Unit of competency Outline

Date retreived
22/07/2026 4:01 PM AWST

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Establish and conduct business relationships

Establish and conduct business relationships

Unit of competency
National Code
SITXMGT501
State Code
WF803
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
18/01/2013
View on TGA
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080301 - Business Management
Original Release Date
15/10/2014
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to establish and manage positive business relationships. It requires the ability to use high-level communication and relationship building skills to conduct formal negotiations and make commercially significant business-to-business agreements.
Notes
Elements and Performance Criteria
1. Build business relationships.
  • 1.1 Establish relationships within appropriate cultural context.
  • 1.2 Build trust and respect in business relationships through use of effective communication skills and techniques.
  • 1.3 Proactively identify and take up opportunities to maintain regular contact with customers and suppliers.
2. Conduct negotiations.
  • 2.1 Conduct negotiations in a professional manner in the relevant cultural context.
  • 2.2 Conduct negotiations in the context of current organisation goals.
  • 2.3 Maximise benefits for all parties through use of established negotiation techniques and in the context of establishing long term relationships.
  • 2.4 Incorporate feedback and input from colleagues into negotiation where appropriate.
  • 2.5 Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes.
3. Make formal business agreements.
  • 3.1 Confirm agreements in writing according to organisational requirements, using formal contracts where appropriate.
  • 3.2 Obtain approvals for all aspects of formal agreements according to organisational procedures.
  • 3.3 Evaluate and act on the need for specialist advice as required.
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 scope of individual responsibility, complying with agreed terms.
  • 4.3 Take account of agreed performance indicators.
  • 4.4 Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues.
  • 4.5 Nurture relationships through regular contact and use of effective interpersonal and communication styles.
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, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Opportunities to maintain regular contact with customers and suppliers may include:
association membership
cooperative promotions
industry functions
informal social occasions
program of regular telephone contact
social media.
Partiesmay be:
cooperative partners
customers
suppliers.
Negotiation techniques may include:
active listening and questioning
appropriate cultural behaviour
appropriate language
bargaining
clarification of needs of all parties
confirming agreements
developing options
identification of Key Performance Indicators (KPIs), goals and limits
identifying points of agreement and points of difference
nonverbal communication techniques
preparatory research of facts, statistics, KPIs and product usage rates.
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.
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:
SITTPPD401 Package tourism products
SITTPPD601 Develop tourism products
SITXINV601 Establish stock purchasing and control systems
SITXMPR403 Plan and implement sales activities
SITXMPR404 Coordinate marketing activities.
Replaces
State Code National Code Title Type
S6724 SITXMGT006A Establish and conduct business relationships Unit of competency
Replaced By
State Code National Code Title Type
AWQ28 SITXMGT002 Establish and conduct business relationships Unit of competency