Assignment Detail:- SITXMGT002 Establish and conduct business relationships
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
Attachment:- Establish and conduct business relationships-rar
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