Sitxmgt 002 Week 1 Practice Question-converted PDF

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Australian Ideal CollegeRegistered as Australian Ideal College Pty Ltd RTO No.: 91679 | CRICOS Provider Code: 03053G Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia Hobart Campus: GRD Floor, 116 Murray ...

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Australian Ideal College

Educating for Excellence

Registered as Australian Ideal College Pty Ltd RTO No.: 91679 | CRICOS Provider Code: 03053G Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart) E: [email protected] | W: www.aic.edu.au

SITXMGT002 Establish and Conduct Business Relationships Week 1 Practice Questions Q1. Indicate whether the following statements in regard to business relationships are true or false:

True

False 

1. TH&E businesses are highly competitive and therefore should not enter into relationships with other businesses. 2. Customer demands are increasing and businesses have to be more proactive in achieving customer satisfaction.

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

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

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Q2. List 5 traits which help build respect and trust in a business relationship: ANS: Traits which help build respect and trust in a business relationship is listed below: 1. Honesty and sincerity 2. Treating people with respect 3. Openness 4. Looking for win-win situations 5. Reliability

Q3. List 3 benefits of shifting from a transaction focus to a relationship focus: ANS: 1. Customer retention 2. Positive word-of-mouth advertising 3. Reduced staff turnover

Q4. What is the importance of customer relationships? How does this affect businesses? ANS: Customer relations have always been at the heart of successful businesses. Just like personal relationships, it’s important to cultivate and nurture customer relationships. When organizations develop strong relationships with their customers, it can lead to loyal clients, positive word of mouth and increased sales. Building customer relationships is important because they increase sales, reduce customer attrition, deliver invaluable marketing, boost employee morale and turn customers into your department.

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Q5. Indicate whether the following statements in regard to relationships are true or false:

True False 1. Service staff should be sample or experience the products to enhance their product knowledge and help motivate them

 Tru

2. Using complementary relationships can bring benefits to both parties

 Tru

3. Business financiers and banks are not part of the relationships that must be valued by a business

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4. Local community events do not achieve revenue and should not form part of the business relationship planning

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5. Complimentary service providers, private contractors, local councils, tourism bodies and Emergency Services are examples of groups you should form business relationships with

 Tru

Q6. Provide reasons that a hotel in a wine region would form relationships with the following local businesses:    

Tour companies – you could enter into an agreement to direct all your customers to a particular tour company and vice versa. Golf courses – vouchers for a discounted round of golf can be included in the accommodation package Limousine transfers – can be incorporated into the hotel service, but outsourced for a discounted fee. This not only gives the hotel an advantage, but guaranteed custom for the limousine company Massage therapists – rather than employing trained professionals, contracted therapists can be employed in an on-call agreement.

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Vineyards – using local wines in the restaurant adds interest for clients. Using cross-promotion, the cellar door can send customers to your establishment, whilst you would recommend them to your clients.

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Event management companies –become a preferred supplier of event venues and sites to local event management companies

Q7. Which details would be typically negotiated with a supplier regarding the following terms?

1. Price – Operational departments and businesses need to stay within their allocated budgets so it is important negotiate to get the lowest available 2. Quality – The businesses rely on selling this type of products and services to their customers. Therefore it is important that a business sources the best available, or has a supplier who is trusted to act on their behalf 3. Credit terms and conditions – This refers to the length of time the supplier will give the purchaser to pay for the purchased items. They are usually between 14 and 60 days

4. Service/delivery schedule – It is important to know when and how deliveries will arrive. This is especially crucial for remotely located businesses and has impacts on issues such as storage space requirements 5. Discount structure – These are often offered based on the amount or regularity of orders, or as part of a reward system

Australian Ideal College

Educating for Excellence

Registered as Australian Ideal College Pty Ltd RTO No.: 91679 | CRICOS Provider Code: 03053G Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart) E: [email protected] | W: www.aic.edu.au

. Q8. Indicate whether the following statements in regard to local relationships are true or false:

True False 1. Businesses that are in tourist centres rely solely passing traffic and not local customers

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2. Local charities will always put pressure on businesses for donations and should always be refused as they will affect the budget 3. Providing jobs for local staff promotes community loyalty and contributes to the local economy

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4. Local council should be engaged by TH&E businesses as they provide important services to the business and can include the business in marketing initiatives for the region

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5. Relationships with local law enforcement and emergency services should be fostered as this can benefit the business in adverse situations

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Q9. List 3 examples of international tourism bodies: ANS: 1. Pacific Asia Travel Association 2. World Tourism Organisation 3. World Travel and Tourism Council

Q10. Indicate whether the following statements in regard to relationships are true or false:

True False 1. Aligning a property with travel agents and tour operators makes commercial sense 2. Insurance agencies can assist businesses with compulsory and optional insurance needs

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3. Accountants do not require in-depth knowledge of the business as they are only concerned with the tax liabilities 4. Lawyers can provide sound advice on all legal aspects concerning the business such as contracts, sales documents and licensing

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5. 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 regularly face-to-face 6. Overseas missions are a good tool for export oriented industries to build initial relationships

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Australian Ideal College

Educating for Excellence

Registered as Australian Ideal College Pty Ltd RTO No.: 91679 | CRICOS Provider Code: 03053G Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart) E: [email protected] | W: www.aic.edu.au

Q11. List 5 examples of ways to maintain regular contact with customers and suppliers: ANS: 1. Loyalty 2. Communication 3. Discount and offers 4. Timely feedback 5. mindful of cultural differences

Q12. Indicate whether the following statements relating to online communication are true or false:

True False 1. 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

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2. Lead generation is a prime advantage of a well constructed website

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3. Dynamic content will slow down bandwidth and must be avoided as it can cause the website to stall. Text-based information is more effective

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4. Websites are a global portal for the business

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5. Zuji is an example of a travel business that is fully online

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6. By translating your website into the major international languages, you can remove language and communication barriers between cultures

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Q13. Why is it important to personally visit or correspond with customers and suppliers? ANS: Talking directly or personally visit to the vendor's customers allows you to validate its claims and ensure that you are getting what you expect if you choose that particular vendor. Certain information can be gained and more apparent only after you have personal visit experience with the vendor and its technology. When its not possible to visit personally online contact or video contact should be continued frequently for the up to date suppliers progress and their innovation and strategy for the customer satisfaction so that upcoming events can be assure.

Q14. Indicate whether the following statements in regard to business relationships are true or false:

True False 1. Personal visits are time consuming and must be assessed based on Return On Investment.

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2. Personal notes are no longer relevant as all communication is via email nowadays. 3. Special promotions are often geared around themes and can attract many extra customers.

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Australian Ideal College

Educating for Excellence

Registered as Australian Ideal College Pty Ltd RTO No.: 91679 | CRICOS Provider Code: 03053G Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart) E: [email protected] | W: www.aic.edu.au

4. Discounting is an excellent way to attract additional customers and to improve profitability.

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5. Trade shows and industry award nights are excellent for exposing the business to the broader public and gaining external acclaim.

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6. 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.

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Q15. List 3 reasons for offering famils: ANS: 1. Inspection tours 2. High profile guests 3. Contract negotiations Q16. Indicate whether the following statements relating to business relationships are true or false:

True False 1. Networking is crucial to creating and maintaining relationships

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2. Meeting staff from nearby competitors is not an example of networking 3. Networking possibilities include informal industry social clubs or the occasional coffee with an ex-colleague

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4. Referring business to neighbouring businesses should be avoided as it results in lost revenue 5. If you refer the customer to another nearby establishment, then when the situation is reversed you will benefit from the referral

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6. Apparently competing TH&E businesses may actually benefit from forming a marketing alliance and jointly issuing promotional material

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Q17. Indicate whether the following statements in regard to negotiations are true or false:

True False 1. A typical example of service contracts would be between a resort and a gardening company

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2. Room rates are set by the travel agent and are not negotiable 3. Marketing agreements are often drawn up with overseas companies to provide channels in off-shore countries

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4. Preferred supplier contracts must be completed with the main focus on low pricing 5. Room allocation agreements are commonly used with websites such as wotif.com to raise occupancy levels

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Q18. When representing your establishment in negotiations a positive outcome is desired. List 3 examples of correct behaviour which are useful to help achieve this: ANS: 1. Use a firm handshake 2. Find common ground 3. Speak succinctly and with good pronunciation

Q19. Indicate whether the following statements in regard to effective negotiation skills are true or false:

True False 

1. Make sure to skim read all relevant information before the meeting 2. Keep any promises or agreements within the limits allocated to your job role

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3. Consider the needs of the other party: win-win situations are the best outcomes

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4. Details should be written down and signed by both parties to avoid confusion and disagreement down the track 5. Cultural differences exist in negotiation

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Q20. List 4 examples for negotiation principles which need to be considered to achieve a positive outcome: ANS: 1. Study and understand counterpart 2. Consider input from colleagues 3. Accept the other party’s position 4. Your Offer and Closing the Deal

Q21. How should you incorporate colleague feedback and input into negotiations? Why is this important? ANS: In order to flourish the company one should accept and realize the feedback given by the colleague. When you give feedback on improvement areas, make sure you use positive phrasing. Instead of, “You didn’t do this very well,” try, “You could improve this by…” “Constructive, not destructive” is the golden rule when giving feedback. Instead of criticizing, ask questions and offer suggestions. This is a great way of making sure the takeaway message is understood and can be used effectively. For example, ask your colleague what course of action or behavior they think would have been more beneficial. This is important because feedback from colleagues can provide you with a different perspective on your organizations position. This can be useful when business decisions are required and contracts/agreements need to be made with your external business contacts.

Q22. Indicate whether the following statements in regard to negotiation considerations are true or false:

True 1. Open questions encourage discussion and can help the other party to clarify their position and give more information

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False

2. After listening to the other party you must make an immediate decision. Taking time to think is a sign of weakness 3. Negotiations are a battle of wills and may have to be protracted to make sure that a positive result is achieved for your business 4. Ethical behaviour must be applied to all negotiations otherwise the achieved results will not work in the future 5. Final negotiations must be made with the person that has the correct authority to sign off on the agreed outcomes 6. 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

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