Reference no: EM133171299

SITXMGT002 Establish and conduct business relationships

Assessment task 1: Knowledge Test

1. What is one point to remember when establishing and maintaining business relationships with people from different cultural backgrounds?
(a) You must treat every person the same.
(b) People from Asian cultures must be treated differently from those from Western cultures as they have completely different beliefs and traditions.
(c) In business, a person's cultural background is not important; getting the job done is all that matters.
(d) Avoid stereotyping those you are dealing with as everyone is an individual and should be treated as such.

2. What communication techniques can you use to help build trust and respect?
(a) Be professional, know your product, listen carefully and ask questions to show you are interested and want to understand.
(b) Speak loudly and emphatically if the other party does not understand you.
(c) Always use written forms of communication so that there is evidence of any problems encountered and decisions made.
(d) Use industry jargon and specialist terms when negotiating to give you an edge over your opponents.

3. You run a large restaurant and contact your linen supplier on a regular basis. Identify the next best initiative you could take to build the relationship further in this situation.
(a) Visit their workplace regularly.
(b) Send a newsletter once a month.
(c) Invite them to your restaurant for a familiarisation and a meal.
(d) Conduct a meeting once a month to discuss your business's needs.

4. How should you conduct negotiations?
(a) In a professional manner.
(b) With awareness of the cultural background of the other party and their needs.
(c) With knowledge of the organisational culture and how to adjust your style to suit their needs.
(d) All of these are good ways to conduct negotiations.

5. What should you be clear on before entering into negotiations and keep in mind during negotiations?
(a) The amount of profit you want to make from the deal.
(b) Your objectives, needs and limitations.
(c) The clothing you're going to wear and where exactly you'll sit at the negotiating table.
(d) The number of staff you need to employ if the negotiations are successful.

6. You're negotiating with a supplier to replace all the food and beverage service equipment in your bistro. What type of feedback or input from colleagues could help you in the negotiation process?
(a) Numbers of each item required to service current and forecasted customer bookings.
(b) Amount of current stock that's damaged or unusable.
(c) Details of patterns and designs that the food and beverage staff prefer.
(d) None of this feedback will help you in the negotiation process.

7. You have just completed negotiating the contract for the food and beverage service equipment. Who will you initially need to communicate the results of the negotiations to?
(a) Your customers.
(b) The food and beverage service staff.
(c) The food and beverage suppliers.
(d) The general manager, food and beverage manager and possibly the chef.

8. Which is the preferable way to confirm formal business agreements?
(a) In writing according to organisational requirements, using formal contracts where appropriate.
(b) By verbally agreeing and shaking the hand of the representative from the other party.
(c) In an email which requires the other party to click ‘I agree to the terms and conditions'.
(d) Write them down in formal minutes which outline who was present at the negotiations, what points were discussed and what actions need to be taken.

9. Who might you need approval from before the contract for the new food and beverage service equipment can be signed?
(a) The supplier.
(b) The service staff.
(c) The bottle shop manager.
(d) The accountant.

10. Who might provide specialist advice when developing a contract for the purchase of new service equipment?
(a) The business's lawyer.
(b) The supplier's representative you negotiated the agreement with.
(c) The manufacturer of the products you are purchasing.
(d) The general manager of your business.

11. What information should you proactively seek, review and act upon to maintain sound business relationships?
(a) Sales figures, accounts and future booking statistics.
(b) Commissions paid or received.
(c) Ordering and delivery systems.
(d) All of this information helps maintain sound business relationships.

12. How can you ensure you conduct business ethically?
(a) Stay in regular contact with your customers.
(b) Keep track of the other party's key performance indicators.
(c) Honour agreements within the scope of your responsibility and comply with agreed terms of contracts.
(d) All of these are ways to ensure you conduct business ethically.

13. What two types of KPIs should you take account of to foster and maintain business relationships?
(a) Internal KPIs and external KPIs.
(b) Internal KPIs and contractual KPIs.
(c) Delivery KPIs and account payment KPIs.
(d) You don't need to take account of KPIs to foster and maintain business relationships if you've done a good job of establishing the relationship in the first place.

14. One of your suppliers regularly delivers late, so isn't complying with the terms and conditions of your agreement. Their products are of high quality, so you'd like to continue doing business with them. What can you do to maintain the relationship while obtaining the products you need?
(a) Discuss the possible causes of the problems with the supplier, negotiate a solution and adjust the contract if necessary.
(b) Find another supplier of equal quality, negotiate a new contract with them and cancel the existing contract.
(c) Change your arrangements with the supplier, even though it means it will cause problems and you won't meet your targets.
(d) Communicate your unhappiness with the supplier and demand that they comply with the agreement or face legal action.

15. Why is it important to modify your style of communication to suit the person you're communicating with or the situation you're in?
(a) Communication is only effective if it can be understood by the other person, so some situations might require an interpreter.
(b) The situation dictates the style of communication as you may not have access to electronic or other methods of communication.

(c) Different people respond better to different styles of communication, and this can also vary depending on the formality of the situation.
(d) All of these are important reasons to modify your style of communication to suit various people and situations.

Attachment:- Establish and conduct business relationships.rar