Circular letter

Definition
A circular letter is a letter that is sent to a large group of people to communicate
important information. Circular letters are often used in business and public
service organizations.
Objectives of Circular Letters

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
brands etc.
● Amalgamation of some
business units and
● winding up of business
● 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
brands etc.
 ● Amalgamation of some
business units and
● winding up of business
partly or wholly
1. Send messages
2. Announcement of a new policy
3. Declare a new rule or regulations
4. Post a notice

Types of Circular Letter

Government circular letter

A government circular is a written statement of government policy that can
include information, guidance, rules, or background information on legislative
or procedural matters. It can also be used to provide instructions or
information to staff or other stakeholders.

Business circular letter

A company circular is a letter sent to shareholders to inform them of the

company's progress over a period of time. It can also be used to announce
events like a change in address, company name, or product pricing.

Subtypes of business Circular Letter:

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

Circular Letter circulates the following business information

 Launching a new business

 Expansion of existing business in any new field
 Opening or closing branches of business
 Changing name of Business
 Shifting address of business
 Admission of New Partner
 Retirement or Death of the existing partner
 Winding up of business partly or wholly

Advantages of Circulars
Circulars, if designed and distributed productively, play an important role in the
growth and development of business. It is some of the vital letters used in
corporate sectors, schools, colleges, and various workplaces to convey
important updates. The advantages of circulars are discussed below briefly.
 The Easiest Method for Conveying Information
It is a straightforward and most convenient method of conveying
important information to a large group of people. Circulars play an
important role in the growth, development, and smooth working of any
business. The information can be conveyed at a greater level at cheap
rates. It is also useful in producing prompt feedback from the
respondents.

 Achieving Economy
In broader terms, circulars can also be used for wide publicity. To convey
the news related to product, service, or customers, circulars are used as
 they help to expand the business and market base of a company. As a
result, the large amount of money that would have been used in sending
separate letters can be saved.

 Time-Saving Method
With the efficient use of circulars, any important information can be
transmitted to a large section of people at the same time. Hence, it saves
you a lot of time that the company officials might spend on conveying the
information separately to different people. Circulars can be displayed on
the notice board of the workplace, and people can read the relevant
information. This time-saving method becomes very convenient for
companies.

 Cost-Effective
Circulars are a cost-effective method of spreading information. Since
with the help of just one circular information can be given to a hundred
people. It thereby reduces the printing cost as well as the distribution cost
of information per reader. With this method of passing information, an
organization can save a lot of money for better purposes.

 Fewer Efforts
Circulating information separately to all the concerned individuals
requires a lot of work and effort. It becomes both time-consuming and
difficult. With the use of circular letters, an organization can effectively
overcome this problem with an efficient solution. Circular letters help to
communicate with a large number of people with minimum effort.

 Increasing the Confidence of Consumers

Rightly designed, convincing, and attractive circular letters can easily
convince a reader about the importance and benefits of the data
mentioned in the circular. It thereby enhances a consumer's trust and
confidence in the company's products.

 Develop Public Consciousness

One must design the circulars very carefully. If the correct information
about the price, utility, and place of availability of the product is
mentioned in the circular letter, the general public reading that particular
circular becomes more conscious about the product. These letters also
help to inform the customers about social welfare activities, quality of the
product, and services, thus engaging them more with the company.
 A well-designed circular letter can win the hearts of hundreds of
customers at a time. It contributes a lot of positive aspects to the reviews,
services, and awareness of the company by enhancing the goodwill of the
company on a mass level.

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

Examples:
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

A Sample of a Circular

Circular No. ____

 25th October 2018

Revised Working Hours

All Employees of XYZ Company,

This is to inform all employees there will be a change in the working hours of the
organization effective immediately. As you know we now do not function on any
Saturdays since last month. So we only have 5 working days in a week, a revision
in the working hours was necessary to ensure the quality of work does not suffer.
Hence one hour will be added to the previous 9 hour work days. The revised
working hour will be as follows:

 Working Days: Monday to Friday (except holidays)

 Working Hours: 8:30 am to 6:30 pm (These hours will include the one-hour
lunch break)
All employees are requested to note these new and revised timings. The timings
are effective immediately from 26 October 2018. Punctuality and adherence to the
new timings are requested. Repeated defaulters will face action. Please contact the
HR department or your managers for any queries you may have.

ABC,

CEO of XYZ Company.