Unit of competency Outline

Date retreived
22/07/2026 1:55 PM AWST

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Establish and conduct business relationships

Establish and conduct business relationships

Unit of competency
National Code
SITXMGT006A
State Code
S6724
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/01/2011
View on TGA
State Implementation and Classification
Approved Date
03/12/2010
Field of Education
080301 - Business Management
Original Release Date
03/12/2010
Nominal Hours
40
Description
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.
Notes
Elements and Performance Criteria
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.
  • 1.3 Identify and take up opportunities to maintain regular contact with customers and suppliers.
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.
  • 2.3 Maximise benefits for all parties in the negotiation through use of established negotiation techniques and in context of establishing long-term relationships.
  • 2.4 Incorporate feedback and input from colleagues into the 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, 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.
  • 3.3 Identify the need for and seek specialist advice in the development of contracts where appropriate.
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).
  • 4.3 Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues.
  • 4.4 Nurture relationships through regular contact and use of effective interpersonal and communication styles.
RANGE STATEMENT
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.

Opportunities to maintain regular contact with customers and suppliers may include:
informal social occasions
industry functions
association membership
cooperative promotions
program of regular telephone contact.


Negotiation techniques may include:
identification of KPIs, goals and limits
clarification of needs of all parties
identifying points of agreement and points of difference
preparatory research of facts, statistics, KPIs and product usage rates
active listening and questioning
non-verbal communication techniques
appropriate language
bargaining
developing options
confirming agreements
appropriate cultural behaviour.
EVIDENCE GUIDE
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.

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
project or work activities that show the candidate's ability to successfully establish and maintain business relationships, conduct formal negotiations and make and manage agreements and contracts for a specific business operation
detailed knowledge of KPIs for the industry, industry structure and interrelationships, industry networks, information sources, and distribution and marketing networks
knowledge and understanding of role of contracts within a given business operation
project or work activities conducted over a commercially realistic period of time so that the planning and relationship-building aspects of this unit can be assessed.


Context of and specific resources for assessment
Assessment must ensure:
that the candidate has accessed a fully equipped office environment using appropriate computers, printers, communication technology, information programs and software to facilitate the processes involved in establishing and conducting business relationships
access to an operation for which business relationships would be managed, or access to comprehensive and sufficient information about that operation to allow the candidate to fully establish and maintain business relationships, conduct formal negotiations and make and manage agreements and contracts
use of materials that support the negotiation process such as preparatory facts, statistics, KPIs, product usage rates, request letters, and written confirmation of agreements and contracts
use of plain English contract law information
interaction with individuals or businesses that have a genuine or potential interest in negotiating and relationship-building for a commercial relationship.


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:
direct observation of the candidate participating in verbal negotiations
evaluation of negotiations and business relationships or agreements conducted or made by the candidate
evaluation of reports prepared by the candidate to detail the way in which a negotiation activity was planned and conducted and lessons to be learned for future activities
review of negotiating documents prepared by the candidate, including preparatory facts, statistics, KPIs, product usage rates, request letters and written confirmation of agreements
case studies to assess application of different techniques to different negotiating scenarios
written and oral questioning or interview to test knowledge, such as industry structure and interrelationships, negotiating principles and techniques and legal compliance issues
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
SITXINV003A Manage and purchase stock
SITXMPR003A Plan and implement sales activities
SITXMPR004A Coordinate marketing activities
SITTPPD001A Research, assess and develop tourism products
SITTPPD003A Source and package tourism products.


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.

BSBMGT617A Develop and implement a business plan
Replaces
State Code National Code Title Type
E1982 THHGCS08B Establish and conduct business relationships Unit of competency
Replaced By
State Code National Code Title Type
WF803 SITXMGT501 Establish and conduct business relationships Unit of competency