Sitxmgt002 B

SITXMGT002
Establish and conduct business relationships
Assessment Booklet
STUDENT COPY
Student Name:
Student ID No:
SITXMGT002 Establish and conduct business relationships
Table of Contents
How Do I Use This Booklet? ........................................................................................................................... 3
Section 1: Introduction to the Unit of Competency ....................................................................................... 4
Assessment Resource Summary ........................................................................................................................ 4
Section 1: General Instructions to Student......................................................................................................... 5
General information on Assessment Methods ................................................................................................... 8
Learner Declaration ............................................................................................................................................ 9
Assessment 1 – Project .................................................................................................................................... 11
Scenario – Part A ............................................................................................................................................. 12
Scenario Part B ................................................................................................................................................ 13
Assessment 1- Assessor Checklist ................................................................................................................... 14
Assessor Use ONLY ........................................................................................................................................ 14
Assessment 2 – Role Play ................................................................................................................................ 17
Assessment 2 – Observation Checklist ............................................................................................................ 19
Assessor Use ONLY ........................................................................................................................................ 19
SITXMGT002 – Assessment Booklet –Student copy

Version 4.20 Copyright Pax Institute
CRICOS No. 03152D RTO No. 22207 Page 2 of 21
How Do I Use This Booklet?
This Assessment Booklet is

divided into two sections:
• Section 1 -The introduction –

which provides general
information about the unit(s)
of competency you, will be
assessed in.
• The Section 2 contains

specific detailed information
of the assessment
component activities. You
will need to complete each
assessment activity
completely and to the
required standard explained
to you by your trainer and in
this Assessment Booklet to
Your assessor will go through this Assessment Booklet and the achieve competence in this
assessment activities with you in detail, before the assessment assessment process
process begins.

Section 1: Introduction to the Unit of Competency
Assessment Resource Summary

Unit Details SITXMGT002 Establish and conduct business relationships
Assessment Type
This is a summative assessment, which requires as a demonstration by the
trainer of the practical component. Followed by each student being able to
practice prior to undertaking this assessment
Assessment 1
Project
(Report/Prepare a business to business contract)
Assessment 2
Observations (2 x roleplays - Demonstrate negotiation
Assessment Methods
techniques for business relationships)
Assessment 3
Written Assessment
9Please refer to separate document)
Unit Summary
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.
No occupational licensing, certification or specific legislative requirements apply to this unit at the
time of publication.
Unit Code Title Training Package Code and Title

SITXMGT002 Establish and conduct business SIT Tourism, Travel and
relationships Hospitality Training Package
*Prerequisite Unit Nil

Section 1: General Instructions to Student

Please read all the information before you proceed to complete the assessment tasks. If you do not
understand any part of these instructions, please ask your trainer/assessor.
Objective of Assessment
The primary objective of assessment is to support and encourage your learning. Assessment results give
the assessor an indication of how well you have learnt in class and or areas you may need extra support
with. The assessments are intended to be equitable, fair and flexible. All the information, skills and
knowledge being assessed by the assessments have been based on theory, practical and skills delivered by
your trainer/assessor during classes, and or during self-directed study and meet the requirements of the
unit of competency.
Assessment Feedback and Support throughout the Assessment Process
Students are encouraged to reflect on key observations and issues encountered during their studies to
encourage learning. Knowing what you understand or have mastered and identifying where you need to
improve the critical skills for successful learning.
Your assessor will give you feedback throughout the duration of the unit you are studying and after
assessment results. The feedback given to you will always be to support your achievements and to monitor
your progress throughout your studies.
Reasonable Adjustment or Special Needs
In the situation where you or your trainer/assessor feel that extra support needs to be given, you should
organise a time to meet with your trainer/assessor and discuss the options PAX Institute of Education can
offer. Your trainer’s/assessor’s aim is to ensure the successful completion of your course with the least
amount of difficulty.
Reasonable adjustment will be provided for all students who need it, this includes, but not limited to
students with a disability or learning difficulty; according to the nature of the disability or difficulty,
reasonable adjustments are made to ensure that the student is not presented with artificial barriers to
demonstrating achievement in the program of study. Reasonable adjustments may include the use of
adaptive technology, educational support, and alternative methods of assessment such as oral assessment.
Students whose level of Language, Literacy and Numeracy is low will be provided support as per
reasonable adjustment and classes for improving their Language, Literacy and Numeracy levels.
In assessing the competence of individuals, assessors must provide reasonable adjustments to ensure the
assessment principles of fairness and flexibility are addressed.

Achieving a Satisfactory Result and Reassessment
This qualification is based on Competency based training.
There are two outcomes for each assessment task level:
S (S) = Satisfactory
(NS) = Not Satisfactory (requires more training and experience or evidence to complete the assessment).
Students must achieve a Satisfactory result (S) for all components of the unit tasks to be deemed overall
Competent (C) in each unit.
▪ Should students not be successful in their attempt, the assessor will provide directive feedback to
guide to success in the second attempt – second submission. The two attempts are of no cost to the
students.
▪ If students still not achieve a Satisfactory result, they will be given one (1) re-assessment
opportunity which will incur a fee. Please refer to the fee schedule located on the website.
▪ Should students not reach competency after the re-assessment attempt, they will be re-enrolled in
the Unit of Competency
Appeal an Academic Decision
Where a student does not agree with the Assessors decision they should first discuss the issue with the
assessor and try to reach an understanding of the decision and a way forward to get the issue resolved.
If this informal approach does not lead to a satisfactory result for the student and he/she believes is unfair,
then they may ask for another trainer/assessor to objectively re-mark their submission.
If the result and feedback from the 2nd re-marking is consistent with the first marking – yet the student still
wishes to pursue the matter further - they may then lodge an appeal following the College’s Complaints and
Appeals process. Please refer to the PAX Institute of Education Complaints and Appeals Policy for further
details.
Cheating and Plagiarism
PAX Institute of Education will not tolerate cheating and plagiarism from any student. Evidence of
plagiarism and cheating is treated seriously. The Institute imposes severe penalties on students who
cheat and plagiarise. Consequences for students engaging in such practices may include but not limited
to: being deemed Not Yet Satisfactory in the assessment; or Not Yet Competent in the unit; or
exclusion from the course.
Your assessor will check your work through the antiplagiarism software Plagiarism Checker X

Submitting Assessment Tasks
Students must submit all assessment tasks together with the provided cover sheet. Work submitted
without a coversheet will not be accepted.
ALL tasks must be completed in Intelligible English. It is preferable that tasks are typed, where this is not
possible or where room is provided on a paper for short answers, students must write clearly.
Copy of students work

Students are required to hold a copy of their submitted assessment task prior to their submission to PAX
Institute of Education.
Cover sheets
Student must submit a completed coversheet with all assessment tasks, ensuring the student declaration
section is signed. Assessment cover sheets are available from the front office.
Due dates
Submissions must be made by the due date. Late submissions will be treated as reassessment unless the
student is granted pre-approval. For the procedure on how to obtain extensions, refer to the Due Date
Extensions section.
Referencing
All information taken from the internet or from another source must be properly cited using an in-text
citation or footnote citation and include the full source in the reference list.
Student Access to Records

Students have the right to access current and accurate records of their participation and results at any
time. Students can see their results by requesting the information from their trainer/assessor or can
request a copy of records by contacting student administration.
Due Date and Extensions
Students must submit all tasks on or before the due date set for each Unit of Competency. Should students
need extensions, they must consult the Academic Manager. Extension can only be obtained if the need is
genuine, or under compassionate circumstances.
Students are required to submit their request for extension in writing to the Academic Manager and attach
any supporting document.

General information on Assessment Methods

Assessment tasks may be structured with any combination, but not limited to, of:
a) Written Assessment / Quiz
b) Practical Observation / Demonstration / Role Play
c) Project/Report/presentation
d) Case Study / Assignment
e) Logbook
Each unit will clearly show

1. How many tasks there are
2. What the nature of the task is – (see above)
Students must complete all of tasks correctly and gain a satisfactory result in all tasks in order to be deemed
Competent in the unit.
Case Study/Reports/Projects/Research
• Ensure you are clear on the topic. If you are unsure please ask questions to your trainer/assessor.
• This is an open book test
• Ensure you know the Due Date and that you submit all your assessments on or before the Due
Date.
• In your responses please ensure you print clearly
• Ensure that the answers provided are your own and has not been copied or plagiarised from any
person or source.
• In order to achieve satisfactory , ALL questions MUST be answered CORRECTLY
• Use a pen. Assessments written in pencil or red pen will not be accepted.
• If your writing is illegible your trainer may request, you to type your written task. You will then
need to sign the student declaration of authenticity. Your trainer at their discretion may also quiz
you with verbal questions for deeming authenticity.
• Ask your assessor if you do not understand a question. Whist your assessor cannot tell you the
answer, he/she may be able to re-word the question for you.
• Do not talk to your classmates. If you are caught talking, you will be asked to leave and your
assessment will not be marked.
• Do not cheat. Anyone caught cheating will automatically be marked Not Satisfactory (NS) for this
assessment.

Practical Tasks/Roleplays:
Your trainer will:

• Set a date for each task.
• Advise students of the topic.
• Allow opportunities for the student to ask questions
• Discuss this tool with the student prior to the observation taking place to ensure that the
student is ready for the observation and in particular that they can prepare for their setting
as listed in the tool.
Practical units of competence offer the opportunity for the student to be graded on their competence at
each class by what they have prepared and how they have prepared it. For a student to be competent, the
student should have demonstrated each task in the Checklist.
Learner Declaration
I understand what is required to be completed in this assessment. I have been fully informed, and I am
confident to proceed.
Learner Name: Learner Signature: Date:

This page is left intentionally blank

Assessment 1 – Project
This assessment requires you to conduct research on
business contracts and negotiation techniques.
Your task is to establish and maintain two (2) business
relationships;
1. Customer
2. Supplier
Read the following scenarios relating to the potential

customer and supplier relationship. After reading this
scenario you will need to conduct research on
business contracts. After you are familiar with legal
requirements for business contracts you will prepare
your report. You will need to address the following questions and submit your responses in a professional
report attached with your prepared contracts (2) based on the given scenario.
Your report must be a professionally prepared document. Use the Font style ‘Times New Roman’ and size
12. A minimum of 500 words is expected though you should aim for 1000 words. Your contracts are not
included in this word count - of which forms an additional/separate document. The 2 scenarios however
can be included into the one report – just ensure that you stipulate what actions you took for which
scenario – customer vs supplier. All questions of the task must be addressed in detail.
The contracts you prepare will be used as part of your next assessment 2 Role play demonstration
You will utilise these contracts when you will be role playing your professional ‘negotiating skills.’
Download the SITXMGT002 Assessment 1-Project document provided to complete this assessment:

Scenario – Part A
You are the Head chef and Owner of ‘PAX café’.
PAX café offers catering as a service for the surrounding offices and other businesses.
A new accounting firm (ABC Accounting Inc) has opened near your café and the Personal assistant (PA)
of the accounting firm came into the cafe to inquire if you offer office catering.
As this is one of the services you offer. You will need to commence the process of negotiating a business
to business contract for supply of goods and services.
Using the ideas and information you have learnt throughout this unit, develop an ‘Action Plan ‘in the
form of a professional report. Your report is a full outline on the steps you took to:
1. Initiating, the agreement

2. Negotiating contracts
3. How you will maintain your new business relationship with ABC Accounting Inc.
4. Finally, a completed contract based on the above scenario and your research.
Your ‘ACTION PLAN’ /Report needs to include the following:

What goods and services will be provide/purchased and at what price?
Names of all parties involved, and dates commenced to and from.
Do further research on contract law. Ensure that your prepared contract complies with State and federal
business laws.
Your contract between Pax Café and ABC Accounting Inc needs to cover as a minimum the following key
components of contract law in particular:
1. Terms and obligations of contract

2. Methods of contractual agreement
3. Exclusion clauses
4. Dispute resolution clause
5. Termination of contracts

Consider these questions in your research and address these areas in your action plan report and final
contract.
✓ What are the terms of trade?

✓ Are you offering a business account – if so how many days credit will you allow? What are the
consequences of late or non-payment?
✓ You will need to consider any additional staff or resources required to fulfil your contract to the
customer. Have you considered these costs in your final negotiated price?
✓ When do you require final numbers for ordering? Do you require deposits/ if so how much?
✓ What are the options for special dietary requirements?
✓ What are your policies for order cancellations?
✓ You will also need to include a clause of terminating the contract for both parties.
Scenario Part B
The accounting firm have staff that have special dietary requirements. The accounting firm has
requested if you supply gluten free products.
Unfortunately, you do not have gluten free products and you have considered that it would be too risky
for you to make them in house for Health and safety reasons. As this is a special customer request and a
requirement to enter into a potential business contract you will need to find a solution that meets the
customer s needs and allows you to make a profit. Your local research resulted in you finding a
specialised company – ‘Gluten Muten’ that manufactures gluten free products which can also deliver to
your café.
As head chef of the PAX café it is role to arrange and establish a meeting with this new supplier
regarding your wholesale gluten free products.
Follow the similar process from part B except you create a separate contract document between ‘Pax
Café and your new supplier ‘Gluten Muten’

Assessment 1- Assessor Checklist

Assessor Use ONLY
This checklist is to be used when assessing the students in the associated task. This checklist is to be
completed for each student. Please refer to separate mapping document for specific details relating to
alignment of this task to the unit requirements.
In the project did the student S/NS Comments
 Yes
• Prepare and attached a written ‘Action Plan’/Report
 No
 Yes
• Report addresses all the necessary criteria
 No
 Yes
• Report is professionally presented in the required format
 No
 Yes
• research facts and figures against industry standards
 No
 Yes
• identify all areas to be addressed
 No
 Yes
• disclose appropriate facts and figures that are true and accurate
 No
 Yes
• Identify any middle ground
 No
 Yes
• Come to a mutually beneficial arrangement
 No
• Ensure all compromises do not have a negative impact on the  Yes

business expectations or outcomes  No
• Detail in the contract arrangements to maintain regular contact  Yes

with supplier  No
• Negotiate in a business-like and professional manner within the  Yes

relevant cultural context.  No

• Incorporate feedback and input from colleagues into the  Yes
negotiation where appropriate.  No
• Communicate the results of negotiations to supervisor or record  Yes

the outcome through completing the contract  No
• Confirm agreements in writing, using formal contracts where  Yes

appropriate.  No
• Identify any need for and seek specialist advice prior either in the  Yes
contract development, or prior to signing the contract  No
Was the prepared contract
• Professionally presented  Yes

• Accurate/ Free from mistakes  No
• Complies with common business legislation practices
• Matches the scenario provided
Name: _____________________-___
Student Declaration: I declare that the work
submitted is my own and has not been copied or Signature: ________________________
plagiarised from any person or source.
Date: ____/_____/_____

Assessor Use Only
Comments
Result
Satisfactory Not Satisfactory
(Please Circle)
Assessor: I declare that I have conducted a Assessor: _________________________________

fair, valid, reliable and flexible assessment with
Signature: ________________________
this student, and I have provided appropriate
feedback Date: ____/_____/_____

Assessment 2 – Role Play
This assessment involves two (2) separate role plays. These 2

role plays will be based on the scenario from Assessment 1.
You will be required to demonstrate your skills in the use of
‘high-level communication and relationship building’. These
skills relate to conducting formal negotiations and making
commercially significant business-to-business agreements
Using the information and documents you gathered from

Assessment 1 write yourself a ‘script’ that you can use for the
role play. Refer also to your printed contract when your role
play the situation with the customer and supplier. Within the role play your printed final contract will be
used as resource – gain agreement though your communication and negotiation techniques and
successfully acquire a signed contract at the end of the role play.
Depending on the number of student in the class you may like to pair up with another student and each
take turns at being the café owner/customer/supplier. Alternatively, you may role play with your
trainer/assessor.
During your role plays, your trainer assessor will be marking you on the following.
✓ Your presentation
✓ Communication style
✓ Preparation and Discussion Stages
✓ Persuasion and Proposal Stages
✓ Compromise Stage
✓ Finalisation of contract.

Other considerations:
✓ Ethics, Trust and Value overtones.

✓ Win / Win situations.
✓ Communication styles e.g. non – verbal (body language), verbal,
✓ Arrangement of discussion areas, e.g. space.
✓ Use of listening techniques.
✓ Use of questioning techniques.
WHEN DO I DO THIS TASK?

• You will do this task in the classroom as advised by assessor
• Write in the due date as advised by your assessor _____________________________
At the end of this assessment ask you will submit to your trainer the following:
• Written script of the role play

• Signed printed contract from the role play activity
Your trainer will also record the observation of the role play activity. (Observation Checklist)

Assessment 2 – Observation Checklist

Assessor Use ONLY
This checklist is to be used when assessing the students in the associated task. This checklist is to be
completed for each student. Please refer to separate mapping document for specific details relating to
alignment of this task to the unit requirements.
Please complete below

Student Name:
Student ID No:
Date:
Role Play / Scenario 1

details
Role Play / Scenario 2

details
Role Role
During the preparation and role-play, did the student Comments
Play 1 Play 2
 Yes  Yes
Communicate effectively with their contact
 No  No
Develop trust through use of honest and reliable  Yes  Yes

conversation and documentation  No  No
 Yes  Yes
Act professionally and ethically
 No  No
Negotiation techniques
• disclose appropriate facts and figures that are  Yes  Yes

true and accurate  No  No
• listen to the expectations / requirements of  Yes  Yes

the other party  No  No
 Yes  Yes
• Identify any middle ground
 No  No

 Yes  Yes
• Come to a mutually beneficial arrangement
 No  No
• Ensure all compromises do not have a negative
 Yes  Yes
impact on the business expectations or
 No  No
outcomes
• Use open body language to help build trust  Yes  Yes
and respect  No  No
• Use active listening techniques to show  Yes  Yes

respect to contact  No  No
• Maintain ethical conduct throughout the  Yes  Yes

negotiations  No  No
• Discus regular contact arrangements with  Yes  Yes

supplier  No  No
• Negotiate in a business-like and professional  Yes  Yes

manner within the relevant cultural context.  No  No
• Incorporate feedback and input from
 Yes  Yes
colleagues into the negotiation where
 No  No
appropriate.
• Communicate the results of negotiations to
 Yes  Yes
supervisor or record the outcome through
 No  No
completing the contract
• Confirm agreements in writing, using formal  Yes  Yes
contracts where appropriate.  No  No
• Identify any need for and seek specialist advice
 Yes  Yes
prior either in the contract development, or
 No  No
prior to signing the contract
Was the contract

• written professionally
• binding
• Professionally presented  Yes  Yes
• Accurate  No  No
• Free from mistakes
• Signed as part of the role play – Demonstrating
a successful negotiation.
Student Declaration: I declare that I have been Name: ___________________________________

assessed in this unit, and I have been advised of Signature: _____________________________
my result. I also am aware of my appeal rights. Date: ____/_____/_____

Assessor Use Only
Comments
Result
Satisfactory Not Satisfactory
(Please Circle)
Assessor: I declare that I have conducted a Assessor: _________________________________

fair, valid, reliable and flexible assessment with
Signature: ________________________
this student, and I have provided appropriate
feedback Date: ____/_____/_____


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SITXMGT002

Establish and conduct business relationships

SITXMGT002 – Assessment Booklet –Student copy

How Do I Use This Booklet?

This Assessment Booklet is

• Section 1 -The introduction –

• The Section 2 contains

SITXMGT002 – Assessment Booklet –Student copy

Section 1: Introduction to the Unit of Competency

Assessment Resource Summary

Unit Code Title Training Package Code and Title

*Prerequisite Unit Nil

SITXMGT002 – Assessment Booklet –Student copy

Section 1: General Instructions to Student

Assessment Feedback and Support throughout the Assessment Process

Reasonable Adjustment or Special Needs

SITXMGT002 – Assessment Booklet –Student copy

Achieving a Satisfactory Result and Reassessment

This qualification is based on Competency based training.

There are two outcomes for each assessment task level:

Appeal an Academic Decision

Cheating and Plagiarism

SITXMGT002 – Assessment Booklet –Student copy

Submitting Assessment Tasks

Copy of students work

Student Access to Records

Due Date and Extensions

SITXMGT002 – Assessment Booklet –Student copy

General information on Assessment Methods

Each unit will clearly show

SITXMGT002 – Assessment Booklet –Student copy

Your trainer will:

Learner Name: Learner Signature: Date:

SITXMGT002 – Assessment Booklet –Student copy

This page is left intentionally blank

SITXMGT002 – Assessment Booklet –Student copy

Read the following scenarios relating to the potential

SITXMGT002 – Assessment Booklet –Student copy

You are the Head chef and Owner of ‘PAX café’.

1. Initiating, the agreement

Your ‘ACTION PLAN’ /Report needs to include the following:

Names of all parties involved, and dates commenced to and from.

1. Terms and obligations of contract

SITXMGT002 – Assessment Booklet –Student copy

✓ What are the terms of trade?

SITXMGT002 – Assessment Booklet –Student copy

Assessment 1- Assessor Checklist

In the project did the student S/NS Comments

• Ensure all compromises do not have a negative impact on the  Yes

• Detail in the contract arrangements to maintain regular contact  Yes

• Negotiate in a business-like and professional manner within the  Yes

SITXMGT002 – Assessment Booklet –Student copy

• Communicate the results of negotiations to supervisor or record  Yes

• Confirm agreements in writing, using formal contracts where  Yes

Was the prepared contract

• Professionally presented  Yes

SITXMGT002 – Assessment Booklet –Student copy

Assessor Use Only

Assessor: I declare that I have conducted a Assessor: _________________________________

SITXMGT002 – Assessment Booklet –Student copy

Assessment 2 – Role Play

This assessment involves two (2) separate role plays. These 2

Using the information and documents you gathered from