SITXMGT002 - Establish and Conduct Business Relationships

WORKSHEET

SECTION 1: BUILD BUSINESS RELATIONSHIPS

Q1: You’re a senior sales representative of a tour operation. You’re about to visit China to meet a travel
agent to promote your holiday package. You don’t know anything about China. Explain how you would go
about establishing an ongoing professional relationship. (List minimum 3 point

Q2: Business relationships happen in a commercial context and vary depending on industry structure and
interrelationships. List three external customers you would form relationships with in each category.

Essential service suppliers

Hospitality suppliers
Communication suppliers
Distribution
Marketing
Q3: List six interpersonal and communication styles you can use to build trust and respect to nurture
ongoing business relationships.
Q4: You need to plan activities and organise initiatives that support your professional relationships. Identify
six ways you could maintain regular contact with suppliers and customers to communicate better and
foster stronger business relationships.
SECTION 2: CONDUCT NEGOTIATIONS

Q1: List the four stages of negotiation.

Q2: You’re the general manager of a five-star hotel in the inner city. You normally wear a suit and tie and
conduct business quite formally. The chef and food and beverage manager have asked you to
accompany them to a rural farm to negotiate with a produce supplier who can deliver fresher
vegetables directly to the kitchen.
Do you need to change your approach in this situation? If not, explain why not. If so, explain why and
describe how you might change.

Q3: Before entering into negotiations with the produce supplier in question 2, what are five things that your
team should be clear on? Of these, which is the most important?
Q4: Your team has decided the roles each person will play in the negotiation with the supplier in question 6.
Briefly describe what each person will do.
Chef (good guy)
Food and beverage manager (bad guy)
You (leader and sweeper)

Q5: You’re the manager of a travel agency about to enter into negotiations with a resort which could be of
significant commercial value to you both. You believe a long-term relationship would be in your best
interests.
 Which of these three negotiating styles is the best one to use? Describe the communication skills that
go along with it. (List 3 points).

Integrative approach
Distributive approach
Mixed approach

Q6: When negotiating, your aim is usually to maximise the benefits for all parties involved and establish
long-term relationships. List six negotiating techniques you can apply in order to obtain a successful
result for your travel agency and the resort in question 5.
Q7: You’re an operator of a small restaurant that you currently lease. You’d like to make minor renovations
to the premises. You’re about to negotiate with the real estate agent who’s infamous for being difficult
to deal with. State five ploys the agent might use against you.
Q8: The real estate agent in question 7 keeps you waiting for nearly an hour and then keeps taking phone
calls during your negotiations. Describe how you would respond.(List three points)
Q9: Identify three signs that show the other party is ready to close negotiations.
Q10: List three types of input you can get from colleagues prior to and during negotiations to incorporate into
talks.
Q11: List six appropriate colleagues and stakeholders you might need to communicate results of
negotiations to.
Q12: It’s important to evaluate commercial data and cost structures prior to negotiation. List four common
financial matters to consider before undertaking a negotiation.

SECTION 3: MAKE FORMAL BUSINESS AGREEMENTS

Q1: Why are contracts entered into?

Q2: What exactly is a contract and how do you enter into one?

Q3: What happens if one party doesn’t meet their contractual obligations?
Q4: Explain when you might need to draw up a contract.
Q5: List five external customers you might enter into contracts with.
Q6: Identify three types of contracts you might enter into.
Q7. Look at the definitions of the key elements you should include in any contract you develop. Label each
one.
1. Both parties understand they’re creating legal relations, and are going to abide by the contract
which is legally enforceable.
2. One party makes an offer and the other accepts it.
3. One party gives something (usually money) in exchange for something from the other party
(usually a product or service).
4. Both parties are mentally capable of understanding a contract.
5. Both parties agree to the contract of their own free will.
6. All parts of the contract are legal.
Q8: Prior to developing or participating in the development of a formal commercial agreement, you should
consult legislation. What two documents contain legal requirements that impact negotiations and
agreements, including contracts and consumer protection?
Q9: You need to understand the key components of contract law at a basic level to develop a legally
binding contract. Define the following terms.
 Terms and conditions
Exclusion clause
Dispute resolution clause
Q10: List and describe three ways contracts can be terminated.
Q11: Identify five people or groups who may need to approve all aspects of the formal agreement.
Q12: Which procedures should you follow when obtaining approval for formal agreements?
Q13: When developing a business contract, under what circumstances would you need to consult a
specialist for advice?
Q14: You’ve just received a contract from your linen supplier but you’re not sure it’s legally binding. What
would you do?

SECTION 4: FOSTER AND MAINTAIN BUSINESS RELATIONSHIPS

Q1: What professional networks can you use to foster and maintain business relationships? (List 3)
Q2: What type of information is useful to help you maintain sound business relationships? (List 5)
Q3: How can you act ethically and responsibly to foster and maintain business relationships?
Q4: Define key performance indicators (KPIs).
Q5: List four contractual KPI’s you may be expected to meet to honour agreements and comply with agreed
terms.
Q6: Explain why you might adjust an agreement.
Q7: Describe how to make adjustments to agreements.
Q8: Who do you consult and share information with when making adjustments?