One of the oldest types of letters is circular letters. This type of letter dates to ancient times when people felt compelled to send a message to a huge number of people at the same time. Circular letters can be defined as letters used to circulate any message to a huge number of audiences simultaneously. It is one of the cost-effective methods of circulating information among many people or can also be used to introduce a new product in the business product portfolio. Circular letters can also be used in social, political and personal matters, apart from business purposes.

Objectives of Circular Letters

  1.     Send messages
  2.     Announcement of a new policy
  3.     Declare a new rule or regulations
  4.     Post a notice

Types of Circular Letters-

Circular letters can be classified into two categories-

  1.     Internal Circular Letters
  2.     External Circular Letters

Internal Circular Letters

Internal circular letters serve the following purpose-

  1. a)      Announcing a new business strategy
  2. b)      Announcing a competition
  3. c)      Declaring a change of address
  4. d)      Organising a meeting and inviting people
  5. e)      Announcing a change in the company’s name
  6. f)       An announcement of a social event

External circular letter in business communication

External circular letters serve the following purpose-

A firm or organisation will often send external circular letters to those outside the company. They are used to announce the following events:

  1. a)      Change of address
  2. b)      Change in the name of the company
  3. c)       Social activities
  4. d)      Company acquiring a new product,
  5. e)      Altering the product’s pricing, service, or policy

Features of Circular letter in Business Communication

Communication among employees is critical in any firm, regardless of size. One of the keys to an organisation’s success is internal communication between supervisors and employees, between departments and inside departments. Circulars are one type of official communication tool. For example, circular letters are used to inform people about new businesses, changes in business premises, etc.

  1. a)  Wide Circulation – An essential quality of a circular letter is that it propagates information to many people at once. It is, after all, a medium of mass communication. This is a benefit that no other mode of communication has.
  2. b)      Drafting Method – A circular letter must be written in a specific format and style. Circular letter writing is a skill that varies based on the situation. It is written in basic English so that most people may understand it.
  3. c)      Conciseness – A circular letter is always short but thorough. It conveys the message briefly and clearly. In a circular letter, there is no room for any extra information.
  4. d)      Attractiveness – Circular letters are always presented in an appealing style so that they may readily capture people’s attention. The information is organized in a specific manner here.
  5. e)     Courtesy-Every business communication, including circular letters, must adhere to the notion of courtesy. The information is presented in a considerate manner to enjoy reading it.
  6. f)       Asking for action-Every circular letter asks the recipients to take a specific activity. After reading the message in the circular letter, readers should be motivated to take action, such as purchasing the product or informing others about it.

Circular Letter Format without Letter Head

Circular Letter

Number: …………………………./2022

Body

Place, date

Signature  

Full Name  

Position

Circular Letter Format with Letter Head

Letter Head             

(Company’s Name & Address)

Reference: ………….                                                                  Date: …………….

Inside Address ……….

…………………………….

Salutation…………

Body

 Sincerely,

Signature  

……………

Full Name  

Position

Circular Letter Sample Announcing A New Company Plan

To: All Employees

From: James

Date: February 2nd,2022.

We need to reflect on our achievement of being a part of Xylo Industries last year to enthuse ourselves in determining our following ambitions in the future. As a result, I’d want to share with you my thoughts and plans on a topic that I believe will be vital to all of us in the next years.

Productivity

I’m sure you’re all aware of the efforts being made around the country to boost productivity. We have made significant capital investments to improve our position over the last few years. Productivity, on the other hand, is dependent not only on the purchase of more efficient equipment but also on each employee’s willingness to think of new methods to use resources more efficiently.

Marketing and Sales

You may be aware that our Target Sales programme has assisted us in increasing sales by more than 18%. Although this is a satisfying result, it is insufficient. Furthermore, I am confident that there are numerous things we can do to improve our situation. As a result, I’ve set a target of a 30% rise in sales for the coming year. I hope you share my enthusiasm as we put these plans into action. Indeed, if they are to be successful, you must actively participate in reaching this goal.

Sincerely,

Signature  

……………

Xyz

CEO

Conclusion

Circular letters are the oldest yet one of the most common ways of communication for personal, professional and social purposes. Circular letters in business communication are an effective tool to communicate among colleagues and cross businesses as well. One can get to know about the format of writing circular letters by the above mentioned circular letter sample. There are various advantages of circular letters but it is important to use the correct format.