Assignment Detail:- 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-
Assessment task 2:
Part 2A: Build Business Relationships
Q1: You're a senior sales representative of a tour operation- You're about to visit China to meet a travel agent to promote your holiday package- You don't know anything about China- Explain how you would go about establishing an ongoing professional relationship-
Q2: Business relationships happen in a commercial context and vary depending on industry structure and interrelationships- List two external customers you would form relationships with in each category-Essential service suppliers
Q3: List six interpersonal and communication styles you can use to build trust and respect to nurture ongoing business relationships-
Q4: You need to plan activities and organise initiatives that support your professional relationships- Identify six ways you could maintain regular contact with suppliers and customers to communicate better and foster stronger business relationships-
Part 2B: Conduct Negotiations
Q5: List the four stages of negotiation-
Q6: You're the general manager of a five-star hotel in the inner city- You normally wear a suit and tie and conduct business quite formally- The chef and food and beverage manager have asked you to accompany them to a rural farm to negotiate with a produce supplier who can deliver fresher vegetables directly to the kitchen-
Do you need to change your approach in this situation???? If not, explain why not- If so, explain why and describe how you might change-
Q7: Before entering into negotiations with the produce supplier in question 6, what are five things that your team should be clear on???? Of these, which is the most important????
Q8: Your team has decided the roles each person will play in the negotiation with the supplier in question 6- Briefly describe what each person will do-Chef -good guy-
Food and beverage manager -bad guy-
You -leader and sweeper-
Q9: You're the manager of a travel agency about to enter into negotiations with a resort which could be of significant commercial value to you both- You believe a long-term relationship would be in your best interests-Which of these three negotiating styles is the best one to use???? Describe the communication skills that go along with it-Integrative approachDistributive approachMixed approach
Q10: When negotiating, your aim is usually to maximise the benefits for all parties involved and establish long-term relationships- List six negotiating techniques you can apply in order to obtain a successful result for your travel agency and the resort in question 9-
Q11: You're an operator of a small restaurant that you currently lease- You'd like to make minor renovations to the premises- You're about to negotiate with the real estate agent who's infamous for being difficult to deal with- State five ploys the agent might use against you-
Q12: The real estate agent in question 11 keeps you waiting for nearly an hour and then keeps taking phone calls during your negotiations- Describe how you would respond-
Q13: Identify three signs that show the other party is ready to close negotiations-
Q14: List three types of input you can get from colleagues prior to and during negotiations to incorporate into talks-
Q15: List six appropriate colleagues and stakeholders you might need to communicate results of negotiations to-
Q16: It's important to evaluate commercial data and cost structures prior to negotiation- List four common financial matters to consider before undertaking a negotiation-
Part 2C: Make formal business agreements
Q17: Why are contracts entered into????
Q18: What exactly is a contract and how do you enter into one????
Q19: What happens if one party doesn't meet their contractual obligations????
Q20: Explain when you might need to draw up a contract-
Q21: List five external customers you might enter into contracts with-
Q22: Identify three types of contracts you might enter into-
Q23: Look at the definitions of the key elements you should include in any contract you develop- Label each one-
Both parties understand they're creating legal relations, and are going to abide by the contract which is legally enforceable-
One party makes an offer and the other accepts it-
One party gives something -usually money- in exchange for something from the other party -usually a product or service--
Both parties are mentally capable of understanding a contract-
Both parties agree to the contract of their own free will-
All parts of the contract are legal-
Q24: Prior to developing or participating in the development of a formal commercial agreement, you should consult legislation- What two documents contain legal requirements that impact negotiations and agreements, including contracts and consumer protection????
Q25: You need to understand the key components of contract law at a basic level to develop a legally binding contract- Define the following terms- Terms and conditions
Dispute resolution clause
Q26: List and describe three ways contracts can be terminated-
Q27: Identify five people or groups who may need to approve all aspects of the formal agreement-
Q28: Which procedures should you follow when obtaining approval for formal agreements????
Q29: When developing a business contract, under what circumstances would you need to consult a specialist for advice????
Q30: You've just received a contract from your linen supplier but you're not sure it's legally binding- What would you do????
Part 2D: Foster and maintain business relationshipsQ31: What professional networks can you use to foster and maintain business relationships????
Q32: What type of information is useful to help you maintain sound business relationships????
Q33: How can you act ethically and responsibly to foster and maintain business relationships????
Q34: Define key performance indicators -KPIs--
Q35: List four contractual KPIs you may be expected to meet to honour agreements and comply with agreed terms-
Q36: Explain why you might adjust an agreement-
Q37: Describe how to make adjustments to agreements-
Q38: Who do you consult and share information with when making adjustments????
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-• Current commercial policies, procedures and template documents use support the negotiation process:- preparatory facts and statistics- key performance indicators- market information
Case studyYou 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 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-
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????
Q6: Decide what roles team members will play during the negotiations-
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 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-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-• Appendix 2 and Appendix 3 -Detailed role play script-• Learner's agenda from Assessment 2, Question 9 - Supplier 1-• Roleplay instructions from your assessor
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 1The 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 instructionsDuring 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 2The 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 2 and 3• Appendix 4 -Agreement Contract template-• Current commercial policies, procedures and template documents use support the negotiation process:- preparatory facts and statistics- key performance indicators- market information
Part 5A- Refer to the research you conducted in Assessment 2 and the negotiations you conducted in Assessment 3- Prepare two written contracts - one for each supplier/contractor- -Appendix 4-- 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-- Submit the two completed contracts to your assessor-
Part 5BRespond 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
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