SITXMGT005

KNOWLEDGE QUESTIONS

Question 1

Outlined below are various factors that drive business relationships.

In your own words, describe how each outlined factor drives business relationships in your industry.

Each response must be in 30 words or more.

How it Drives Business

Factor
Relationships
a. Industry structure and interrelationships Alliances and
competitiveness are shaped
by industry structure. In a
cutthroat market,
partnerships spur expansion,
and in specialised industries,
working together with
influential figures fortifies
bonds.

b. Sources of supply Reliable suppliers fulfil orders

and guarantee quality. Trust
and consistent supply require
long-term relationships with
important suppliers.

c. Distribution networks Customer happiness depends

on effective distribution.
Timely delivery and
economical operations are
made possible by solid
connections with distributors.
d. Marketing networks Brand visibility is increased
by collaboration with
marketing partners.
Campaigns that are
successful are fueled by good
partnerships with web
platforms and advertising
firms.

e. Professional networks Credibility and the sharing of

expertise are promoted via
industry associations and
networking events. In
professional networks,
commercial ties are fueled by
mutual respect and trust.

Question 2

Answer the questions below about agreements in your industry (In hospitality industry)

a. Identify at least two types of formal agreements commonly formed in your industry.

i. Employment Contracts
ii. Supplier Agreements

b. In your own words, describe the key role of agreements in your industry(in hospitality
industry). Response must be in 30 words or more.
Terms and expectations are defined by agreements, which are essential in the hospitality sector.
Work contracts guarantee the duties and obligations of employees, and supplier agreements set
conditions for the reliable provision of products and services. Standards of operation, legal
observance, and quality control are upheld by these agreements.

c. Outline at least two key characteristics of agreements.

i. Specificity
ii. Flexibility

d.Outline at least two inclusions of agreements.

Termination clause
Quality standards

Question 3

Answer the questions below about contracts in your industry.

a. Identify at least two types of contracts commonly formed in your industry.

i. Employment contracts

ii. Service contracts

b. In your own words, describe the key role of contracts in your industry. Response must be in 30
words or more.

Contracts are legally binding agreements that specify the rules and regulations guiding different
kinds of business dealings and partnerships. They give everyone engaged a set of rights, obligations,
and expectations as well as a structure for resolving disputes and, if necessary, taking legal action.
Contracts are necessary in many businesses to ensure accountability, control risk, and provide
transparency in commercial dealings.

c. Outline at least two key features of contracts.

i. Offer and acceptance

ii. Considerations

d. Outline at least two inclusions of contracts.

i. Terms & conditions

ii. Termination clause

Question 4

Answer the questions below about legal requirements that impact negotiations and agreements in your
industry.

A. Negotiations
Complete the table below about legal requirements for negotiations.
a. Identify at least two legal requirements other than contract law, that must be considered
during negotiations.
Indicate the name of the legislation the requirement is from.

b. In your own words, explain how each identified legal requirement impacts negotiations in
your industry. Responses must be in 30 words or more.
Legal Requirement Impact on Negotiations
i. Competition and Consumer Act 2010 The Competition Act forbids deceptive
(CCA) advertising, unfair business practises, and anti-
competitive behaviour. To prevent lawsuits,
penalties, and harm to their reputation,
participants to discussions must make sure
they don't use unfair trade practises or
deceptive tactics.

ii. Privacy Act 1988 The Privacy Act controls how personal data is
gathered and managed. To prevent privacy
violations and possible fines, participants to
discussions must uphold individuals' right to
privacy and follow data protection guidelines,
particularly while talking about or sharing
personal information.
B. Agreements
Complete the table below about legal requirements for agreements.
a. Identify at least two legal requirements other than contract law, that must be considered
while forming agreements.
Indicate the name of the legislation the requirement is from.
b. In your own words, explain how each identified legal requirement impacts agreements in
your industry. Responses must be in 30 words or more.
Legal Requirement Impact on Agreements
i. Workplace Relations Act 1996 This legislation governs collective bargaining,
minimum employment conditions, and unjust
dismissal, among other aspects of employment
relationships. In order to avoid disagreements,
legal action, or financial penalties, agreements
in the employment context should abide by
these legal standards.

ii. Environmental Protection This law mandates that potential

and Biodiversity Conservation Act environmental effects and biodiversity
1999 protection be taken into account in
industries that have an influence on
the environment. Agreements' terms
and scope are impacted by the need
to comply with certain requirements.

Question 5

Outlined below are key components of contract law.

In your own words, describe each outlined component of contract law. Responses must be in 30 words
or more.

Key Component of Contract Law (provide description)

a. Terms and obligations of contract

This part of a contract specifies the parties' particular obligations and rights. It describes the duties that
each party must fulfil as well as the conditions under which they must do so.

b. Methods of contractual agreement

The formation of contracts is covered in this section. It explains how parties get to a mutually beneficial
agreement by using techniques like offer and acceptance, consideration, and the purpose to establish
legal relations.

c. Exclusion clauses

Contractual clauses known as "exclusion clauses" restrict or eliminate liability for specific kinds of losses
or breaches. They can affect the resolution of conflicts and specify the extent of accountability.

d. Dispute resolution clause

This section describes the processes that will be followed in the event that a disagreement arises while
the contract is being carried out. It may list alternatives to litigation, such as mediation, arbitration, or
negotiation.
e. Termination of contracts

The terms and circumstances under which a contract may be terminated—by mutual consent or as a
result of a breach—are outlined in termination provisions. This section outlines each party's
responsibilities and rights in the event that the contract is terminated.

Question 6

Outlined below are opportunities to maintain business relationships with customers and suppliers.

In your own words, describe each opprtunity outlined below. Responses must be in 30 words or more.

A. With Customers

Opportunity to Maintain Business Relationships

i. Program of regular contact

A systematic programme of continuous communication is necessary to maintain good customer

connections. Regular check-ins, updates, and tailored conversations are all part of this. Customers are
more likely to feel appreciated and involved in the company relationship when there is constant
communication, which gradually fosters trust and loyalty.

ii. Cooperative promotions

Partnerships are strengthened through cooperative marketing initiatives with clients. Together, these
endeavours can improve brand awareness and customer engagement for both parties, and they may
take the form of cooperative campaigns, promotions, or projects.
iii. Social media

Social media platforms are vital in today's digital world for client interaction. Companies can utilise it to
share relevant content, get feedback from customers, provide support, and create long-lasting, dynamic
relationships that go beyond transactional transactions.

B. With Suppliers

Opportunity to Maintain Business Relationships

i. Association membership

Businesses can access a beneficial supplier network by joining groups or organisations that are relevant
to their sector. Participation in these associations promotes the exchange of knowledge, teamwork, and
the establishment of enduring partnerships with suppliers. Both the business and its suppliers gain from
the circumstances.
ii. Industry functions

One of the best ways to network with suppliers is to take part in conferences, trade exhibitions, and
events relevant to the sector. These in-person meetings foster relationship-building, give valuable
insights into industry trends, and fortify the relationships that bind companies to their suppliers—all of
which are necessary for enduring and fruitful agreements.

Question 7

Answer the questions below about principles and techniques of negotiation.

A. Principles of Negotiation
Complete the table below about principles of negotiation.
a. Identify the five principles of negotiation.
b. In your own words, explain the importance of each principle. Responses
must be in 30 words or more.
Principle Importance
i. Preparation A good negotiation requires extensive
preparation. It guarantees that you are
aware of your objectives, top priorities,
and the other party's viewpoint,
providing you with a solid base from
which to build.

ii. Communication Establishing rapport, listening to the

other person, and expressing your
requirements all depend on effective
communication. Mutual understanding
and agreements can be reached with its
assistance.
iii. Compromise There is often give and take in
negotiations. Being willing to make
concessions promotes cooperation and
raises the possibility of coming up with
win-win solutions.

iv. Fairness Trust is fostered by fairness. When

parties feel that they are being treated
properly and that the process is
equitable, they are more likely to reach
an agreement.

v. Persistence Negotiations can be difficult and

necessitate patience and time. When
you are persistent, you can keep going
in the face of setbacks until a mutually
agreeable solution is found.

B. Negotiation Techniques
Complete the table below about techniques of negotiation.
a. Identify at least three negotiation techniques.
b. In your own words, describe the most appropriate situation to use each
technique. Responses must be in 30 words or more.
Technique Situation
i. Win-Win Negotiation This method works best when both
parties stand to gain from the outcome.
Use it to settle disagreements with long-
term partners or in corporate
collaborations where cooperation and
long-term connections are crucial.
 ii. Distributive Negotiation Distributive bargaining is suitable in
situations when resources are fixed and
there is competition for a greater share.
This is useful in situations such as wage
talks or the division of small assets in a
divorce decree.

iii. Collaborative Use cooperative bargaining to resolve

Negotiation complex problems or explore new
opportunities. This method works well
for creative projects, brainstorming
sessions, or problem solving where
multiple parties can work together to
come up with creative ideas.

Question 8

Complete the table below about the negotiation process.

a. Identify the five stages in the negotiation process.

b. In your own words, explain how each stage must be performed. Responses must be in 30 words or
more.

Stages of Negotiation How Each Stage is Performed

i. Preparation This phase entails learning more about the other
side, defining your own objectives, and
comprehending the current problems. Prior to
beginning the negotiating process, it needs to be
carried out by doing research, determining
priorities, and establishing specific goals.
ii. Discussion In the conversation phase, both sides outline
their goals and points of view while looking for
areas of agreement and possible solutions. This
is accomplished by exchanging offers and
counteroffers, listening intently, and
communicating effectively.

iii. Clarification Any unclear issues or worries are resolved at this

time, and both sides work to comprehend each
other's wants and expectations more fully. To do
this, make sure everyone is on the same page,
ask clarifying questions, and execute the
process.

iv. Bargaining Making compromises, figuring out trade-offs, and

attempting to come to a mutually agreeable
solution are all part of the bargaining process. To
arrive to a compromise, all sides must bargain,
give and take, and make offers and
counteroffers.

v. Closure The last step is to formalise the agreement, go

over the details, and make sure everyone is
happy. Closure is achieved by creating a formal
written contract, going over it thoroughly,
getting signatures, or formalising the agreement
in accordance with the terms that were agreed.