Chapter 13
Proposals and Formal
Reports
Business Communication: Process and Product, 6e
Mary Ellen Guffey
Copyright © 2008
Writing Proposals and Formal Reports
Proposals
Business Plans
Formal Reports
Report
Components
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 2
Preparing Proposals
Introduction
 Explain why the proposal is being made.
 Develop a persuasive “hook.” Suggest
excellent results, low cost, or exclusive
resources. Identify a problem or name a
key issue or benefit.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 3
Preparing Proposals
Background, problem
or purposes.
 For unsolicited proposals, describe an
existing problem.
 For solicited proposals, show that you
fully understand the problem and its
ramifications.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 4
© Tom Grill / Corbis
 Discuss the proposal’s significance, goals,
Preparing Proposals
Proposal, plan
 Present your plan for solving the problem.
 Describe implementation and evaluation.
 Outline a schedule showing dates.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 5
Preparing Proposals
Staffing
 Explain the specific
credentials and
expertise of the key
personnel for the
project.
 Show how your support staff and
resources are superior to the competition.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 6
Preparing Proposals
Budget
 Itemize costs carefully. Proposals are
contracts.
 Present a deadline for the bid figures.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 7
Preparing Proposals
© John Foxx / Stockbyte / Getty Images
Authorization
Ask for approval.
Make it easy to
reply.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 8
Components of Formal and
Informal Proposals
Appendix
Authorization
Budget
Staffing
Schedule
Background, problem, purpose
Introduction
List of figures
Table of contents
Title Page
Abstract or summary
Letter of transmittal
Copy of RFP (optional)
Generally appear in both
formal and informal proposals:
Optional in informal proposals:
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 9
Preparing an Effective Business Plan
Letter of transmittal
or executive summary
 Explain your reasons for writing.
 Provide contact information for all principals.
 Describe your business concisely.
 Introduce parts of your plan.
 Ask for support.
Table of contents
 List topics and page numbers
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 10
Preparing an Effective Business Plan
Company description
 Identify business form (proprietorship,
partnership, corporation?)
 Specify business type (merchandising,
service?)
 For existing businesses, explain founding,
growth, sales, profit.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 11
Preparing an Effective Business Plan
Product/service description
 Explain what you are providing and how
it will benefit customers.
 Describe why your idea is better than
existing products or services.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 12
Preparing an Effective Business Plan
Market analysis
 Discuss market characteristics, trends, and

projected growth.
Describe customer behavior, complementary
products and services, and barriers to entry.
 Identify your customers and how you will
attract, hold, and increase your market share.
 Specify the strengths and weaknesses of
competitors.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 13
Preparing an Effective Business Plan
Operations and management
 Explain how you will run your business:
location, equipment, personnel, and
management.
 Emphasize experienced and well-trained
staff and advisors.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 14
Preparing an Effective Business Plan
Financial analysis
 Outline a realistic start-up budget.
 Present an operating budget that projects

costs.
Explain how much money you have and will
need.
Appendixes
 Provide extras such as managers’ résumés,
promotional materials, and product photos.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 15
Preparing Formal Reports
Analyze the report problem and purpose.
Develop a problem question (Are
customers satisfied with our service?) and
a purpose statement. (The purpose of
this report is to investigate customer
satisfaction and to recommend areas for
improvement.)
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 16
Preparing Formal Reports
Anticipate the audience and issues.
Consider primary and secondary
audiences. What do they already
know? What do they need to know?
Divide the major problem into
subproblems for investigation
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 17
Preparing Formal Reports
Prepare a work plan.
Include problem and purpose
statements. Describe sources and
methods of collecting data. Prepare a
project outline and work schedule.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 18
Preparing Formal Reports
Collect data.
Search secondary sources.
Gather primary data.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 19
Preparing Formal Reports
Document data sources.
Prepare note cards or printouts citing
all references (author, date, sources,
page, and quotation). Use one
documentation format consistently.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 20
Preparing Formal Reports
Interpret and organize the data.
Arrange the collected data in tables,
grids, or outlines to help you visualize
relationships and interpret meanings.
Organize the data into an outline.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 21
Preparing Formal Reports
Prepare graphics.
Make tables, charts, graphs, and
illustrations—but only if they serve a
function. Use graphics to clarify,
condense, simplify, or emphasize your
data.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 22
Preparing Formal Reports
Compose the first draft.
Write the first draft knowing that
you will later revise. Use appropriate
headings as well as transitional
expressions to guide the reader.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 23
Preparing Formal Reports
Revise and proofread.
Revise to eliminate wordiness,
ambiguity, and redundancy. Look for
ways to improve readability, such as
bulleted or numbered lists. Proofread
three times for (1) word and content
meaning, (2) grammar and mechanics,
and (3) formatting.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 24
Preparing Formal Reports
Evaluate the product.
Will this report achieve its purpose?
Encourage feedback so that you can
improve future reports.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 25
Formal Report Components
Title page
Balance the following lines:




Name of the report in all caps
Receiver’s name, title, and organization
Author’s name, title, and organization
Date submitted
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 26
Formal Report Components
Letter or memo of transmittal
 Announce topic and explain who authorized it.
 Briefly describe the project and preview the
conclusions—if the reader is supportive.
 Close by expressing appreciation for the
assignment, suggesting follow-up actions,
acknowledging the help of others, and offering
to answer questions.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 27
Formal Report Components
Table of contents
 Show the beginning page number where each

report heading appears in the report.
Connect page numbers and headings with
dots.
List of illustrations
 Include a list of tables, illustrations, or figures

showing the title of each and its page number.
Place on the same page with contents if
possible.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 28
Formal Report Components
Executive summary or abstract
 Summarize the report

purpose, findings,
conclusions, and
recommendations.
Gauge the length of the
summary by the length of
the report and by the
organization’s practices.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 29
Formal Report Components
Introduction
 Explain the problem motivating the report.
 Describe the problem’s background and
significance.
Clarify the scope and limitations of the report.

 Consider reviewing relevant literature.
 Consider describing data sources, methods,
and key terms.
 Close by previewing the report’s organization.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 30
Formal Report Components
Body
 Discuss, analyze, and interpret the research
findings or proposed solution to the problem.
 Arrange the findings in
logical segments that
follow your outline.
 Use clear, descriptive
headings.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 31
Formal Report Components
Conclusions and recommendations
 Explain what the findings mean in relation to
the problem.
 Make enumerated recommendations, if
requested.
 Suggest actions for solving the problem.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 32
Formal Report Components
Appendix
 Include items of interest to some readers,
such as data-gathering tools like
questionnaires.
References and bibliography
 If footnotes are not provided, list all references

in “Works Cited” or “References.”
Optionally, include a bibliography showing all
the works cited (and perhaps consulted)
arranged alphabetically.
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 33
Components in Formal and
Informal Reports
Bibliography
Appendix
Recommendations
Conclusions
Body
Introduction
Executive summary
List of figures
Table of contents
Letter of transmittal
Title page
Cover
Generally appear in both
formal and informal reports:
Optional in informal reports:
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 34
End
Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 13, Slide 35