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    Q.1 Define communication? Also explain its importance?

    The exchange of messages between human beings is known as communication. Linguists

    have defined the term communication according to their own perception. Broadly

    speaking communication is the exchange of information in such manner so that it may beunderstood by parties involved.

    Origin:-

    The word communication comes from the Latin word communicare meaning to share,to have in common, etc

    Definition:-

    By Aristotle:

    Communication means the search for all available means of persuationBy Prof. Park Hurst:

    Communication is the main highway for all human relations

    The Oxford Dictionary

    Communication is the action of conveying or exchanging information and ideasBy George Terry:

    Communication is an exchange of ideas, facts, opinions or emotions by two or

    more persons.

    Purposes of communication:-

    Communication has following purposes:1. To inform

    2. To persuade

    3. To build human relations

    Importance of communication:

    Communication plays an important role in the life of a person and organization.

    Communication makes the world more. A person or an organization cannot exist without

    communication.

    The importance of communication is discussed below:

    Importance in a business organization:-

    Communication is Lifeblood of every organization. An organization carries out

    communication at internal and at external level. Internal communication inside anorganization

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    It has three levels:

    A. Downward: It travels from higher ranks to lower ones.

    B. Upward: It travels from lower ranks to higher ones.

    C. Horizontal: It takes place between the employs of the same rank.

    External communication links an organization with an organization with the outer world.

    If one wants to ensure the proper implementation of ones polices, their must be co-ordination among all the relevant parties and this is only possible when there is an

    effective system of communication. The following points will prove its importance in

    business

    Importance in General:

    If one wants to influence others, one will have to make ones personality strinking. For aneffective personality, one should be a good communicator. A communication means if he

    is giving to speak, he should speak; he should keep the academic, social and cultural backgrounds of the listener in the mind.

    1. Smooth flow of work:-

    Communication is necessary for the successful, smooth and unrestricted

    working of an enterprise. All the activities in an organization can only go unrestrictedlywhen you have an effective system of communication.

    2. Helps in Management:-

    There are five major elements in management, leading, organizing,

    staffing, planning and controlling. All these activities can only be performed successfully

    if one has an ideal communication system. For example, you are not a good leader ormanager unless you communicate your policies to the other members.

    3. Promotion of enterprise:-

    The promotion of your business depends on communication as the abilityto communicate effectively with others is repeatedly as a top quality of a successful

    businessman.

    4. Maximum production at minimum cost:-

    Every business organization aims at getting the maximum production at

    minimum cost. It depends upon the strength of internal and external system of

    communication. The stronger is the internal and external system; the maximum is theproduction with minimum cost.

    5. Motivation among the Members:-

    Performance measurement is almost conducted in good organization. If

    the proper information is not made to the members about their performance they will lose

    their confidence.

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    When employees receive appropriate downward

    Communication from the management, they can beBetter be motivated and more efficient

    6. Human Relations:-A successful business organization knows the worth of human relations

    and it aims at developing healthy relation with all such members who are concerned with

    the firm directly or indirectly. It all depends upon the effective system of communication.

    7. Enhancing Morale:-

    Morale is a human element that motivates a man to work in high spirits.The successful enhancement morale much depends upon your communication. It also

    urges them to work in the organization.

    8. Quick decision making

    Fact collecting process is necessary in order to make decision.Communication not only helps in seeking the required information before making any

    meaningful decision but also the implementation of that particular decision. Thusdecision making and its implementation require effective system of communication.

    9. Contract with External Parties:-

    Communication is necessary for the international management of

    organization but helps contact with the outside world. Good communication can ensure

    the positive attention of the external parties. Such contacts also go a long way inincreasing and retaining the goodwill of the firm.

    10. Positive image:-Communication system plays a vital role in building your positive image

    in the market especially the written communication. The extreme care taken by the

    organization in sending the written message actually indicates how efficient and

    disciplined system you have. It leaves a positive image in the mind of reader.

    Conclusion

    Hence one cannot overlook the importance of communication. The success,goodwill and progress of any organization largely depend upon the communication

    system. Communication is the mouthpiece of an organization. The role of communication

    becomes more critical as the organization grows in size, complexity and sophistication.

    Effective business communication is the lifeblood of every organization (H.A. Murphy)

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    Q.2 What are the components of communication? Explain them?

    Communication is process of sending and receiving verbal as well as nonverbal

    messages. It is two way process of exchanging ideas and information. It is considered

    effective, when it achieves the desired reaction or response from the receiver. It

    comprises following components:

    1. Context

    2. Sender/ Encoder

    3. Message

    4. Medium5. Receiver/ Decoder

    6. Feedback

    1) CONTEXT

    Every message, whether oral or written, begins with context. Context includes

    country, culture, organization, and external and internal stimuli. All these things

    influence the way we communicate. The stimulus for a message may be external or

    internal. The internal stimulus includes attitudes, opinion, emotions, past experiences,

    likes and dislikes, education, and job status. The external stimulus may be a call, memo,

    letter, e-mail, fax, telex, meeting or a casual conversation that activates the sender to

    think about sending a message.

    2) SENDER/ ENCODER

    The sender is a person who sends a message. The sender is called an encoder

    because he uses the codes of words to translate his ideas. The sender may be a writer or

    speaker depending on whether the message is written or oral. The sender composes his

    ideas by choosing symbols that suit the mode of communication and that are likely to get

    the desired response. The sender should encode his message by aptly, properly, clearly,

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    correctly and completely. While encoding, the sender should give consideration

    to his receivers attitude, culture and viewpoints. It is called you-attitude.

    3) MESSAGE

    The message is the core idea or feeling which the sender conveys to the receiver.

    It includes both verbal and non-verbal symbols. An effective message is one which has

    unity of thought, consistency in expression and emphasis on the main points. The first

    task of the sender of the message is to decide exactly what his message is and what

    contents to include. He should take care that irrelevant details must not be included in the

    message. Facts and figures should be checked and rechecked to avoid misunderstandings.

    4) MEDIUM

    The medium is the means used to convey a message. There are two main channels

    used as the medium to communicate a message to others: (1) Written words (2) Sound.

    Simply, it can be said that the sender can use either written or oral channel. The choice of

    a channel depends on the nature of message, situation, relationship between the sender

    and the receiver, urgency of the message, status and position of the receiver etc.

    For long, technical and formal messages, written channel is preferred. The oral

    channel is effective when the message is urgent or personal and immediate feedback is of

    great importance. However, a written message provides the sender with the possibility of

    review and is useful for permanent record.

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    5) RECEIVER/ DECODER

    The reader or listener of the message is known as decoder or listener. Decoding

    means interpreting the message or assigning certain meanings to it. Decoding is affectedby knowledge, experience, attitude, abilities and opinions of the receiver. As different

    people have different experiences, attitudes and knowledge, they are likely to interpret

    the message differently. In order to minimize the misinterpretations, the sender while

    drafting the message should take into account all these factors.

    6) FEEDBACK

    The feedback is the reaction on the part of the receiver of the message. It can be

    oral or written. It is an essential part of the process of communication. It indicates the

    success or failure of communication. It may be favourable or unfavourable. An undesired

    feedback is the result of vague, unclear or miscommunicated messages by the sender or

    misinterpreted by the receiver. The feedback can be oral or written. Sometimes, silence is

    used as feedback but it is almost always ineffective.

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    Q.3 : What are the various barriers to effective communication?

    BARRIERS TO COMMUNICATION

    IntroductionWhen the senders message is misunderstood by the receiver or when the sender

    is unable to send a comprehensive message, miscommunication is likely to occur. Itcauses loss of time, money and energies. Miscommunication occurs as we all do not have

    identical experiences. Another factor is social, cultural and environmental differences

    between the two parties. The message senders meaning and the receivers response areaffected by numerous factors such as:

    1) Difference in Perception

    Our past experience determines our perception as to the world. So people of

    different ages, nationalities, cultures, education, occupation, sex, status, personality, and

    so on having different perceptions. If we communicate same thing to the persons havedifferent perception, they will perceive it differently. Hence, miscommunication willoccur.

    Example

    The same gesturehas two meanings in Pakistan. One indicates the sign of greetingsand the other refers to the sign of disapproval.

    People perceive reality in different ways.

    --------- H. A Murphy

    2) Ambiguity of Words

    Another reason of miscommunication is ambiguity of words. There are two kinds

    of meanings of a word:1. Denotative Meaning

    2. Connotative MeaningThe secondary meaning of a word other than primary one is called connotation. The

    sender should avoid connotation to make his message free from any kind of ambiguity.

    When a speaker uses such words as have both denotative and connotative meaning,miscommunication is likely to occur.

    Example:

    The word Professional has two meanings: a highly skilled fellow and a person whodoes something for money. The speaker should be well aware of the denotative and

    connotative meanings of the words to avoid ambiguity.

    3) Lack of Interest

    Lack of interest on the part of the receiver is another barrier to communication.

    Miscommunication is likely to happen when the receiver is indifferent to the words of the

    speaker. The receiver of the message does not pay any attention to the message received.The speaker should do his utmost to seek the attention of the listener.

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    Example:

    A marketing manager can never convince a customer who does not want to buy thetypewriter

    4) Emotions

    One of the greatest barriers to communication is the internal stimulus. Internal

    stimulus means the internal environment of anyone. Sometimes the sender or receiver isunable to send or receive the message properly under the force of emotions. Your

    communication reflects your emotions. The same message can have different effect on

    the same person.

    Example;

    An angry man speaks anger and when everything is rosy in his personal life, his

    communication evidently reflects his emotions.

    5) Senders Credibility

    Senders credibility is another barrier to communication. The receiver does notshow any interest in the message if the sender does not enjoy any credibility. In such case

    it is not the quality of the message matter but the source of the message. If the senderenjoys credibility in the eyes of the listener, the positive response is certain or vice versa.

    Example

    A religious bigot turns deaf ear to the sermon of a scholar having antagonistic views.

    Employees, customers and people in general

    react more favourably when a communicatorhas credibility

    H.A Murphy

    6) Distraction

    Sometimes the receiver or sender is unable to perform the process of

    communication properly. If the sender is distracted by some noise, temptation, or someunusual circumstances, he is unable to pay due concentration on the message. As a resultmiscommunication is likely to occur.

    7) Incorrect Choice of Channel

    Miscommunication occurs when the sender selects the medium of message that is

    not appropriate for the situation. The sender while sending the message should select the

    channel that best suits according to the situation. The selection of channel depends uponthe following factors:

    1. Nature of message

    2. Urgency of message

    3. Kind of Receiver

    Conclusion

    For an effective communication we should realize that human beings mentalfilters differ. When to communicate, we should keep in mind the social, cultural and

    personal background of the receiver to avoid any miscommunication.

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    Q.4 Define non-verbal communication and discuss its various types?

    Message communication without written or oral words is called non-verbal

    communication. These are the messages which are conceived through circumstances,appearance or facial expression. Suppose when we see a person laughing, we conceive

    that he is happy. Thus communication without words is called non-verbalcommunication.

    Types of Non-verbal communication:

    There are three types of non-verbal communication:

    Appearance

    Body language Silence, Time and Space

    (A) HOW APPEARANCE COMMUNICATES

    Appearance carries non-verbal impression and it affects the attitude of receiver of

    message. Appearance affects both the written and oral communication.

    Effect on written message:

    In written letters writing styles, neatness of paper and language of letter gives message

    about taste, mind and behaviour of the writer.

    Effect on oral message:

    While you are talking face to face to a person or grouping a meeting, both your personal

    appearance and appearance of your surrounding affect your listener or listeners.(a) Personal appearanceClothing, hair styles, neatness, jewellery, cosmetics and your style of talking are

    all part of your personal appearance. They carry impression regarding occupation, age,nationality, social and economical level, job status, and good or poor judgement

    depending on circumstances.

    (b) Surrounding appearance

    Surroundings mean and include the place from where message is being

    communicated such as room size, furnished architecture, decoration and other features.

    Surrounding varies according to status, country and culture.

    (B) HOW BODY LANGUAGE COMMUNICATE:

    Body language includes facial expressions, gesture posture and movement, smelland touch, and voice and sound.

    Facial expression:

    The eyes and face play a key roll in non-verbal communication. They can expose the

    hidden expressions including anger, fear, confusion, joy, surprise, uncertainty and others.

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    Gesture, Posture and Movement:

    Posture, gesture and body language carry message. Gesture and movement are

    culture specify. The meanings of gesture vary from culture to culture. It can convey self

    confidence, status or interest.

    Smell and Touch:

    Various fragrance or perfume may convey the emotions of sender of letter andsometimes affect the reaction of receiver.

    Paralanguage / Voice

    Voice quality and extra sounds are also a part of non-verbal communication called

    paralanguage. It includes voice volume, pitch and other sound we may make. A loud

    voice often communicated anger or urgency while a normal one is charming.

    (C) HOW SILENCE, TIME AND SPACE COMMUNICATE:

    Silence, time and space communicate strongly; even cause hard feelings, loss ofbusiness or profit.

    Silence:

    Just imagine a person when he talks someone and gets no answer or response. Or think

    about the confusion when written message brings no response.

    Time:

    A person can face problem when he does not reach in time to his office or examination

    hall.

    Space:

    Idea of space also carries non-verbal message. In different cultures people like to keep

    certain distance from one another.

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    Q.5 What are 7Cs? Explain the qualities of a good business letter?

    Essentials of a Good Business Letter:

    Message to people outside the company can play an important role for its ultimatelysuccess. A good business letter must possess the following qualities for effective

    communication. As all these qualities begin with C and are seven in number, these areknown as 7Cs qualities. These are:

    1) CLARITY

    Our letter should be clear so that it may be easily understood. We should use easy

    words and sentences in order to get clarity. Our purpose is not to show our vocabulary

    but to convey the message. We should use simple language, e.g.USE INTEAD OF

    Pay Remuneration

    Issue PromulgateEnd Terminate

    2) CORRECTNESS:

    It means accuracy of contents, form, language and expressions.Correctness is the greatest quality of message. Everything about the letter should be

    correct. The physical appearance, information, grammar, error even on minor nature,

    creates a negative impression and can cause miscommunication.Common Mistakes:

    Following errors may be found in an incorrect letter:

    a) Misspelled words and name

    b) Mistakes related to figures and datesc) Mistakes related to punctuation and capitalization

    d) Omission of inside address or signature

    3) CONCISENESS:

    A business letter should be concise and to the point. Conciseness means using the fewest

    possible words.Shakespeare said:

    Brevity is the soul of wit

    While writing a business letter, we should avoid unnecessary details, long phrases,

    superfluous words and needless prefaces. Conciseness is of great importance due to the

    following advantages.a) Reduction in typists time

    b) Saving in paper and typists timec) Reduction in printing cost

    d) Saving in readers time

    e) Saving in filing space.

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    4) COURTESY:

    Courtesy means politeness in behavior. It is the part of business ethics. Therefore, thetone of a business letter must be courteous. Courtesy cost nothing but it brings much. It

    wins customers whereas uncourteousness losses them. It is wise saying that,

    Everyone gains where courtesy reigns.

    Thank you and Please add grace to the writing. But courtesy should be used withsincerity.

    How to gain courtesy:

    a) Be sincere, tactful, and appreciative.b) Omit expressions that irritate the reader.

    c) Begin your letter with best news.

    5) CONSIDERATION

    It means looking at the message from the receivers point of view. It is called you-

    attitude. While writing letter, the writer should give full consideration to reader. It willattract him easily. The more consideration the writer gives to reader, the greater the

    chances of positive response.However in the following specific ways you can indicate that you are considerate.

    a) Focus on you instead of I and we.b) Show interest and benefits of reader.

    c) Emphasize on positive and pleasant facts.

    6) CONCRETENESS

    It means to use specific and definite words in the message.

    Concreteness means creating word picture in the mind of the reader. To achieve this, weshould words that appeal to five senses. These senses include sight, sound, touch, hearing

    and smell. The following guide line will help you to compose, concrete, convincing and

    coherent message.a) Use specific facts and figuresb) Choose vivid, image-building words.

    7) COMPLETENESS:

    It means that business message should be complete to bring the desired result.

    Our message must be complete in every respect. A complete message brings desired

    result. An incomplete message causes loss of money, time and effort. The message iscomplete when it answers the Five W question i.e. what, when, why, who, where.

    CONCLUSION:

    The observer of the 7Cs principles does not mean that a writer has to include them oneby one in his message. In fact, there should be a clear reflection of all these principles in

    an effective business message.

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    Q.6 What are the essential parts of a business letter?

    Compulsory parts of the business letter:

    A typical business letter has seven essential parts. Here is a list from top to bottom:1. Letter head / Heading

    2. Date3. Inside Address.

    4. Salutation

    5. Body of the letter6. Complimentary close

    7. Signature/ Signature line/ Signature Area

    1). LETTER HEAD / HEADING

    We start the letter from the heading. The heading contains the name and full

    address of the firm or person of the sender. The modern heading includes the fax no, the

    e-mail address, telephone no etc.Placement

    Semi Block Form:

    We place heading two inches below the top of the paper from the right of the

    center of the page.

    Full Block Form:

    We place heading two inches below the top of the paper towards the left margin.

    2). DATE:

    Below the heading comes date. It must be written carefully and correctly. Date

    written in figures only as 02/01/2010 can cause misunderstanding. The date should bewritten in full as:

    March 15, 2010 or 15 March 2010 or 15th of March, 2010 or March 15th, 2010. All thesecorrect but the first one preferred. The name of month should not be abbreviated. It is

    written two spaces below the last line of the heading.

    3). INSIDE ADDRESS:

    It is the address of the receiver of the letter. Sometimes it also includes the name

    of the receiver. It should contain at least two lines. It is written two spaces below the firstline of the date at the left margin. We usually start it with the designation of the receiver

    as:The Manager,Habib Band Limited,

    Satyana Road,

    Faisalabad.

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    4). SALUTATION:

    It is courteous opening of a letter. It is written two spaces below the inside addressat the left margin. Form of greeting depends upon the relation with the receiver.

    Following points should be kept in mind while going to give salutation.

    For Men For Women

    Most Formal Sir Madam

    Less Formal Dear Sir Dear MadamInformal My Dear Sir My Dear Madam

    My Dear Ali My Dear Salma

    5). BODY OF THE LETTER:

    It contains the information or the message that a sender sends to the receiver. It is

    the most important part of the letter. This is, of course, the letter itself. It should bedivided into various sentences and paragraph as per need. It should be reasonably short

    and it is better to write it on one page. It is written two spaces below the last line ofsalutation.

    The body can be divided into following three parts as:

    a. Opening Paragraphb. Main message

    c. Closing paragraph

    6) COMPLIMENTARY CLOSE:

    It is the polite way of leave-taking. It is written two spaces below the last line of

    the body. It should agree with the salutation. Here some complimentary closes are:

    Formal Yours obediently, or Yours respectfully,

    Less Formal Yours truly, or Yours sincerely,

    Informal Yours affectionately, or Yours lovely,

    7) THE SIGNATURE / SIGNATURE AREA

    Signature is the final compulsory part of the letter. It is written two spaces belowthe complimentary close. It provides your letter legal value. The letter should always be

    signed in ink and it should not be typed. It shows three identifications or the writer:

    a. Signatureb. Name

    c. Designation

    Example:

    Muhammad Nadeem

    Finance Manager

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    Q.7 DISCUSS NON ESSENTIAL PARTS OF A BUSINESS LETTER?

    Non-essential parts of a letter:

    Beside the essential parts, a business letter has some non essential parts. As the titleshows, these parts are non essential. It means that the letter will not be defective if any

    one of them is missed. A letter may contain none of them, one of them or all of them.Here is a list of optional parts.

    1. Reference line

    2. Attention line3. Subject line

    4. Identification line

    5. Enclosure / Enclosure notation6. Copy of notation

    7. Postscript

    1) REFERENCE LINE:

    It shows the reference number of the letter. It links the replies with the previous

    letter. This line is written to the left margin of the paper just opposite to the date line.Generally, it is formed from the initials of the name of the organization, e.g.

    Ref No. _AIOU/16/2010

    2). ATTENTION LINE:

    Sometimes the letter is addressed to an organization. Then who will receive the

    letter? It is mentioned by including attention line. This line is written below the insideaddress and above the salutation. For example

    Badar Enterprises

    20 Mall RoadFaisalabad

    Attention: Mr. Abbas Ali

    3) SUBJECT LINE:

    The subject line tells the reader at a glance what the letter is about. We use this

    line when the material is lengthy. It also helps in feeling. It should be written two spaces

    below the salutation to the left margin of the paper. Commonly, it is used in longmessages only. It may be all capitalized. For Example

    Subject:

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    4) IDENTIFICATION LINE:

    This line is used in business letter and not in personal correspondence. It includes

    the short name or the initials of the write and that of the typist. This line begins at the left

    margin of the paper and usually it is written two spaces below the signature. The initial of

    the writer come first on the left side and those of the typist on the right. For ExampleYours truly,

    Asad Raza

    MA / saThe above identification line indicates that Muhammad Ashraf (MA) is the writer

    whereas Shafiq Ahmad (sa) is the typist.

    5) ENCLOSURE/ ENCLOSURE NOTATION:

    Sometimes a document, etc. is attached to the letter. We should bring thing in the

    notice of the reader. If we enclose some light weight paper or some document withoutgiving any cue to the reader and do not mention this is in the letter, the reader may

    through the envelope. It is always indicated by writing the word Enclosure or the

    abbreviation Encl It is written one or two spaces below the identification line. Eg.

    Encl.

    1. Bio data2. C.N.I.C Copy

    3. Testimonials

    6) COPY NOTATION:

    Sometimes copy of the same letter is sent to many persons the receivers are made

    aware of that. Cc on all the letters is written with the name of the rest of the receivers.

    It is placed just below the reference initials or the enclosure notation whichever comeslast. For example

    Cc.1. Muhammad Asif

    2. Farooq Ahmad

    3. Intikhab Akram

    7) POSTSCRIPT:

    If a thing is forgotten from the body of the letter, it may be brought below

    everything else in the letter. But as far as possible its use should be avoided. It does notleave a good impression upon the reader. For Example

    P.s. Send your cheque to our address.

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    Q.8 Job Application

    Examination Hall,

    A.B.C

    17th July, 2008

    (The HR Manager),

    (Name of the Company),(Name of the City)

    Subject: Application for the post of (Name of the Post)

    Respected Sir,

    This is in response to your advertisement, published in The Daily Jung inviting

    application for appointment against the post of Accountant. I am confident that I

    possess the requisite qualification. I, therefore, feel grateful if you kindly consider me for

    appointment against this post.

    I am young, energetic and enjoy enviable health. I bear a very good moral character.

    I request you to call me for interview, so that I may be able to justify that my

    appointment as Accountant in your institute/department/organization would be an

    addition of an honest, industrious and efficient worker, who would certainly contribute in

    the uplift of your institute/department/organization.

    Awaiting an encouraging reply,

    Thanking you.

    Yours faithfullySd/-

    X.Y.Z

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    CURRICULUM VITAE

    OBJECTIVE: To seek a career in dynamic organization which provides exposure,

    training and growth opportunity in various IT avenues.

    PERSONAL:

    Name : .

    Father Name : ..

    Date of Bith : .Religion : .....

    Nationality : .

    N.I.C No. : .

    Domicile : .Marital status : .

    Contact No. : .Email Address : .Permanent Address : .

    EDUCATION & AWARDS:

    DEGREE YEAR DIVISION BOARD/UNIVERSITY

    M.com 2012 1st Punjab University Lahore

    B.com 2010 1st Punjab University Lahore

    I.com 2008 1st Faisalabad Education Board

    Matric(science) 2006 1st Faisalabad Education Board

    OTHER QUALIFICATION:

    Diploma in Microsoft OfficeMS Excel, MS Word, MS PowerPoint, Inpage, Email

    DISTINCTION:

    Position holder in I.comScholarship holder in B.com

    INTEREST:

    Reading books, Reading Newspaper, Cricket.

    LANGUAGE KNOWN:

    Urdu, English, Punjabi

    REFERENCE: Reference will be provided on demand.

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    Q.10.Define listening? What is meant by effective listening and results of listening?

    Introduction

    Listening is half of oral communication and it is a skill which should be taken very

    seriously. Unfortunately, listening is neglected study in our schools and colleges eventhough managers from the world consider it is the significant part of ones

    communication skills. How a person listens shows his attitude to other people as clearlyas the way in which he speaks. It is a complex process because an average listener who

    hears a 10 minute presentation will hear, understand, and retain only half of what is said.

    48 hour later that proportion drops another 50%. Put another way, we retain only 25% ofwhat we hear.

    Definition

    Dumont & Lannon define it as:

    Listening is the complex, and selective process of receiving,

    Focusing, deciphering, accepting and storingProcess of ListeningThe above process is distinct but closely interrelated. Listening takes place only when all

    of the following steps of the process are present.

    1. Receiving2. Focusing

    3. Deciphering

    4. Accepting5. Storing

    Receiving

    In receiving, the listener hears or receives the soundFocusing

    In focusing, the listener pays attention to the sounds which are of interest and

    important for himDeciphering

    In deciphering, the listener assign meanings or decoding the words received and

    focused upon.Accepting

    In accepting, the listener interprets the message as intended by the speaker.

    Storing

    In storing, the listener puts the accepted message in mind for future used.

    Importance of listening

    The importance of listening cannot be exaggerated because it is essential for success oforganization and individual alike. Based on an outgoing survey that has covered a million

    workers, it appears that companies that encourage upward communication and listen to

    their employees perform better than other companies. Research finding testify to therelationship between listening and organizational effectiveness.

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    One study shows that we spend our total worker hour according to the following

    percentage

    Skill % of working hours

    Listening 45

    Speaking 30Reading 16

    Writing 9

    Purpose of Listening

    By listening we enhance our

    1. Knowledge about new facts. 2. Motivation3. Learning 4. urge to learn new things and ideas

    5. Improve our own communication 6. Inspiration for effective communication

    Steps in Listening or Effective Listening or Listening Skills (Qualities)

    Some general steps in effective listening are given below:

    1) Avoid unnecessary talk

    A listener should avoid unnecessary talk while listening. He should realize the

    speaker that is so absorbed in his conversation that he does not want to utter a

    single word

    2) Avoid Fidgeting

    Another important step in listening that the listener should not fidget while

    listening the speaker. Fidgeting actually indicate that the listener is fed up with hisconversation.

    3) Eye contact

    The listener should maintain an eye contact with the speaker as it indicate that the

    listener is fully involved with him. Staring hare and there shows that the listener is

    disinterested.

    4) Avoid Interruption

    Another important skill of listening is that the listener should avoid interruptingthe speaker. He should let the speaker speak out what he wants to. If the listener

    chips in again and again, this may irritate your speaker.

    5) Be Receptive mindedThe listener should be receptive minded. He should listen with receptive bent of

    mind. He should not underestimate or form negative ideas as to the speaker before

    he listen him.

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    6) Be Cool and Composed

    The listener should cool and composed even if the speaker opposes his ideas or if

    the speaker seems to have contradictory ideas. He should not hold his nervous in

    such case.

    7) Seek information Tactfully

    The listener should seek the information tactfully if he has some doubt about

    anything or if he needs clarification to digest the speakers details.

    8) Avoid Criticism

    The listener should avoid criticism even if the received information hard tobelieve. Rather he should swallow the information like a bitter pill. As this may

    irritate your speaker and things may go against you.

    FAULTS OF LISTENING

    Following are the causes of listening pitfalls:

    Prejudice

    All of us have personal opinions, attitudes, or beliefs about certain things. When we listen

    to a speaker who is contrary to our ideas, we cannot maintain attention. As a result we do

    not to whatever he says. We should give a chance to the speaker to finish his message.Later, we can agree or disagree.

    Distraction

    Not only the verbal message but also the non-verbal cues of the speaker affect our

    listening. Actually, the entire physical environment affects listening. Among the negative

    factors are noisy fans, poor light, distracting background music, and bang of horn.Among the speakers nonverbal cues are his clothes, his voice quality, his wearing of acertain perfume, reek of sweat, excessive gestures, etc.

    Prethinking

    The average thinking capacity of a person is up to 800 words per minute while the

    average speaker utters 80 to 160 words per minute. This difference sometimes makes

    listener deviate from the speakers words and they shift to something else.

    Semantic Barrier / Annoying words

    Meaning of words also create problem in listening, as meaning of words vary from

    person to person influenced by feelings, attitudes, prejudice and biases. Sometimes theway a speaker utters a word annoys us; thus our effective listening is impaired.

    Conclusion

    Effective listening means being positive and purposeful when listening to someone. Eightactions should be taken: be prepared; accept the positive; listen to understand not refute;

    concentrate on context; focus attention; take notes; curb impulse to interrupt; and

    summarize and evaluate.

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    Q.11. Discuss the points one should keep in mind while giving an oral presentation?

    ORAL COMMUNICATION

    IntroductionNon-written communication is known as oral communication. Speaking,

    delivering lecture, reading, interviewing and listening etc are some forms of oralcommunication. The sentence structure of oral communication is simple. This medium

    use shorter words and shorter sentence. It brings prompt feedback.

    TYPES OF ORAL PRESENTATION

    1. Extemporaneous

    This method of delivery is very carefully planned. In it, speaker uses notes of his /

    her own remarks. It is very effective method of delivering a speech. He usually may use 3

    by 5 inch cards or a full sheet of paper as notes. It allows more eye contact with theaudience.

    2. Reading

    It is preferred by those who do not want to make a mistake. If you choose to readyour speech your practice should be so much that you can have eye contact with your

    audience. Otherwise, your speech may become boring.

    3. Memorization

    Short speeches should be completely memorized. In case if a long speech, often

    the first few words of a statement can be memorized. Groping of words in front of an

    audience decreases your credibility.

    4. Impromptu

    Impromptu refers to a speech made without preparation. Sometimes you arecalled upon the last moment to make a speech on a particular topic. You should avoid the

    temptation to beat about the bush. It is one place where the greatest leaders fail. Only

    tactful orators can handle such a situation.

    Rules of Oral Presentation

    A. Verbal

    1. Rate

    Rate means how many words do you use per minute as you speak? Rate of publicspeakers range between 80 to 160 words per minute.

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    2. Voice

    You must know to use your voice properly, if you wish to become an effective

    speaker.

    On every occasion when you have to speak, remember the following:

    Variation in the pitch and tempo of the voice Fast delivery shows a lack of confidence

    Pronounce words properly, putting stress at the right place

    Speak with enough volume so that you are audible

    Avoid vocalized pause like error, unh, um, etc.

    B. Vocal

    1. Pitch

    Pitch is the highness or lowness of your voice. In speaking this pitch should bevaried

    2. VolumeVolume is loudness or softness of your voice. Your voice should be audible the

    person sitting in the last row.

    C. Visual

    It has been estimated that 11% of what we learn is through hearing, 83% through

    sight and the rest through the other three senses. Hence, visual aids can make yourpresentation more effective. Some of the aids, which can serve you well, are map picture,

    charts, motion picture, slides and over head projectors and a white/ black board.

    STEPS FOR PREPARAING EFFECTIVE ORAL PRESENTATION

    The following seven steps are essential for successful oral presentation

    1. Determine the purpose

    2. Analyze the audience

    3. Select the main idea

    4. Research the topic

    5. Organize the data and write the draft

    6. Create visual aids

    7. Rehearse the topic

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    1. Determine the Purpose

    The first requisite is to determine the purpose of talk. Knowing the purpose helps

    what to say and how to say.

    2. Assess the Audience

    Knowledge of audience is significant for communicating effectively

    3. Main Idea

    We should select the main theme of our message and note it down. Then

    additional information will be gathered in support of the main idea. The choice of the

    idea depends upon the nature and purpose of the message.

    4. Research

    We need to gather facts, data and information in order to discover new and betterideas.

    5. Organization

    After gathering the information, the next step is to organize the data and writedown the first draft.

    Oral Presentation has three parts

    a. Introduction

    The introduction should attract the attention of the listeners and should layout the

    direction of the speech.

    b. The Body

    The body is the heart of the message. Here we explain and support the main

    purpose of our presentation.

    c. SummaryA summary reminds the audience of the main ideas covered in the body of thetalk.

    6. Visual Aids

    Visual aids make oral presentation more interesting, comprehensible and

    effective. Visuals like graph, table, charts, photographs make a talk convincing.

    7. Rehearse

    After preparing talk, we should make practical application by rehearsing the talk.

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    Page 27 of 48The Tips college of Commerce STRATEGIES FOR AN EFFECTIVE ORAL PRESENTATION

    1. POSTURE

    Posture, how you stand, even sit, communicates something about you as a

    communicator. When you stand straight and balance your weight on both feet,you give the impression of complete control. Your outward appearance shows

    your inner mood. When speaking to a business conference of, say, 10 people, you

    might sit on the edge of a table or even address them from a chair. A formal talkto 200 people would demand more formality in posture.

    2. MOVEMENT

    Movement during presentation makes your audience more attentive. Taking a few

    steps during presentation helps to hold attention. You move of possible, for the

    following reasons:

    Move to hold attention

    Move to get rid of nervousness Move to suggest transitions

    3. GESTURES

    Movement of the hands, arms, shoulders, head are terms as gestures. Your gestureshow the audience whether you are confident or not. Gestures should be varied.

    Using the same action repetitiously is boring to the audience and suggests lack of

    creativity on your part.

    4. FACIAL EXPRESSIONS

    Your facial expressions could convey primary gestures. A smile or laugh suggests

    that your topic interests you. Facial expressions include eye contact. Eye contactwith your listeners suggests respect and goodwill. Speakers who avoid eye contact

    lack confidence.

    5. APPEARANCE

    Appearance means clothing, hairstyle, neatness, jewelry, cosmetics and posture.

    Your appearance also conveys the message about the culture of your company.Your appearance starts working before actually do anything. What you wear

    affect the audience.

    6. AUDIENCE

    Before you begin your talk, size up your listeners, their age, sex, background andinterest. Try to make an overall assessment of the audience before you speak or at

    least you should assess whether the audience is receptive or unfriendly. Youshould knit/ arrange your ideas in such a way that each listener should feel that

    you are talking to him individually. Keep your audience in with and do not let

    them scatter. A lot of common sense is required to become a good speaker.

    7. PREPARATION

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    The art of speaking is the reward of president effort. There is no magic formula to

    make you an effective speaker. Adequate planning and preparation are essentialfor a presentation. As far as possible do not read out a written speech word by

    word. However, If an extremely complex subject is being presented to the

    members of a professional body, you may read the written material. In fact, this

    may create a feeling among the listeners that you have taken pains to prepare forthe occasion.

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    Q.12 Define market report? Explain its Types, Functions and Characteristics?

    Meanings

    A marker report is the report of modern market concerning the conditions of the

    market of given commodities on a particular date or for a certain period. Briefly put, amarket report is an index to business conditions prevailing in particular market.

    Different types

    There are different types of market report on the basis of different period as:

    1. Daily Market report

    2. Weekly market report

    3. Monthly market report4. Annual market report

    5. Informal market report

    Importance and Advantages of Market Report

    With the steady expansion of markets, the importance of market report has grown

    tremendously. Market reports are now considered as valuable document of commerce.These reports tell the past, present and future trend of the market to the traders and

    speculators so that they can easily safeguard their respective interests.

    Benefits / Functions / Advantages

    The benefits may be mentioned as follows:

    1. Market report give a true account of the nature and volume of business transacted

    in any market2. Such reports provide valuable data

    3. Future movement is indicated by such report

    4. Market report bring market to the door of the businessmen and public and offerthem opportunities to think over whether they will sell or purchase the goods,

    which are brought in the different markets for sale

    5. These reports also serve as media of advertisement for the goods, which arebrought in different markets for sale.

    6. Market report can tend to stabilize prices in all markets for different wares and

    prevent from selling the commodities at various prices in different markets.

    7. Such report give a new look to commercial literature, full of commercial terms

    and market terminology.8. These reports provide the facility to the traders to make comparative study of

    many markets for one ware or merchandise.9. Such reports show the need of commerce in the minds of newspaper reading

    public.

    10. Lastly, such reports render opportunities to the people who are in trade, commerceand industry to have a direct touch with the business world.

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    KINDS OF MARKET REPORTS

    1) Daily Market Report

    Daily market report is one which display the conditions of the market on a

    specified date as regards the price dealt in, quotation of the closing rates of the preciousmarket day, the opening rates of the day, the highest and lowest reached during the

    course of that day and the closing rates and the demand and the supply of the

    commodities of that day. This report is published in daily newspapers and is broadcastthrough Radio and TV

    2) Weekly Market Report

    Weekly market report is one gives the idea of any market for six working days

    regarding the closing prices of the commodities in the past week, the opening rates on

    Monday, the highest or lowest on any day in the week and closing rates on Saturday. Thisreport is circulated through newspapers.

    3) Monthly Market Report

    Monthly market report is review of business transacted during the whole month.

    This report shows closing rates of commodities in the previous month, the opening rates

    of the month, highest and lowest and closing rates of the month. These reports are written

    for those commodities which enjoy a stable market and permanent demand. These arepublished in newspapers, trade journals and monthly bulletins.

    4) Annual Market Report

    Annual market report is one which gives the idea of the volume of business

    transacted during the year by presenting the monthly summaries, supplemented by price

    lists of the twelve months under report.

    5) Ouinquennial Market Report

    Ouinquennial market report is one, which shows the progress of the business over

    long periods.

    QUALITIES OR CHARACTERISTICS OF A GOOD MARKET REPORT

    Market should contain such particulars of information which are of much value to

    different classes of people who are much interested in different types of commercial

    transactions. So the writer of the market report must be will conversant or will acquainted

    with subject matter under report and he must remember the following points in writingthe same.

    Report must be Personal

    Third person and the past tense, unless otherwise required by circumstances, must

    be used in writing a market report.

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    Used of Technical Terms

    The choice and arrangement of technical terms, phrases and specializedcommercial vocabulary must be produced and presented in the report in such a way as

    can be intelligible to general readers.

    Economy in Composition.In concise form and in minimum words report should be written. Unnecessary

    words and superfluous details should be avoided: standard commercial vocabulary must

    be used so that minimum words can give the better idea of different market conditions tothe traders.

    Cause and Effect of the change of Market Price

    Casual relation between demand and supply of the commodities with price

    change, i.e. the effect of action and reaction of supply and the different causes of changes

    of price of goods must be traced out and must be presented in the report.

    Causes of Change in Business ConditionsCauses of any change in business condition must traced out by taking into

    consideration the factors within as well as outside the market to arrive at reliableconclusions. Such causes must be presented nicely in the report.

    Exactness of Detail

    True and correct records of past events for the period under review in their

    minutest detail, the main features of business, stage by stage, in their original form must

    be written in the market report.

    Concluding Remarks

    The writer of the market should write his concluding remarks most frankly andimpartially on overall market conditions he must also give particular care and attention inwriting this part of report as the average businessmen generally direct their business

    operations on the basis of such forecast.

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    Q.13Define Business Report? What are the essentials of a good business report?

    Introduction

    In olden days, reports were not needed. Every man was his own complete business firm

    or the overseer of a small group of people under his command. As on the spot manager ofhis affairs, a man saw all the facts he needed for making decisions about how to operate

    his business. In the 21st Century business world, it is unlikely that any organization ofsize could function without using reports.

    Definitions

    A business report is an orderly and objective communication of factual

    Information which serves some business purpose.

    According to British Association for commercial and industrial Education

    A document in which a given problem is examined for the purpose ofConveying information and findings, putting forward ideas, and sometimes,making recommendations.

    QUALITIES OF GOOD BUSINESS REPORT

    A well written report should have the following qualities:

    1) Accuracy

    It must be accurate. The facts should be gathered carefully and interpreted

    honestly. Facts and opinions should be intermingled. No executive want to base decisions

    on a report written on writers assumptions or his concepts.

    2) Clarity

    It must be clear. The report will be clear only if it is presented as an orderlyprocession of facts and ideas. Clarity can result from the use of commonly understood

    words, short sentences and paragraphs, itemization, graphic presentations and specific,

    concrete writing. The use of vague and muddled phrases should be avoided. The mostimportant aspects of style is that the report should be so written that it is easily

    understood by the reader for whom it is intended.

    3) Conciseness

    It must be concise. It should not be too long, for a manager is much moreinterested in the report recommendation than in all the ramification of argument leading

    up to them. It should be to the point and never longer than it needed be. The essentialpoint is not the length of the report, but economy in the use of words.

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    4) Readability

    It must be readable. It is enough for presentation to be clear; it must be attractivein form and in terms that capture attention. To use bright and colourful language adds

    interest to what you have to say and makes your report more readable. Technical

    language should not be used, if it can be avoided.

    5) Tone

    The tone of a report is more formal than that for the business letter. It is,

    therefore, customary, to write in the impersonal third person, except when the report isthe account of an eyewitness or is made in letterform.

    6) Free from Prejudice

    Your report should be free from prejudice of all kind. The writer should collect

    and form the without having any personal malice with any person. The report should be a

    fair presentation of some information as it is collected.

    7) Fair InformationThe report should contain the facts as they are without any distortion in the facts.

    The writer should collect all the facts and figures and the necessary information honestly.It should give the fair picture of the matter.

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    Q.14 Define adjustment letter and elaborate its principles?

    Introduction

    A letter written by the seller in response to the complaint letter is called adjustment letter.The writer has to deal this letter tactfully. He has to work upon two things: one is to

    satisfy the customer, second is to maintain the goodwill of his organization. Previouslythe business people disliked complaints and the complaints were looked down upon with

    deep suspicion. But modern trend is different. Today reputable business firms welcome

    healthy criticism.

    Principles of Complaint Letter

    Following points should be kept in mind while writing an adjustment letter.

    1) Prompt Reply

    One of the basic principals of adjustment letter is that the writer should send the letter to

    moment he receive the complaint letter. Any delay can further aggravate the situation and

    can make the complaint angry.

    2) Show Concerns

    The writer should show his concern over the loss and inconvenience caused by the

    problem. He should regret at the trouble faced by the complaint.

    3) Show Understanding of Human Nature.

    The writer should honestly admit that he has clear idea about the feelings of aggrieved

    party. The writer should not show rudeness even if he believes that the complaint madeby the complaint is unjustified and the claim demanded by him is unreasonable.

    4) Fair and Just Solutions

    Another important point in writing adjustment letter is that the writer should handled the

    situation in such a manner as to ensure aggrieved party that the problem will solved fairly

    and justly.

    5) Seek Confidence

    The writer should win the confidence of the complainant by assuring him through his

    writing that he will be treated just and his complaint will be dealt with concerns. He

    should realized the aggrieved party that the matter of great importance to them.

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    6) Pay Thanks

    One of the Basic Principles of adjustment letter is that the writer should thank the

    complaint even if the complaint is unjustified and unreasonable. He should thank him for

    bringing the matter into his notice.

    Adjustment letter

    Nasir & Co,

    40 Mall Road,Lahore

    August 6, 2008The Manager,

    M/S Merry China Ltd,

    22, Gulberg III,Lahore

    Dear Sir,

    We are surprised to learn from your representative today that the shirts you had ordered

    on 23rd October, have not yet reached you. We confirm that your consignment was

    delivered in time to the Parcel Booking Office at Lahore Central Railway Station foronward dispatch by passenger train. We think it would be advisable that you also make

    inquires at your end.

    Yours truly,

    Sd/-

    Mohsin Ali(Purchase Manager)

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    Q.15 Define Order letter and the qualities of an Order Letter?

    IntroductionA letter that contains a formal request for the supply of goods or

    services is called and order letter. It should be handled carefully as a littlemistake can make a big difference.

    Importance of order letter

    An order letter is the most important letter. It is a first phase of legalcontact. The writer should write the letter with utmost care as a little mistakeon the part of the sender can cause an irrepareable loss.

    Qualities of an Order LetterAn order letter should have the following qualities:

    1) Complete InformationAn order letter should contain the complete information about the goods

    ordered like:a. Quality of Productb. Quantity of goodsc. Design, Color, Style etcd. Size, Numbere. Name of the productf. The writer can make reference to the catalog if any

    2) Price of GoodsThe writer should also state the price clearly that he is going to pay for

    the goods ordered. He should mention the price per unit and the total price inseparate columns to make things clear.

    3) Time of Delivery of GoodsAn order must declare the time within which the delivery of goods is to

    be made. In order to create certainty the mentioning of time limit is necessary.If the buyer gives no time for delivery of goods the goods must reach himwithin reasonable time.

    4) Mode of CarriageAnother important area of an order letter is the mode of carriage of

    goods. The buyer must state the mode of carriage to be adopted. The sellershould send the goods as per buyers instructions. The seller should make surethe safe delivery of goods if the buyer does not mention a particular mode ofcarriage.

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    5) Mode of PaymentIf the buyer and the seller have decided about the method of payment

    the amount should be paid in the same manner so decided. But if there is no

    such commitment the buyer must state clearly what method of payment he isgoing to adopt like cash, cheque, on credit money order or draft.

    6) Place of DeliveryThe buyer should also mention the place of delivery if he wants to be

    goods delivered to some particular place otherwise the seller is supposed tosend the goods to the buyers address.

    7) Special instructionsThe buyer must also mention special instruction if there are any special

    instructions like packing, insurance and custom duty or if any other can.

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    Write an order letter for the purchase of crockery items

    ABC Ltd,Mall Road,

    Lahore

    August 7, 2008The Manager,Ahmad Enterprises,Sheikhupura Road,Lahore

    Dear Sir,

    We thank you for your letter dated 20th July, 2008, in response to your inquiry

    for the supply of crockery. We would appreciate if you could send us thefollowing items.

    Sr. No Item Name Brand No. No. Of sets Price per set(Rs)

    TotalPrice

    1234

    Dinner SetTea SetIce Cream SetHot Pot Set

    France AFrance EFrance XFrance 13

    05081005

    20010015050

    10008001500250

    Total 38 3550

    Please pack the items in strong cases, insure at your own cost andresponsibility, and send us the relevant papers in advance. Make sure wereceive the goods by August 10.The payment will be made through our band,after we receive the goods.

    Yours Sincerely,

    Sd/-X.Y.Z

    (Purchase manager)

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    Q.16WHAT IS COLLECTION LETTER? DISCUSS IN DETAIL?

    Introduction

    Collection of past due accounts is an important feature of business. After a debtor

    gets a loan or a customer purchases something on credit, payment should be made withinthe time agreed upon. Collection letters become necessary when credit customers fail to

    pay their accounts promptly. Hence, letter that are written to the customers for collecting

    past due accounts are called collection letters.

    Definition:-

    A letter written to collect a past-due account is called collection letter.

    REASONS FOR NON PAYMENT:

    They forget to pay

    They disregarded the due date of small amounts They are dissatisfied with the goods

    They have objection over the handling of complaint

    They are short of money

    They are habitually slow in paying

    They dont feel like it.

    THREE FOLD PURPOSES:

    There may be several good reasons why a customer fails to pay in time.Therefore, in case of writing a collection letter we must keep in mind that the customer

    habitual to late the payment and how important the customer is.

    A good letter of collection has following three fold purposes:

    1. Collecting the money

    2. Retaining the customer3. Building the goodwill

    1. Collecting the money

    The first and foremost purpose of writing a letter of collection is to recover theoutstanding amount. It is easier to collect money through courteous and tactful letters

    than to disagreeable ones. If customer does not pay by the due date, the collection

    manager begins to send a series of messages called collection.

    2. Retaining the customer

    We must not collect our outstanding dues in such a way that we recover ourmoney but lose the customer. This would be poor policy. A good collection letter

    recovers the debt as well as retains the customer. The writer must assume that customer is

    an honest person. The defaulting customer must be given a chance to explain honestly

    why he is not making payment.

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    3. Building goodwill

    A good collection letter recovers the dues as well as builds the goodwill of the

    organization. In order to achieve this purpose, a letter of collection must be written

    courteously. The writer must not use harsh and impolite words because they lose the

    goodwill.

    GUIDELINES FOR WRITING A COLLECTION LETTER:

    The writer of collection letter should bear in mind the following points

    (i) Knowledge of human psychology:

    Every person is different from other. The writer of collection letter should think

    about the debtor. His letter to an 80 years widow should be different from a letter writtento young man used to late paying.

    (ii) Knowledge of credit terms:

    The writer must be aware of the company policy, and credit terms fixed with thedebtor. If the writer is at fault the debtor may take an action.

    (iii) Use of appeals:The writer may make some appeals in collection letter. The appeals to the

    debtors honor, self-interest, pride, honesty, reputation, caution, may prove effective.

    WRITE A COLLECTION LETTER WITH LEGAL THREAT.

    Ali And Company,

    100, Gulberg III,

    Lahore.

    August 15, 2011

    Mr. Muhammad Yousaf,10-Model Town,Lahore.

    Dear Sir,We must regret to inform you that in spite of our collection letters dated July 3,

    July 10 and July 20, you have failed to pay the overdue amount of Rs.25000.

    On August 8, we also served a notice to the Market Union of your area, but of no

    use. We are sorry to say that it is not possible for us to keep our accounts unbalanced for

    a long time. We request for the last time to pay the above noted amount by the August 25,

    failing which we would be forced to ask our legal advisor to take legal steps in thismatter.

    Your immediate response is imperative and we would like our business affiliation to

    continue.Yours Truly,

    Mohsin Ali

    M.COM Part-I

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    Q.17 What is credit letter? Explain in detail?

    A credit letter is a request by a customer to some other person or another

    organization. The customer wishes to buy now and pay later. He says: I am short of

    money, but long of character. It is all about trust and confidence.Modern business is built upon the foundation of credit. Credit is the instrument which

    enables producer, manufacturer, retailer and customer to obtain goods even if ready cashis not available. Most business concerns buy or sell on credit. Credit is a confidence in a

    customer. Credit may be classified as follows: public, investment, wholesale or retail,

    banking.

    Definition:-

    It is promise of future payment for present money, goods or services.

    Three Cs of credit:-

    A credit person judges a credit request on the basis of three Cs

    1. Character

    Character means desire for honest dealings. It is applicants reputation especially

    in the matter of paying debts. The debtor who pays his debts promptly is sure to get thecredit.

    2. Capital

    Capital is the net financial worth of a person or a company. It consists of the total

    value of all the assets including cash, goods and property. It excludes all outstanding

    debts.

    3. Capacity

    It is the ability to manage business affairs efficiently. Capacity depends upon the

    individuals education, experience and competence. The capacity of the companydepends upon its location, source of material, market for its product and the technical

    skill of its personnel.

    Format of credit letter:-

    1. Introduction

    Introduce yourself to the creditor. Also tell about your past dealing with him, if

    any. Then tell what form of credit you are looking for.

    2. Convincing your creditor:-

    Assure him of your fair dealing. Mention your reputation and also offer

    references. The references include banks, chambers of commerce, industry and credit

    rating agencies.

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    3. Closing request

    Make request for the grant of credit. Close the letter courteously.

    Credit series:-

    1. Request for credit

    2. Letter from creditor to reference3. Reply from reference

    4. Final letter, granting / refusing credit

    Credit Letter

    PRIME SUPER STORE

    SHAD MAN ROADLAHORE

    January 20, 2010

    The Chief Executive

    Ali And Company

    Mall RoadLahore

    Dear Sir,

    During the past five years we place several orders with you. These orders were filled on

    cash basis. Our business is fast growing and we except to place even larger orders withyou in future.

    Recently your representative Mr. Ali called on us. He requests us to stock your

    merchandise. We are thinking to do so. But in case we would like to avail credit facility.

    We refer you to the MCB Bank Limited, Shadman Road Lahore where we hold current

    account no. 157. Please give us an early reply so that we may place an order with you.

    Sincerely yoursX.Y.Z(Proprietor)

    M.COM Part-I

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    Q.18 What is sales letter? Explain its functions as well as uses?

    SALES LETTER

    A sales letter is a sales person absentia. It is convenient and effective way of

    securing business. A sales letter is often prepared as a circular to many customers or to acertain types of customers trying to create interest in the existing or new products or

    services. An effective letter can influence a very large number of readers, convert theminto prospective buyer and bring huge business into the firm. Although it advertises a

    products or services yet it is a different from advertisement and is more effective. There

    is that unlike advertisement, it has a great audience for whom it can transmit a suitablesales message.

    A sales letter is direct offer for sale of goods and services. It urges the reader to become acustomer by buying the goods or services offered for sale. The aim of sales letter is to

    persuade and convince the reader that he / she needs what the writer wants to sell. Of

    course persuasion is a difficult task. It is for these reasons that sales letter is highlyspecialized form of writing, requiring exceptional ability, skill and experience.

    FUNCTION OF A SALES LETTER

    A sales letter must perform certain functions or it must have certain characteristics orqualities. An effective sales letter is always written in conformity with the following

    functions.

    1) ATTENTION

    The first thing that you do is to seek the attention of your reader. You begin your letter in

    such a way that the reader has no option but to study it. This you can starting the letter bytricky or startling sentence. Once you capture the attention of the reader, the half of the

    battle is won.

    To intercept the readers attention, writers use

    A pertinent Question

    Quotation from an eminent authority

    An appeal to fear

    An appeal to economy.

    2) DEVELOPMENT OF INTEREST

    The second function of the sales letter is to create interest in the mind of the reader for the

    product or service. A description written with a You Attitude will help the readerimagine himself or herself using the product or service. You can also mention the readeras to why he needs his product or service by enumerating the benefits that he will enjoy

    after he shows his interest.

    a. The writer must be made to realize that he has a need for the product or service

    b. He must be satisfied that the advertisers product can fill that need.

    3) DESIRE

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    Next, give physical details of the product or service, such as dimensions and materials,

    and specifies about the guarantee, service and so on. These details will help to clinch thesale by whetting the readers desire for the product or service. You actually aim at to

    make your reader realize as to why only your product is beneficial for him. Desire can

    create:

    a) by making moderate claimsb) by logical arguments

    For example

    Free trail offer, performance test, samples free of cost, eviedences

    4) ACTION

    Stimulating action is the last function of sales letter. It must convert a prospective buyer

    into regular by stressing what action the reader should take. The writer can also motivate

    the reader to take a positive action by offering incentives, like discount, guarantee, aftersales service etc.

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    Write a sales letter for a new model of wall clock

    Nasir & Co.,

    40 MALL ROAD,

    Lahore

    August 6, 2008

    The Manager,

    M/S Merry China Ltd,22, Gulberg III

    Dear Mr. Ibrahim

    We feel pride in making you aware of a new model of wall-clock with features

    beyond imagination. Available in different sizes and customized colours, you can place itaccording to your requirement. Made by imported material, you can easily see the time

    even in the pitch dark. Moreover the model is available with variety of distinctivefeatures, such as modern style, attractive colour, and imported parts that are easily

    available. Being an old patron of us, we feed delight to offer you some special incentivesin form of discount, lifetime guarantee, and free home-delivery.

    We are looking forward to your kind visit to our sales-center and give a kind lookto our new product. A small token of affection in form of a gift is here waiting for you.

    Yours truly,Sd/-

    Mohsin Ali

    M.COM Part-I

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    M.COM Part-I

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