SITXMGT002 Student Assessment XXXXXXXXXXPage 1 of 8
AOI Institute XXXXXXXXXXJuly, 2021 – Ver. 1.1
Student Assessment
SITXMGT002 Establish and conduct business relationships
SITXMGT002 Student Assessment XXXXXXXXXXPage 1 of 8
AOI Institute XXXXXXXXXXJuly, 2021 – Ver. 1.1
In order to be assessed as Competent (C) in this unit, you need to provide evidence which demonstrates that you can perform the required competencies to the required standard. Competency depends on consistently demonstrating the skills, attitude and knowledge that enables you to complete workplace tasks confidently in a variety of situations.
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.
To attain competence in this unit you must:
Successfully complete the Theory Assessment via the student portal
Successfully complete the Report
Successfully complete the Practical Assessment Activity (Trainer to observe)
SITXMGT002 Establish and conduct business relationships
Report
Instructions:
You are to write a report on establishing and conducting business relationships. Your answers will form part of the evidence gathered for this unit. You must complete and submit this report to your trainer for assessment by the due date provided by your trainer via your student portal. Your trainer will provide you with the due date at least 3 (three) weeks before the assessment is due.
Report
Your task is to write a report on establishing and conducting business relationships for Happy Feet – Walking Tours company. Please refer to more details about this business on: http:
happyfeet.ozstudy.com.au/" http:
happyfeet.ozstudy.com.au/ and in the scenario provided in the Practical Assessment Activity.
This project will assess the required knowledge for this study unit. You must demonstrate understanding of:
building business relationships
conducting negotiations
making formal business agreements
fostering and maintaining business relationships.
In your report:
Develop a plan that outlines how you would endeavour to build business relationships with the local and overseas agents. In your plan include:
A communication strategy that describes:
How you will establish business relationships:
How you intend to build trust and respect
How you intend to maintain any existing relationships that you may have with existing local and overseas agents
Based upon your plan to establish business relationships with local and overseas agents, describe:
How you will conduct negotiations, taking into consideration any organisational goals
Describe the method of negotiations that you would use
Outline the areas where you may need to source feedback and input from other colleagues and/or stakeholders
Detail how you intend to foster and maintain the business relationship, including:
How you would source and act upon information needed for relationship building
How you intend to measure performance, and make adjustments and amendments to future negotiations and contracts
SITXMGT002 Establish and conduct business relationships
Practical Assessment Activity
Role-Play (simulated work environment)
Scenario
You are working for Happy Feet – Walking Tours company in the marketing department.
Your business is participating in the annual event, Visit Downunder - Visit Melbourne Expo. This Expo offers a great opportunity to promote your business to local but mostly overseas tourists or agents.
A week before the doors of the Expo open, you have received the following e-mail:
Dear Si
Madam,
Let me introduce myself. We are a large travel agency located in China. Our head office is located in Beijing and we have 5
anches across the country. We are predominantly focusing on Australian destinations. Our clients love to explore Australia.
We have seen your website http:
happyfeet.ozstudy.com.au/ and we love your idea of short walking tours around Melbourne. In fact, Melbourne is the top destination for our clients. We have studied your tours and we love them! They are unique and offer close experience with your beautiful city attractions.
We would like to have agreement between our agencies for close cooperation. For beginning, we would like to send you XXXXXXXXXXclients each month. If the feedback is positive, we are looking to rise this number to XXXXXXXXXXeach month.
As you may know the margin on travel products here in China is very low. Therefore, we would seek a commission-based agency agreement.
We have noticed that you are going to participate in next week’s event the Visit Downunder – Visit Melbourne event. We would like to a
ange a meeting with you during the event to discuss the agreement.
Looking forward to seeing you at the Melbourne Expo in a few days.
Regards,
Xin Xin
CEO
Red Wall Travel
Peter Bell, the General Manager, was very excited about this proposal XXXXXXXXXXtourists every month means over 5000 visitors every year. He has entrusted you to meet with Ms Xin at the event. He will send Sue Wallace from the financial department to attend the meeting with you and help you to negotiate the deal.
Please read the following information in regard to Happy Feet - Walking Tours Company.
Financial details/facts
As described in the scenario document tours are conducted by an independent tour guides that work under the
and Happy Feet - Walking Tours.
The tour fees that your company charges via the website are split between the Happy Feet - Walking Tours and the independent tour guides that operate under the Happy Feet - Walking Tours company by 70% to the guide and 30% to Happy Feet - Walking Tours.
There are several agents around the world that book their clients for the Melbourne walking tours via the company’s website. Those agents
ing about 10-15 visitors per month and therefore your company pays just a standard commission of 10% of the tour fee per customer. That means that the profit for company is 20% from each tou
person.
Task 1: Research
You need to prepare an agreement for the agent to sign. Your agreement should contain the following:
Details of your company (Name, Address contacts)
Details of the other party signing this agreement
Details of the agreement (what are you agreeing on – commission, customer volume)
Agreement duration
Condition of the agreement (minimum number of visitors signed up, conditions when where and how the agreement will be renewed or terminated etc)
Place for signatures
Research the Internet and prepare draft document that you will
ing to the meeting with the Chinese agent Xin.
You need to show your draft to your trainer, obtain feedback on your agreement and update it accordingly.
You do not need to upload the draft of your contract via the student portal.
Instructions for Traine
You will review the document before the meeting. Provide detailed feedback to the student with the requirements for alternation of the document.
Task 2: Roleplay
You and Sue Wallace from the financial department will attend the meeting with Ms Xin Xin. This is a roleplay to be conducted in the classroom environment on a date specified by your trainer at least 3 weeks prior, where a staff member of AOI Institute will represent the Agent from China, Ms Xin Xin, and the trainer will role play Ms Sue Wallace from the financial department. You will be required to establish a friendly and positive atmosphere during the meeting, discuss and agree on the details and conditions of the agreement. Duration of this activity is approximately 5-10 minutes.
This is a practical part of the assessment and your traine
assessor will observe and assess your ability to:
Establish a friendly and positive atmosphere during the meeting
Establish sound relationships with the Chinese agent
Use effective communication skills and techniques to build business relationships
Use negotiation techniques to discuss and agree on the details and conditions of the agreement
Instructions for Traine
Xin Xin
The role of the Chinese agent will be represented by AOI Institute staff member
You will stand firm behind your 30% commission rate. However, at the end you can agree to 20-25% commission from each client signed up for the tour.
Sue Wallace
The role of the financial representative will be represented by the traine
The agent from China will demand a commission rate of 30% from the tour fee. This will leave your company with zero profit. Considering the large number of prospective clients, you are willing to negotiate a better rate so your business will receive small profit which will be compensated by the proposed large volume of tourists. One of the propositions can be reduced fees to the tour guides, so you will have some profit from each tour. However, you must insist that the performance clause will be placed in the agreement. Lead the participant (student) in this direction during the course of the meeting.
Task 3: Report
a) Agreement
You have agreed on the commission rate with the agent from China. Now, your task is to finalise the document (Agreement) with all the details that you have agreed on during the meeting. Finalise the document and submit the final version to your trainer. Remember to include in your final agreement all special conditions and performance benchmarks that you have agreed upon.
) Cover letter or an e-mail
Create a cover letter or an e-mail that will be sent out to the Agent with the agreement. You must complete this within 2 weeks after the meeting with the Chinese agent (after the role play).
The Trainer will complete an electronic Trainer Observation Checklist for both parts of the practical demonstration, and it will form part of the evidence gathered for this unit.
Please note: Once the practical assessment has concluded, you are to submit your written answer for all tasks to your trainer via the student portal as one document.
SITXMGT002 Establish and conduct business relationships
Trainer Observation Checklist
Did the student had a meeting with the Chinese agent and the financial representative?
Did the student establish a friendly and positive atmosphere during the meeting?
Did the student establish sound relationships with the Chinese agent?
Did the student use effective communication skills and techniques to build business relationships?
Did the student use negotiation techniques to discuss and agree on the details and conditions of the agreement?