Business Environment Meaning, Characteristics, Scope and Significance

Business Environment encompasses all internal and external factors that affect the operations and performance of a company. Internally, this includes elements such as organizational culture, management structure, and resources. Externally, it involves factors like economic conditions, market trends, technological advancements, legal and regulatory frameworks, and socio-cultural influences. A favorable business environment can foster growth and innovation, while unfavorable conditions may pose challenges and risks. Companies often conduct thorough analyses of the business environment to make informed decisions, mitigate risks, and seize opportunities, ultimately shaping their strategies and outcomes in the competitive landscape.

Significance of Business Environment:

  • Strategic Planning:

Understanding the business environment helps in formulating effective strategies by identifying opportunities and threats. Businesses can capitalize on favorable conditions and prepare for challenges.

  • Risk Management:

Assessing the business environment enables businesses to anticipate risks and take proactive measures to mitigate them. This includes regulatory changes, economic fluctuations, and competitive pressures.

  • Competitive Advantage:

A deep understanding of the business environment allows companies to differentiate themselves from competitors. By leveraging unique opportunities and adapting to market dynamics, they can gain a competitive edge.

  • Innovation:

The business environment often presents opportunities for innovation. By staying abreast of technological advancements, market trends, and consumer preferences, businesses can develop innovative products and services to meet evolving demands.

  • Adaptability:

Business environment is dynamic and constantly evolving. Businesses that are adaptable and responsive to changes can thrive amidst uncertainty and volatility.

  • Regulatory Compliance:

Compliance with legal and regulatory requirements is crucial for business sustainability. Understanding the regulatory landscape helps businesses navigate complex legal frameworks and avoid penalties.

  • Resource Allocation:

Knowledge of the business environment guides effective resource allocation. Businesses can allocate resources such as capital, manpower, and technology strategically to capitalize on opportunities and address challenges.

  • Stakeholder Management:

Businesses operate within a network of stakeholders including customers, investors, employees, and communities. Understanding the business environment enables businesses to effectively engage with stakeholders and build mutually beneficial relationships.

Characteristics of the Business Environment:

  • Dynamic:

Business environment is constantly changing due to factors such as technological advancements, market trends, and regulatory developments. This dynamism requires businesses to remain flexible and adaptable.

  • Uncertain:

Business environment is inherently uncertain, with factors such as economic fluctuations, political instability, and unexpected events influencing operations and outcomes. Businesses must manage and mitigate uncertainties to minimize risks.

  • Competitive:

Competition is a defining characteristic of the business environment. Companies must contend with rivals for market share, customers, and resources, driving innovation, efficiency, and strategic positioning.

  • Interconnected:

Various elements of the business environment are interconnected and interdependent. Changes in one area, such as economic conditions or consumer preferences, can have ripple effects across industries and regions.

  • Multi-dimensional:

Business environment encompasses a wide range of dimensions, including economic, social, political, technological, legal, and environmental factors. Businesses must consider the interactions and impacts of these dimensions on their operations.

  • Global:

In an increasingly interconnected world, the business environment extends beyond national boundaries. Globalization has opened up opportunities and challenges for businesses to operate in diverse markets and cultures.

  • Regulatory:

Regulations and laws shape the business environment by governing aspects such as trade, labor relations, environmental protection, and consumer rights. Compliance with regulatory requirements is essential for business operations and sustainability.

  • Opportunistic:

Despite challenges, the business environment also presents opportunities for growth, innovation, and expansion. Businesses must proactively identify and capitalize on opportunities to achieve success amidst dynamic and competitive conditions.

Scope of the Business Environment:

  • Economic Environment:

Factors such as economic growth, inflation, interest rates, exchange rates, and fiscal policies impact business decisions, demand for goods and services, and overall market conditions.

  • Social and Cultural Environment:

Demographic trends, cultural norms, lifestyle changes, and societal values influence consumer behavior, market preferences, and business strategies.

  • Political and Legal Environment:

Government policies, regulations, political stability, taxation, trade policies, and legal frameworks shape the operating environment for businesses, affecting market entry, competition, and compliance requirements.

  • Technological Environment:

Advances in technology, innovation, automation, and digitalization impact business processes, product development, service delivery, and competitiveness in the market.

  • Competitive Environment:

Industry structure, market dynamics, competitor actions, and bargaining power of suppliers and customers define the competitive landscape within which businesses operate.

  • Natural Environment:

Environmental factors such as climate change, natural disasters, resource availability, and sustainability concerns influence business operations, supply chains, and corporate responsibility practices.

  • Global Environment:

Globalization, international trade, geopolitical developments, and cross-border interactions present opportunities and challenges for businesses operating in diverse markets and regions.

Business analysis models – PESTEL (Political, Economic, Societal, Technological, Environmental and Legal)

Business analysis models are strategic tools used by organizations to understand, evaluate, and improve business operations, make informed decisions, and identify growth opportunities. These models provide structured frameworks for analyzing various aspects such as market dynamics, internal processes, financial performance, and competitive positioning. Common business analysis models include SWOT Analysis (assessing strengths, weaknesses, opportunities, and threats), PESTLE Analysis (examining macro-environmental factors), Porter’s Five Forces (analyzing industry competitiveness), and the Business Model Canvas (visualizing a company’s value creation). Additionally, Value Chain Analysis helps assess internal activities to identify cost-saving or value-enhancing opportunities. These models support decision-making, risk management, strategic planning, and resource allocation. By applying the right models, businesses can adapt to changing environments, enhance performance, and achieve sustainable growth. Effective use of these tools ensures that organizations remain competitive, customer-focused, and aligned with their long-term objectives in a dynamic business landscape.

Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.

Our market is facing changes every day. Many new things develop over time and the whole scenario can alter in only a few seconds. There are some factors that are beyond your control. But, you can control a lot of these things.

Businesses are greatly influenced by their environment. All the situational factors which determine day to day circumstances impact firms. So, businesses must constantly analyze the trade environment and the market.

PESTLE Analysis:

PESTLE analysis is a strategic management tool used to understand the external macro-environmental factors that can influence an organization or industry. The acronym PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors. It helps businesses identify potential threats and opportunities in the broader environment and adapt strategies accordingly. This analytical framework is especially useful in long-term planning, market entry decisions, and risk management. By examining these six categories, firms can gain insight into how external factors impact performance and operations. PESTLE analysis is widely used across industries and governments for scenario planning and forecasting. It encourages a holistic view of the environment, ensuring that organizations do not operate in isolation and are well-prepared for changes in their external surroundings.

Political Factors

Political factors refer to how government actions and political stability affect businesses. This includes taxation policies, trade restrictions, labor laws, tariffs, and government regulations. A politically stable environment encourages investment and smooth business operations, while political unrest or instability can deter foreign investment and disrupt supply chains. Governments may also change policies due to elections, resulting in uncertainty. Furthermore, foreign relations and international treaties significantly influence multinational companies. For example, a government might impose trade barriers to protect domestic industries, affecting imports and exports. Political lobbying and government subsidies can also impact market competition. Businesses must closely monitor the political environment to mitigate risks and adapt to regulatory changes. Political risks are especially critical in global business strategies where political dynamics vary greatly between countries and regions.

Economic Factors

Economic factors affect the purchasing power and economic environment in which businesses operate. These include interest rates, inflation, exchange rates, economic growth, and unemployment levels. A strong economy increases consumer spending, creating more business opportunities, while a weak economy can lead to reduced demand and tighter credit conditions. Fluctuations in currency values affect the cost of imports and exports, especially for companies involved in international trade. Inflation affects the cost of production, while high-interest rates can reduce borrowing capacity. Understanding economic indicators helps firms forecast demand, set pricing strategies, and manage capital efficiently. Additionally, government fiscal and monetary policies can either stimulate or restrain economic activity, influencing overall market conditions. A keen awareness of economic trends is essential for budgeting, forecasting, and investment planning in both domestic and global markets.

Social Factors

Social factors encompass societal trends, demographics, culture, consumer attitudes, and lifestyle changes that influence demand for products and services. Factors like population growth, age distribution, education levels, and income patterns determine market potential. For example, an aging population increases demand for healthcare services, while growing health consciousness boosts the organic food industry. Social norms and cultural values also affect marketing strategies, product design, and branding. Businesses must align their offerings with prevailing social trends to remain relevant and appealing. Changing work patterns, such as the rise of remote work, also create new demands for technology and home-based services. Additionally, social media has amplified consumer voices, forcing businesses to be more transparent and responsive. By staying attuned to social dynamics, companies can better anticipate shifts in consumer behavior and adjust accordingly.

Technological Factors

Technological factors relate to innovations, technological advancements, R&D activity, automation, and the rate of technological change in an industry. These factors can create new business opportunities or make existing products/services obsolete. For example, the rise of artificial intelligence (AI), cloud computing, and blockchain technology has transformed how businesses operate. Technological disruptions can redefine competitive advantages, drive efficiency, and improve customer experiences. However, rapid technological changes also require businesses to invest continuously in upgrading systems and employee skills. Companies failing to adapt to new technologies risk falling behind competitors. Additionally, digital transformation and e-commerce have expanded global reach but also increased the need for cybersecurity. Businesses must monitor technological trends to innovate, optimize operations, and remain competitive in a rapidly evolving digital economy. Staying technologically agile is essential for sustainability and growth.

Legal Factors

Legal factors include laws and regulations that impact business operations, such as employment laws, health and safety regulations, consumer protection laws, environmental regulations, and competition laws. Compliance is essential to avoid fines, lawsuits, and reputational damage. Different industries are governed by specific legal frameworks, and multinational firms must navigate multiple jurisdictions. For example, data protection laws like GDPR significantly influence how companies collect and manage user information. Labor laws determine working conditions, wages, and employee rights. Failure to comply can result in legal penalties and loss of public trust. Intellectual property laws also play a critical role in protecting innovations and ensuring fair competition. Keeping up with legal changes helps firms manage risks and operate ethically. Legal audits and proactive compliance measures are key strategies to safeguard long-term business interests.

Objectives of PESTLE Analysis:

Business Environmental analysis has three basic objectives, which are as follows:

  • Help understanding Existing Environment

It is important that one must be aware of the existing environment. Business Environment analysis should provide an understanding of current and potential changes taking place in the micro environment. Micro environment specifies the type of products to be offered, the technology to be adopted and the productive strategies to be used to face the global competition.

  • Provision of Data for Strategic Decision-making

Business Environment analysis should provide necessary data for strategic decision-making. Mere collection of data is not adequate. The data so collected must be used for strategic decision-making.

  • Facilitating Strategic Linking in Organizations

Business Environment analysis should facilitate and foster strategic linking in organizations.

Process of Business Environment Analysis:

The process of Business environment analysis involves many steps, which are as follows:

  • Collection of necessary Information

Collection of necessary information is the first stage in the process of business environment analysis. It involves the observation of various factors prevailing in a particular area also. If an environment is to be analyzed, written as well as the verbal information from various sources with regard to the elements of environment for that particular business is to be collected first.

  • Scanning and Searching of Information

Scanning and searching is an important technique of business environment analysis. Once the necessary information has been collected, it should be put to scanning. Besides, the search for other relevant information also continues. This technique gives results as to the hypothesis already established. This helps the analyst to know as to what are the conditions prevailing for a particular business at a time.

  • Getting Information by Spying

Spying is also one of the techniques of business environment analysis. When the activities of a particular business are to be analyzed and such information cannot be collected by traditional methods, the technique of spying is resorted to. This happens especially when business rivalry exists. Mostly, this technique is used to collect competitive information.

  • Forecasting the Conditions

Scanning provides a picture about the past and the present. However, strategic decision-making requires a future orientation. Forecasting is the scientific guesswork based upon some serious study. So it helps to know how a business in particular and conditions in society in general are going to take shape.

  • Observing the Environment

One can analyze a business environment by merely observing it. The observation reveals various conditions prevailing at a particular point of time. This is helpful in understanding the existing environment in its entirety so that suitable decisions can be taken.

  • Assessing

Assessment is made to determine implications for the organization’s current and potential strategies. Assessment involves identifying and evaluating how and why current and projected environmental changes affect or will affect strategic management of the organization.

Reports Parts, Types, Feasibility Reports

A report is a document that presents information in an organized format for a specific audience and purpose. Although summaries of reports may be delivered orally, complete reports are almost always in the form of written documents.

The significance of the reports includes:

  • Reports present adequate information on various aspects of the business.
  • All the skills and the knowledge of the professionals are communicated through reports.
  • Reports help the top line in decision making.
  • A rule and balanced report also help in problem solving.
  • Reports communicate the planning, policies and other matters regarding an organization to the masses. News reports play the role of ombudsman and levy checks and balances on the establishment.

Structure of a report

A typical report would include the following sections in it:

  • Title page
  • Executive summary
  • Table of contents
  • Introduction
  • Discussion or body
  • Conclusion
  • Recommendations
  • Reference list
  • Appendices
  1. Formal or Informal Reports:

Formal reports are carefully structured; they stress objectivity and organization, contain much detail, and are written in a style that tends to eliminate such elements as personal pronouns. Informal reports are usually short messages with natural, casual use of language. The internal memorandum can generally be described as an informal report.

  1. Short or Long Reports:

This is a confusing classification. A one-page memorandum is obviously short, and a twenty-page report is clearly long. But where is the dividing line? Bear in mind that as a report becomes longer (or what you determine as long), it takes on more characteristics of formal reports.

  1. Informational or Analytical Reports:

Informational reports (annual reports, monthly financial reports, and reports on personnel absenteeism) carry objective information from one area of an organization to another. Analytical reports (scientific research, feasibility reports, and real-estate appraisals) present attempts to solve problems.

  1. Proposal Report:

The proposal is a variation of problem-solving reports. A proposal is a document prepared to describe how one organization can meet the needs of another. Most governmental agencies advertise their needs by issuing “requests for proposal” or RFPs. The RFP specifies a need and potential suppliers prepare proposal reports telling how they can meet that need.

  1. Vertical or Lateral Reports:

This classification refers to the direction a report travels. Reports that more upward or downward the hierarchy are referred to as vertical reports; such reports contribute to management control. Lateral reports, on the other hand, assist in coordination in the organization. A report traveling between units of the same organization level (production and finance departments) is lateral.

  1. Internal or External Reports:

Internal reports travel within the organization. External reports, such as annual reports of companies, are prepared for distribution outside the organization.

  1. Periodic Reports:

Periodic reports are issued on regularly scheduled dates. They are generally upward directed and serve management control. Preprinted forms and computer-generated data contribute to uniformity of periodic reports.

  1. Functional Reports:

This classification includes accounting reports, marketing reports, financial reports, and a variety of other reports that take their designation from the ultimate use of the report. Almost all reports could be included in most of these categories. And a single report could be included in several classifications.

Although authorities have not agreed on a universal report classification, these report categories are in common use and provide a nomenclature for the study (and use) of reports. Reports are also classified on the basis of their format. As you read the classification structure described below, bear in mind that it overlaps with the classification pattern described above.

  1. Preprinted Form:

Basically for “fill in the blank” reports. Most are relatively short (five or fewer pages) and deal with routine information, mainly numerical information. Use this format when it is requested by the person authorizing the report.

Letter:

Common for reports of five or fewer pages that are directed to outsiders. These reports include all the normal parts of a letter, but they may also have headings, footnotes, tables, and figures. Personal pronouns are used in this type of report.

Memo:

Common for short (fewer than ten pages) informal reports distributed within an organization. The memo format of “Date,” “To,” “From,” and “Subject” is used. Like longer reports, they often have internal headings and sometimes have visual aids. Memos exceeding ten pages are sometimes referred to as memo reports to distinguish them from shorter ones.

Manuscript:

Common for reports that run from a few pages to several hundred pages and require a formal approach. As their length increases, reports in manuscript format require more elements before and after the text of the report. Now that we have surveyed the different types of reports and become familiar with the nomenclature, let us move on to the actual process of writing the report.

Feasibility Reports

A feasibility study is an assessment of the practicality of a proposed project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the natural environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.

A well-designed feasibility study should provide a historical background of the business or project, a description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation. A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions. It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based.

Types

Technical feasibility

This assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project. When writing a feasibility report, the following should be taken to consideration:

  • A brief description of the business to assess more possible factors which could affect the study
  • The part of the business being examined
  • The human and economic factor
  • The possible solutions to the problem

Method of production

The selection among a number of methods to produce the same commodity should be undertaken first. Factors that make one method being preferred to other method in agricultural projects are the following:

  • Availability of inputs or raw materials and their quality and prices.
  • Availability of markets for outputs of each method and the expected prices for these outputs.
  • Various efficiency factors such as the expected increase in one additional unit of fertilizer or productivity of a specified crop per one thing.

Production technique

After we determine the appropriate method of production of a commodity, it is necessary to look for the optimal technique to produce this commodity.

Project requirements

Once the method of production and its technique are determined, technical people have to determine the projects’ requirements during the investment and operating periods. These include:

  • Determination of tools and equipment needed for the project such as drinkers and feeders or pumps or pipes …etc.
  • Determination of projects’ requirements of constructions such as buildings, storage, and roads …etc. in addition to internal designs for these requirements.
  • Determination of projects’ requirements of skilled and unskilled labor and managerial and financial labor.
  • Determination of construction period concerning the costs of designs and consultations and the costs of constructions and other tools.
  • Determination of minimum storage of inputs, cash money to cope with operating and contingency costs.

Project location

The most important factors that determine the selection of project location are the following:

  • Availability of land (proper acreage and reasonable costs).
  • The impact of the project on the environment and the approval of the concerned institutions for license.
  • The costs of transporting inputs and outputs to the project’s location (i.e., the distance from the markets).
  • Availability of various services related to the project such as availability of extension services or veterinary or water or electricity or good roads …etc.

Legal feasibility

It determines whether the proposed system conflicts with legal requirements, e.g., a data processing system must comply with the local data protection regulations and if the proposed venture is acceptable in accordance to the laws of the land.

Operational feasibility study

Operational feasibility is the measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development.

The operational feasibility assessment focuses on the degree to which the proposed development project fits in with the existing business environment and objectives with regard to development schedule, delivery date, corporate culture and existing business processes.

To ensure success, desired operational outcomes must be imparted during design and development. These include such design-dependent parameters as reliability, maintainability, supportability, usability, producibility, disposability, sustainability, affordability and others. These parameters are required to be considered at the early stages of design if desired operational behaviours are to be realised. A system design and development requires appropriate and timely application of engineering and management efforts to meet the previously mentioned parameters. A system may serve its intended purpose most effectively when its technical and operating characteristics are engineered into the design. Therefore, operational feasibility is a critical aspect of systems engineering that needs to be an integral part of the early design phases.

Time feasibility

A time feasibility study will take into account the period in which the project is going to take up to its completion. A project will fail if it takes too long to be completed before it is useful. Typically, this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Time feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. It is necessary to determine whether the deadlines are mandatory or desirable.

Resource feasibility

Describe how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, and developmental procedures with company revenue prospectus.

Financial feasibility

In case of a new project, financial viability can be judged on the following parameters:

  • Total estimated cost of the project
  • Financing of the project in terms of its capital structure, debt to equity ratio and promoter’s share of total cost
  • Existing investment by the promoter in any other business
  • Projected cash flow and profitability

Summarization Identification of Main and supporting/Sub points Presenting these in a cohesive Manner

An executive summary (or management summary) is a short document or section of a document produced for business purposes. It summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all. It usually contains a brief statement of the problem or proposal covered in the major document(s), background information, concise analysis and main conclusions. It is intended as an aid to decision-making by managers and has been described as the most important part of a business plan.

An executive summary differs from an abstract in that an abstract will usually be shorter and is typically intended as an overview or orientation rather than being a condensed version of the full document. Abstracts are extensively used in academic research where the concept of the executive summary is not in common usage. “An abstract is a brief summarizing statement… read by parties who are trying to decide whether or not to read the main document”, while “an executive summary, unlike an abstract, is a document in miniature that may be read in place of the longer document”.

Importance

Executive summaries are important as a communication tool in both academia and business. For example, members of Texas A&M University’s Department of Agricultural Economics observe that “An executive summary is an initial interaction between the writers of the report and their target readers: decision makers, potential customers, and/or peers. A business leader’s decision to continue reading a certain report often depends on the impression the executive summary gives.”

An executive summary of a business plan is an overview. Its purpose is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content.

Think of the executive summary as an advance organizer for the reader. Above all else, it must be clear and concise. But it also has to entice the reader to read the rest of the business plan.

This is why the executive summary is often called the most important part of the business plan. If it doesn’t capture the reader’s attention, the plan will be set aside unread – a disaster if you’ve written your business plan as part of an attempt to get money to start your new business.

The information you need to include varies somewhat depending on whether your business is a startup or an established business.

For a startup business typically one of the main goals of the business plan is to convince banks, angel investors, or venture capitalists to invest in your business by providing startup capital in the form of debt or equity financing.34 In order to do so you will have to provide a solid case for your business idea which makes your executive summary all the more important. A typical executive summary for a startup company includes the following sections:

  • The business opportunity: Describe the need or the opportunity.
  • Taking advantage of the opportunity: Explain how will your business will serve the market.
  • The target market: Describe the customer base you will be targeting.
  • Business model: Describe your products or services and and what will make them appealing to the target market.
  • Marketing and sales strategy: Briefly outline your plans for marketing your products/services.
  • The competition: Describe your competition and your strategy for getting market share. What is your competitive advantage, e.g. what will you offer to customers that your competitors cannot?
  • Financial analysis: Summarize the financial plan including projections for at least the next three years.
  • Owners/Staff: Describe the owners and the key staff members and the expertise they bring to the venture.
  • Implementation plan: Outline the schedule for taking your business from the planning stage to opening your doors.

For established businesses the executive summary typically includes information about achievements, growth plans, etc.

A typical executive summary outline for an established business includes:

  • Mission Statement: Articulates the purpose of your business. In a few sentences describe what your company does and your core values and business philosophy.
  • Company Information: Give a brief history of your company – describe your products and/or services, when and where it was formed, who the owners and key employees are, statistics such as the number of employees, business locations, etc.
  • Business Highlights: Describe the evolution of the business – how it has grown, including year-over-year revenue increases, profitability, increases in market share, number of customers, etc.
  • Financial Summary: If the purpose of updating the business plan is to seek additional financing for expansion, then give a brief financial summary.
  • Future goals: Describe your goals for the business. If you are seeking financing explain how additional funding will be used to expand the business or otherwise increase profits.

Automatic text summarization, or just text summarization, is the process of creating a short and coherent version of a longer document. Text summarization is the process of distilling the most important information from a source (or sources) to produce an abridged version for a particular user (or users) and task (or tasks).

We (humans) are generally good at this type of task as it involves first understanding the meaning of the source document and then distilling the meaning and capturing salient details in the new description. As such, the goal of automatically creating summaries of text is to have the resulting summaries as good as those written by humans.

It is not enough to just generate words and phrases that capture the gist of the source document. The summary should be accurate and should read fluently as a new standalone document. Automatic text summarization is the task of producing a concise and fluent summary while preserving key information content and overall meaning.

Given errors resulting from speech recognition and the fact that spoken language is often less formal than written language, the most widely used method for single document text summarization, sentence extraction, cannot be directly applied to speech summarization. However, if systems exploit the additional information that can be derived from the speech signal and dialogue structure, extractive methods can be extended for spoken language and augmented by new methods that focus on extracting particular kinds of information and reformulating it appropriately.

Summarization Categories

There are two types of summarization techniques: extractive and abstractive. Extractive methods function by identifying the important sentences or excerpts from the text and reproducing them verbatim as part of the summary. No new text is generated; only the existing text is used in the summarization process. This differs from abstractive methods, which employ more powerful natural language processing techniques to interpret the text and generate a new summary text.

Basically, there are three fairly independent tasks which all summarizes perform, as listed below. In this article, we will look at different abstractive topic presentation approaches.

Construct an intermediate representation of the input text which expresses the main aspects of the text.

Score the sentences based on the representation.

Select a summary comprising of several sentences.

Topic Words

This method aims to identify words that describe the topic of the input document. There are two ways to compute the importance of a sentence: as

a function of the number of topic signatures it contains, or as the proportion of the topic signatures in the sentence. Both sentence scoring functions relate to the same topic representation; however, they might assign different scores to sentences. The first method may assign higher scores to longer sentences because they have more words. The second approach measures the density of the topic words.

Adjustments Sales Letters

A letter written in response to the complaint of the customer is called an adjustment letter. It is written when a seller or delivery authorities write back to the customer in regard to their complaint. The official in format, it is used to explain what is the nature and urgency of the customer’s complaint and how it can be resolved by the company.

The letter informs the customer whether his/her complaint has been accepted or been rejected, also the refund amount he/she is eligible for and how to obtain it. These letters deal with all kinds of complaints such as defective goods, service is poor, shipment issues, and product undelivered or not delivered on time, etc. These letters are known as adjustment letters because their main purpose is to resolve a conflict between customer and seller.

There are many points to be taken into consideration while writing an adjustment letter.

Positive reply: Sympathize with your client, listen to his/her woes, and maintain a positive tone and attitude towards the client to ensure the satisfaction of the customer.

Organize material: All the previous correspondence between client and seller, his complaint copy, company policies regarding the complaint featured, any other relevant document, etc. should be first obtained and organized by the writer.

Admittance of mistake: If your company is at fault, immediately accept the mistake and proceed to rectify the mistake. The customer demands, if rational, should be completed.

Politeness: Politeness as a virtue is encouraged by all the customer care services. Even when your client is at fault, you need to satisfy him while also maintaining your stance. In this respect, politeness comes in handy. A polite reply goes a long way in promoting the company’s reputation and name.

Diplomacy: When the client is not right, and his demands are not justifiable, then the sellers need to be diplomatic so that even after refusal, your client remains satisfied. Explain the policy of the company and terms in layman language so the customer can easily understand your terms and conditions. Talk politely and don’t refuse bluntly or rudely.

Letter Head: Adjustment letters and claim letters should be officially endorsed by the company such that they should have letterhead on top.

Proofreading: Always proofread the letter, so save your company embarrassment in front of the client. Facts should be checked and correlated with the system properly.

Format

Richard Look

7th, 1st Street, Oval

16th January 20XX

Centerville Bicycle Corporation

London

Ref: Complaint dated 16th January 2019

Dear Richard

This is in reference to your complaint dated 16th January 2019. We are very sorry that a broken bicycle had been delivered to your address. We take these things very sincerely and can sympathize with you for the inconvenience caused to you due to us.

In the meantime, we would like to replace your bicycle with a brand-new bicycle of the same brand with no shipping costs to you. Our delivery boy will come and collect the defective product and deliver the brand-new bicycle. Also, we would like to gift you a Rs. 7000 gift card which can be used in any store, for the inconvenience caused to you due to us. We hope that you will continue shopping with us.

Thanking You

Yours sincerely

Joe Mendes

PFA: Rs. 7000 Gift Voucher, it can be used anywhere.

Consumer Grievance Letters

A consumer complaint letter is usually written to an external agency like a Consumer Complaint Forum which redresses grievances of the public. The letter should specify the cause for your disgruntlement, when it occurred, name the organization which you feel is responsible for the same and explain the circumstance or event which has caused you dissatisfaction. It can be irritating to find some problem with the product. While trying to solve a problem, make sure that you discuss it with the representative.

A consumer complaint letter puts your complaint on record with the company, and it helps you preserve legal rights if any. A formal tone must be maintained. The letter must be clear and concise, state exactly what has to be done for repair, don’t be too angry or sarcastic and possible include the copies of the relevant document. Below are the sample letter and template for an effective complaint letter.

Complaint Letter Writing Tips

  • Start by mentioning to whom you want to complain, specify reasons for it.
  • Furnish details about item/service procured date and expenditure incurred.
  • Briefly, explain the problem you are facing concerning the item purchased or service was taken.
  • Mention the documents you are enclosing to prove your allegations.
  • End by requesting the forum to intervene and grant you justice.

Example

From,

Like Marian

346, Palm Street

Mumbai.

Date: 2nd January 2021

To,

Lake Jona

Consumer Redressal Forum

Downtown Street

Texas

Dear Mr. Jonna,

I want to complain to the online store, xyz.com for delivering to me a faulty mobile phone. It has been giving me problems from the first day. The order was placed for Sansui 3478 and the amount paid is Rs. 22210 via credit card on the 1st of September. The handset as delivered to me on the 4th September.

I charged the mobile as instructed to me in the manual but it did not turn on. I even called the help desk to help me fix the problem but no progress. Despite assurance by the store for replacement; I have not received any till date. I have written up emails to different officers at Hands-On.Org, but there was no response. I am enclosing payment proof, warranty-card and copies of my communiqués with the organization.

I request your forum to intervene and get me justice at the earliest by instructing them to replace my handset immediately.

Yours sincerely,

Like Marian

Letters of enquiry, Letters of Complaints, Letter of claims

It is a letter written to enquiry the information related to something. It can be written if a person wants to buy an item or wants to go on a trip, etc. The objective of the Enquiry Letter is to make a request to the recipient. In other words, it is written to get the response from the recipient with the action that satisfies the enquiry. The action benefits either the sender or the recipient and sometimes both the parties.

The scope of the letter must include enough information to help the recipient to decide the best response. The sender must mention what is inquiring and which type of favor he/she wants from the recipient in response to the request.

Enquiry Letter Writing Tips

  • It should be written like a formal letter. It must include the sender’s contact details, address or email address at the beginning of the letter.
  • It must contain all the aspects of the enquiring item.
  • It should contain the date and address of the receiver.
  • Add the subject of the letter precisely to give some idea of what will be discussed in the letter.
  • Make sure to add a salutation at the start and your signature, name, and designation at the end of the letter.
  • It should be written concisely and clearly.
  • Mention the reason and enquiry details.

Format

Street address

City, State ZIP code

Phone number

Date

Individual’s name

Job title

Name of organization

Street address

City, State ZIP code

Dear Mr./Ms. ________________________________:

I am writing to ask you to consider an addition to your marketing team. Your organization has been in the news as a leader in the industry. I am an innovator of new ideas, an excellent communicator with buyers, and have a demonstrated history of marketing success. I believe I would be a good fit in your organization.

Currently, I market computer products for a major supplier using television, radio and news advertising. I have a reputation for seeing every project through to success.

Enclosed is my resume for your review and consideration. EFTG Industries has a reputation for excellence. I would like to use my talents to market your quality line of technical products. I will call you to further discuss your needs and how I could benefit your company. If you prefer, you may reach me in the evenings at (555) 555-5555.

Thank you for your time. I look forward to meeting you.

Sincerely,

(Your Signature in blue or black ink)

Your typed name

Enclosure

Letters of Complaints

A complaint letter is a letter written to concerned authorities if we are not satisfied with the service provided by them. These letters are usually formal in nature. Sometimes when we order a product and it is received defective then we write the letter to the related person or company, complaining about the product. Hence, appropriate action will be taken by the concerned department for the complaint raised.

There could be many reasons for writing complaint letters such as for wrongdoing, grievance, offence, resentment arising out of product or service, etc. It is the right of every citizen of the country to raise the complaint for unfair things happening to them and get a productive result.

The tips to write the format of complaint letter are:

  • Write the letter in a polite manner. Though you have a complaint regarding something and you are frustrated, but if you write the letter politely then it gives a good impression to the concerned person and chances of getting a resolution are also good.
  • Always introduce yourself first at the left of the letter
  • Never forget to mention the date of writing the letter
  • The letter of receiver or recipient should be properly mentioned along with Pincode.
  • Mention the purpose of writing a letter in subject line
  • Start the letter with a salutation or proper greeting.
  • Write the first paragraph by introducing yourself, and then writing the purpose of writing the letter. It should be very loud and clear.
  • In the second paragraph give a brief description of the complaint and what problems it is causing to you. Do not deviate from the main topic.
  • The third paragraph should include the conclusion part, where you state the resolution for your problem.
  • Close your letter by thanking the person for giving time to the letter.
  • Check the grammar and spelling mistakes if any.
  • You can highlight the important points in the letter, to grab the quick attention of the reader.
  • Present the letter in a proper format.

Format of Complaint Letter

The complaint letter is a formal letter written to the concerned authority if you have any problems/ dispute/mistakes/misbehavior or any kind of complaint. The format to write the letter is given below:

Sender’s Address

Date:

Receiver’s Address

Subject: (Mention the reason for complaint)

Salutations (Dear/Mr./Ms.)

Body of the letter:

  • Introduction
  • Main reason to write the letter
  • Conclusion

Closing of letter (Yours sincerely/faithfully)

Signature

Letter of claims

Claim means asking for compensation; a letter of claim is used to ask for compensation due to unsatisfactory work or products delivered by the company.  A claim could be made on getting inappropriate stuff that you contracted, in all these situations or any other situation which falls under this scenario can be a reason of a letter of claim. An organization or a company can claim for the required work that was done properly. A letter of claim is a formal letter with a serious tone; it also could be a persuasive letter as it makes the reader believe that the performance or work done by you were not up to the mark.

Commonly a letter of claim is used as a first step that further leads to a legal process of a claim or a personal injury. Such a letter is also used to inform someone for a breach of a contract, for a wrong work of partially unsatisfactory work or assignment, asking the other person for a letter of adjustment to justify the situation. A letter of claim can also be written in case of copyright infringement. This letter should be true in its nature and its facts. Letter should be specifically to the point about the subject and should avoid all the unnecessary details.

Claimant (a person who asks for a reimbursement) can attach a copy of original agreement with the letter as a proof that what he is claim was mentioned at the time of agreement, as merely mentioning a problem will never be effective and will not pay you back. The reference against which you are claiming should be strong enough, mention your point in a firm way. You should address the recipient by his full name and mention the address properly. Here is a sample of letter of claim is attached with this template for your help and convenience.

Format

M/s. Nana cloth store

House no. 07, Road no. 14 North 302, FUCSON AZ 85705, Brazil

Ref. ……………………………                                           November 27, 2019

Manager

Michel enterprise

(Wholesaler of quality fabrics)

20, Kualampur, India

Dear Manager,

On November 07, 2019 we purchased 2000 meters suit cloths. The quality of your shipment does not match with our order specification. Since the use of low quality cloth will damage our business goodwill, we have returned your shipment along with a request for cash refund of 12000$.

We believe that your company has deep concern for its customers. We are also convinced with the earlier dealing of your company.

Refunding the money within the next 10 days will be highly appreciated. We are looking for future business.

Sincerely,

(Mr. Jonson)

Purchase Manager

Letters under Rights to Information (RTI) Act

The Right to Information Act, 2005 does not lay down any prescribed format for RTI Application. It is entirely up to you to identify what you must include in your application. The objective of writing an effective RTI application is simple to enable the public authority to give you the information you seek for. 

The Right to Information Act extends to the whole of India except the state of Jammu and Kashmir. All citizens including Indians living abroad possess the right to seek information. This implies that the person seeking information must be an individual and not a corporation, society or any other public authority. Neither persons of Indian Origin nor foreign nationals can avail the benefits under this Act.

The language of the RTI Application

The application can be written in English, Hindi or any official language of the state in which the department lies. However, the RTI Act makes no provision to demand answers in the language of your choice. So sometimes, one gets troubled when the reply to the application is given in a language they cannot comprehend. For instance, you file an RTI application with the Municipal Corporation, Gandhinagar in Hindi. The PIO replies to your application in Gujarati.

The courts and commissions have laid down in several judgments that information should be given to the Applicant in the language he understands. Therefore, it is advisable to keep two things in mind while choosing the language of your application:

  • Always write your application in the language in which you wish to receive a reply. If you want the PIO to reply to you in Hindi, make sure you write your application in Hindi.
  • As a precautionary measure, It is always advisable to mention in your application clearly the language in which you seek a reply.

To,

The Central /State Public Information Officer

or Assistant Public Information Officer

(Name of the Office along with the Address)

Sir/Madam,

Sub: Application seeking Information under RTI Act, 2005.

It is requested to provide the following information under the RTI Act, 2005.

(1) Details of information required

(a) Subject matter and details of information required in the form of questions which should be specific.

  1. No. 1 – ……
  2. No. 2 – …….
  3. No. 3 – ……..

(b) Period for which information is sought.

(2) If inspection is being sought, a categorical mention should be made.

(3) If life and liberty is claimed, it should be specified.

(4) In case of schedule II organisations, a specific mention of corruption/human rights violations to be made

(5) Any other relevant point

In case the information is held by or related to another public authority, the application or such part of it as may be appropriate may be transferred to that other public authority under intimation to the undersigned as per Section 6(3) of RTI Act. (It acts as a reminder for the PIO who is required to do it under the Act).

Evidence of payment of Application fee of Rs. 10/- and mode of payment.

(i) A fee of Rs. 10/- has been deposited in cash in the Accounts Office of the Public authority vide Receipt No.________ dated__________; or

(ii) A Postal Order/Bank Draft No. __________ dated _______ is enclosed; or

(iii) Exemption from payment of fees is claimed and evidence of the BPL status (example- Photocopy of BPL Ration Card) is attached.

Signature / Thumb Impression of the applicant

Full name and Postal Address of the Applicant

Contact Phone No. and e-mail (If any)

Order letter & Credit Letter

An “Order” is an expense for the person placing the order and an income for the one getting it. But this is not all. The company that bags the order has to fulfill lot of commitments to ensure that it has a satisfied customer, which can be an individual or another company. Timely delivery of the order, quality of delivery and after sale service are all part and parcel of getting an order.

The quotations are the ‘offer’ made by the seller and the order through a letter is the ‘acceptance’ of the offer. This offer is the link which establishes a legal relation between the seller and the buyer and therefore buyer can purchases and seller can sell goods or services. Simply, a letter of order is an instruction from a buyer to a” seller to supply goods or services.

In broad, sense, an order letter is a letter which carries messages to the seller requesting him to send the specified goods on stated terms and conditions agreed upon previously.

An Order Letter is the one that is written by the person/company placing the request of purchase from another company. This letter comes into action only when a detailed study of the desired product has been done in the market and based on promised service, quality and price of the product, a decision for a purchase has been made.

An Order Letter should be drafted very carefully as it needs to pen down all the terms and conditions of the purchase for the benefit of both involved parties. It should have details such as product specifications, quantities, price agreed upon, delivery date, late delivery clauses, etc. It should be addressed to the person responsible for the execution of the order with a copy to the head of department. Since it is totally an official letter it should be typed.

Do’s and Don’ts of Order Letter

  • An Order Letter should be addressed to the person responsible for executing the order
  • It should include all the terms and conditions agreed upon by both involved parties
  • Since it is purely an official letter it should be typed out
  • There is no need to use too many adjectives in the letter since it is purely for an order being placed
  • The letter should have all relevant details related to the order, for example, quantity, price and other terms and conditions

Sample Order Letter

Name of the person to whom order is being placed

Name and address of the organization

Name of the person placing the order

Name and address of the organization

Date:

Subject: Order for 100 copies of Mastering Business

Dear Sir or Madam,

As per our discussions on __________ (date of meeting) we are pleased to place an order for 100 copies of Mastering Business book by _________ (writer) for Class VII for the CBSE Board on the following terms and conditions:

  1. The cost of each book will be Rs.________ (inclusive of all taxes)
  2. Payment terms will be a post-dated cheque for 50% advance with order. This cheque will be cleared on the day of the deliver. The balance payment of 50% 7 days after delivery and after random inspection
  3. Delivery will be done within 7 days from the order date
  4. Delivery will be done at ________________ (address of organization)
  5. If the order is not delivered as per the above terms and conditions, the order stands cancelled

Please find enclosed chequenumber ________ dated ________ for Rs.________ towards advance for the order.

Hoping to have a long business relationship with you.

Best regards,

(Name of signing authority)

Order Confirmation Letter and Order Letter

A letter that acknowledges the receipt of order from buyer is known to be order confirmation letter. It is a letter that tells the buyer (Sender) that the order has not been lost, misplaced or stolen and also indicates that proper steps are being taken to satisfy the buyer, sometimes if there is any delay for shipment according to order placed, the reason is also communicated to buyer through such letter:

Order confirmation letter must express the seller’s pleasure and gratitude must appreciate buyer’s interest in the goods and must be a medium of mentioning the favorable aspects of the goods, terms and other services. Such a draft will create a psychological value upon the goods and services to be shipped.

Acknowledgment through-such letter provides a legal acceptance of all the points mentioned in the order. Hence, the order must be read carefully before accepting and acknowledging it.

Credit Letter

letter of credit is a piece of document that serves as instruction of guaranteed payment from the buyer to the seller. Also known as a documentary credit, a letter of credit is issued by the bank and acts as a promise of timely payment to the seller.

If the buyer supposedly fails to perform his due obligation, then the bank pays the seller on behalf of the buyer who in turn repays the bank. This is a brief summation of the letter of credit process.

Types of Letters of Credit

There are mainly four types of letter of credit examples.

  • A revocable letter of credit
  • Revolving letter of credit
  • A standby letter of credit
  • Irrevocable letter of credit

Advantages of letter of credit

  • A letter of credit gives the trade partners an ability to transact with unknown partners or in newly established trade It helps in expanding their business quickly into new geographies.
  • A letter of credit is safer for the seller or exporter in case the buyer or importer goes bankrupt. Since the creditworthiness of the importer is transferred to the issuing bank, the bank must pay the amount as agreed in the letter of credit. Thus, a letter of credit insulates the exporter from the importer’s business
  • A letter of credit is highly Both the trading partners can put in terms and conditions as per their requirements and arrive at a mutual list of clauses. It can also be customised from one transaction to another with the same trading partners.
  • In the case of a dispute between the trading partners, a letter of credit accounting allows the exporter to withdraw the fund as agreed upon in the letter of credit and resolve the disputes later in the The beneficiary’s
  • Right to the full amount is described in the phrase ‘pay now, litigate later’ by the courts.

Disadvantages:

  • A letter of credit adds to the cost of doing Banks charge a fee for providing this service, and it can increase steeply if the parties want to put some additional features
  • A letter of credit poses a material fraud risk to the The bank will pay the exporter upon looking at the shipping documents and not the actual quality of goods. Disputes can arise if the quality is different from what was agreed upon.
  • A letter of credit life cycle has an expiration date, and therefore the exporter has time limitation within which he will have to deliver the goods by all means. At times, this haste creates a mess.

ANNEX 1 IRREVOCABLE LETTER OF CREDIT

SIGHT DRAFT

LETTER OF CREDIT NO.: __________

DATE OF LETTER OF CREDIT: ______________

DATE OF DRAFT: ______________

TO: (BANK)

(ADDRESS)

(FAX):

ATTENTION: ______________

FOR VALUE RECEIVED

PAY ON DEMAND TO: DEUTSCHE BANK NATIONAL TRUST COMPANY, DBTCA FOR DBNTC AS FSA FOR WCI, INC, USD ____________________________ DOLLARS (USD $____________). THE AMOUNT OF THIS DRAFT DOES NOT EXCEED THE AMOUNT AVAILABLE TO BE DRAWN BY THE BENEFICIARY UNDER THE LETTER OF CREDIT.

WE ACKNOWLEDGE THAT, UPON YOUR HONORING THE DRAWING HEREIN REQUESTED, THE AMOUNT OF THE LETTER OF CREDIT AVAILABLE FOR DRAWING SHALL BE AUTOMATICALLY DECREASED BY AN AMOUNT EQUAL TO THIS DRAWING.

CHARGE TO ACCOUNT OF [APPLICANT].

DRAWN UNDER [NAME OF BANK] LETTER OF CREDIT NO. ___________.

FUNDS TO BE WIRED TO:

ABA ROUTING NUMBER: ______________

RECEIVING BANK: ______________

BENEFICIARY: _________________

ORIGINATING BANK INFORMATION (OBI FIELD):

VERY TRULY YOURS,

BY ______________________________________

NAME:

TITLE:

DATE:

Promotional leaflets and fliers

One of the reasons the two terms are interchangeable is because both of these printed products have similar physical characteristics which include:

  • Both flyers and leaflets are an unbound, single sheet of printed paper
  • Both terms are used to describe a printed sheet which details information of an advertising nature such as events, product sheets, special offers or promotions etc.
  • Flyers and Leaflets are both low costs printed items usually printed in higher quantities and distributed free.
  • Both are described as “throw away” as the information contained is usually short term and not designed to be kept.

Leaflets

This print product is quite similar to flyers so it’s only natural that most people struggle to tell the difference and some are actually convinced they’re the same thing. While the terms leaflet and flyer are often used interchangeably, there are some minor differences. In general, leaflets tend to be a bit smaller and they are usually supposed to be of the better quality too. Of course, this makes them more expensive as well.

The boundary between flyer and leaflets becomes clear when looking at how they are used. As we mentioned above, the main function of flyers is to hand out as many copies as possible to a broad audience in specific location. To achieve the highest ROI, they need to be cheap. On the other hand, leaflets could be used in the same way, but their superior quality and design make them a more attractive option for targeting a more specific group or promoting a product or service with higher value. As a result, leaflets can be inserted in local newspapers, they can be stored in shops, restaurants and other popular places, or they can be placed in your own corporate offices for potential customers. In short, you could make the case that flyers are for one-time events and promotions, while leaflets are better suited for content and company information that has a longer shelf life.

  • A single sheet of paper printed either single or double sided which may be supplied flat or folded. The leaflet should contain marketing or advertising information
  • The paper used should be a paper weight such as 130gsm, 150gsm or 170gsm.

Flyers

Flyers, also known as handbills, are one of the most popular print marketing products because they are so cheap to produce and easy to distribute. They are usually flat, rectangular and approximately the size of a adult hand making them perfect to pass out to passersby on the street. However, flyers come in all sizes and formats, ranging from small 2’’ x 3.5’’ papers to large squared flyers. What they have in common though is that they are typically double-sided so that they include more information and visuals. The small exception comes if you want to hang them somewhere, then of course it makes more financial sense to merely print on one side.

In regards to the usage of flyers, we’ve all come across them many times in our daily lives. They’re often handed out on the streets, exhibitions and events, even though many people throw them away instantly. Since you’ll probably only have a few seconds to connect with your potential customers before the paper lands in the next bin, a good flyer needs to stand out visually to be effective. However, that doesn’t always mean you should overinvest in flyer printing. Their main objective is typically to merely inform a customer, so you should try to be cost-effective with paper and ink quality. The great thing about flyers is that they can be leveraged for almost any cause from events, promotions or political campaigns that you’re trying to highlight. Keep in mind that they work best when you are targeting a small region, since flyers allow you to get your message out to a large number of people within a physical location at a low price point.

  • A single unfolded sheet of paper printed either single or double sided, containing any information which is advertising in nature.
  • The paper used should be a board weight for example 300gsm or 350gsm
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