SITXMGT002 - Establish and Conduct Business Relationships Assessment

This assessment workbook, designed for the SITXMGT002 unit, focuses on the critical aspects of establishing and conducting effective business relationships. It covers a range of topics, including identifying key stakeholders, best practices for communication, negotiation steps and techniques, the importance of feedback, and methods for communicating negotiation results. The workbook also delves into contract law, outlining essential components, processes for agreement confirmation, and the process of honoring and executing contracts. Furthermore, it explores tools for proactively seeking information, collecting evidence of performance indicators, making adjustments to agreements, and nurturing business relationships. The assessment includes both knowledge-based questions and practical application tasks, such as establishing and maintaining relationships with cooperative partners and suppliers, and creating a negotiation poster.

SITXMGT002 - Establish and conduct business
relationships
Assessment Workbook
Student
Signature
Assessor judgement based on knowledge and performance evidence:
 C - Competent
 NYC – Not Yet Competent
Reasonable Adjustment  No
 Yes - Description of adjustment
Assessor
Signature Date

Assessment Tool Instructions
This assessment tool is to be completed by the Assessor and the Student. The assessment tool
has been developed to collect and record evidence to assess the Student’s understanding and
application of the performance criteria, performance evidence and knowledge evidence. If
there are multiple units listed above, they have been integrated and are co-assessed
holistically. This assessment tool must be completed using a black or blue pen and all
relevant sections are to be completed.
Instructions to the Assessor
The assessor will provide the assessment tool to the Student and explain the assessment
requirements, providing guidance to the Student as required. Verbal challenging may apply
and the Assessor is required to record these notes in the Assessor’s comments section. Please
ensure that all signatures and dates are accurately recorded, all sections have been marked
and that comments have been included where necessary.
Instructions to the Student
You will be required to read through the assessment activities and prepare for the
assessment. If the assessment involves written responses, you can write your answers in the
spaces under the question. Please ensure that you complete all required sections of the
assessment tool. All questions must be answered in full. Your assessor may verbally challenge
your answer by asking you to clarify or further explain your answer. At the end of this
assessment task, your assessor will provide you with feedback on areas for continuous
1professional development. Unless specified, answers should be approximately 00 word in
length.
Before commencing the assessment, please complete the pre-assessment checklist below to
confirm that you, the Student, are ready for assessment.
I have been given access to all of the resources for this assessment  YES  NO
I have had my rights and the appeal system fully explained to me  YES  NO
The assessor has discussed special needs assistance with me  YES  NO
I understand that I have to complete all tasks/questions myself  YES  NO
I acknowledge that I am ready for an assessment for the unit  YES  NO
I acknowledge that I have had the assessment process explained to me  YES  NO
I understand that plagiarism is not accepted  YES  NO
I agree to undertake assessment tasks in this assessment tool  YES  NO
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Q # Questions
Satisfactory
√ = Yes
X = No
1. List three of the types people you would be likely to establish
professional relationships with.
Three of the people likely are:
-customers: they are the most important people for the business
- suppliers: the suppliers are the small businesses that can
power the large business to properly function
- senior management: They are the people responsible for the
smooth functioning of business.
2. What are the best practices that should be followed to ensure
that communication is used effectively to build business
relationships? Discuss at least three.
The best practices for ensuing effective communication across
busineses are
-Being relatable and focusing towards the creation of
professional relationships through personal perspectives.
This will need to be done through the creation of better
relationships.
- Repetion of key points can be used in order to set
essential goals and enhance communication. This way the
main ideas will always be prioritized.
- Adaptation to reality can boost communicational levels
as it can help both the communicating parties to be on the
same level of understanding.
3. Summarise the general negotiation steps and techniques used to
maximise the benefits for all parties.
The general steps for effective negotiation is firstly to build
essential relationships with the people that are involved with the
given project. Secondly negotiations can be possible is the
context is kept intact, hence it is important to be on the same
level of communication. The third step is to listen properly and
interact accordingly in order to have an effective negotiation
process.
4. Why is it essential to incorporate feedback and input from
colleagues into negotiations?
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This is a very necessary step for optimizing negotiation across
the organizational levels. Feedback increases the chances of
better communication and helps in the creation of mutual
understanding concerning a given context. Input helps to
increase the scope of information necessary for better
negotiations. Both of these are much needed in negotiations as
both the parties need to agree at some point for its effectiveness.
5. In what ways could you communicate the results of negotiations
to the appropriate colleagues and stakeholders within the
required timeframes? Identify at least two.
The most important communicational tools that can be used are
ICTs and group meetings. Firstly, the information and
communication technology or ICT can be used in order to
quickly transfer information through the organizational levels
and to the people that are affected by the results. Secondly, the
group discussion tools can be used in order to enhance the
prospects of better understanding of the results of
communication. Both these aspects can be used in order to
effectively communicate with stakeholders as well as internal
publics.
6. How should agreements be confirmed?
In order to confirm agreement, the confirmation agreement need
to be signed by all the negotiating parties. This is done in order
to have a written record of the results that have come out of the
negotiations. Subsequently, letters or emails should be sent to all
the parties that would be involved in the process.
7. Approval for formal agreements are generally indicated using
written signatures. How else may it be indicated?
Pictures of the parties may be taken in order to keep a visual
record of the agreement. Moreover formal agreements can be
approved through e-signatures of the parties involved.
8. Briefly outline the general process to be followed if specialist
advice is required.
Specialist advice can be sought through the passing of the
information through the various organizational levels.
The information could then be sent for review with a
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specialized team for specialist advice.
9. Outline the process for honouring and executing a contract.
The process for honoring a contract involves many steps. First
the contract agreements need to be noted. Secondly, the
communication process need to be maintained as per the
contract. Thirdly, the requirement of the contract need to be met
within the given timescales.
10. What are useful tools for helping you proactively seek
information required to maintain relationships and agreements?
The useful tools for maintaining relationships through proactive
seeking of information are company profiling, client profiling,
industry analysis and other such tools helping to get background
information.
11. How could you collect evidence of the agreed performance
indicators?
The evidence of the agreed performance can be gathered
through key performance indicators. These can help to
make the collection process easier through the
consideration of better performance aspects.
12. What needs to be considered and included when making
adjustments to agreements?
The relevant situations and the feasibility of goals achievement
in the present situations need to be considered. They need to be
communicated with the involved parties if changes need to be
implemented.
13. How can you nurture business relationships?
Business relationships can be nurtured through maintaining
better communications with the clients and stakeholders.
Moreover, having efficient relationships across the
organizational levels helps to nurture effective relationships.
Business relationships can also be nurtured through optimizing
the internal functions with the functions required for the
agreement.
Satisfactory (please circle) Yes No
Feedback to the Student:
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P # Projects
Satisfactory
√ = Yes
X = No
1. 1. Report.
Introduction
The sector that is being chosen is the retail sector industry. The
retail sector industry consists of large supermarkets, one stop
shops and other large specialty stores. The industry is one of the
biggest in the world.
a. Industry structure and the associated
interrelationships.
The industry works on the basis of various suppliers
and distribution channels that supply commodities to
the various operational stores across the stores. The
industry consists mainly of shopping shop chains and
supermarket chains. Effective relationships need to
be maintained between the shops and the suppliers.
b. Common industry sources of supply.
The common supply sources are the various items
that are supplied by the producers and
manufacturers. The commodities are supplied by the
main producers and transferred to the shops.
Suppliers include farmers, cloth sellers and other
retail item sellers.
c. Distribution and marketing networks.
The distribution networks consists of warehouses
that are sometime attached with a store. The
distribution networks start from the main markets
from where items are procured and transferred to
the select shops after being combined. The various
commodities are sent to the shops where they are
sold.
d. Professional networks
The stores use ICT and data management
technologies. Technology based network are mainly
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used to keep track of the inventory systems.
Moreover, the networks are used to manage
availability and also for in store communications.
2. Ways to maintain regular contact with customers and
suppliers.
Many ways can be used to regularly keep in touch with suppliers
and customer. Five can be listed here-
1. Usage of media tools
2. Usage of online feedback mechanism
3. Organization of programs aimed at suppliers and customers
4. Regular interactions through relationship management
5. Provision of offers and discounts
3. Negotiation Poster.
The company would like to communicate its new business
venture to the employees. Through the new venture the
company wishes to increase its revenue and create more jobs.
The company would like all the employees to keep on with their
good work. The company would take part in further
developmental activities upon the successful running of the new
venture.
The customers would be approached through effective media
communications
The employees will be communicated through emails and
important notices.
4. Key components of contract law.
a. The company takes part in contractual agreements
that are mostly bound by time and specific
requirements
b. The key features are requirements, responsibilities,
timeframes and agreements
c. The contracts need to be well respected and
amendments can only be done through mutual
agreements of all parties involved.
d. The company makes contract only through
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paperwork. However, the communications regarding
the same and copies are sent to the parties through
mail.
e. Exclusion clauses are guided by unforseen situations
and matters beyond reasonable control
f. Disputes are to be resolved through meeting and
mutual communication.
g. Termination of contracts are only possible through
severe breach of contract that take place within the
contract period. This is also listed accordingly.
h. The contract terms are guided by national and
international business laws.
2. 1. For this task you are to establish and maintain a business
relationship with at least two of the following:
a. Cooperative partner with organisation.
b. Supplier.
Effective communication need to be established firstly with the
cooperative partner of the organization. The partner will be
continuously negotiated with in the organization. In line with the
laws of contract the cooperative partner will be helped with
every information that can affect the relationships between the
organizations. Cooperative relationships will be maintained
through dedicated teams for relationship maintenance. The
channel of communication that would be used will be official as
every important communication will be official.
The suppliers will be effectively communicated with. The
suppliers will be given enough opportunities to tell their
grievances to the company. Effective measures that facilitate
mutually agreeable bargains will be used. The company will take
part in annual or half-yearly suppliers meet. The suppliers will
also be given special discounts by the company.
Satisfactory (please circle) Yes No
Feedback to the Student:
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PA # Practical Assessment
Satisfactory
√ = Yes
X = No
1. The student established and maintained business relationships
with at least two of the following:
 Cooperative partner with organisation.
2.  Contractor.
Contractors would consist of firms which would supply the
company conducting the project with support. The company
would breakdown the scope of the project into WBS and assign
specific activities to the contracting firms.
3.  Customer
The customer would consist of the body which would actually
own the project and oversee its commencement.
4.  Networks.
5.  Supplier.
6. The student has performed each of the following actions
successfully in their observation for each of the two chosen from
above:
Establish the relationship in line with all organisational
requirements and protocols.
Yes
7. Effectively use communication skills and techniques to build
business relationships.
Yes
8. Identify and take appropriate opportunities to maintain regular
contact with customers and suppliers.
Yes
9. In line with all professional and organisational protocols, use
appropriate and relevant negotiation techniques to maximise the
benefits of relationship for all parties.
Yes
10. Incorporate any appropriate feedback and input from colleagues
into negotiations where appropriate.
Yes
11. Within appropriate timeframes, communicate the results of all
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negotiations to all relevant colleagues and stakeholders.
Yes
12. Writing according to organisational requirements, and using
formal contracts where appropriate, confirm all agreements.
Yes
13. According to organisational procedures, obtain approvals for all
aspects of formal agreement.
Yes
14. Evaluate the need for specialist advice, and act on as required.
Yes
15. Proactively seek, review, and act upon information needed to
maintain sound business relationships.
Yes
16. Complying with all agreed terms, honour agreements within
scope of individual responsibility.
Yes
17. Take account of the agreed performance indicators.
Yes
18. In consultation with the customer or supplier, make adjustments
to agreements, and share this information with appropriate the
colleagues.
Yes
19. Through regular contact and use of effective interpersonal and
communication styles, nurture the business relationships.
Yes
20. The student effectively discussed the following:
High level communication and relationship building skills
employed throughout the tasks to build and maintain business
relationships.
Yes
12 . The context of the industry sector and the related
interrelationships.
Yes
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