Required skills

communication skills to

conduct negotiations that may be of significant commercial value

establish and nurture ongoing professional relationships

critical thinking skills to evaluate potentially complex internal and external issues that affect professional relationships and business negotiations

initiative and enterprise skills to proactively seek opportunities for building business relationships

literacy skills to

read and interpret potentially complex agreements conditions and contracts

develop or participate in the development of formal commercial agreements

numeracy skills to evaluate commercial data and cost structures

planning and organising skills to plan activities and initiatives that support professional relationships

problemsolving skills to anticipate and respond to challenges in the negotiation process

Required knowledge

commercial context for business relationships in the relevant industry sector including

industry structure and interrelationships

sources of supply

distribution and marketing networks

professional networks

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

nature of agreements and contracts in the relevant industry sector and their key inclusions

key components of contract law at an overview level including

terms and obligations of contract

methods of contractual agreement

exclusion clauses

dispute resolution clause

termination of contracts

other legal requirements that impact negotiations and agreements in the relevant industry sector including consumer protection

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

Overview of assessment

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

Evidence of the ability to

establish and maintain business relationships over a period of time that allows for the demonstration of interpersonal and relationship building skills

conduct formal negotiations and make and manage agreements and contracts in a specific business context

demonstrate knowledge of industry structure and interrelationships industry networks and distribution and marketing networks

demonstrate knowledge of the role and features of contracts in a given business operation or sector

Context of and specific resources for assessment

Assessment must ensure use of

other people with whom business relationships can be established

real or simulated sales or operational details for which contracts may be negotiated and agreed

materials that support the negotiation process such as preparatory facts statistics KPIs and market information

Method 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 individual participating in negotiations

evaluation of negotiation activities undertaken by the individual including

planning and preparation

outcomes and reporting

agreements reached

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

written or oral questioning to assess knowledge of 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 individual

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

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector workplace and job role for example

SITTPPD Package tourism products

SITTPPD Develop tourism products

SITXINV Establish stock purchasing and control systems

SITXMPR Plan and implement sales activities

SITXMPR Coordinate marketing activities

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

Partiesmay be:

Negotiation techniques may include: