Reference no: EM132842922

Establish and Conduct Business Relation

Part 1:

1. Indicate whether the following statements in regard to business relationships are true or false:

TH8E businesses are highly competitive and therefore should not enter into relationships with other businesses.

Customer demands are increasing and businesses have to be more proactive in achieving customer satisfaction.

Businesses are under profit margin pressure and sound relationships with suppliers and other partners assist in meeting business goals.

Reasons that business relationships are becoming more important include fragmentation of traditional markets and shortages of trained, professional staff.

2. List 3 benefits of shifting from a transaction focus to a relationship focus:

3. What is the importance of customer relationships? How does this affect businesses?

4. Provide 3 examples of internal relationships of a business:

5. Indicate whether the following statements in regard to relationships are true or false
Service staff should be sample or experience the products to enhance their product knowledge and help motivate them.
Using complementary relationships can bring benefits to both parties

Business financiers and banks are not part of the relationships that must be valued by a business.
Local community events do not achieve revenue and should not form part of the business relationship planning.
Business alliances should not be formed between competing businesses as it will affect each business' profitability in a negative way.

6. Which details would be typically negotiated with a supplier regarding the following terms? Price -
Quality -
Credit terms and conditions - Service/delivery schedule - Discount structure -

Part 2:

1. Indicate whether the following statements in regard to local relationships are true or false:
Businesses that are in tourist centres rely solely passing traffic and not local customers.
Local charities will always put pressure on businesses for donations and should always be refused as they will affect the budget.
Providing jobs for local staff promotes community loyalty and contributes to the local economy.
Local council should be engaged by THEE businesses as they provide important services to the business and can include the business in marketing initiatives for the region.
Relationships with local law enforcement and emergency services should be fostered as this can benefit the business in adverse situations.

2. List 3 examples of international tourism bodies:

3. Indicate whether the following statements in regard to relationships are true or false:

Aligning a property with travel agents and tour operators makes commercial sense.
Insurance agencies can assist businesses with compulsory and optional insurance needs.
Accountants do not require in-depth knowledge of the business as they are only concerned with the tax liabilities.
Lawyers can provide sound advice on all legal aspects concerning the business such as contracts, sales documents and licensing.
Due to the influence of technology, business relationships have become deeper and more involved than they were in the past when people had to meet regular ly face-to-face.
Overseas missions are a good tool for export oriented industries to build initial relationships.

4. List 5 examples of ways to maintain regular contact with customers and suppliers:

5. Indicate whether the following statements relating to online communication are true or false:
An online presence plays a key part in the public perception of a business and must be engaging to create appeal to existing and potential customers.
Lead generation is a prime advantage of a well constructed website.
Dynamic content will slow down bandwidth and must be avoided as it can cause the website to stall. Text-based information is more effective.
Websites are a global portal for the business.

6. Indicate whether the following statements in regard to business relationships are true or false:
Personal visits are time consuming and must be assessed based on Return On Investment.
Personal notes are no longer relevant as all communication is via email nowadays.
Special promotions are often geared around themes and can attract many extra customers.
Discounting is an excellent way to attract additional customers and to improve profitability.
Trade shows and industry award nights are excellent for exposing the business to the broader public and gaining external acclaim.
Business alliances must be strategic and a simple positive example would be the joining of businesses in special events promotions like "Eat Street" or similar themes.

7. List 3 reasons for offering famils:

Part 3:

1. Indicate whether the following statements in regard to negotiations are true or false:
A typical example of service contracts would be between a resort and a gardening company.
Room rates are set by the travel agent and are not negotiable.
Marketing agreements are often drawn up with overseas companies to provide channels in off-shore countries.
Preferred supplier contracts must be completed with the main focus on low pricing.
Room allocation agreements are commonly used with websites such as wotif. com to raise occupancy levels.

2. When representing your establishment in negotiations a positive outcome is desired. List 3 examples of correct behaviour which are useful to help achieve this:

3. Indicate whether the following statements in regard to effective negotiation skills are true or false:

Make sure to skim read all relevant information before the meeting. Keep any promises or agreements within the limits allocated to your job role.
Consider the needs of the other party: win-win situations are the best outcomes.
Details should be written down and signed by both parties to avoid confusion and disagreement down the track.
Cultural differences exist in negotiation.

4. List 4 examples for negotiation principles which need to be considered to achieve a positive outcome:

5. Indicate whether the following statements in regard to negotiation considerations are true or false: True False
Use closed questions to protect your negotiation position.
After listening to the other party you must make an immediate decision. Taking time to think is a sign of weakness.
Negotiations are a battle of wills and may have to be protracted to make sure that a positive result is achieved for your business.
Ethical behaviour must be applied to all negotiations otherwise the achieved results will not work in the future.
Final negotiations must be made with the person that has the correct authority to sign off on the agreed outcomes.
It is best to have a plan B, C and D prior to entering negotiations and to quickly move to the backup plans if plan A is not immediately accepted.

Part 4:
Indicate whether the following statements in regard to high level agreements are true or false:

Many hotels, resorts and travel agents are subject to management agreements to become part of a specific brand.
Managed properties or businesses may be subject to annual marketing fees. Advice and expert services form part of the service provision of most
management agreements.
Before signing a complex business agreement you should seek the advice of a legal expert.
Property leases can be risky as they lock the business into payments for the fixed term.
Any contract details which have been negotiated must be confirmed in writing to ensure a legal basis in case of a dispute.

2. Indicate whether the following statements in regard to formal business agreements are true or false:

Communicate results from negotiations to the relevant colleagues and supervisors. _
Skim read all contracts before signing off. File all agreements securely.
Agree on KPIs.
Resolve breaches or issues quickly.

3. Indicate whether the following statements in relation to contractual business agreements are true or false:

When setting KPIs in business agreements, '<Pis should be quantitative rather than qualitative?
Before any agreement is signed both parties have to gain the relevant authority to proceed.
Signing agreements ensures the continuance of the contract even if there is a change of personnel or circumstances.
Good faith provisions are to be avoided as agreements are often broken.
You should review, negotiate and update your contracts with customers or suppliers, as the end of the contract term approaches.
If you signed a contract that stipulates that you will be paying $5,000 per year for 5 years, but the business goes broke in its first year, you are not legally liable to pay the money.

4. Based on the following scenario, answer the following questions as either true or false.

You are entering a lease agreement for a property. The contract states the lease payments will be $5,000 per month (excluding GST) for the first year, then increase by 5% every year thereafter.
The total annual lease payments for the first year will be $66,000 including GST. The total annual lease payments for the second year will be $63,000 including GST.
The total annual lease payment for the third year will be $72,765 including GST. In year 3, the lease payments will be $5512.50 per month excluding GST.

5. What is a contract?

What is required for a contract to be valid?
Indicate whether the following statements are true or false:
True False

A contract is an agreement between two or more parties that sets out their rights to negotiate under law.
A contract can be a written or oral agreement.
Contracts are a significantly important tool to ensure arrangements are adhered to and should be in writing where possible, as this then provides a record.
For a contract to be valid there must be a financial interest.
For a contract to be valid something must be exchanged and the people who
signed the contract must be fully aware of what was involved in the contract.

6. List 7 essential details which should be included in an agreement for contractors:

7. What is the purpose of the following clauses commonly included in contracts?

8. Indicate whether the following statements relating to contracts are true or false:
A contract or an agreement can be terminated by either of the parties that have entered that contract or agreement.
In order to terminate a contract one party must pay the other party a release fee.
A party can terminate the contract or agreement if it thinks that the other party has breached the clause/s of the contract or agreement,
It is important to review, negotiate and update your contracts as the end of the contract term approaches, to make sure that it is still relevant and useful.
When negotiating changes you should try to get the best deal possible but not involve your manager or supervisor in case you end up embarrassed by an unsuccessful negotiation.

Attachment:- Establish and conduct business relation.rar