Case study You are the purchasing manager for Angad Institutehotel 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 10 to 200 covers). ‘A public sports bar for up to 250 patrons. ‘An informal lounge bar with seating for 60 two-lane drive-through bottle shop. ‘Agaming room with 70 poker machines. ‘Asmall 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 cullery, crockery, glassware and service equipment. They're building a small bar in one comer of the garden area for use during busy periods or to service the area if is 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 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 ead 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 jn 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. Service equipment: glassware, cutlery, crockery, etc. Furniture: tables, chairs, service stations Large or small bar equipment for the external bar Décor: umbrellas, shade awnings, table centrepieces, decorative pots, water features or other decorative items * Outdoor heating systems ‘Document Name: Sa STTONE ‘Granted Date Tanga Version No: VO Last Modified Date: uly2020 "ANGAD Australian laste of Technology, CRICOS Code! O2970M, Provider Code 2073 Downloaded by Harpreet Kaur Matharu (harpreet matharu2:+ Linen * Garden supplies and/or ongoing maintenance Qt: What two areas have you chosen to use as the basis for your negotiations? ANS : Furniture: tables, chairs, provider stations . Large or small bar gear for the exterior bar © Satisfactory a Not Satisfactory 2: What information must you research before you make initial enquiries with potential suppliers? ANS Choosing the applicable company consists of a total lot higher than scanning a series of charge lists. Your preference will matter on a vast fluctuate of factors such as rate for money, quality, reliability and service. How you weigh up the value of these specific factors will be principally primarily based ‘on your business’ priorities and strategy. © Satisfactory a Not Satisfactory 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, ANS Supplier 1 Price is important, on the other hand it have to no longer be the totally reason you choose a supplier. Lower costs may also additionally replicate poorer tremendous gadgets and choices which, in the prolonged run, may additionally additionally no longer be the most fee excessive high-quality ‘option. Be certain that your provider can make a adequate margin at the charge quoted for the industrial employer to be commercially viable. ‘Supplier 2 The first-class of your elements desires to be consistent - your purchasers confederate terrible satisfactory with you, no longer your suppliers © Satisfactory a Not Satisfactory Q4: List and prioritise your objectives, negotiable and non-negotiable requirements and BATNA (best alternative to a negotiated agreement). ANS ‘Supplier 1 ‘Supplier 2 Objectives of | The suitable suppliers furish the most | Key factors for deciding on suppliers are negotiation suitable objects or choices at the most | outlined below. Once you have a checklist suitable prices and in the suitable time | of potential suppliers, ask them for written frames for your unique industrial quotations and, the region appropriate, a Document Name SAB STRMETOOE Treated ate “a as Version No: V2.0 Last Modified Date Sly 2020 "ANGAD Australian Institute of Technology, CRICOS Code! O2970M,Prowder Code 22073 This documents voll ee of crags on © studocu Tae STATE Downloaded by Harpreet Kaur Matharu(harpreet matharu22 {@gmai.com)organization needs. sample of the devices you need. You can then study their choices to see which suppliers are the super in form for your business. Negotiable requirements Wean also be a greater thought to use a cautiously chosen group of suppliers as insurance pian towards any troubles occurring, Look for professional suppliers who have been in company a prolonged time. Stability is important, in specific if you are getting into into a long-term contract with a provider or they are the entirely supplier of a unique object you favor for your business. Non-negotiable requirements ‘An object can be considered non- negotiable if one party concerned in a transaction is not willing to make any adjustments to a circumstance that has been set in place. ‘Securities and merchandise that are considered non-negotiable can not be transferred from one party to the subsequent and thus are commonly liquid, BATNA Make a list of actions you will take if the negotiation fails. ‘Choose the choice choice that sounds the first-class amongst the others. © Satisfactory a Not Satisfactory Q5: _ What concessions (if any) are you prepared to make during negotiations to achieve your objectives? ANS. Negotiations with Supplier 1 It's continuously truly really worth making positive your supplier has sufficiently sturdy cash go with the flow to provide what you want, when you favor it. A credit score rating take a seem to be at will aid reassure you that they may now not go out of business corporation when you favor them most Negotiations with Supplier 2 You choose your suppliers to nicely regarded how necessary your business employer is to them, so they make each and every effort to furnish the great company possible. And you are larger possibly to create this response by means of displaying your supplier how crucial they are to your business. © Satisfactory a Not Satisfactory Q6: Decide what roles team members will play during the negotiations. ANS Negotiations with Supplier 1 Document Name Sao STTONE ‘Granted Date Taga Version No: V0 Last Modified Date: uly 2020 "ANGAD Australian Institute of Technology, CRICOS Code! O2970M,Prowder Code 2073 Downloaded by Harpreet Kaur Matharu(harpreet matharu22Spend time on research Choosing the desirable suppliers is essential for your business. Don't strive to save time thru purchasing for from the first supplier you stumble on that may additionally moreover be suitable. Negotiations with Supplier 2 Credit test viable suppliers It's normally nicely well worth making effective your Issuer has sufficiently sturdy cash flow to furnish what you want, when you choose it. A credit rating take a seem at will additionally help reassure you that they may additionally no longer go out of industrial agency when you desire them most. © Satisfactory a Not Satisfactory Q7: List the intemal and extemal 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. ANS ‘Supplier 4 ‘Supplier2 Internal issues Capabilities: Goal: To find out internal strategic strengths, weaknesses, problems, constraints and uncertainties Resources: Profitability, sales, Product exquisite enterprise associations, ‘existing normal brand, relative price of this new product, employee capability, product portfolio analysis Market analysis: Overall size, projected Growth , profitability of the organistaion , entry barriers, structure of cost Environmental analysis: Technological, governmental, ‘economic, cultural, demographic, scenarios, information-required areas Extmal distribution system, trends, key Goal fs To plok out extemal success factors opportunities, threats, trends, and strategic uncertainties Challenges Planning before helps you be counted on your financing desires and put together appropriate funding. For many creating businesses, a key preference is whether or not or now not to deliver in backyard Good stock manipulate and fantastic provider administration have a tendency to develop to be an increasing number of necessary as organizations grow. ‘Document Name sae STATON? ‘rested Date ul 2019 Version No: V2.0 Last Modified Datez uly 2020 "ANGAD Australian Institute of Technology, CRICOS Code! O2970M, Provider Code 22073 Tinea nmaiaoerecromwen Gly StUAOCU Downloaded by Harpreet Kaur Matharu(harpreet matharu22 {@gmai.com)merchants to furnish the faimess wished to underpin in addition expansion. © Satisfactory a Not Satisfactory Q8: Who will you communicate the results of negotiations to? ANS Service or protection requirements (extemal contractors for renovation of massive equipment or computer systems) 5 Satisfactory «1 Not Satisfactory Q9: In Assessment 3 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, ANS ‘Agenda for Supplier 1 negotiations + It may additionally be a greater idea to use a cautiously chosen crew of suppliers as insurance against any troubles occurring, ‘Agenda for Supplier 2 negotiations * Look for knowledgeable suppliers who have been in industrial employer a prolonged time. Stability is important, specially if you are getting into into a fong-term contract with a provider or they are the totally company of a particular object you desire for your business. 12 Satisfactory «i Not Satisfactory Document Name ‘SAB STRMETOO, ‘Granted Date Tangs Version Nor V2.0 Last Modified Datez uly 2020 ‘ANGAD Australian laste of Techndlogy, CRICOS Code! 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