Business Correspondence, Meaning, Features, Format, Objectives, Types, Inviting tenders and quotations, Designing quotations

Business correspondence refers to the exchange of information in written form between individuals, companies, or organizations for commercial, professional, or administrative purposes. It is a vital component of business communication that ensures clarity, record-keeping, and professionalism in interactions. Business correspondence includes letters, emails, memos, reports, notices, and other documents that convey messages such as inquiries, confirmations, complaints, instructions, or negotiations.

Unlike casual communication, business correspondence is formal in tone and follows a structured format. It is used both internally (within the organization) and externally (with clients, suppliers, partners, or government bodies). Effective business correspondence helps maintain smooth operations, resolve conflicts, confirm agreements, and build long-term relationships with stakeholders.

In modern business environments, digital correspondence such as emails has largely replaced traditional letters, though the principles of formality and clarity remain the same. Good business correspondence must be clear, concise, polite, and purposeful, ensuring that the intended message is accurately understood.

It serves as a written record for future reference, making it useful for audits, legal verification, and accountability. Whether conveying day-to-day updates or handling sensitive matters, business correspondence plays a crucial role in enhancing communication efficiency and reinforcing the professional image of an organization.

Features of Business Correspondence:

• Clarity

Clarity is the foremost feature of business correspondence. The message should be clearly worded so the recipient easily understands its purpose without confusion. Sentences must be direct, and the vocabulary should match the reader’s level of understanding. Unclear or ambiguous communication can cause misunderstandings, delays, or errors. Clarity ensures that the main point is presented without unnecessary jargon, making the message effective and action-oriented in both internal and external communication settings.

• Conciseness

Conciseness means delivering the message in as few words as necessary without losing meaning or politeness. Business readers often have limited time, so messages should avoid repetition, redundant phrases, and irrelevant information. Every sentence should serve a purpose. Concise communication improves readability and increases the likelihood of a quick and accurate response. It also reflects professionalism and respect for the recipient’s time, making it an essential trait of effective business correspondence.

• Formal Tone

Business correspondence typically maintains a formal and professional tone, as it represents the organization’s image. The language used should be courteous, objective, and free of slang or overly casual expressions. A formal tone builds credibility and demonstrates respect for the reader. Whether addressing superiors, subordinates, or clients, a formal tone ensures the message is taken seriously and maintains the decorum expected in professional environments.

• Correctness

Correctness refers to the accuracy of content, language, and data used in business correspondence. This includes proper grammar, punctuation, spelling, factual accuracy, and correct names, dates, or figures. A single mistake can damage credibility, lead to misinterpretation, or even result in legal consequences. Therefore, proofreading and verification are crucial steps in drafting any business document to ensure the information shared is trustworthy and professional.

• Courtesy

Courtesy in business correspondence involves using polite expressions, showing respect, and maintaining a positive tone, even in sensitive or critical situations. Words like “please,” “thank you,” and “we appreciate” help maintain goodwill and improve relationships. Even when denying a request or addressing a complaint, courtesy softens the message and fosters mutual respect. A courteous approach enhances the organization’s image and contributes to long-term business relations.

• Purposeful Structure

A well-structured business correspondence has a logical and purposeful format. It generally includes a clear subject line or heading, an introduction stating the purpose, a body explaining the message, and a conclusion with the required action or next step. This structured flow helps the recipient navigate the message easily and respond appropriately. A disorganized message may confuse the reader and diminish the effectiveness of communication.

• Promptness

Promptness refers to the timely sending and responding to business communication. In the fast-paced business world, delayed correspondence can disrupt workflows, cause misunderstandings, or lead to missed opportunities. Prompt replies demonstrate professionalism, efficiency, and respect for deadlines. Businesses that respond quickly to queries, feedback, or complaints often build stronger relationships and establish a reputation for reliability.

• Confidentiality

Many business correspondences involve sensitive information—financial data, contracts, employee details, or strategic plans. Maintaining confidentiality is a critical feature, especially when dealing with internal memos or client-specific communications. Proper handling of confidential documents, using appropriate channels, and securing written records prevent data leaks and build trust. Organizations must also comply with legal and ethical standards related to data privacy.

Format of Business Correspondence:

Business correspondence follows a structured and professional format to ensure clarity, consistency, and formality. While the content may vary depending on the purpose (e.g., inquiry, complaint, appointment, etc.), the basic format remains largely standardized. Below is the standard format for formal business letters and email correspondence.

1. Sender’s Address / Letterhead

• Placed at the top left (if not using a pre-printed letterhead).

• Includes the sender’s full postal address and sometimes phone/email.

• No need to write the sender’s name in the address.

Example:
ABC Enterprises
12 Park Street
Mumbai – 400001
Maharashtra, India

2. Date

• Mentioned below the sender’s address, aligned left or right.

• Always in full format (e.g., 21 June 2025).

Example:
21 June 2025

3. Receiver’s Address

• Include the recipient’s name, designation, company, and full address.

• Align to the left margin.

Example:
Mr. Rajesh Mehra
Purchase Manager
XYZ Pvt. Ltd.
45 Nehru Road
New Delhi – 110002

4. Subject Line

• A brief and clear summary of the purpose of the letter.

• Written in bold or underlined (optional).

• Starts after “Subject:” or written as a title (optional for emails).

Example:
Subject: Request for Quotation for Office Furniture

5. Salutation / Greeting

• Use formal salutations such as:

  • “Dear Sir/Madam” (if name is unknown)

  • “Dear Mr. Mehra” or “Dear Ms. Sharma” (if name is known)

6. Body of the Letter

The body is typically divided into three parts:

(a) Introduction

• States the purpose of the letter clearly.

• Briefly explains the context.

Example:
We are writing to request a quotation for the supply of modular office furniture for our new office in Pune.

(b) Main Content / Details

• Provides all necessary information, facts, and specifics.

• Can include bulleted or numbered lists if needed.

• Avoids unnecessary jargon.

(c) Conclusion

• States the expected action or outcome.

• Politely ends the message.

Example:
We would appreciate it if you could send us the quotation by 25 June 2025. For any clarification, feel free to contact us.

7. Complimentary Close

• Use courteous formal closures such as:

  • Yours sincerely (if the recipient is known)

  • Yours faithfully (if the recipient is not known)

8. Signature Block

Includes:

• Signature (if hard copy)

• Name of the sender

• Designation

• Company name

Example:
Sincerely,
Signed
Amit Verma
Procurement Officer
ABC Enterprises

9. Enclosure (if applicable)

• Mention if additional documents are attached.

Example:
Encl: Product Catalogue, Order Form

Objectives of Business Correspondence:

• To Exchange Business Information

One of the primary objectives of business correspondence is to facilitate the exchange of essential information between two or more parties. This can include orders, quotations, confirmations, policy changes, or meeting details. Clear written communication ensures that all stakeholders are informed and aligned with business goals. It reduces misunderstandings and enhances the accuracy and timeliness of information shared within or outside the organization.

• To Maintain Written Records

Business correspondence creates a documented trail of communication that can be used for future reference, legal proof, or operational tracking. This written record helps organizations verify facts, resolve disputes, or audit processes. Whether it is a contract, invoice, complaint, or agreement, proper documentation through correspondence supports transparency, accountability, and organizational memory, which is essential for effective decision-making and long-term business planning.

• To Build and Strengthen Relationships

Correspondence is a key tool for establishing and maintaining professional relationships. Thoughtful letters, prompt replies, and polite emails convey professionalism and respect, which enhances goodwill and trust. Whether interacting with clients, vendors, or government officials, effective correspondence helps create a positive image of the organization, paving the way for long-term collaborations, customer loyalty, and a strong brand reputation in competitive markets.

• To Give and Receive Feedback

Business correspondence is often used to provide feedback or receive input from stakeholders. Whether it’s a performance evaluation, a complaint letter, a customer response, or an internal review, correspondence allows for a structured and formal way to share opinions, suggestions, or concerns. This promotes open communication, encourages improvement, and helps businesses adapt to the needs and expectations of clients and employees.

• To Confirm Agreements and Decisions

Written communication helps confirm important decisions, agreements, or discussions that have taken place. By putting these elements in writing, business correspondence ensures that all parties have a clear, mutual understanding of the terms, roles, responsibilities, and deadlines involved. This avoids confusion and serves as legal or operational evidence that can be used to ensure compliance and follow-through in business transactions.

• To Promote Business Activities

Business correspondence is also used as a promotional tool to inform stakeholders about new products, services, offers, or updates. Sales letters, newsletters, and marketing emails fall under this category. Such communication helps in customer engagement, business expansion, and competitive positioning. Promotional correspondence combines persuasive language with visual or brand elements to attract attention and generate interest among potential clients or partners.

• To Ensure Smooth Internal Communication

Internally, business correspondence enables departments, teams, and employees to share updates, reports, policies, or feedback. Memos, circulars, and internal emails help in aligning efforts, coordinating tasks, and maintaining transparency within the organization. This objective is vital for improving workplace efficiency, resolving issues promptly, and fostering a culture of open and organized communication among employees at all levels.

• To Handle Disputes and Clarify Misunderstandings

Business correspondence provides a professional and non-confrontational platform to address conflicts or misunderstandings. Through well-structured communication, businesses can clarify misinterpreted facts, respond to complaints, or explain decisions objectively. This helps de-escalate tensions, maintain professionalism, and protect the organization’s image. It also offers legal protection by documenting how disputes were managed and resolved through clear and respectful correspondence.

Types of business correspondence:

1. Internal Correspondence

Definition:
Internal correspondence is communication that occurs within the organization—among employees, departments, or branches.

Purpose:

• To share internal information

• To assign tasks

• To announce events or changes

• To issue instructions

Forms:

• Memos

• Circulars

• Notices

• Internal emails

Example:
A memo from HR announcing a new leave policy or a department head assigning project tasks to a team.

Significance:
Promotes coordination, reduces confusion, and ensures that all internal stakeholders are informed and aligned.

2. External Correspondence

Definition:
External correspondence is communication between the organization and outside entities such as clients, suppliers, government bodies, or the public.

Purpose:

• To conduct transactions

• To maintain relationships

• To respond to inquiries or complaints

• To build business reputation

Forms:

• Letters of inquiry, quotations, orders, and complaints

• Official emails

• Press releases

Example:
A company sending a quotation to a client or writing a letter to a government department.

Significance:
Essential for external relationship-building and formal record-keeping.

3. Routine Correspondence

Definition:
Routine correspondence covers everyday business communication that does not involve unusual or critical issues.

Purpose:

• To conduct regular operations

• To acknowledge receipt of goods or payments

• To confirm dates, details, or appointments

Forms:

• Acknowledgement letters

• Order confirmations

• Thank-you notes

• Standard replies

Example:
Sending a confirmation email for a scheduled business meeting or acknowledging receipt of payment.

Significance:
Ensures the flow of business operations with transparency and accountability.

4. Personalized Correspondence

Definition:
Personalized correspondence addresses individuals directly and is often tailored to reflect personal regard or a sensitive situation.

Purpose:

• To express appreciation, sympathy, or congratulations

• To maintain goodwill

• To resolve issues with care

Forms:

• Appreciation letters

• Apology letters

• Congratulatory notes

• Condolence letters

Example:
An email congratulating an employee on promotion or a letter apologizing to a client for service delay.

Significance:
Humanizes professional relationships and strengthens emotional and ethical bonds with stakeholders.

5. Sales Correspondence

Definition:
Sales correspondence is persuasive communication aimed at promoting a company’s products or services.

Purpose:

• To attract new customers

• To inform about offers or new products

• To create awareness and generate interest

Forms:

• Sales letters

• Brochures

• Marketing emails

• Promotional leaflets

Example:
Sending a promotional email offering discounts or launching a new product line.

Significance:
Drives revenue, enhances brand visibility, and creates a connection with potential and existing customers.

6. Circulars and Notices

Definition:
Circulars and notices are official messages meant to inform a group of people simultaneously, typically within an organization.

Purpose:

• To announce general information or policy changes

• To maintain consistency in communication

• To reach large internal audiences efficiently

Forms:

• Office circulars

• Public notices

• Bulletin board announcements

Example:
A circular announcing a change in office hours or safety guidelines.

Significance:
Helps disseminate important information quickly and uniformly, reducing the risk of miscommunication.

7. Complaint and Adjustment Correspondence

Definition:
This type of correspondence involves expressing dissatisfaction (complaint) and responding to that dissatisfaction (adjustment).

Purpose:

• To seek resolution for grievances

• To offer corrective actions

• To maintain client satisfaction and protect business reputation

Forms:

• Complaint letters

• Adjustment or apology letters

• Credit or compensation notices

Example:
A customer writing to complain about a defective product and the company responding with a replacement or refund.

Significance:
Vital for reputation management, customer service, and conflict resolution.

8. Employment and Human Resource Correspondence

Definition:
This involves communication between the organization and its employees related to hiring, performance, discipline, or policies.

Purpose:

• To recruit, onboard, or terminate staff

• To outline job expectations or provide feedback

• To address grievances or benefits

Forms:

• Offer letters

• Appointment letters

• Appraisal communications

• Warning or termination letters

Example:
Sending an offer letter to a selected candidate or issuing an appraisal notification.

Significance:
Ensures professionalism, clarity, and compliance in employee relations.

9. Legal and Regulatory Correspondence

Definition:
This correspondence involves communication with legal institutions, regulators, or other authorities.

Purpose:

• To comply with legal requirements

• To request approvals or submit reports

• To respond to official inquiries

Forms:

• Legal notices

• Tax filings

• Regulatory compliance letters

Example:
Submitting annual financial disclosures to a regulatory body or responding to a tax department query.

Significance:
Ensures adherence to laws and avoids legal complications.

Inviting tenders and quotations

Inviting tenders and quotations is a formal process that organizations use to solicit offers from suppliers and contractors to provide goods or services. This process is used to ensure that the organization receives competitive bids and selects the most appropriate supplier or contractor for the job.

Tenders and quotations are used to obtain prices and other relevant details about the goods or services required. The process involves inviting prospective suppliers and contractors to submit their offers in response to a formal invitation that specifies the requirements of the organization. This invitation usually includes the scope of the project, the timeline, the specifications of the goods or services required, and any other relevant details.

Inviting tenders and quotations is a transparent and fair way to select a supplier or contractor. It provides an opportunity for suppliers and contractors to compete on a level playing field, and for organizations to select the most appropriate supplier or contractor for the job. It also ensures that the organization receives the best value for its money, as suppliers and contractors are required to submit competitive prices.

The process of inviting tenders and quotations typically involves the following steps:

• Preparation of the invitation: This involves defining the scope of the project, the requirements, and the criteria for evaluation. The invitation is then prepared and sent to prospective suppliers and contractors.
• Advertising: The invitation is advertised publicly to attract as many potential suppliers and contractors as possible. This is typically done through newspapers, trade publications, or the organization’s website.
• Receipt of tenders and quotations: Suppliers and contractors respond to the invitation by submitting their tenders and quotations by the specified deadline.
• Evaluation: The tenders and quotations are evaluated based on the criteria specified in the invitation. The evaluation team assesses the responses and selects the most suitable supplier or contractor.
• Negotiation: The selected supplier or contractor may be invited to negotiate the terms of the contract before it is awarded.
• Awarding the contract: The contract is awarded to the supplier or contractor who has submitted the best proposal.

Here is an example of an invitation to tender:

INVITATION TO TENDER

The ABC Corporation is inviting tenders for the supply and installation of a new photocopier machine.

Scope of Work: The successful bidder will be responsible for supplying and installing a new photocopier machine with the following specifications:

• Duplex printing capability
• Color printing capability
• A4 and A3 paper size capability
• Minimum printing speed of 25 pages per minute
• Scanning, faxing and emailing capabilities

Timeline: The photocopier machine is required to be delivered and installed at our office location within four weeks of the contract award date.

Evaluation Criteria: Tenders will be evaluated based on the following criteria:

• Compliance with the specifications
• Competitive pricing
• Warranty and maintenance support
• Reputation and experience of the supplier

Submission Deadline: Tenders should be submitted no later than 4:00 PM on 30th April 2023.

Contact Information: For further information or to submit a tender, please contact Hum Tum at hum.tum@gmail.com or call 555-1234.

The ABC Corporation reserves the right to accept or reject any or all tenders.

Designing Quotations

Designing quotations is a process that involves preparing a formal document that outlines the price, terms, and conditions for providing goods or services to a potential customer. This process is used by businesses to respond to a customer’s request for a quote or to proactively offer their products or services to potential customers.

Designing quotations is an important part of the sales process as it allows businesses to communicate their value proposition to potential customers. A well-designed quotation can help businesses win new customers and build long-term relationships by demonstrating their expertise and professionalism.

The process of designing quotations typically involves the following steps:

• Gathering information: Before designing a quotation, businesses must gather information about the customer’s needs, budget, and preferences. This information can be obtained through a face-to-face meeting, phone call, email, or through a request for quotation (RFQ) document.
• Analyzing the information: Once the information is gathered, businesses analyze it to determine the best approach for meeting the customer’s needs. This involves determining the scope of work, materials required, and any other relevant details.
• Developing a proposal: Based on the analysis of the information, businesses then develop a proposal that outlines the price, terms, and conditions for providing the goods or services. This proposal typically includes a detailed description of the work to be performed, the timeline, payment terms, and any warranties or guarantees offered.
• Presenting the quotation: The quotation is then presented to the customer for review and approval. This can be done through email, mail, or in-person.
• Negotiation: After the customer receives the quotation, they may have questions or concerns that need to be addressed. The business may need to negotiate the terms of the quotation to reach an agreement that is acceptable to both parties.
• Finalizing the agreement: Once the customer accepts the quotation, the business finalizes the agreement and begins providing the goods or services.