QS Study

Situations that Require Circular Letter

The objectives of circular letter are many folds. Generally, circular letter passes business related information to a huge number of readers. However, it may also circulate non-business information. Circular letter is drafted and distributed for attaining three sets of objectives: business objective, personal objective and social objective.

These purposes of circular letter are also known as the situations requiring circular letters. These objectives or situations are discussed below:

(A) Business objectives: Circular letter is written for the (Slowing two business objectives:

Circulating busies information: The primary objective of circular letter is to distribute information relating to business. Circular letter usually circulates the following business information:

  • Launching a new business;
  • Expansion of existing business in any new field;
  • Changing the nature of business;
  • Opening or closing branches of the business;
  • Changing the name of the business;
  • Shifting the address of the business;
  • Discharging any officer, executive, agent or representative of the business;
  • Employing any new business executive or agent;
  • Admission of new partner;
  • Retirement or death of any existing partner;
  • Cancellation of any business deal or contract;
  • Entering into any new business contract;
  • News regarding increase or decrease of price;
  • News regarding trademarks, registered brand etc.
  • Amalgamation of some business units; and
  • Winding up of business partly or wholly.

Increasing demand for the products: Business circular letter also aims at increasing product’s demand In this case, circular letter contains the following information-

  • Innovation of new product;
  • Quality improvement of existing products;
  • Import of any new product;
  • Marketing of new products;
  • Decease or increase in product price;
  • Any special discount or reduction in price;
  • News relating to any business award or certificate such ISO 9001 certificate.

(B) Personal objective: Circular letter may be used to circulate the name and fame, achievement, contribution etc. of an individual.

(C) Social objective: Circular letter can also be drafted highlighting the social or national problems with a view to build public awareness.

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