Reference no: EM132628840

SITXMGT002 Establish and conduct business relationships - RGIT Australia

Assessment task 3: Case Study 1

Required documents and equipment:
• Simulated Business Environment Hotel Complex and access to all the documents defined in Appendix 1 at the back of this tool (Assessor must ensure all the documents are available)
• The assessment must be written using an industry standard software package such as Microsoft Word, Excel, PowerPoint
• Current commercial policies, procedures and template documents use support the negotiation process:
- preparatory facts and statistics
- key performance indicators
- market information

Instructions for students:
Your assessor will observe you as you complete your case study. It is highly recommended that you attend all the sessions for this unit to ensure completion of each task. You must satisfactorily complete each assessment criteria listed to be marked satisfactory.

You are also required to:
» Complete all the tasks.
» Answer all the questions.

Planning the assessment
- Recommended date for assessment: [Trainer to provide]
- Access all resources mentioned in required resources either printed copies or access via the internet
- Time required for assessment:
- You must:
o Produce all evidence as required in the Case Study. o Complete the and submit in due timelines o Submit with a completed assessment cover sheet
- Your assessor will set a time to provide feedback

Evidence specifications:
At the end of the assessment, you will be required to submit the following evidence before the due date specified by the assessor:
- Students are required to submit following evidence at the end of tasks
- Answer of all case study questions and established and maintained business relationships on two of stake holders
- Signed cover sheet with dates Completed and signed cover sheet for assessment
- The assessment must be written using an industry standard software package such as Microsoft Word, Excel, PowerPoint, etc.
- Name the file using the assessment task number and then save your file.
- Ensure your submission identifies the unit code and title, the assessment task number and the name of the assessment at the top of the page. Alternatively, you may place this information in the document header.
- Add your name and student number to the header or footer on every page

Evidence submission:
- Documentation can be submitted electronically or paper-based.
- Your assessor will record the assessment outcome on the assessment cover sheet.

Assessment Tasks
This assessment requires you to prepare for negotiations based on the case-study scenario.
You are required to do the following.
Read the case study and answer the questions.

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 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.
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
Linen
Garden supplies and/or ongoing maintenance

Q1: What two areas have you chosen to use as the basis for your negotiations?

Q2: What information must you research before you make initial enquiries with potential suppliers?

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

Supplier 2

Q4: List and prioritise your objectives, negotiable and non-negotiable requirements and BATNA (best alternative to a negotiated agreement).

Q5: What concessions (if any) are you prepared to make during negotiations to achieve your objectives?
Negotiations with Supplier 1
Negotiations with Supplier 2

Q6:
Decide what roles team members will play during the negotiations.
Negotiations with Supplier 1
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.

Q8: Who will you communicate the results of negotiations to?
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

Assessment task 4: Role play

Required documents and equipment:
• Simulated Business Environment Hotel Complex and access to all the documents defined in Appendix 1 at the back of this tool (Assessor must ensure all the documents are available)
• Learner's agenda from Assessment task 3, Question 9 - Supplier 1. • Roleplay instructions from your assessor

Instructions for students:
Your assessor will observe you as you to participate in 2 role plays. It is highly recommended that you attend all the sessions for this unit to ensure completion of each role play. You must satisfactorily complete each assessment criteria listed to be marked satisfactory.
You are also required to:
» Complete all the tasks.
» Answer all the questions.

Planning the assessment
- Recommended date for assessment: [Trainer to provide]
- Access all resources mentioned in required resources either printed copies or access via the internet
- Time required for assessment:
- You must:Must be submitted at the given due date o Produce all evidence as required for the role play o Complete the and finish in due timelines o Submit with a completed assessment cover sheet
- Your assessor will set a time to provide feedback

Evidence specifications:
At the end of the assessment, you will be required to submit the following evidence before the due date specified by the assessor:
- Students are required to submit following evidence at the end of tasks
- Established and maintained business relationships on two of stake holders during both role plays
- Signed cover sheet with dates Completed and signed cover sheet for assessment
- The assessment must be written using an industry standard software package such as Microsoft Word, Excel, PowerPoint, etc.
- Name the file using the assessment task number and then save your file.
- Ensure your submission identifies the unit code and title, the assessment task number and the name of the assessment at the top of the page. Alternatively, you may place this information in the document header.
- Add your name and student number to the header or footer on every page

Evidence submission:
- Documentation can be submitted electronically or paper-based.
- Your assessor will record the assessment outcome on the assessment cover sheet.

Assessment Tasks
This assessment requires you to undertake a series of role-plays to demonstrate your ability to negotiate with suppliers from Assessment 3 You are required to do the following.
Role-plays are to be conducted in an actual or simulated workplace environment.
All participants must be briefed on their roles and the desired outcomes of the role-play prior to commencing the activity.
Role-plays can be recorded for further analysis and discussion with the consent of all participants.
Assessment 3 must be completed prior to undertaking this assessment task.
Complete the two role-plays.

Role-play 1
The following resources are required to complete the role-play.
- Learner's agenda from Assessment 3, 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.

Role-play 2
The following resources are required to complete the role-play.
- Learner's agenda from Assessment 3, Question 9 - Supplier 2.
- 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.

Assessment task 5: Case Study 2

Required documents and equipment:
• Simulated Business Environment Hotel Complex and access to all the documents defined in Appendix 1&2 at the back of this tool (Assessor must ensure all the documents are available)
• Assessment references and work from Research and negotiation in Assessment task 3 &4
• The assessment must be written using an industry standard software package such as Microsoft Word, Excel, PowerPoint
• Current commercial policies, procedures and template documents use support the negotiation process:
- preparatory facts and statistics
- key performance indicators
- market information

Instructions for students:
Your assessor will observe you as you complete your case study. It is highly recommended that you attend all the sessions for this unit to ensure completion of each task. You must satisfactorily complete each assessment criteria listed to be marked satisfactory.
You are also required to:
»Develop two written contracts »Answer all the questions.

Planning the assessment
- Recommended date for assessment: [Trainer to provide]
- Access all resources mentioned in required resources either printed copies or access via the internet
- Time required for assessment:
- You must:
o Produce all evidence as required in the Case Study. o Complete the and submit in due timelines o Submit with a completed assessment cover sheet
- Your assessor will set a time to provide feedback

Evidence specifications:
At the end of the assessment, you will be required to submit the following evidence before the due date specified by the assessor:
- Students are required to submit following evidence at the end of tasks
- Two (2) written contracts for suppliers based on negotiation with two of stake holders in assessment 4
- Signed cover sheet with dates Completed and signed cover sheet for assessment
- The assessment must be written using an industry standard software package such as Microsoft Word, Excel, PowerPoint, etc.
- Name the file using the assessment task number and then save your file.
- Ensure your submission identifies the unit code and title, the assessment task number and the name of the assessment at the top of the page. Alternatively, you may place this information in the document header.
- Add your name and student number to the header or footer on every page

Evidence submission:
- Documentation can be submitted electronically or paper-based.
- Your assessor will record the assessment outcome on the assessment cover sheet.

Assessment Tasks
This assessment requires you to develop contracts based on the negotiations you role-played in Assessment E.
You are required to do the following.
Refer to the research you conducted in Assessment 3 and the negotiations you conducted in Assessment 4
Document and submit a written contract for two suppliers/contractors.
Respond to all questions.

Task 1
- Refer to the research you conducted in Assessment 3and the negotiations you conducted in Assessment 4
- Prepare two written contracts - one for each supplier/contractor.
- A sample template Assessment Contract has been provided for you in Appendix 2 or 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 5 Contract 1 and Assessment 5 Contract 2.
- Submit the two completed contracts to your assessor.

Task 2

Respond to all questions.

Q1: According to organisational procedures provided in the case study in Assessment 3 who would you get to approve the contracts?

Q2: What information would you seek, review and act upon to maintain a sound business relationship with both suppliers.

Q3: Describe how you would comply with agreed terms in the contracts.

Q4: What KPIs would you take into account to check whether both parties are keeping up their ends of the bargain?

Q5: In what circumstances might you need to adjust an agreement?

Q6: If you had to adjust an agreement, who would you need to consult and share information with?

Q7: Describe how you plan to maintain regular contact with the suppliers.

Attachment:- Establish and conduct business relationships.rar