1. identify the key parts of a business letter;
2. learn the different forms/styles of business letters;
3. discuss the nature and features of a business letter; and
4. write different types of business letters.

===============================

Business Letters

The business letter is one of the important tools used in industries. It is one
means to build trust and confidence among people involved in the business.

Writing business letters requires knowledge of accurate information regarding the

business transaction.

A business letter would be effective if the writer considers the four C’s:
completeness, conciseness, clarity, and courtesy, as suggested by Alcantara and
Espino (1995).

1. Completeness. This means including all the necessary details of the matter
being discussed in the letter. This will avoid miscommunication between the
reader and the writer. This will also avoid the need to write another letter to ask
for the missing information and the answer to that.

2. Conciseness. Being concise means being brief, or what one means in as few
words as possible without sacrificing the meaning. This is not to say that
everything should be cut short, but if you can say what you mean in a few words,
then do so. This will save both the writer’s time as well as the reader’s. This will
also make your letter simple and direct.
 3. Clarity. To be clear is to be precise and accurate in the use of words. This
requires mastery of sentence structure and the meaning of words.

The writer should use the precise words and should be extra careful with
homonyms and use of concrete nouns instead of abstract nouns.

4. Courtesy. As formal as the business letter is, a tone of courtesy or politeness will
go a long way to do a good business. This also can gain customers, earn their
good will, and retain their patronage.

Every kind of business letter requires formality. Tendero et al. (2010) list the
following elements, layouts, standards, and punctuation styles of business letters.

Elements of the Business Letter

Business letters usually use the 8.5 x 11 inches or the A4 size bond paper.
Special paper is acceptable; however, avoid those which are scented and shiny. White
is the standard color; light tints are also becoming popular, but strong colors like bright
orange or bright green are not advisable. The standard margins of the letter are 1-1.5
inches at the left-hand margin and 1 inch at the right, top and bottom. The following are
the elements of the business letter.

1. Heading. The two kinds of headings are the conventional and modern.

The conventional heading consists of the home address of the writer, with
the number of the house, street, barangay, municipality or city, province and zip
code, with the date on the last line.

The modern heading, meanwhile, is the company name and its address
written at the center top of the stationery with one-inch margin. It also includes
the company logo, telephone and/or fax numbers and webpage and/or email
address. This is commonly known as the letterhead which is already written or
printed out on the stationery. The writer needs to add the date only.
 Image source: https://www.template.net/tutorials/how-to-write-a-business-letter-tutorial/

2. Inside address. This is the address of the receiver which is the same as the one
written in the envelope. Written three or four spaces after the date, this includes
the name of the person, his/her title and position, department or office, name of
company, and address. If there is a possibility that the person you are writing to
has some other title (e.g., Dr.), use that title. Usually, people will not mind being
addressed by a higher title than they actually possess.
3. Salutation or Greeting. This element of the letter makes it formal. It is written 2-
3 spaces after the inside address. This usually begins with Dear followed by the
last name of the person including the corresponding title (Mr., Ms., Mrs., Dr.,
etc.). Sir/Madam may be used if the name and gender are not known. In the case
that you do not know the person’s marital status or her preference, use Miss. To
address an organization and not an individual, use Ladies and Gentlemen. If you
do not know a reader's gender, use a nonsexist salutation, such as their job title
followed by the receiver's name. It is also acceptable to use the full name in a
salutation if you cannot determine gender. For example, you might write Dear
Zoe Santos: if you were unsure of Zoe's gender.

4. Body of the letter. The body is the flesh of the letter. It starts 2-3 spaces after
the salutation. It is usually single-spaced with 2 spaces between paragraphs.
Shorter letters may be double-spaced.

For block and modified block formats, single space and left justify each
paragraph within the body of the letter. Leave a blank line between each
paragraph. When writing a business letter, be careful to remember that
conciseness is very important. In the first paragraph, consider a friendly opening
and then a statement of the main point. The next paragraph should begin
justifying the importance of the main point. In the next few paragraphs, continue
justification with background information and supporting details. The closing
paragraph should restate the purpose of the letter and, in some cases, request
some type of action.

5. Complimentary close. If the salutation or greeting is meant to start the letter,

the complimentary close is used to politely end the letter. Three to 4 spaces after
the last line of the body of the letter, it is followed by a comma. Only the first letter
is capitalized.

The following are the commonly used complimentary closes: Sincerely,

Sincerely yours, Cordially, Cordially yours, Very sincerely yours, Very cordially
yours, Very truly yours. If the person is of high stature, use Respectfully yours.
 6. Signature. This is the full name of the writer with the position under it. It is four
spaces away from the complimentary close to give way for the writer’s
authentication.

Miscellaneous Elements of a Business Letter

Aside from the elements listed above, there are other elements which might be
found in business letters for reference purposes.

Image source: http://www.savvy-business-correspondence.com/BizLetterElements.html

1. Reference line. This is found on the upper portion of the letter and includes a
sequential number. This is used for reference and/or filing purposes for a letter
subsequent to a previous one.

2. On-Arrival Notation. You might want to include a special notation on private

correspondence. This is typed in all uppercase characters or you could prefer to
bold them before the inside address. Others prefer to put it between the inside
address and the salutation. Remember to put it on the envelope as well, which is
probably even more important. Examples of private correspondence notations:

● PERSONAL
● CONFIDENTIAL
● PRIVATE AND CONFIDENTIAL
● STRICTLY CONFIDENTIAL

3. Attention line. This is written two spaces after the inside address. This is written
if the letter is intended for a particular person or group of people from the
department or company. The attention line is addressed to the person-in-charge
of the unit like the head, dean, supervisor.

4. Subject line. This is the topic of the letter. It is written after the attention line or
inside address.

5. Identification notation/initials. This is found below the signature and consists

of the initials of the sender in all caps and the initials of the typist in small letters
separated by colon or slant line.

6. Enclosure notation. This is typed just below the identification notation. This
refers to the item/s included inside the envelope besides the letter. The
abbreviation “Enc” or “Encl” may be used, or “Encl(3)” to indicate 3 elements.

7. Carbon copy (CC) notation. The phrase “Copies to” or the abbreviation “cc” is
typed at the left margin, below the identification notation or enclosure notation, to
indicate the others who received the same letter.
 8. Noted by signature. If the writer has a superior in charge of the department or
office, the said superior must be notified and he/she affixes his/her signature
below the letter. This usually applies to inter-office communication.

9. Recommending approval signature. This is signed by the superior and is

written below the letter if the letter’s content is a request.

If the letter exceeds one page, repeat the recipient’s name, the date, the
reference or subject line, and show the current page number. Continue the body of
the letter 3 lines below the heading. If you have less than three lines on the second
page, consider rewriting your letter or adjusting margins to fit on a single page.

Layouts (Styles) of Business Letters

The elements of the business letter may be placed depending on the layout or
style chosen by the writer. The following are common layouts that one may use.

Full Block Form

When writing business letters, you must pay special attention to the format and
font used. The most common layout of a business letter is known as block format.
Using this format, the entire letter is left justified and single-spaced except for a
double space between paragraphs.

Block Form

When writing a letter using block form, no lines are indented. Include
your name, address, and phone number where you can be contacted, as well as
the date. You then include the name and address of the person you are sending
the letter to. With new paragraphs, just skip a line instead of indenting.
Add your phone number where you can be contacted in the last
paragraph. If the receiver needs to use a relay service to call you, briefly explain
that you are deaf/ hard-of-hearing and that s/he can call you through relay.
 Give the receiver his/her state relay number and explain that s/he will
need to give the operator your number. Then give him/her your number.

Semi-block Form

The least used style is semi-block. Semi-block format or style is frequently called
modified semi-block because it is a slightly less formal modification of full block
format. This letter style places the date line in alignment with, or slightly to the right
of dead center. Another option for placing the date line in semi-block is flush right.
Similar to full block, semi-block places the inside address, salutation and any end
notations flush with the left margin. However, unlike full block, each body paragraph
of semi-block is indented five spaces. The complimentary close and signature block
are aligned under the date.

Indented Style

Indented style is one of the older formats for business writing currently in use,
though other formats are becoming more popular. Indented style is a format that
many of today’s business people were trained to use.

Hanging-Indented Style

The most common place hanging indents are used is on a bibliography reference
page. When typing you can change the indentation by either formatting the
paragraph or changing the page margins.
 Name of organization
Address
Contact details

TO: Readers’ names and job titles

FROM: Your name and job title
DATE: Complete and current date
SUBJECT: What the memo is about, highlighted in some way

The purpose of a memo is usually found in the opening paragraph and includes:

The purpose of the memo

The context and the problem
The specific assignment or task

The context is the event, circumstance, or background of the problem you are solving.

Sincerely yours,

Your signature
Your name
Your position

Memorandum Style

Punctuation Styles

There are three punctuation styles in business letter writing:

1. Standard or Mixed Punctuations. This is the most common kind. The salutation
and complimentary close are the only ones punctuated. The salutation is
followed by a colon, and the complimentary close is followed by a comma.
 2. Closed Punctuations. In this style, the special lines are punctuated. The
dateline is followed by a period, each line of the inside address is followed by a
comma and a period for the last line, the salutation is followed by a colon, and
the complimentary close is followed by a comma.

3. Open Punctuations. The opposite of close punctuation style, the special lines
as dateline, inside address, salutation and complimentary close are not followed
by any punctuation mark in the open punctuation style.

Kinds of Business Letters

1. Application Letter. A student goes to school to finish a degree in the hope of

getting a good job after college. The application letter is probably the first formal
letter that a student shall write after graduation.

There are two kinds of application letters: solicited and unsolicited. The
solicited letter is a response to an announcement through ads, newspapers,
billboards, etc. The unsolicited application letter is sent by chance of being hired.

Here are some guidelines in writing the application letter:

a. If the application letter is solicited, mention the source: the name of the
newspaper and date; name of the person if by words. If unsolicited, just say
you are sending the letter by chance of possible needs.

b. Say your intention in applying for a particular position.

c. Enumerate your educational qualifications.

d. Enumerate your work experiences.

e. Give your reason for applying.

f. Give your personal and physical information, especially if the job asks for it.
g. Give your contact number. Do not give them a schedule on when or when not
to call you.

h. Attach your resumé and supporting documents like a transcript of records.

Image source:https://www.sampleletterword.com/7-application-letter-samples.html
Resumé Writing

A resumé is an important document one needs especially when applying for a

job. As with the letter of application, it should be neat and formal.

The basic elements included in the resumé are:

1. Name and contact information. The name is usually in bigger font size and style
to highlight it. Contact information includes your mailing address, telephone and
cell phone numbers, and email address (if any). Email addresses should be at
least your name or initials. Do not use email addresses that will not make a good
impression on your would-be employer. Example: [email protected]

2. Objective. This is a brief statement on your objective for applying in the company
or the particular job or position. However, this part is optional. If you were going
to write “to secure a job in your company”, better leave this blank.

3. Educational background. Starting with the latest degree or course finished; this
will give the prospective employer an idea of your training as a student.
Highlighting your college degree is also suggested.

4. Work experience. This includes all the positions you have handled in different
companies. New graduates who do not have work experience yet may do away
with this.

5. Seminars/trainings attended. Seminars and trainings are supposed to give out

the latest trends, rules, findings, etc. on a certain field. Attending such would
make an impression that you are continuously widening your knowledge. List
them starting from the latest, include only those related to the position or field you
are applying for.

● Personal information such as religion, weight, height, etc. and photos, just

like in the application letter, should only be included if the job requires it.
Image source: https://www.thebalancecareers.com/resume-formats-with-examples-and-formatting-tips-2063591
2. Letter of Inquiry and Reply. A letter of inquiry is written to obtain something
from the recipient.

Here are some guidelines in writing the letter of inquiry:

a. Be courteous in tone.

b. Write a clear and specific question.

c. Be detailed as to what information you want to obtain. If you have several

questions, it is better to write them in numbers or bullets.

d. Express appreciation.

A reply to the inquiry is written immediately to show importance and

courtesy to the writer of the inquiry. An immediate reply is also good for the
business.

Here are the guidelines in writing a reply to an inquiry:

a. Reply immediately.

b. Show courtesy and appreciation.

c. Answer all the questions and inquiries. If they are numbered, make sure to
answer them also in a list and in order.

d. Give whatever request is asked. If it is not possible to give the request, be

honest to say so and offer some alternative.

3. Sales Letter. A sales letter is written to sell commodities, services, and ideas.
This is somehow to promote business and give details on the product. to be
effective, its scope must describe a particular benefit the reader will gain by
making the purchase, such as a problem solved or a need fulfilled.
 Here are some suggestions in writing a sales letter:

a. It should attract the interest of the reader by using fresh, suitable and
personal language.

b. It should describe the product in detail like appearance, features, cost, etc.

c. It should explain clearly the benefits the reader will get if they buy the product.

d. It should lead the reader to act to at least see the product or call for the
representative and discuss it.

4. Order Letter. The order letter or purchase order (PO) begins the proper trail of a
specific purchase. The objective is to provide the vendor with detailed
instructions for fulfilling an order. It also serves as a legal record of the
transaction and, consequently, should be written with care.

a. Be explicit and precise on what goods you want to buy.

b. Give the complete and specific information of the goods such as the
number of items, color, size, weight, finish, and price.

c. Specify the mode of payment, whether cash, check, credit cards, COD,
postal money order, or charge account.

d. Give the specific direction of shipment and time of delivery.

5. Letter of Claim and Adjustment. There are times when miscommunication

occurs and the goods delivered are not right or are defective. The customer then
may write a letter of claim and the merchandiser may reply to this letter through a
letter of adjustment.
 Here are some guidelines in writing a letter of claim:

a. Even if this is a letter of claim or complaint, be courteous still; include

information when the delivery arrives.

b. Be explicit and precise in your complaint. If the wrong goods were

delivered, specify the goods that you ordered alongside the goods that
were delivered. If the goods delivered are defective, specify the defect and
how you want them adjusted.

c. Send back with your letter the defective goods.

For the letter of adjustment, you may consider the following suggestions:

a. Apologize courteously for the goods that were not delivered correctly or were
defective.

b. Explain why the mishap happened and offer your solution and adjustment.

c. Suggest that you are happy to do business with the person or company and
that you will do your best to get everything right next time.

6. Letter of Invitation and Reply. The letter of invitation must be cordial and
gracious in tone.

Here are some guidelines in writing the letter of invitation:

a. State the name of your club, organization or association.

b. Specify the occasion, date, time, and venue where it will be held.

c. Mention why the recipient is chosen to be invited and why his presence is
desirable.
 d. If the one invited is to speak, tell him the subject of his message and the
amount of time he is given to deliver it. It might also be good if the writer
can specify the part on the occasion when the person would speak.

e. Give some provision for the recipient to accept or decline the invitation.

In replying to an invitation, here are some guidelines:

a. Reply promptly whether you are accepting or declining the invitation.

b. If declining, indicate your regret and mention your reason for declining.

Key Points

1. Business letters are often the most appropriate choice for formal
communications with professional associates or customers.
2. A business letter would be effective if the writer includes all the necessary and
accurate information in as few words as possible while maintaining a tone
of politeness or courtesy.
3. The elements of a business letter are: heading, inside address, salutation, the
body, complimentary close, and signature. Some business letters have reference
line, attention line, subject line, identification notation, enclosure notation, carbon
copy notation, noted by signature, and recommending approval signature.
4. A business letter may be written in full block form, semi-block form, indented
style, hanging-indented style, or memorandum form.
5. In standard/mixed punctuations, only the salutation and complimentary close
are punctuated.
6. In closed punctuations, the special lines (dateline, inside address, salutation,
and complimentary close) are punctuated.
7. In open punctuations, the special lines are not followed by any punctuation
mark.
 8. A solicited application letter is a response to an announcement of a vacant
position through ads, newspapers, billboards, or through the internet.
9. An unsolicited application letter is sent by chance of being hired.
10. A resumé is a document attached to an application letter to serve as a
persuasive summary of qualifications.
11. The purpose of writing a letter of inquiry and reply is to obtain responses to
requests or specific questions.
12. A sales letter is a marketing tool that promotes a good or a service.
13. An order letter is written to provide the vendor with the details for fulfilling an
order.
14. A claim or complaint letter is written to the concerned company to bring the
mistake or damage done to the notice of the supplier or provider, and to ask for
rectification and/or compensation.
15. An adjustment letter is a response to a claim letter expressing a clear
understanding of the issues conveyed by the buyer and providing reasonable
solutions to it.

Learning Activities

1. Write a letter of application to a company that has advertised an opening for a

job that interests you. Clearly state your interest and qualifications. Be brief and
to the point. Be sure to proofread the letter carefully and correct any careless
errors. Attach your resumé.

2. Write a letter to a potential customer for a firm’s products or services. Attempt

to convince the client to make a purchase. Be as persuasive as possible. Give
the client several good reasons for making the purchase. Tell the potential
client how the transaction will benefit sales, reduce costs, or eliminate
problems.
YouTube Videos to Watch

1. CrashCourse. (March 27, 2019). The secret to business writing: Crash Course
Business – Soft Skills #3. https://www.youtube.com/watch?v=8E-oqahDnb8

2. GCFLearnFree.org. (November 22, 2017). Business Writing Tips.

https://www.youtube.com/watch?
v=LrKesGslOYs&list=PLpQQipWcxwt9wHBf7bCw27sS3BMylg7tU&index=9&t=
0s

3. GCFLearnFree.org. (November 30, 2017). Writing a formal business letter.

https://www.youtube.com/watch?v=7xUTguLaaXI

4. Mad English TV. (September 17, 2017). How to write a business email.
https://www.youtube.com/watch?v=dAqkBwruxT8

References

1. Purdue Writing Lab. (n.d.). The Basic Business Letter // Purdue Writing Lab.
Retrieved September 02, 2020, from
https://owl.purdue.edu/owl/subject_specific_writing/professional_technical_writin
g/basic_business_letters/index.htmlSimple. (2012). Style format business letter.
https://okhtablog.wordpress.com/2012/11/20/styles-format-business-letter/

2. Simplynotes. (n.d.). Claim & adjustment letters. https://www.simplynotes.in/e-

notes/mbabba/business-communication/claim-adjustment-letters/#:~:text=An
%20%E2%80%9D%20adjustment%20letter%20is%20a,to%20a%

3. Writing@CSU. (n.d.). Welcome to Writing@CSU. from

https://writing.colostate.edu/guides/page.cfm?pageid=1466&guideid=71