Assessment Requirements for SITXMGT002 Establish and conduct business relationships

Release: 1

Assessment Requirements for SITXMGT002 Establish and conduct business relationships

Modification History

Not applicable.

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

establish and maintain business relationships with at least two of the following:

cooperative partner with organisation

contractor

customer

networks

supplier

conduct formal negotiations, or make and manage agreements and contracts in relation to the two relationships established above, relevant to the specific business context

demonstrate the use of high-level communication and relationship building skills when conducting formal negotiations and making commercially significant business-to-business agreements in the above business relationships.

Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

commercial context for business relationships in the relevant industry sector and related:

industry structure and interrelationships

sources of supply

distribution and marketing networks

professional networks

opportunities to maintain regular contact with customers and suppliers:

association membership

cooperative promotions

industry functions

informal social occasions

program of regular telephone contact

social media

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

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

key components of contract law at an overview level:

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.

Assessment Conditions

Skills must be demonstrated in an environment or activity in any industry sector where contracts are negotiated and agreed. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

other people with whom business relationships can be established; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

materials that support the negotiation process:

preparatory facts and statistics

key performance indicators

market information.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=68c40a93-e51d-4e0f-bc06-899dff092694