SITXMGT005

Application

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.

The unit applies to all industry sectors, and to individuals who take responsibility for making decisions about purchasing or marketing activities. They also oversee the maintenance of contracts or agreements. This could include senior operational personnel, sales and marketing personnel, managers or owner-operators of small businesses. Agreements may relate to corporate accounts, service contracts, agency agreements, venue contracts, rate negotiations, preferred product agreements, supply agreements and marketing agreements.

The skills in this unit must be applied in accordance with Commonwealth and State/Territory legislation, Australian/New Zealand standards and industry codes of practice.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

Assessment Conditions

Skills must be demonstrated in an operational business environment. This can be:

• an industry workplace; or
• a simulated industry environment set up for the purposes of assessment.

Assessment must ensure access to:

• materials that support the negotiation process:

• preparatory facts and statistics
• key performance indicators
• market information

• 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.

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