Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to manage business relationships with customers or suppliers. It requires the ability to establish and maintain business relationships, conduct formal negotiations and make and manage agreements or contracts. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
This unit describes a complex administrative skill for those working within the service industries and applies to the full range of industry sectors and environments. The business agreements or contracts and negotiations described by this unit are formal and structured in nature and cover significant commercial dealings. They may relate to such things as corporate accounts, service contracts, agency agreements, venue contracts, rate negotiations, preferred product agreements, supply agreements and marketing agreements. The establishment and management of business relationships require the application of significant analytical, communication, negotiation and relationship building skills. This role is generally undertaken by senior operational personnel or sales and marketing personnel who work autonomously and are responsible for making strategic decisions on purchasing or marketing activities for an organisation and for overseeing the maintenance of contracts or agreements. Managers and owner-operators of small businesses would also undertake this activity. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
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1 |
Build business relationships. |
1.1 |
Establish relationships within appropriate cultural context in a manner that promotes goodwill and trust between the organisation, its customers and suppliers. |
1.2 |
Build trust and respect in business relationships through use of effective communication skills and techniques. |
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1.3 |
Identify and take up opportunities to maintain regular contact with customers and suppliers . |
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2 |
Conduct negotiations. |
2.1 |
Conduct negotiations in a professional manner within relevant cultural context. |
2.2 |
Conduct negotiations in the context of current organisation marketing focus. |
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2.3 |
Maximise benefits for all parties in the negotiation through use of established negotiation techniques and in context of establishing long-term relationships. |
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2.4 |
Incorporate feedback and input from colleagues into the negotiation where appropriate. |
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2.5 |
Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes. |
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3 |
Make formal business agreements. |
3.1 |
Confirm agreements in writing, using formal contracts where appropriate and according to organisation requirements. |
3.2 |
Check and gain appropriate approvals for all aspects of formal agreements according to organisation procedures. |
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3.3 |
Identify the need for and seek specialist advice in the development of contracts where appropriate. |
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4 |
Foster and maintain business relationships. |
4.1 |
Proactively seek, review and act upon information needed to maintain sound business relationships. |
4.2 |
Honour agreements within the scope of individual responsibility, complying with agreed terms and meeting key performance indicators (KPIs). |
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4.3 |
Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues. |
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4.4 |
Nurture relationships through regular contact and use of effective interpersonal and communication styles. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
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:
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The following knowledge must be assessed as part of this unit:
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Evidence Guide
EVIDENCE GUIDE |
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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 Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
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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. |
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BSBMGT617A Develop and implement a business plan |
Range Statement
RANGE STATEMENT |
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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. |
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Opportunities to maintain regular contact with customers and suppliers may include: |
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Negotiation techniques may include: |
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Unit Sector(s)
Sector |
Cross-Sector |
Competency field
Competency field |
Management and Leadership |