Establsh and Maintain A Business Relationship: Trainee Manual
Establsh and Maintain A Business Relationship: Trainee Manual
Establsh and Maintain A Business Relationship: Trainee Manual
Trainee Manual
Unit descriptor
Unit descriptor
D1.HCS.CL6.02
D1.HSM.CL5.05
D2.TCS.CL5.15
Trainee Manual
Unit descriptor
Unit descriptor
Establsh and maintain a business relationship
This unit deals with the skills and knowledge required to Establsh and maintain a
business relationship in a range of settings within the hotel and travel industries
workplace context.
Unit Code:
Nominal Hours:
60 hours
Assessment matrix
Showing mapping of Performance Criteria against Work Projects, Written
Questions and Oral Questions
The Assessment Matrix indicates three of the most common assessment activities your
Assessor may use to assess your understanding of the content of this manual and your
performance - Work Projects, Written Questions and Oral Questions. It also indicates
where you can find the subject content related to these assessment activities in the
Trainee Manual (i.e. under which element or performance criteria). As explained in the
Introduction, however, the assessors are free to choose which assessment activities are
most suitable to best capture evidence of competency as they deem appropriate for
individual students.
Glossary
Term Explanation
Fax Facsimile
HR Human Resources
IR Industrial relations
Term Explanation
PR Public relations
Element 1:
Establish and conduct business
relationships
1.1 Establish business relationships in a manner
that promotes goodwill and trust between the
enterprise, its customers and suppliers
Introduction
It is essential in the hospitality, tourism and travel
industries to be able to establish, manage and sustain
business relationships.
These business relationships may be with a wide range
of people, organisations and/or bodies.
This Section identifies the range of business
relationships a business may need, or elect, to develop
and maintain, and describes the environment in which
such a relationship will need to occur for it to be effective.
There is a logical flow to the relationship – for example, a travel agency having a
strategic relationship with an airline, cruise line or hotel group is a common sense
relationship based on mutual need or benefit
There is advantage to be gained from the relationship – a travel agency can get
priority seating and bookings with a company with which it has a strategic relationship
There can be mutual advertising and promotion at the one time – so the one business
promotes or recommends the partner whenever they are making a sale of their own
There is the potential to save money and generate extra sales.
Finance companies
These may be:
Banks – with whom the business deals on a day-to-day basis
to:
Process purchases through electronic (debit and or credit)
payments
Obtain change
Provide overdraft facilities.
Financial institutions – used by the business for loans, lines of
credit or leasing facilities to:
Purchase products and services
Refurbish the property
Extend and expand the business.
Other enterprises
These can be other business with whom a business has ‘arrangements’.
These arrangements can be:
Service contracts – where the other business provides service, repair and or
maintenance services based on the terms of a legally binding contract
Commission-based – where a business is entitled to receive a commission from
another business whenever it refers a sale to them, or makes a booking on their
behalf or with them
Association- based – where a business belongs to an association, this membership
can automatically create a relationship with other businesses who are also members
of this association.
Employees
There is always a business relationship with workers.
This relationship is (in part) imposed by law and embraces issues
such as:
Remuneration
Working conditions
Industrial relations issues
Insurance
Element 1: Establish and conduct business relationships
Where the other party responds positively to the initial contact, a relationship can be said
to exist.
A ‘positive’ response includes:
A sale
A request for (more) information
Showing of interest.
Trust
Trust refers to the ability of your customers (and other stakeholders – suppliers,
government authorities) to believe you and believe you will do what you will say you will
do, when you say you will do it.
Trust is a result of actions and not promises.
This means you must:
Be very careful about what you promise or say you will or
can do – never tell customers or potential customers what
they want to hear if you think/know the business cannot
deliver on that promise
Under-promise and over-deliver – if you tell a customer
they will receive an email within 24 hours send them one
within the hour; if you tell a customer they will save 5%,
make sure they receive a 6%+ savings
Read any contracts or agreements you sign – so you know the obligations the
business is under. For example, if your supplier requires payment within 30 days,
make sure they receive payment within this time.
Trust means your customers can rely on you to deliver what you have promised, when
you have promised it and at the price you said it would be provided at.
Building trust requires many things to occur but most of them are relatively simple to
achieve:
Follow-up on all things – as promised. For example:
Send quotations as and by the time promised
Send information as promised
Call in to see people as promised
Call back if you have promised to do so.
Honour promises made – even where this may cost
the business money. If you have guaranteed a price,
then that price must be the one charged
Make customers aware of any potentially negative aspects of a deal, arrangement,
contract or booking – for example:
If there is a cancellation (or re-booking, or change of booking) fee – tell customers
about it and make sure they understand how and when it applies, and how much it
is
Avoid over-booking situations – where the business takes reservations knowing
things are already fully-booked
Avoid using terms giving a false sense of confidence or which imply something
that does not, in fact, exist – for example, a ‘guaranteed’ booking really should be
guaranteed and not subject to some internal interpretation meaning it is not really
‘guaranteed’
If certain seats, rooms or tables provide a less than optimal experience, tell the
customers about the down-side, the negative implications of their booking.
Give customers what they are entitled to – even though:
Element 1: Establish and conduct business relationships
They may not ask for it – if a sale entitles the customer to a discount or a free item
of merchandise, then all customers must be provided with this as it applies to the
item/service they have purchased
They may not know it exists or applies to them and to their transaction.
Advise them when:
A new product or service they have previously shown an interest in becomes
available
A better deal on an item they have booked becomes, or is, available – such as a
package deal providing the same inclusions but at a cheaper price
A better alternative is available – for example, purchasing tickets ‘now’ will save
the customer having to queue in the hot sun when they arrive at the attraction or
amusement park
A possible price rise for something they are considering buying is imminent
They are close to becoming entitled to a bonus or discount – for example, a
significant price reduction may apply to their purchase if they spend a small
amount more on their purchase.
Maintain confidentialities – this means all the
information you have about a customer or business
must remain private and not disclosed to any other
business
Charge the prices quoted – charging a person or
business what you have said you will charge them is a
vital element of building trust with them
Advise suppliers when you have received more than what you ordered and or more
than what you paid for – as opposed to keeping the ‘extra’ items and benefiting from
their error.
Respect
Respect is the regard you have for customers and stakeholders.
It embodies – and can be demonstrated by displaying – a range of factors such as:
Consideration for them – and their situation
Politeness and civility – treating them ‘properly’ and as
they expect to be treated: using correct language;
using their name; opening doors for them
Getting to know their needs, wants and preferences –
as opposed to believing their needs, wants and
preferences are the same as everyone else’s
Treating them differently to other people – that is, providing them with deferential
treatment which shows the value you place on them as a person, business or
organisation
Acknowledging and showing appreciation for their time – as well as who they are
Recognising and appreciating the money they spend with you – and the opportunities
they provide for doing business with them
Element 1: Establish and conduct business relationships
Never taking them for granted, ignoring them or providing them with sub-standard
products or services
Identifying and showing due regard for individual
differences – such as religious differences, social
differences, special needs
Demonstrating ‘nothing is too much trouble’ – when
dealing with businesses and customers: spending extra
time with them; being willing to change previously made
arrangements
Understanding every customer is a unique individual –
with unique needs, pressures, limitations and expectations
Demonstrating a genuine desire to be of service – as distinct from providing limited
service, or delivering service lacking in real customer focus.
Determine who you want to make contact with – plan a strategic approach to making
new contacts, and ‘touching base’ with established contacts
Take pen and paper – to record and capture questions asked of you, promises made
and or arrangements entered into.
Association membership
There are many industry associations and bodies that represent
and serve various industry sectors.
Most are unique to different industry sectors (for example, travel
agents will have associations different to those focussing on hotels,
cooking, housekeeping) but some are generic across industry types
(such as Chambers of Commerce organisations, and local
employer organisations).
These associations provide a wealth of relevant industry knowledge
and information and an excellent forum in which to meet people
and organisations of like mind to yours.
Your business should join a relevant organisation if it is not already a member, and you
should make an effort to attend its meetings and functions to get a feel for what it is all
about. At these meetings:
Introduce yourself, explain your role and distribute business cards – obtain contact
details of others and promise to make contact
Offer to be of use to others and to participate in efforts the association is making –
these efforts often involve:
Industry research
Petitions to government
Applications for funding
Review and or generation of industry standards, codes of
practice and similar.
Volunteer for office bearer responsibilities – be prepared to
take on ‘official’ roles to assist the association.
Cooperative promotions
There will be many situations where your business and another organisation will join
together to run a promotion.
These cooperative promotions may involve:
Sharing of market research data relevant to the promotion/target markets being
considered
Sharing advertising and promotional costs
Developing and offering package deals combining products
and services from both businesses – for example, a
cooperative promotion involving a hotel and an airline would
feature air travel (from the airline) and accommodation, food,
beverages and entertainment (from the hotel)
Joint acceptance of reservations and payment.
Element 1: Establish and conduct business relationships
Work Projects
It is a requirement of this Unit you complete Work Projects as advised by your Trainer.
You must submit documentation, suitable evidence or other relevant proof of completion
of the project to your Trainer by the agreed date.
Summary
Establish and conduct business relationships
When establishing and conducting business relationships:
Ensure all potential and required businesses, bodies and individuals are identified
Know why the relationship is necessary
Meet and or make contact with a person as distinct from an organisation or
enterprise
Generate and maintain goodwill
Build trust and respect in the relationship and sustain these on an on-going basis
Search for and take advantage of opportunities to maintain regular contact
Establish and adhere to a regular contact schedule
Share information.
Element 2: Conduct negotiations
Element 2:
Conduct negotiations
2.1 Conduct negotiations in a business-like and
professional manner within the relevant
cultural context
Introduction
In any sort of business relationship there will almost always be a time when you are
required to conduct negotiations.
The negotiations must be conducted in a business-like and professional manner within
any applicable relevant cultural contexts.
This Section gives a context to the process of negotiation and presents advice for
effective and ethical negotiation.
Why negotiate?
Negotiation is sometimes undertaken because it is the
best way of resolving conflict or striking a deal, when the
parties involved believe that not reaching an agreement
means a loss for everyone.
In these circumstances the parties are usually willing to
make some concessions in order to achieve a win-win
situation.
That is, the true aim of a negotiation is for both parties to come out of the negotiations as
a winner – the idea is not for one party (the business you work for) to win and the other
party (supplier or customer) to lose.
Compromise is an essential element of true negotiation.
Not all negotiations, though, reach a successful conclusion.
Negotiation – defined
For our purposes, negotiation can best be defined as 'A process in which two or more
parties confront a problem and arrive at a solution which best meets the needs of all of
them'.
Implicit in this definition is communication takes place in which you try to get approval,
agreement or action from someone else, which may be different to what they first wanted.
Note while the definition uses the term ‘parties’, many negotiations are conducted not
between groups of people but between two individual people (who may or may not
represent groups of people).
For example, a negotiation may occur between you and a supplier, between you and a
guest, or between you and the head of a certain department or business owner.
Also it is important to realise most negotiations often result in a less than perfect solution
(or outcome) for one, or both, parties.
Inherent in negotiation is the concept of ‘give and take’ where both
parties are likely to settle for less than what they may have
originally hoped for, but nonetheless a result that still represents a
win-win situation.
In some cases, the final result may even be little better than what
they hoped for. There are definitely times in negotiations where you
will give more than normal in order to achieve some other perhaps
long-term goal or related aim: ‘trade-offs’ are part of the business
world.
Realistically, this can mean what you lose today, you will (or hope
to) pick up tomorrow.
Element 2: Conduct negotiations
Be prepared
All negotiations involve resolving ‘issues’ or problems.
To be successful in any negotiating situation you need:
Good preparation – you need to research the issue at hand and become familiar with
all the relevant facts, policies, guidelines, and standard operating practices.
It is also useful if you can find something out about the person with whom you are
negotiating – what have their tactics been in the past? What are their strengths and
weaknesses? What are their stated and their hidden
goals and agendas?
Recognition of your goals and limits – no-one can
successfully negotiate without a thorough knowledge
of where they stand, what it is they are trying to
achieve and what their limits for negotiation are
You must know the limits as to how far you can go in the
negotiation – how far to discount a price, how much
extra you are allowed to use or offer as an incentive, what are the realistic timeframes
for delivering what is being discussed, what terms of trade you can offer.
In addition, you must know what the establishment and or relevant department goals are:
on one occasion (for example) they may be to maximise occupancy irrespective of the
[room] rate (revenue) while on another occasion the aim may be to maximise revenue
regardless of the occupancy levels.
A calm, non-emotional approach – anyone who engages in negotiation must be calm and
collected.
Negotiations are no place for those who are quick-tempered, hot headed, easily provoked
or readily goaded.
While you must strive to remain professional during all negotiations, there is always the
possibility personalities will intervene and things can get very personal, very nasty and
very ugly in a short space of time.
The key is to stay focussed on the aims/goals and not on the person you are negotiating
with.
Good listening and communication skills – active
listening is required, which requires you to listen
‘between the lines’.
This includes reading the non-verbal language, asking
probing and open questions, and repeating/rephrasing
questions as needed.
It also involves knowing when to keep quiet – silence can
be a powerful communication tool and an effective
negotiation technique.
Knowledge of the relevant cultural context – when negotiating with a person from a
different culture, an appreciation of their cultural issues, preferences and habits will
demonstrate respect for them and facilitate a better understanding of the potential
issues.
Element 2: Conduct negotiations
It is important to realise different people have different perspectives and while you do not
have to agree with or practice their customs, an awareness of them will always be
appreciated and will always facilitate the negotiation process.
Knowledge of how to close a deal – a good negotiator will know when all that is going
to be said has been said, and will move to close the deal/finalise the arrangement.
There is little point in going over and over what has already been said – it can even be
counterproductive: the process needs to move on and it is often you who will have to
instigate this.
Obtain agreement about what has been discussed, re-cap the relevant points, and
suggest the next step (such as signing a deal or contract, paying a deposit, filling in a
required form, or accepting a handshake).
Poor negotiators allow discussion to drag on and on sometimes taking so much time they
allow the other party to over-think the proposed arrangement enabling them to retreat
from what was (an hour ago) a perfectly good and acceptable outcome for them.
Try to determine what information the other party might have – can you provide them
with something better than what they have already got, or better than what they
already know? Can you introduce something to make what they know irrelevant, out-
of-date or insignificant?
Find out about the needs and wants of the other party – are they desperate? Have
they tried other places and failed? Does the other party have a recognised point
where they are vulnerable?
Do you and the other party have the same set of
facts? It can be useful to begin by comparing
what you both believe to be the situation – this
can help establish common ground to serve as
the basis for a discussion and a solution.
It is very difficult to negotiate when you are on
different wavelengths. There needs to be a
meeting of minds.
What are the assumptions being made by the
other party? Try to identify what points or information (‘facts’) are being assumed by
the other party – doing this helps to clarify false assumptions and bring the negotiation
back to a realistic footing.
There are often many false assumptions made about the margins our industry shows on
various items (travel, tickets, tours, food, beverages and accommodation), and the
profits made by industry operators.
The other party may also be assuming you are not busy or are not well-booked and may
therefore try to push for cheaper rates: advising them you are nearly fully-booked can
avoid this problem and neutralise this bargaining point.
Remember, first-hand knowledge is best.
Never simply believe what the other party tells you – if you can, check it out and
determine the truth for yourself. The facts can often appear quite different when you
make some enquiries yourself.
Similarly, do not try to talk with authority about things you have not experienced yourself –
you will soon get found out and lose all credibility.
Negotiation proper
Prior to beginning any negotiation remind yourself you must be flexible and prepared to
change or adapt any preconceived ideas you may have, and you may have to make these
changes and adaptations very quickly during the course of the actual negotiation.
The following are sound general negotiating rules:
Try to witness more experienced colleagues negotiate – ask to
sit-in on other negotiations so you can gain experience about
what is said and done (the ‘dance’ that often characterises many
negotiations).
Pay attention to the statements made by both sides; the offers and
counter-offers; the objections and how they are responded to; the
body language.
Element 2: Conduct negotiations
Timing – be aware it is not only what you say and the way you say it, but it may also
be important when you say it: if you hold out a while before conceding, the other party
will feel they have achieved more than if you conceded straightaway.
An immediate concession may leave them believing they could have ‘got more’ from the
negotiation and they may feel dissatisfied even though they have obtained what they
asked for
Presentation – this covers your professional presentation/setting-out of your side of
the issue: arguments must be cogent and logical, and delivered in a measured
manner.
Be persuasive rather than forceful – ‘educate’ the other party rather than ‘lecture’ them
Be aware of any perceptions of power that exist – are there any indications either you
or they have the upper hand? How can this position be exploited or defended? Is it
possible to challenge their perceived power by questioning their assumptions, or can
you bolster your position by reference to new evidence, additional experience or other
practical indicators?
How can you alter the ‘product’ being offered or negotiated? What extra can you give
or include?
Different departments can have a different focus or objective
It is worth noting there is often tension between the Sales and Marketing department and
other departments in a business.
This is often because Sales and Marketing are sales-focussed (that is, focussed on
selling rooms, selling seats, selling tickets, functions, events, trips and tours) regardless
of the price for which they are sold.
By contrast, individual departments are focussed more on profit from their sales and are
often not prepared (or happy with) a Sales and Marketing department that sells loads of
rooms, seats, tables or tickets but does so at a price that does not return the required
profit margin.
In this regard important considerations are:
What target markets are being pursued during the time period
under consideration?
Remember target markets for a business can change over time, so
what is sought today may be dated in three months' time and
be irrelevant or of less importance.
What image is the business seeking to create or maintain?
This, too, is subject to change, so it is important any negotiated
solutions are in accord with these requirements.
Is the business seeking to create or sustain a market position of
‘low fares’, or ‘value-for-money dining’, or ‘budget accommodation’?
Or is the business targeting an elite market position based on highest quality, best service
and corresponding high prices or rates?
What specific departmental objectives are being pursued?
For example, is the department/revenue centre looking to become established in a new
target market?
There is little point negotiating a deal with a group of young, overseas backpackers when
the venue has a revised focus on domestic senior citizens.
What are others within the business doing?
It is critical the right hand knows what the left hand is doing – you do not want two people
from the one organisation contradicting each other in the public domain, pulling in
different directions or sending confusing messages when negotiating with other
parties.
Change is constant
An important point to remember is business focus is likely to change over time and all
negotiations must accommodate (or at least take into account to some extent) this fact.
There may be a strategy or plan to guide this change of direction, necessitated by
customer feedback or complaints, or caused through action taken by competitors – the
point being you really do function within a dynamic business environment and there is a
need for the business (and departments within it) to respond appropriately.
Element 2: Conduct negotiations
What was suitable for promotion and/or negotiation yesterday may not be appropriate
today or tomorrow.
Changes may have identified certain events, specials, or deals that will occur at some
predetermined point in time: thus, our negotiations today may need to take these planned
changes into account.
For example, most venues will prepare an annual plan that identifies special dates
(Mothers' Day, Valentine’s Day, St Patrick’s Day, Easter, certain sporting events,
Christmas) and describes the activities and deals planned for each occasion.
Travel and tourism businesses offer planned seasonal specials and deals as well as other
packages based on time-related factors.
Legal constraints
All businesses must operate within the law.
Legal obligations can be imposed by:
Legislation – the Acts and statutes of the country in
which the business is operating.
Where a business operates in different countries, it must
comply with laws of each of the countries in which it
works – it cannot simply comply with the
requirements of its ‘home’ country, or the country in
which its head office is based
Regulations – most legislation features ‘regulations’ established to provide guidance
and direction to enable the requirements of legislation to be met.
These regulations have the full force of ‘legislation’ and must also be complied with.
It is imperative all negotiations comply with the law of the land, and one of the most
important aspects is all negotiations must be conducted in a ‘fair’ manner free from
misleading statements, fraudulent misrepresentation and dishonest practices or
inferences.
Determining legal obligations
To identify the legal constraints your business is required to work under:
Speak to your supervisor, manager or the owner/operator of the business where you
work
Talk to more senior and experienced work colleagues
Make contact with authorities/agencies you know monitor and control the industry in
which you work – these are government bodies with legislated responsibility for a
range of issues such as (but not limited to):
Fair trade
Employment
Equal Opportunity
OHS
Liquor, food, gaming and tobacco
Visit relevant websites – see immediately above
Element 2: Conduct negotiations
Ethical constraints
Ethical constraints are business practices the organisation elects to comply with.
This means they have a choice about whether or not they comply with them.
Some ethical constraints are imposed by various agreements the business subscribes to,
but the point remains the business has elected to be part of that agreement/arrangement.
Sources of ethical constraints can be:
The standards the business publicly makes about
itself – such as the promises and content in their
Vision Statement, Mission Statement and/or Value
Statements.
The way they will do business – with customers, suppliers, the local community
Staff performance – when dealing with customers, highlighting (for example) need
for respect, proper communication, honest and accurate information
Things they will and will not do – to comply with the law and to meet
community/general expectations
Guarantees they make to their customers – regarding service delivery and action
to be taken to resolve issues in the event of complaints or dissatisfaction
Commitment to various environmental, cultural, local and industry-specific issues
of concern to the public – many businesses identify a
‘triple bottom line approach’ (3BL) to the conduct of
their business indicating they will pay attention to the
planet and the people they impact, as well as the profit
they seek to make
Social and moral imperatives – these may be covered by
legislation and/or may be ‘mandatory’ requirements under
certain Codes of Practice, or they can simply be decisions
the business takes to do ‘the right thing’ even where no
formal requirement to so exists.
In many cases, businesses elect to go beyond the basic legal, compliance requirements
in these areas to demonstrate their commitment to the cause.
Remember, however, there is also the possibility the other party may use these tactics on
you, too!
Tactic Counter-tactic
The other party is delaying or stalling Use this time yourself to cool off, think
again, plan new strategy, get additional
information.
Try for a compromise.
Seek clarification for the cause of the
delay
The other party has set limits (for example Explain why these limits are
they have established boundaries of finance, unacceptable.
personnel, time, price)
Respond with your own limits.
Engage in open discussion of limits.
The other party makes a personal attack on Always ignore it – never counter-attack.
you, a staff member, the business, service
If it continues, walk out
delivery
The other party overloads the discussion with Summarise relevant issues and try to get
information back to main topic.
Ignore the diversion and stick to the main
topic.
The other party moves from general to the Stick to the point
specific and vice versa
The other party acts as if they are stupid and Use questions to find out the other party’s
do not know anything position and how much they know.
Element 2: Conduct negotiations
what it is you want, and still make the other party look like they’ve won too (this is the
essence of a win-win outcome to negotiating)
Developing options – this involves thinking on your feet and creating possible
solutions as various aspects, limits, pressures, restraints, egos and other factors
emerge
Demonstrating appropriate cultural behaviour – you should always strive to be
accommodating, polite and culturally sensitive.
Avoid showing surprise or shock if the other party needs to accommodate a religious
and/or cultural need.
Research prior to the negotiation process should focus on
any possible cultural issues needing to be
accommodated during the negotiation and/or as part
of the deal/package being negotiated.
Confirming agreements – confirmation of agreement
should occur:
Immediately following reaching of agreement – to
check for definite approval of what has been negotiated. It is important to write
down the details of all such agreement
At the end of the negotiation session.
It also demonstrates an on-going interest in them proving your interest does not
evaporate immediately their function or event or trip has finished.
You are acknowledging and making obvious your concern for the client recognising
the future possible win-win scenarios.
It is a fact of life it is easier for an established client to deal with you than it is for them
to have to source an alternative supplier and ‘train them’ in what they need or want or
prefer and in the way they want to be treated.
The benefit of retaining contact with an established customer is they know you, you
know them and it is expected you will go that extra step to make their function or trip
(or whatever) a success.
Internet information
Take time to visit, view and listen to:
http://www.kantola.com/Margaret-Neale-PDPD-11-S.aspx - Clips 1,2 and 3
Importance of information
Information used in the negotiation is important – it must be:
Comprehensive
Accurate
Current.
This is vital because:
It is the basis of ‘the deal’ – and the other party is entitled to
Insufficient, poor, dated or wrong information is highly unprofessional – and severely
damages the reputation and image of the business
The other party uses it to make a decision – to buy or not to buy
The business can be held legally liable if they provide false or misleading information.
Examples of information and input
Information and input from colleagues should/could:
Provide history about previous dealings with the other party – indicating (for example):
The tactics they may use/have used in the past
Their needs, wants and preferences – likes and dislikes
Their parameters
Who was involved.
Supply factual information for use in the negotiation – such as:
Prices, dates, times, minimum numbers, schedules, availability
Limitations
Company policies, procedures and protocols.
Generate historical data, statistics and information – such as:
Previous purchases made by the other party
Conversion rate – queries converting to sales/bookings
Demonstrated previous needs, wants and preferences of
the other party.
Assist with trialling the negotiation process – by:
Suggesting tactics and techniques
Participating in a role play or practice run as the other
party – and deliberately asking awkward questions,
demanding ‘better’ deals and refusing to agree to
proposals
Providing feedback on your negotiating performance in negotiation trials and
practice sessions.
Element 2: Conduct negotiations
Always remain within your designated scope of authority to act on the situation – you
must never offer more inclusions, or cheaper prices, exceeding your individual
authority to do so.
Sometimes you just have to accept you cannot achieve a successful outcome for every
negotiation you enter into
If you do not believe the feedback is reasonable and accurate – work it through with
the sender: tell them you believe their feedback is inaccurate, or misguided (as
appropriate).
Be prepared to stand up for yourself, using facts and evidence as the basis for your
response
Learn from the experience – we all make mistakes. If you have made a mistake,
accept the mistake, acknowledge it and promise yourself not to repeat it. Remember
the person who hasn’t made a mistake hasn’t made anything – mistakes are how
most people learn and gain experience.
Providing feedback
When you are giving feedback as part of the negotiation process
the following tips on giving effective feedback should be adhered
to:
Be positive and constructive – even where you have to provide
negative feedback, make sure it is accompanied by something
positive.
Consider using the ‘positive-negative-positive’ sandwich approach,
sandwiching the negative comment between two positives:
“We can certainly provide travel on the dates and at the times you want but
unfortunately the price for those times is not negotiable: we can however provide
some discount vouchers, a free travel bag and our Priority Service with this
purchase.”
Make sure all feedback is fact-based – you have to be able, if challenged, to provide
evidence to support any feedback you give.
If you express the opinion a deal or package is the best value available, you have to be
able to prove this is the case
Respect the feelings of the person you are providing feedback on, or to.
Realise providing feedback has the potential to nearly always impact on what the other
person thinks, believes in or is committed to.
If statements are likely to impact on people’s feelings, consider using the ‘feel-felt-found’
approach:
“I can understand why you feel [or ‘think’] the way you do – others have felt [or
‘thought’] the same thing but they have found this option really is the best choice
providing excellent value-for-money and meeting the vast majority of their needs.”
Immediate feedback is more effective than delayed feedback.
Providing feedback on-the-spot is usually best as it allows the discussion or negotiation to
develop based on the reality at the time.
Even negative feedback is best provided immediately
Element 2: Conduct negotiations
Restrict your feedback to only those things that can be changed – it is best to provide
feedback on issues the other party has the ability to alter.
If they are adamant they cannot increase their purchase prices, then feedback needs to
address reducing inclusions, service levels, quality, or some other factor.
Feedback is good
The point to keep in mind about feedback and input from
colleagues – and the other party – is it should be viewed as
assistance.
You must see it as help and guidance in the overall process of
negotiating a sale/required result.
The adage 'none of us is as strong as all of us' should be
It is also worth remembering ‘Feedback is the breakfast of Champions’.
Via e-mail – larger premises use their internal e-mail as a standard communication
tool.
It is certainly quicker for you to type one message and send it to multiple recipients, than
to have to ring a dozen or so people and tell them.
In other cases, where the impact of the negotiation is not so critical, severe or important, it
can be acceptable for notification to take place the next day.
In all cases though, you should make it a goal to pass on all notification within 24 hours.
Written reports
In some circumstances (or in accordance with policy) management may require a written
report on the negotiations.
These reports should detail issues such as:
Those involved in the negotiation – by name, title and
position
The basic issues involved – an outline to set the scene or
context
Attempts at resolution/solution – what was offered and
said; who said what
Reasons the above attempts failed or were rejected – if
applicable: some negotiations do not feature any rejection but this is not usual. There
is usually some contestation of what is offered, but not always
All relevant figures, data and statistics – prices, quantities, dates, discount
percentages, commission percentages
The desired position or preferred outcome for the business including room that was
available to manoeuvre
Element 2: Conduct negotiations
Work Projects
It is a requirement of this Unit you complete Work Projects as advised by your Trainer.
You must submit documentation, suitable evidence or other relevant proof of completion
of the project to your Trainer by the agreed date.
2.1 To meet the requirements of this Work Project you are required to provide
photographic, video or other evidence demonstrating you have conducted a
negotiation session with a potential customer:
2.2 To meet the requirements of this Work Project you are required to prepare and
present a written report communicating the result of the negotiation that was the
focus of Work Project.
Summary
Conduct negotiations
When conducting negotiations:
Act in a business-like and professional manner
Realise the outcome of a successful negotiation is a win-win result
Do the necessary research and preparation prior to the negotiation process
Involve others in the planning and preparation
Know your limitations for negotiating and never exceed them
Prepare a plan, know the plan and stick to the plan to the greatest extent possible
Use appropriate communication skills
Align the negotiation with workplace demands and focus
Ensure all negotiations occur within legal and ethical constraints
Use established negotiation techniques but seek a positive outcome for all parties
Be flexible and be prepared to amend offers to reflect emerging need, changed
circumstances and varying requirements
Use feedback from others to plan and guide the process
Communicate the outcome/results of negotiation promptly and comprehensively to
designated persons according to internal requirements.
Element 2: Conduct negotiations
Element 3: Make formal business agreements
Element 3:
Make formal business agreements
3.1 Confirm agreements in writing, using formal
contracts where appropriate, and in
accordance with enterprise requirements
Introduction
After negotiations have been successfully concluded are commonly instances where it is
necessary to confirm the agreed arrangements, in writing.
Note, however, many arrangements remain purely verbal, and these verbal arrangements
serve quite acceptably as the sole basis for future action and can be legally binding.
Alternatively, you can draw up your own contract without using the services of a solicitor.
The following information will help you to understand more about contracts, but is not
intended to substitute for professional legal advice.
Contract – defined
A contract is an agreement enforceable at law.
An essential feature of the relationship formed by a contract being a promise by one party
to do (or refrain from doing) certain specified acts.
Simple contracts
The vast majority of all contracts are known as simple contracts: this is not to indicate
their composition or associated issues are simple in nature, but this term separates them
from other types of contracts (such as Contracts under seal, and Contracts under record).
Simple contracts may be:
Formed orally
In writing
Implied (by courts, at a later date) from the actions of the
parties.
Elements of a valid contract
There are six elements of a valid simple contract: some texts will combine one or more of
these elements thus depicting a lesser number of elements yet they still cover all the
necessary factors.
All elements must be present for a contract to be valid.
The six elements are:
Intention to create legal relations – both parties must intend to enter into legal
contractual relations: the relationship cannot just 'happen'
Agreement – there must be both an 'offer' and an 'acceptance'.
One party must make an offer and the offer must be accepted by the other party.
Note just having the price of an article on the shelf or on an article does not constitute
'offer' but is what is legally known as an 'invitation to treat'. The price is inviting the
buyer to make an offer.
Consideration – there must be a promise of 'something for
something'.
Note the terminology used here ('consideration') does not refer to
the mental activity of applying one's brain to reflect on,
contemplate or consider the contract.
Note also the law is not concerned with the amount (or value) of
the consideration, hence 'peppercorn rentals' (very cheap
prices for something which should or could be much more
expensive) are quite legal
Capacity – the parties must be legally able to contract, not prevented by their status
from entering into contractual arrangements.
Element 3: Make formal business agreements
People who are drunk, for example, are not of legal capacity
Certainty of terms – the contract must not be marred or confused by mistake,
misrepresentation or fraud
There should be no confusion about what obligations arise from entering into the contract
– there should be clarity of intent
Legality of objects – the purpose of the contract must not be illegal.
What if one of these elements is missing?
Should one or more of the above components be missing then a contract will be deemed
to be one of the following:
Void – the contract will have no legal effect at all
Voidable – where only one of the parties may avoid the contract, or alternatively may
compel the other party to perform their share
Unenforceable – here the contract is prima facie valid but no legal action can be
brought because of (perhaps) some lack of procedural requirement requiring the
contract to be in writing. In addition, there may be a statement to the effect that the
written document is/was never intended to be a binding document due to, for example,
lack of intention to create legal relations
Illegal – where purpose of the contract is contrary to public policy/statute.
There can be no real agreement because the parties are at cross purposes and so there
is no correspondence between offer and acceptance.
Unilateral Mistake
This is where only one of the parties is mistaken, and the other party is (or ought to be)
aware of this.
For example, where A believes he is contracting with B, whereas he
is in fact contracting with C, and C knows of this error but fails to
inform A of this.
The contract is then void.
Non est factum ('it is not my deed or option')
This is a mistake as to the nature of the transaction.
A signed document is not binding on the party signing it if she or he
was induced to believe she or he was signing a document that was ‘fundamentally
different’.
Misrepresentation
Misrepresentation falls into two classes: fraudulent misrepresentation and innocent
(though nonetheless negligent) misstatements.
The reason for the distinction is the difference in consequences.
Moreover, misrepresentations do not form part of the contract and so do not give rise to
claims for damages but may allow the aggrieved party to repudiate the contract.
Fraudulent misrepresentation
This is a false representation of fact made with the knowledge it is false, or is a statement
or representation made carelessly or indifferently without any real regard to what may be
the true facts.
For fraudulent misrepresentation to be actionable it must be all of the following:
1. A false
2. Fraudulent
3. Representation
4. Of fact
5. Made by one person to another
6. With the object of inducing the other to alter his
position to his prejudice
7. Which actually induces the other to alter his position to his prejudice.
All these factors must be present.
Damages can result from successful action.
In business, it is important to realise we (as professional caterers and hoteliers, as
professional travel agents and tour operators) 'hold ourselves out' as being professionals,
having special skills and talents in our trade in the provision of food, beverage and
accommodation, travel and tours.
Element 3: Make formal business agreements
Thus, where we contract to provide a service (such as a function or an itinerary), the client
can reasonably expect us to fulfil the promises we have made in terms of the standard of
service and quality: where we fail to live up to our promises we should be aware courts
are increasingly finding in favour of clients when actual events fail to measure up to the
promises made.
The message is clear – do not promise what you cannot deliver.
Innocent misrepresentation
This misrepresentation is innocent in that the representor believes his assertion to be true
and consequently has no intention of deception.
The representee cannot obtain damages for an innocent misrepresentation.
Silence
Two points are important in relation to this.
First, silence cannot be taken to indicate agreement.
Silence does not mean assent.
Second, silence can amount to misrepresentation where a
person makes a false statement believing it to be true, discovers
later that he was mistaken but keeps silent about the initial
innocent misrepresentation.
Duress
This consists of actual or threatened violence to the contracting party or their near family
or close relatives, by or on behalf of the other contracting party.
The contract is then voidable at the option of the threatened or injured party.
Undue influence
Is the improper use of a position of power or influence over another in order to induce the
other to act for his benefit?
This involves things such as offering an inducement or bribe (money, favours, and
promotion) and the special relationships that are deemed to exist between parent and
child, patient and doctor, solicitor and client, priest and devotee.
Mere representation, unless deliberately fraudulent, does not form part of the contract and
so does not give rise to the right to sue for breach of contract.
Where the statement is deemed to be a term however, a remedy exists in suing for
breach of contract.
Decision as to what is a ‘term’ and what is ‘mere representation’ centres around the intent
of the parties – or what the courts infer as their intent.
Courts will use the following as guidelines in establishing this:
The stage at which the crucial statement was made during
the course of the transaction – the greater the time
between the making of the statement and the eventual
contracting then the more likely the courts are to infer the
statement was merely inducement to the contract and not
intended as a term
The importance attached to the statement by the parties –
the more important it is, the more central it is to the agreement, the more likely it will
be treated as a term
The form of the statement – where an oral statement precedes and finally produces a
written contract in which the intent of the verbal statement is not set out, it is less likely
that the statement is a term
Knowledge of the person making the statement – where the statement was made by
someone possessing some special knowledge or skill as compared to the other party
then such statement is more likely to be seen as a term.
Difference between a ‘Warranty’ and a ‘Condition’
If it is established a statement is to be considered as a ‘term’ of the contract, then the next
problem is to consider or rate its significance.
The obligations created by terms of a contract are not all of
equal importance and so a further distinction must be drawn
between a ‘condition’ and a ‘warranty’.
This question relates to the intention of the parties. The reason
for making such a distinction at law is because the remedies
are different for each area.
If the term that is breached is deemed by the courts to be only
a ‘warranty’ then the injured party can only claim damages.
However if the term that is breached is seen to be a ‘condition’
then not only are damages recoverable but the injured party can treat the contract as
being repudiated by the party who is in breach.
A condition then is a term going to the very root of the contract such that failure to perform
it would render the performance of the rest of the contract something different in
substance from what the defendant intended.
When the courts assess a term to decide if it is a condition or warranty, they will take into
account the context in which the contract was made and all the surrounding
circumstances.
Exemption clauses (also known as ‘exclusion terms’)
Element 3: Make formal business agreements
Where a party seeks to limit their liability or to exclude liability, a clause to this effect may
be inserted in the contract.
These are known as 'exemption clauses' or as 'exclusion terms'.
Many are found in what is termed 'standard form' in many contracts.
You should be aware in the case of signed documents containing exclusion clauses, in
the absence of fraud or misrepresentation, the party signing will be bound by these
clauses whether they read the document or not.
Privity
The concept of privity applies to provide rules to govern the legal relationship which arises
between various persons involved in a contract.
They are:
A person cannot incur liabilities under a contract if she or he is not a party to the
contract – that is, she or he cannot sue or be sued on the contract
A person has no rights bestowed on them under a contract to which they were not a
party. Note, however, where a person has benefits conferred on them under a
contract between other parties, courts are increasingly finding for these persons.
In essence then, the parties to a contract cannot confer rights, or impose liabilities, upon
anyone but themselves.
Material alteration to written document – where one party without the consent or
knowledge of the other party changes the material content of the contract, this renders
the contract, by law, invalid or voided. The intent of this is to protect the innocent party
Death – means that contracts for personal services are at an end. Obligations already
accrued are able to be claimed from the estate but no future liabilities can be incurred.
Other contracts remain enforceable against the estate of the deceased
Insolvency (bankruptcy) – this results in the wiping off of all debts and the termination
of all contracts. It should be noted that some people voluntarily go bankrupt as a
means of escaping their debts and then start up again in business
Losing of the contract – while this does not affect the rights and obligations of the
party, the problem is often in proving what was contained in the contract. Where the
contents of the contract cannot be definitely decided upon the courts may terminate
the contract: for this reason it is good business practice to keep a copy of all
documents, especially contracts.
Work Projects
It is a requirement of this Unit you complete Work Projects as advised by your Trainer.
You must submit documentation, suitable evidence or other relevant proof of completion
of the project to your Trainer by the agreed date.
3.1 To meet the requirements of this Work Project you are required to prepare and
present a formal business agreement or contract appropriate to the business where
you work.
Summary
Make formal business agreements
When making formal business agreements:
Realise many industry contracts are not put in writing – a handshake or verbal
agreement is often the only agreement
Putting it ‘in writing’ is the preferred option as it reduces confusion and gives
certainty about intentions
Ensure the contract is valid from a legal perspective
Never make false statements or misrepresentations when negotiation a
contract/agreement
Avoid applying duress or undue influence when contracting
Strive to clarify ambiguities
Be certain about all terms and conditions, warranties and guarantees
Realise signing a document commits you to whatever is in the document/contract
you have signed
Understand the penalties for failing to discharge your obligations under the
agreement
Obtain approval and authorisation before entering into any agreement
Seek legal, financial and industrial advice when necessary.
Element 4: Foster and maintain business relationships
Element 4:
Foster and maintain business
relationships
4.1 Seek, review and act upon information needed
to maintain sound business relationships in a
pro-active manner
Introduction
Assuming you are happy with the agreements you have negotiated with others, you will
want to foster and maintain business relationships with those organisations.
It is likely, too, they will seek to maintain a relationship with you – providing they are
satisfied with the way you have discharged your part of the bargain.
Research
In addition it may be useful to undertake one or several of the following research
activities:
Talk to your network of industry contacts to identify what ‘the other party’ is up to –
other suppliers and certain guests/customers can provide valuable insight
Keep an eye on the news in the media for details about relationship partners are doing
Be observant about media advertising that is undertaken by your other party – what
does it tell you they are up to?
Element 4: Foster and maintain business relationships
Scope of responsibility
It is standard practice in businesses for all employees to have prescribed ‘scopes of
authority’.
This scope defines the action the staff member can take without the need to consult with
other people, or without the need to obtain specific approval for decisions or action.
Your individual scope of responsibility will:
Be explained to you when you join a business – as part of your
Induction and orientation
Be relatively small to begin with – there may even be no scope
of authority for the first few weeks and months
Grow as your experience grows – and enable you to do more
without reference to other people.
Important points to note regarding your scope of authority:
Fully understand what you are allowed to do and not allowed to do – clarify any
ambiguities, talk to management and ask for workplace examples of what is allowed
Never act outside your scope of authority – ever: if you believe there is need to act
outside your scope of authority:
Refer the matter to a more senior person for their consideration and action
Ask a more senior person for direction, guidance and advice.
Failure to adhere to existing scope of authority guidelines can result in all scope of
authority permissions being revoked – in some cases, exceeding scope of authority
can be grounds for dismissal.
Element 4: Foster and maintain business relationships
Customer expectations
Customers expect you and the business to honour agreements made.
Honouring an agreement from the customer’s perspective means:
Doing what you said you would do
Doing it when you said you would do it – or by the stated
point in time
Doing it for the promised price
Doing it to the expected, stated or agreed standard
Doing a little bit extra – that is, going beyond the strict
interpretation of the agreement.
This applies whether the arrangements were made verbally or are part of a contract.
Failing to meet these expectations:
Reduces levels of satisfaction – creating negative sentiment
Harms the trust and rapport that has been established – because the business is seen
to be lying and untrustworthy
Creates the impression your business is only interested in their part of the agreement
(the cash, the booking) – and not focussed on fulfilling agreed requirements
Can give rise to legal action – such as damages and or enforced undertakings
Can result in adverse publicity – where the matter is raised in the media or otherwise
made public
Destroys the potential for on-going relationships.
Business ethics
Business ethics are the standards, values and beliefs applied within a business context.
Suitable business ethics underpin the majority of business dealings within the community
and between people and organisations every day: without proper business ethics,
business would grind to a halt.
In practice, correct business ethics mean the business operates fairly and in accordance
with laws and community expectations and standards.
The business will not seek to take illegal or immoral advantage of another party, and
functions according to the standards and practices commonly accepted by others in
business.
For example, if the other party makes a mistake and supplies extra
goods or services that were not requested (and fails to charge for
them), the organisation is faced with a decision. Because you know
you have been oversupplied, and not charged, what do you do?
Keep the goods and say nothing?
Act as if you do not know what happened?
Go on as if nothing happened?
Element 4: Foster and maintain business relationships
Proper business ethics require you (of course) to notify the other party and either return
the goods or pay for them.
If you do not do this – and this may be a very tempting alternative at times – you must
realise at some time your deceitful and dishonest behaviour will be uncovered and your
personal and business reputation will suffer irreparable damage.
Those who expose your poor behaviour will tell others (the network within the industry is
strong, and word spreads very quickly) and you will find yourself
quickly shunned by others, perhaps dismissed, and perhaps even
facing legal charges.
The moral of the story is pretty simple – do the right thing: all the
time, every time, no matter how appealing the alternative may
seem.
You may ‘get away with it’ for a short time, but you have been warned things will always
catch up with you.
Also, be aware the conditions you bargain for during negotiations – in an open and honest
exchange where others know you are trying to drive a hard deal – are one thing and
taking advantages of mistakes are something else.
The end result may be the same, but how you arrived at it is the differentiating factor.
Making adjustments
In effect ‘making adjustments’ alters the original agreement.
This may necessitate alterations to be written into a new or revised contract, and signed
by both sides.
In most cases though, a brief discussion usually resolves the
situation and identifies remedial action to be taken: a handshake
arrangement frequently seals the modifications.
While this approach is easier and highly attractive, you should
always check with others before committing to such an
arrangement.
Very often, deals which required a legal approach in the first place,
will also require the services of a legal advisor when changes are
being made.
Your approach to the issue of changes must be the same as your approach to the initial
negotiation – you need to be flexible, polite, friendly, and aware of the facts, know the
revised outcome you want to achieve, aware of the constraints and parameters.
In lots of ways, factoring in adjustments throughout the period of the formal agreement is
very similar to entering fresh negotiations.
Never make changes to existing arrangements, agreements or formal contracts without
consulting the other party.
Keys when making adjustments are to:
Clarify revised arrangements – so there is genuine, mutual agreement and
understanding
Obtain approval for changes
Element 4: Foster and maintain business relationships
Determine if extra charges (or refunds) need to be made – to reflect the revised
agreement
Advise others (as necessary) about the revised arrangements – so they can plan and
deliver as required.
Work Projects
It is a requirement of this Unit you complete Work Projects as advised by your Trainer.
You must submit documentation, suitable evidence or other relevant proof of completion
of the project to your Trainer by the agreed date.
4.1 Interview one or more senior/experienced persons in your workplace and prepare
and submit a report reflecting their responses to the following questions:
How do they seek information to use as the basis for maintaining sound business
relationships?
What information types do they seek, and why?
How can they use or have they used this information to foster and maintain the
business relationship?
What tips, techniques and strategies can they recommend to optimise effective
and mutually beneficial business relationships? What things do they identify as
being things not to do or not to say when seeking to nurture business
relationships?
What do they do or what have they done to honour business agreements?
What is their personal scope of authority for honouring business agreements?
What advice can they suggest where action to honour a business agreement
falls outside your allocated scope of authority?
What examples can they provide of instances where there has been a need to
make adjustments to agreements with a business relationship context? Who and
what was involved? How was the issues addressed and resolved? What factors
were taken into account as part of this process?
How do they personally identify the business relationships they need to nurture
on an on-going basis? How do they nurture these relationships? What do they
say and do? When? Where?
Element 4: Foster and maintain business relationships
Summary
Foster and maintain business relationships
When fostering and maintaining business relationships:
Understand the need to be proactive – never wait for the other party to make contact or
nurture the relationship
Undertake research into identified important relationships to discover new/revised
information
Use information discovered as the basis for making contact with other parties and
communicating with them
Contact others outside a strictly work context
Keep all contacts professional, polite and respectful
Honour agreements made
Adhere to individual scope of authority when dealing with others – or involve others
where needed to make decisions/take necessary action as required
Know the contents of all contracts and agreements so you know what customers expect
and are entitled to
Seek to meet (or exceed) customer expectations
Apply standard business ethics in all dealings
Be prepared to make adjustments based on issues arising and changes to customer
circumstances
Make regular contact
Use clear and effective communication
Review personal performance and adjust action accordingly.
Presentation of written work
2. Style
Students should write in a style that is simple and concise. Short
sentences and paragraphs are easier to read and understand. It helps to
write a plan and at least one draft of the written work so that the final
product will be well organized. The points presented will then follow a
logical sequence and be relevant. Students should frequently refer to the
question asked, to keep ‘on track’. Teachers recognize and are critical of
work that does not answer the question, or is ‘padded’ with irrelevant
material. In summary, remember to:
Plan ahead
Be clear and concise
Answer the question
Proofread the final draft.
Format
All written work should be presented on A4 paper, single-sided with a left-hand margin. If
work is word-processed, one-and-a-half or double spacing should be used. Handwritten
work must be legible and should also be well spaced to allow for ease of reading. New
paragraphs should not be indented but should be separated by a space. Pages must be
numbered. If headings are also to be numbered, students should use a logical and
sequential system of numbering.
Presentation of written work
Cover Sheet
All written work should be submitted with a cover sheet stapled to the front that contains:
The student’s name and student number
The name of the class/unit
The due date of the work
The title of the work
The teacher’s name
A signed declaration that the work does not involve plagiarism.
Keeping a Copy
Students must keep a copy of the written work in case it is lost. This rarely happens but it
can be disastrous if a copy has not been kept.
Inclusive language
This means language that includes every section of the population. For instance, if a
student were to write ‘A nurse is responsible for the patients in her care at all times’ it
would be implying that all nurses are female and would be excluding male nurses.
Examples of appropriate language are shown on the right:
Mankind Humankind
Host/hostess Host
Recommended reading
Aspire Training & Consulting, 2008, Establish effective workplace relationships, Aspire
Training & Consulting, Melbourne.
British Standards Institution, 2010, Collaborative business relationships: a framework
specification, British Standards Institution, London.
Cox, A.W. [et al], 2004, Business relationships for competitive advantage: managing
alignment and misalignment in buyer and supplier transactions, Palgrave Macmillan, New
York.
Dietmeyer, D., 2004, Strategic negotiation: a breakthrough 4-step process for effective
business negotiation, Dearborn Trade Pub., Chicago, IL.
Dodd, C.H., 2012 (3rd ed’n), Managing business and professional communication,
Pearson/Allyn & Bacon, Boston.
Ford, D., 2011 (3rd ed’n), Managing business relationships, Wiley; Chichester, Hoboken,
N.J.
Greenhalgh, L., 2001, Managing strategic relationships: the key to business success,
Free Press, New York.
Hoskins-James, Y., 2005, Business agreements made easy, Lawpack, London.
Gibson, A. & Fraser, D., 2012 (6th ed’n), Business law, Pearson Australia, Frenchs Forest,
N.S.W.
Kay, F., 2009, How to build successful business relationships, Institute of Engineering and
Technology, Stevenage.
Lambert, D.M., Knemeyer, A.M. & Gardner, J.T., 2010, Building high performance
business relationships, Supply Chain Management Institute, Sarasota, Florida.
Lendrum, T., 2011, Building high performance business relationships: rescue, improve
and transform your most valuable assets, John Wiley, Milton, Queensland.
Lewicki, R.J. & Hiam, A, 2006, Mastering business negotiation: a working guide deal to
making deals and resolving conflict, Jossey-Bass, San Francisco.
Lewicki, R.J., Barry, B. & Saunders, D.M., 2010 (6th ed’n), Negotiation, McGraw-Hill Irwin,
New York, N.Y.
Lewicki, R.J., Saunders, D.M. & Minton, J.W., 2011 (5th ed’n), Essentials of negotiation,
McGraw-Hill Irwin, Boston.
Nickels, W.G., McHugh, J.M. & McHugh, S.M., 2013, (10th ed’n), Understanding business,
McGraw-Hill Irwin, New York, N.Y.
Phillips, A., 2008, Drafting joint venture and business agreements, Leo Cussen Institute,
Melbourne.
Steele, P., 2009, It’s an even better deal: a practical guide to business negotiation,
McGraw-Hill, London; New York.
Thill, J.V. & Boveé, 2008, (8th ed’n), Excellence in business communication, Prentice Hall,
Upper Saddle River, N.J.
Recommended reading
Timperley, J., 2010, Network your way to success: the secrets of successful business
relationships, Piatkus, London.
Watkins, M., 2002, Breakthrough business negotiation: a toolbox for managers, Jossey-
Bass, San Francisco.
Ward, D., 2007, Contract negotiation handbook: getting the most out of commercial deals,
John Wiley & Sons, Milton, Queensland.
Trainee evaluation sheet
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Trainee self-assessment checklist
Yes No*
Element 1: Establish and conduct business relationships
Establish business relationships in a manner that promotes goodwill and trust
1.1 between the enterprise, its customers and suppliers
Maximize benefits for all parties in the negotiation through use of established
2.3 negotiation techniques
Incorporate feedback and input from colleagues into the negotiation where
2.4 appropriate
Check and gain appropriate approvals for all aspects of formal agreements in
3.2 accordance with enterprise procedures
Identify the need for and seek specialist advice in the development of
3.3 contracts where appropriate
Statement by Trainee:
Trainee self-assessment checklist
Note:
For all boxes where a No* is ticked, please provide details of the extra steps or work you
need to do to become ready for assessment.