Professional Documents
Culture Documents
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1 Short answer
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2 Assessment C
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3 Assessment D case study
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4 Assessment E Role play
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5 Assessment F case study
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6
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DECLARATION
I certify that:
This assignment represents all my own work. I have not copied in part, or in whole, or
otherwise plagiarised the work of other students. I understand that this assignment
may undergo electronic detection for plagiarism, and a copy of the assignment may
be retained on the database and used to make comparisons with other assignments
in future. I have acknowledged all sources used.
No collusion has taken place with any other person unless this is a collaborative
assignment. Where the assignment is based on collaborative work, it has been
approved by the trainer of the unit, and I believe I have made an equitable
contribution to the group’s preparatory work. I have not submitted substantially the
same final version of any material as another student,
The use of any material in this assignment does not infringe the intellectual property /
copyright of a third party, or the privacy regulations of my workplace,
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
ASSESSOR
SIGNATURE:
Stephen Clarke
Stephen Clarke.
ASSESSOR NAME:
ASSESSOR COMMENTS
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
Case study
You are the purchasing manager for a hotel complex. The hotel has a number of outlets.
An upmarket bistro seating 200 and open Tuesday to Sunday (Friday and Saturday nights
average 300 covers, Sunday lunch and dinner usually average 150 to 200 covers).
A public sports bar for up to 250 patrons.
An informal lounge bar with seating for 60.
A two-lane drive-through bottle shop.
A gaming room with 70 poker machines.
A small coffee shop seating 20, attached to the gaming room.
All stock required for the outlets must be requisitioned through your department. You’re
responsible for dealing with suppliers, placing orders, receiving deliveries, storing and
distributing stock, contacting maintenance and repair specialists as required, and managing the
cleaning contractor.
You have the authority to negotiate contracts with suppliers to the value of $150,000 per annum
on your own. Above this amount, the assistant manager must negotiate with the general
manager to obtain final approval for all contracts.
The hotel’s owners have received approval to extend a section of the bistro into an outdoor
garden dining area which will seat an extra 100 guests. They’re demolishing a wall and
replacing it with large glass panels and doors. The outdoor area requires appropriate furniture,
umbrellas, awnings, and additional cutlery, crockery, glassware and service equipment.
They’re building a small bar in one corner of the garden area for use during busy periods or to
service the area if it’s booked for a private function. They’re covering one-third of the area
closest to the doorways leading from the internal bistro area with a permanent roof. For the
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cooler months, they’re considering either attaching outdoor gas heaters to the roof area or
purchasing freestanding heaters.
The renovations will take three months. An opening date has been set for the first Thursday in
December. Promotion of the new area commences in one month. Customers can make
bookings six weeks prior to opening. It has been forecasted that the new seating area will lead
to a 40 per cent increase in business in the bistro over the summer months.
You’ve been given the job of sourcing all furniture, large and small equipment, and food and
beverage service equipment required for the new dining area. You may decide to use current
suppliers or locate new sources. Price and the ability to supply the products and services within
required timeframes will be important considerations. Any contracts for equipment must include
delivery and installation deadlines.
The bistro in its current format has been open for seven years. The food and beverage manager
has indicated that the current service equipment (especially the crockery) is showing stains and
signs of long-term use. Management will consider investing in new crockery and possibly cutlery
for the whole bistro if the price is within budgeted range. Otherwise, amounts required to
increase current supplies will be purchased. However, it must match or be similar to the current
service equipment.
Choose two of the following areas, products or services to focus on for the purpose of your
negotiations.
While preparing for negotiation we must keep in mind about the size of the
company and the people we are dealing with.
While opening negotiation, we must be clear about the purpose of negotiation i.e
price, warranty and quality of the product. The furniture for bistro must be modern
and will have wide varieties and range. The bistro needs tables and chairs that
would fit the customers and of good quality suiting the environment.
We can use different marketing strategies like bargaining where we will negotiate
with customer in a competitive environment. If the bistro will be popular, they can
afford to use more overhead costs in furniture as well as customer will be happy
with their service. This will be a win/win situation to customers and suppliers too.
Under the agreed terms and condition on the basis of negotiation, a contract or an
agreement will be made. This contract will apply legal obligation in terms of
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breach.
2. Negotiating Service equipment: glassware, cutlery, crockery, etc.
The service equipment in the bistro are outdates and damaged. Hence, while renovating the
bistro, all crockeries must be replaced by a new one. The manager will study marker of
suppliers and another competitor is important. Thus, we can compare the price quoted by
different suppliers and make price negotiations. We must keep in mind that customers
want good quality service and once the customer prefers the service, the company will
benefit financially and can afford high quality service equipment in the kitchen and
service areas.
Deciding which type of crockery or service equipment to use on the budget is a difficult task.
Cheap equipment has high maintenance cost and does not last long. But if you buy
quality products on the budget, less servicing will be required and will be more durable.
Hence, the negotiation on the cost of equipment will be profitable.
On the bargain side, we can use expensive equipment and spend less in crockeries. If the
company uses steel crockeries and cutleries instead of plastic wares, the cost of
breakable glassware and crockeries will be reduced and will increase customer
satisfaction. The bistro has capacity of 200 seats which accumulates at least 1000 guests
per day. If reusable cutleries are crockeries are used, they will save more money.
The quality and service of the company must be written in their policy which must be abided
all the time by their staffs.
Q1: What two areas have you chosen to use as the basis for your negotiations?
- Garden suppliers and/ or going maintenance
- Furniture
Q2: What information must you research before you make initial enquiries with potential
suppliers?
- Learn about the individual or company you’re entering into negotiations with.
- Research the state of the market
- Look into current supply and demand
- Find out what competitors are doing
- Gather any necessary data: current prices, costs, budgets, interest
rates, customer numbers, customer satisfaction rates, etc.
Q3: Once you’ve contacted suppliers to negotiate with, research the people and the
organisation. Describe the results of your research and the cultural factors you’ll need to
consider during negotiations with the two different suppliers.
Supplier 1
The factors considered are quality services and honesty. The marketing campaigns
promote images of quality and luxury, so the suppliers were ready to negotiate. They
understood to supply quality products.
Supplier 2
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Q4: List and prioritise your objectives, negotiable and non-negotiable requirements and
BATNA (best alternative to a negotiated agreement).
Supplier 1 Supplier 2
Who else, from your company, will be
What decision-making power do you and
Objectives of involved in the negotiation process?
the others on your team have?
negotiation
Know you limits. The aim is usually to if you want to establish and maintain a
maximise the benefits for all parties long-term relationship with the other
Non-negotiable involved and establish long-term party, a mutually acceptable, win/win
requirements relationships. outcome is more likely to start the
relationship on a positive note.
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Q5: What concessions (if any) are you prepared to make during negotiations to achieve your
objectives?
Negotiations with Supplier 1
With suppier1 we can ask for discount in bulk purchases along with delivery of quality goods.
The discount will be certain percent of the item purchased.
Q6: Decide what roles team members will play during the negotiations.
Negotiations with Supplier 1
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Q7: List the internal and external issues that could affect this business negotiation as well as
any challenges you foresee occurring during the negotiation process. Describe how you
would deal with each one.
Supplier 1 Supplier 2
Budget constraint
Lack of confidence Conflict between staf
Inefficient teamwork Lack of flexibility
Inexperienced staf Incapable of making decision
Poor management
Internal
issues
Your perceived
Whether there’s
interdependence
harmony or
and the
conflict
importance of
between the
one party to the
personalities of
survival or
the people
success of the
involved.
other.
Whether you
The persuasive ability of each
have a pre-
person or party.
existing
External relationship or The power held by each person or
issues it’s the first time party.
you’ve dealt
Whether the goals and interests
with each other.
of the parties are similar or very
diferent.
Challenges
o Exploiting diferences of
o Making threats
opinions within the team
o Insulting the company’s
o Making emotional
performance
appeals
o Insulting the
o Claiming you’re treating
performance of team
them unfairly
members
o Claiming to be ofended
o Keeping you waiting
by your lack of trust in
o Allowing outside them
interruptions to the
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
meeting o Bluffing
o Placing you in o Making unsubstantiated
uncomfortable chairs statements
- General manager
- BOD
- Finance department
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Q9: In Assessment E you are required to role-play negotiations with the two suppliers you
have researched. Write a meeting agenda for the negotiations in the space provided.
Agenda for Supplier 1 negotiations
1. To receive quality products from the supplier.
2. Ask for discounts and rebates
3. Making quotes and price flexibility
Assessor checklist
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Role-play
ASSESSMENT E – ROLE-PLAY
Role-play 1
The following resources are required to complete the role-play.
Learner’s agenda from Assessment D, Question 9 – Supplier 1.
Roleplay instructions from your assessor.
Learner instructions
During the role-play, you are required to demonstrate the following skills and knowledge.
Establish relationships and open negotiations within organisational protocols using effective
communication skills and techniques.
Build trust and respect in business relationships through use of effective communication skills
and techniques.
Conduct negotiations in a professional manner to maximise benefits of both parties.
Incorporate feedback and input from colleagues into negotiations where appropriate.
Demonstrate the communication skills necessary to conduct and close negotiations that may
be of significant commercial value.
Incorporate knowledge of principles of negotiation.
Demonstrate understanding of stages in the negotiation process.
Conduct the role-play.
Manager: I want to purchase all poultry products from your company, if you
supply us good meats in affordable price.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Role-play
Supplier: no doubt, we only use fresh meats and supply to our customer but
we cant compromise with price. It will remain the same.
Manager: our restaurant requires minimum 10kg of meat daily and we will
purchase some frozen products. If we purchase them in bulk, you can give us
some discount.
Supplier: we can offer discount only in frozen products but not in freshly cut
meat.
Manager: if the quality of your freshly cut meat is preferred by our
customers, the sale will increase and we will be buying more meat from you
daily.
Supplier: if that’s the case, you have to purchase 15kg daily but we are
closed on weekends.
Manager: it is fine with us. I will make a contract between us clearing all the
terms for a year.
Role-play 2
The following resources are required to complete the role-play.
Learner’s agenda from Assessment D, Question 9 – Supplier 2.
Roleplay instructions from your assessor.
Manager: Our hotel needs different entertaining equipment for the guests.
But if the system got outdated, I will return the product and replace them
with new one.
Supplier: we don’t have system of accepting returns when outdated. We
accept return if the system is damaged.
Manager: I want to purchase the items as rent purpose.
Supplier: if that’s the case, you have to put bond of $10000.
Manager: that’s ok. How and When will you deliver the product when I order
them.
Supplier: We need 2 weeks delivery time and fright charge will be added to
your account.
Manager: it is fine with us. I will make an agreement between us clearing all
the terms for a year.
Learner instructions
During the role-play, you are required to demonstrate the following skills and knowledge.
Establish relationships and open negotiations within organisational protocols using effective
communication skills and techniques.
Build trust and respect in business relationships through use of effective communication skills
and techniques.
Conduct negotiations in a professional manner to maximise benefits of both parties.
Incorporate feedback and input from colleagues into negotiations where appropriate.
Demonstrate the communication skills necessary to conduct and close negotiations that may
be of significant commercial value.
Incorporate knowledge of principles of negotiation.
Demonstrate understanding of stages in the negotiation process.
Conduct the role-play.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Role-play
Assessor checklist
Conducted negotiations in a
professional manner to maximise
benefits of both parties.
Demonstrated understanding of
stages in the negotiation process.
Role-play 2
Established relationships and opened
negotiations within organisational
protocols using effective
communication skills and techniques.
Built trust and respect in business
relationships through use of effective
communication skills and techniques.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
Refer to the research you conducted in Assessment D and the negotiations you conducted in
Assessment E.
Document and submit a written contract for two suppliers/contractors.
Respond to all questions.
Task 1
Refer to the research you conducted in Assessment D and the negotiations you conducted in
Assessment E.
Prepare two written contracts – one for each supplier/contractor.
A sample template Assessment F_Contract has been provided for you in your course files
folder. You can use the template provided or create your own.
Ensure the contract includes the key elements, components and inclusions to ensure it is legally
binding.
Ensure you follow legal requirements that impact agreements in your sector, including
consumer protection where applicable.
Decide whether you need any specialist advice to help you develop the contract. If you do, seek
advice as required.
Save the contracts as Assessment F_Contract 1 and Assessment F_Contract 2.
Submit the two completed contracts to your assessor.
Contract 1
AGREEMENT
This agreement is made this 21st day of October 2019
BETWEEN
Pliago Café of 20 Granaia St, Tuggeranong, ACT 2610
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ABN 3242627228
Tom Harris
AND
ABN 267278898
Micheal Edwards
Intention
Both parties intend to create legal relations.
Both parties intend to abide by the contract.
Both parties understand and intend that the agreement be enforced by law.
Agreement
We said we can deliver daily before 6 am as long as you place your orders before 3 pm
the previous day. We’ll be charging you current market rates with a 10% discount for
orders over $1,000 per week and will invoice weekly with payment required within seven
days.
Offer
Advertisements which include price details, tender submissions, formal quotations, proposals to
lease, etc.
Terms
The new waste recycling unit installed in your business, so you call someone and get a quote
for $8,000.
Conditions
The information contained within addresses the elements and performance criteria, and
the knowledge and performance evidence of individual competencies it remains the
responsibility of the training organisation to ensure it meets training framework
requirements and to provide additional documentation where necessary.
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Warranties
The product has 12 months warranty.
Termination clause
If any party breach the clause, the contract will be terminated.
Default clauses
In case of breach, other party can request damages, end the contract or take
another specified course of action.
Indemnity clauses
Any outside claims which may arise against you.
Exclusion clauses
In case of breach, limit or cap liability will not be provided.
Director’s guarantee
If the business is unable to meet its obligation, the director will be personally liable.
Negotiable terms
In case of closing down of business of any party falling sick, the terms and condition can be
negotiated.
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Supplier acceptance
The above prices/specifications and conditions of work are hereby accepted by
Tom Harris, authorised representative/owner of Pliago Café.
This agreement shall become effective from 25/10/19
Tom Harris
SIGNATURE
25/10/19
DATE
Nwami Sulivian
WITNESS NAME
Nwami Sulivian
SIGNATURE
25/10/19
DATE
Agent acceptance
The above prices/specifications and conditions of work are hereby accepted by
Michael Edwards , authorised representative/owner of Albino Suppliers.
This agreement shall become effective from 25/10/19
Micheal Edwards
SIGNATURE
25/10/19
DATE
Lizzy Sulivian
WITNESS NAME
Lizzy Sulivian
SIGNATURE
25/10/19
DATE
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
Contract 2
AGREEMENT
This agreement is made this 1st day of September 2019
BETWEEN
Musk Enterprises of 20 Harris St, Tuggeranong, ACT 2610
ABN 3242627228
Shawn Dua
AND
ABN 267278898
Tina Phil
Intention
Both parties intend to create legal relations.
Both parties intend to abide by the contract.
Both parties understand and intend that the agreement be enforced by law.
Agreement
We said we can deliver daily before 6 am as long as you place your orders before 3 pm
the previous day. We’ll be charging you current market rates with a 10% discount for
orders over $1,000 per week and will invoice weekly with payment required within seven
days.
Offer
Advertisements which include price details, tender submissions, formal quotations, proposals to
lease, etc.
Terms
The new waste recycling unit installed in your business, so you call someone and get a quote
for $8,000.
Conditions
The information contained within addresses the elements and performance criteria, and
the knowledge and performance evidence of individual competencies it remains the
responsibility of the training organisation to ensure it meets training framework
requirements and to provide additional documentation where necessary.
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Warranties
The product has 12 months warranty.
Termination clause
If any party breach the clause, the contract will be terminated.
Default clauses
In case of breach, other party can request damages, end the contract or take
another specified course of action.
Indemnity clauses
Any outside claims which may arise against you.
Exclusion clauses
In case of breach, limit or cap liability will not be provided.
Director’s guarantee
If the business is unable to meet its obligation, the director will be personally liable.
Negotiable terms
In case of closing down of business of any party falling sick, the terms and condition can be
negotiated.
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Supplier acceptance
The above prices/specifications and conditions of work are hereby accepted by
Shawn Dua authorised representative/owner of Musk Enterprises
This agreement shall become effective from 2/10/19
Shawn Dua
SIGNATURE
2/10/19
DATE
Philip Jones
WITNESS NAME
Philip Jones
SIGNATURE
2/10/19
DATE
Agent acceptance
The above prices/specifications and conditions of work are hereby accepted by
Tina Phil, authorised representative/owner of NTC.
This agreement shall become effective from 2/10/19
Tina Phil
SIGNATURE
2/10/19
DATE
Bob Su
WITNESS NAME
Bob Su
SIGNATURE
210/19
DATE
Task 2
Respond to all questions.
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Q1: According to organisational procedures provided in the case study in Assessment D, who
would you get to approve the contracts?
The owner will approve the contracts.
Q2: What information would you seek, review and act upon to maintain a sound business
relationship with both suppliers.
To be successful in any business, you need to proactively seek, review and act upon
information needed to maintain sound professional relationships.
Q3: Describe how you would comply with agreed terms in the contracts.
To comply with terms and conditions, conduct research, gather information
and take account of agreed Key Performance Indicators (KPIs). These are
quantifiable measurements that reflect the critical success factors of an
organisation.
Q4: What KPIs would you take into account to check whether both parties are keeping up their
ends of the bargain?
Contractual KPIs
Q6: If you had to adjust an agreement, who would you need to consult and share information
with?
All parties concerned including customers, suppliers, colleagues and anyone else affected
by the change.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS – Case study
Q7: Describe how you plan to maintain regular contact with the suppliers.
Don’t expect communication with customers and suppliers to happen organically. Proactively
identify opportunities and seek out ways to maintain regular contact with them to foster your
business relationships. This means planning activities and organising initiatives that support
your professional relationships
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Assessor checklist
Anup Shakya
Learner’s name:
Could read and interpret potentially Understood and complied with contract
complex agreements, conditions and law and other legal requirements.
contracts.
Understood and complied with
contract law and other legal
requirements.
Was able to develop or participate in
the development of formal
commercial agreements.
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