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Elements and Performance Criteria

  1. Build business relationships.
  2. Conduct negotiations.
  3. Make formal business agreements.
  4. Foster and maintain business relationships.

Required Skills

This section describes the essential skills and knowledge and their level required for this unit

The following skills must be assessed as part of this unit

highlevel negotiation skills and techniques appropriate to negotiations that may be of significant commercial value

highlevel interpersonal and communication skills to establish and nurture ongoing relationships

highlevel literacy skills to outline specific written requests clearly and succinctly read complex agreements conditions and contracts and confirm formal details in writing

numeracy skills to prepare statistics KPIs or usage figures that might relate to the negotiation of costs and calculate any costs related to agreements and contracts

The following knowledge must be assessed as part of this unit

detailed knowledge of KPIs for the industry industry structure and interrelationships industry networks information sources sources of supply and indepth knowledge of distribution and marketing networks

principles of negotiation stages in the negotiating process and different techniques that can be applied

legal issues that affect negotiations and contracts in the relevant industry sector

general and working knowledge of contracts and basic understanding of contract law

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

project or work activities that show the candidates ability to successfully establish and maintain business relationships conduct formal negotiations and make and manage agreements and contracts for a specific business operation

detailed knowledge of KPIs for the industry industry structure and interrelationships industry networks information sources and distribution and marketing networks

knowledge and understanding of role of contracts within a given business operation

project or work activities conducted over a commercially realistic period of time so that the planning and relationshipbuilding aspects of this unit can be assessed

Context of and specific resources for assessment

Assessment must ensure

that the candidate has accessed a fully equipped office environment using appropriate computers printers communication technology information programs and software to facilitate the processes involved in establishing and conducting business relationships

access to an operation for which business relationships would be managed or access to comprehensive and sufficient information about that operation to allow the candidate to fully establish and maintain business relationships conduct formal negotiations and make and manage agreements and contracts

use of materials that support the negotiation process such as preparatory facts statistics KPIs product usage rates request letters and written confirmation of agreements and contracts

use of plain English contract law information

interaction with individuals or businesses that have a genuine or potential interest in negotiating and relationshipbuilding for a commercial relationship

Methods of assessment

A range of assessment methods should be used to assess the practical skills and knowledge required to establish and conduct business relationships The following examples are appropriate for this unit

direct observation of the candidate participating in verbal negotiations

evaluation of negotiations and business relationships or agreements conducted or made by the candidate

evaluation of reports prepared by the candidate to detail the way in which a negotiation activity was planned and conducted and lessons to be learned for future activities

review of negotiating documents prepared by the candidate including preparatory facts statistics KPIs product usage rates request letters and written confirmation of agreements

case studies to assess application of different techniques to different negotiating scenarios

written and oral questioning or interview to test knowledge such as industry structure and interrelationships negotiating principles and techniques and legal compliance issues

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the candidate

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example

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SITXMPRA Plan and implement sales activities

SITXMPR003A Plan and implement sales activities

SITXMPRA Coordinate marketing activities

SITXMPR004A Coordinate marketing activities

SITTPPDA Research assess and develop tourism products

SITTPPD001A Research, assess and develop tourism products

SITTPPDA Source and package tourism products

SITTPPD003A Source and package tourism products.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors How these skills are applied varies between occupations and qualifications due to the different work functions and contexts

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role

BSBMGTA Develop and implement a business plan

BSBMGT617A Develop and implement a business plan


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.

Opportunities to maintain regular contact with customers and suppliers may include:

informal social occasions

industry functions

association membership

cooperative promotions

program of regular telephone contact.

Negotiation techniques may include:

identification of KPIs, goals and limits

clarification of needs of all parties

identifying points of agreement and points of difference

preparatory research of facts, statistics, KPIs and product usage rates

active listening and questioning

non-verbal communication techniques

appropriate language

bargaining

developing options

confirming agreements

appropriate cultural behaviour.