Assessment Tasks and Instructions

Student Name HWAN SEONG PARK

Student Number AIC17108
Course and Code
Unit(s) of Competency and Code(s) SITXMGT002 Establish and conduct business relationships
Stream/Cluster
Trainer/Assessor ANGELO MANGALINDAN

Assessment for this Unit of Competency/Cluster Details

Assessment 1 Short Answers
Assessment 2 Project
Assessment 3 Observations
Assessment conducted in this instance: Assessment 1 2 3

Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required

Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:

Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature 박환성 Date 28/2/2019

2nd Assessor to complete

I agree the adjustments applied to this assessment are reasonable
Name

Signature Date
Assessment Guidelines
What will be assessed

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The purpose of this assessment is to assess your ability to complete tasks outlined in elements and
performance criteria of this unit in the context of the job role, and:

 establish and maintain business relationships with at least two of the following:
o cooperative partner with organisation
o contractor
o customer
o networks
o supplier
 conduct formal negotiations, or make and manage agreements and contracts in relation to the two
relationships established above, relevant to the specific business context
• demonstrate the use of high-level communication and relationship building skills when conducting
formal negotiations and making commercially significant business-to-business agreements in the above
business relationships.

Place/Location where assessment will be conducted

RTO to complete

Resource Requirements
Refer to the Assessment conditions attached to the Futura Group Mapping Document located in the teacher
support tools folder or the “Assessment Conditions” for this unit in the SIT 1.0 Training Package.

For this assessment, the following materials must be available to support the negotiation process as relevant:

• preparatory facts and statistics

• key performance indicators
• market information.
• contract templates

Instructions for assessment including WHS requirements

The assessment for this unit of competency consists of 3 Parts, Part A, Part B and Part C.
Part A requires you to review the current supply and contract provisions in place for 3 suppliers relevant to your
work area in TH&E and establish new business relationships by determining alternative supplier provisions.

Part B is based on the results you have identified in Part A and requires you to conduct negotiations with 2
different suppliers to determine conditions for new supply agreements.

Part C requires you to communicate the negotiated outcomes from your negotiations with your supervisor or
trainer, conduct final negotiations where required and draw up the final legal agreements for supplies with each
supplier.

You are required to answer all questions and tasks as outlined in each Part below.

Statement of Authenticity

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 I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained to
me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: 박환성 Date: 28 / 2 /2019

This assessment:
First Attempt 2nd Attempt 3nd Attempt Extension – Date: / /

Part A Satisfactory Not Yet Satisfactory

RESULT OF
Part B Satisfactory Not Yet Satisfactory
ASSESSMENT

Feedback to Student:

Assessor(s)
Date: / /
Signature(s):
박환성
Student Signature Date: 28 / 2 / 2019

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Assessment 2

PART A

Your Tasks

Select 3 suppliers of goods and services relevant to your area of work (e.g. Food and Beverage, Cookery,
Events, Tourism, Administration or similar) who currently supply your organisation (for example meat, fruit
and vegetables, stationery, cleaning services, laundry services, beverages, insurance etc.)

1. List the suppliers you have selected and describe the products or services they currently provide you

with Supplier 1: B & B Total Supply

Products or services provided: All cleaning agents, chemicals for kitchen, housekeeping department

Supplier 2: JBS Australia

Products or services provided: All meat product excluding chicken

Supplier 3: Australian liquor suppliers

Products or services provided: All alcohol products including champagnes, beer, wines.

2. List the key performance indicators/specifications that are required for the supply of each product or
service from each supplier.

B & B Total Supply

Price 4/5
Varieties Offered 5/5
Reliable 5/5
Lead Time 5/5
Inventory Cost 5/5
Buffer Stock 4/5
Market Value 5/5

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 JBS Australia
Quality 5/5
Price 5/5
Lead Time 4/5
Inventory Cost 5/5
Buffer Stock 4/5
Reliable 5/5

Australian liquor suppliers

Price 5/5
Brands Offered 5/5
Lead Time 5/5
Inventory Cost 5/5
Buffer Stock 4/5
Quality Value 5/5

3. Research alternative suppliers for each supplier you have listed in Question 1, and obtain an alternative
quote for each supplier you currently use, based on the key performance indicators/specifications you
have identified in Question 2.

4. Once you have received the 3 quotes, compare these with the existing supplier provisions and attach
a summary which outlines the advantages and disadvantages for:

• Quality
• Prices
• Payment conditions
• Service provisions
• Reliability
• Specific needs of your organisations (quantities, $ terms, purchasing power etc.)

5. Based on your comparison, write a recommendation for whether one or several new supplier(s) should be
considered to replace any of the existing ones. Which aspects will need to be negotiated specifically
where one or several new suppliers are considered, or re-negotiated where existing suppliers are
preferred.

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 B & B Total Supply Rapid Clean
Price 4/5 5/5
Varieties Offered 5/5 4/5
Reliable 5/5 5/5
Lead Time 5/5 3/5
Inventory Cost 5/5 4/5
Buffer Stock 4/5 4/5
Market Value 5/5 4/5
- Both suppliers reached our standard quality, service and customer satisfaction.
- B&B Total Supply is quoting for the best quality products for the hotel industry.
- B&B Total Supply is bidding for the cheapest rate in the market as compared to the competitors.
- The B & B total supply is ensuring just in time delivery as per the daily requirement of the hotel.
- The options for payment include credit card, cheque, and cash on delivery.

JBS Australia Australian meat company

Quality 5/5 4/5
Price 5/5 3/5
Lead Time 4/5 3/5
Inventory Cost 5/5 5/5
Buffer Stock 4/5 5/5
Reliable 5/5 4/5
- The JBS is serving at the highest quality standard meeting all the requirements
and guidelines of the hotel.
- The options for payment include credit card, cheque, and cash on delivery.
- Overall, JBS Australia is more suitable than Australian meat company.
- Need to talk with JBS Australia about Buffer stock.

Australian liquor suppliers Rivercity wholesale liquor

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 Price 5/5 4/5
Brands Offered 5/5 5/5
Lead Time 5/5 4/5
Inventory Cost 5/5 4/5
Buffer Stock 4/5 4/5
Quality Value 5/5 5/5
- Our policy is quality, service and customer satisfaction.
- Australian liquor supplier is standing for the best liquor wholesale supplier in Australia
as compared to the Rivercity wholesale liquor.
- The Australian liquor supplier is serving the variety of liquors for the never-ending
needs of the customers
- Price is also more reasonable than alternative supplier.
- The options for payment include credit card, cheque, and cash on delivery.

6. How are the relationships with existing suppliers managed in your organisation? What does this entail in
terms of communication, monitoring and provisions to overcome supply or service issues? What are
your recommendations based on existing provisions in place (or where these do not or only partially
exist)?

7. Where actual negotiation will take place as a result of the aspects you have identified in Question 5, you
will be observed conducting these negotiations for Part B of this assessment project.

Or

Where your organisation’s policies and procedures prevent you from negotiating or re-negotiating, you will
be observed conducting negotiations in a simulated environment in Part B of this assessment project, based
on the factors you have identified in Question 5.

The SOFITEL Sydney Darling Harbour(SSDH) supplier selection team is engaged in effective communications
with the market to get the best suppliers for the service of the hotel.

The SSDH has requisite guidelines for the suppliers in accordance with the required delivery and quality
standards.

Our purchasing team checks all the delivery standards of the product and look after the required quality
benchmark marked by the hotel service. Also our purchasing team and each department check and ensure all
the delivery standards before confirming the final delivery of the goods and services. The hotel seeks
improved performance of the suppliers on the basis of improved quality standards and reliability.

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The effective interactions of our operation management with the suppliers reduce the lead time and ensures
the smooth functioning of the hotel service in terms of delivery, re-orders, quality and so on. The hotel is
maintaining all the data records of complains, queries and schedules with all the suppliers for the enhanced
operation service of the hotel in the store team office. The hotel operations team engagement with the
suppliers tends to create effective communication with the suppliers leading to an effective flow of the
essentials and services.

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Part B – Conducting Negotiations

You will be observed conducting negations with existing or potential new suppliers as identified in Question 5
of Part A of this assessment. The suppliers may be actual, where organisational policies and procedures
permit, or simulated, with colleagues or students as agreed to with your trainer. You are required to record all
details discussed during the negotiation talks and use these as the basis to draw up a contract for each
supplier in Part C of this assessment.

Provide the following details for at least 2 different negotiations (Negotiation 1 and 2) you will undertake:

Negotiation 1

Real Negotiation Simulated Negotiation

Supplier details B & B Total Supply
Location 24 Pendlebury Rd, Cardiff NSW 2285
Date 22-02-2019
Nature of negotiation Price contract
Details • Lowest Cost Ownership.
• Reasonable price.
• Terms of payment.
• Discounts on hefty purchases.

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Observation Criteria

SITXMGT002 Establish and conduct business relationships

Criteria S NYS S NYS Comments
Negotiation 1
Student is well presented
Student is prepared with all supportive documentation on
hand
Uses good stance and posture
Professional introduction
Friendly, professional welcome/greeting
Initial conversation is general and friendly
Maintains initial, professional “level”
The business relationship is established
Establishes ground for the negotiation
Makes eye contact
Uses effective communication skills
Uses people’s names
Takes notes as required
Uses effective listening skills
Uses negotiation skills with confidence
Considers win-win situation during negotiations
Negotiates with strategy
Employs different techniques as appropriate:

Considers each aspect of the negotiation before agreeing to

individual aspects
Negotiates with a plan B
Negotiates honestly
Considers the representative’s ground/limits
Each aspect prepared for the negotiation is addressed
A basis for an agreement is reached
The provisions for authorisation are discussed
Further provisions for communication are established
Maintains a professional level according to role
Thanks the representative
Farewells representative in a professional manner

Feedback

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Negotiation 2

Real Negotiation Simulated Negotiation

Supplier details B & B Total Supply
Location 24 Pendlebury Rd, Cardiff NSW 2285
Date 22-02-2019
Nature of negotiation Warranty contract
Details • Longer warranty term.
• Minimized infant mortality.
• On-site returns.
• Transparent breach of contract.

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Observation Criteria

SITXMGT002 Establish and conduct business relationships

Criteria S NYS S NYS Comments
Negotiation 2
Student is well presented
Student is prepared with all supportive documentation on
hand
Uses good stance and posture
Professional introduction
Friendly, professional welcome/greeting
Initial conversation is general and friendly
Maintains initial, professional “level”
The business relationship is established
Establishes ground for the negotiation
Makes eye contact
Uses effective communication skills
Uses people’s names
Takes notes as required
Uses effective listening skills
Uses negotiation skills with confidence
Considers win-win situation during negotiations
Negotiates with strategy
Employs different techniques as appropriate:

Considers each aspect of the negotiation before agreeing to

individual aspects
Negotiates with a plan B
Negotiates honestly
Considers the representative’s ground/limits
Each aspect prepared for the negotiation is addressed
A basis for an agreement is reached
The provisions for authorisation are discussed
Further provisions for communication are established
Maintains a professional level according to role
Thanks the representative
Farewells representative in a professional manner

Feedback

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Part C – Making formal agreements

1. Present the outcomes from each negotiation to your supervisor/manager or trainer and discuss the viability
of each term negotiated according to your notes. Enter the outcomes for each contractual detail you have
negotiated in the table below and indicate the changes required (if any) and/or the approval to proceed
with the agreements.

2. Based on the feedback from your supervisor or trainer, contact the supplier and negotiate the final
changes if required. Record the negotiated changes in the table and obtain final approval from your
supervisor or trainer.

B &B Total supply

Nature of negotiation - Price Approved Not Approved

1. The supplier is ready to reduce the operational cost of the delivered product.
2. The supplier would be bidding with the modified prices on the day of the contract.
3. Twenty-five percent of the contract price would be approved after the six months of the use of the
delivered products.
4. The supplier would be giving a twenty percent discount on every fifth order of the stock.

B &B Total supply

Nature of negotiation - Warranty Approved Not Approved

1. The supplier has extended the warranty terms by 180 days for the first order of the stock.
2. The supplier is agreed on the terms of check and accept, to reduce the defective rate of the product.
3. The supplier would be bearing the shipping cost for the defective returns of the product. Apart from this
supplier would be giving the facility of on-site return for the defective and unacceptable products.
4. This would be the principled negotiation demanding for the clarity and transparency in the contract.

3. Contact each supplier by email and confirm the agreements made. Advise each party that you will
finalise the formal agreements for signing of all parties.

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4. Draw up the contract agreements based on your final negotiated outcomes. Each contract must contain
the following details:

You are encouraged to identify legal requirements based on your own research or legal advice. The following
websites provide basic information thereto:
https://www.smallbusiness.wa.gov.au/business-topics/money-tax-and-legal/legal-matters/business-
contracts/#verbal

https://www.business.qld.gov.au/business/starting/starting-a-business/working-business-advisers/types-
business-advisers

> Names of contracting parties including trading names and ABN/ACN, as well as their contact details

> supply conditions, including volume, price, discounts, ordering periods, take or pay and delivery times

> payment terms

> specifications of goods or services supplied (scope of goods)

> warranty periods for defective goods or services

> limited liability (risk of loss or damage)

> intellectual property

> confidentiality

> insurance

> dispute resolution

> termination and exclusion clauses

> signature provisions

5. Present your final contracts to your supervisor and trainer for final approval

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AGREEMENT
This agreement is made this 28th day of Feb 2019

BETWEEN

SOFITEL Sydney Darling Harbour B & B Total Supply

24 Pendlebury Rd, Cardiff NSW 2285

ABN ABN
93 467 103 170 65 139 667 191

IT IS HEREBY AGREED THAT

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
SOFITEL Sydney Darling Harbour orders all chemicals and cleaning items to the B & B Total Supply.

Offer
B & B Total Supply is responsible to supply all items for cleaning on time.to SOFITEL Sydney Darling Harbour
• Hand towels-2400 sheets
• Hand towel dispenser
• Roll hand towel
• 3M Nomad carpet matting
• 3M Safety Walk Cushion Mat

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 • Deodorizer and air freshener
• Chemicals for kitchen
• Cleaning agents
• General purpose floor cleaners
• Washroom cleaners

These items must be delivered without damages on the date request by the hotel.

1. SOFITEL Sydney Darling Harbour should place the order at least 7days before delivery time.
2. The supplier shall use its best endeavours to supply Goods in accordance with the hotel’s order

Terms
1. This agreement commences on the commencement date.
2. Once the contract is completed, the hotel cannot change their order product and quantity.
3. In case of necessity to change the terms of the contract due to unavoidable circumstances,
consultation between the parties.

Conditions
The requirements for the contract to be fulfilled are as follows.

SOFITEL Sydney Darling Harbour can only be offered at discounted prices when the hotel orders more than 900
items in total. Payment must be made on the date requested the supplier.

The supplier would be giving a twenty percent discount on every fifth order of the stock. The supplier must
delivery on the date the hotel desires. This delivery is free.

Warranties
The standard warranty offered on B & B Total Supply products is 180 days.

The warranty period is applied from the date and delivery completion.

Termination clause
Either party may terminate this Agreement on 30 days written notice.

This agreement may be terminated if either or both parties do not faithfully fulfil the contract or violate the
content.

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Default clauses
Each party shall have the right to terminate this AGREEMENT by written notice to the other PARTY for a material
failure to comply with the terms of this AGREEMENT by the other party, provided such failure to comply is not
corrected by the failing party within after written notice of any failure to make timely payment of royalties or any
other amount, when due hereunder, or within after receipt of written notice of any other failure from the non-
failing party.

Indemnity clauses
The Supplier indemnifies and releases SOFITEL Sydney Darling Harbour against any claims, loss, damage, cost
(including legal costs), expense or liability arising out of:

(a) any breach of any warranty or obligation under this Agreement;

(b) any wilful or negligent act or omission of the Supplier or any of its officers, employees or, agents in relation
to the performance of its obligations under this Agreement; and

(c) any breach of any third party's rights, including in respect of any claim that the Product infringe, or their
importation infringes the patent, copyright, design right, trade mark or other intellectual property rights of
any other person anywhere in the world,

Except, to the extent caused or contributed to by any negligent act or omission of the hotel, its officers,
employees and agents.

Taxes
Buyer will be responsible for filing all required sales and use tax returns in connection with the transfer of
property. Buyer will also pay all required sales and use taxes and any other transfer costs and expenses that arise
as a result of the transfer of the property. Seller will pay all personal property taxes associated with ownership of
the property and accrued for the period ending on the effective date and buyer will pay all such personal
property taxes that accrue thereafter.

Delivery
Buyer will be entitled to take possession of the property on the 27 day of Feb, 2019. If delivery is to be made at a
date after the effective date, it is Seller’s duty to ensure the property is delivered in the same condition as when
last inspected by Buyer.

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Inspection
Inspection will be made by the Purchaser at the time and place of delivery.

Claims
The Purchaser's failure to give notice of any claim within 10 days from the date of delivery will constitute an
unqualified acceptance of the Goods and a waiver by the Purchaser of all claims with respect to the Goods.

Cancellation

The Seller reserves the right to cancel this Agreement:

a. if the Purchaser fails to pay for any shipment when due;

b. in the event of the purchaser’s insolvency or bankruptcy; or

c. if the Seller deems that its prospect of payment is impaired.

Notices
Any notice to be given or document to be delivered to either the Seller or Purchaser pursuant to this
Agreement will be sufficient if delivered personally or sent by prepaid registered mail to the address specified
below. Any written notice or delivery of documents will have been given, made and received on the day of
delivery if delivered personally, or on the third (3rd) consecutive business day next following the date of mailing
if sent by prepaid registered mail.

Supplier acceptance
The above prices/specifications and conditions of work are hereby accepted

by Greg, authorised representative/owner of SOFITEL Sydney Darling Harbour

This agreement shall become effective from 1/3/2019.

NAME SIGNATURE

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Edwina Mirams

DATE

28th Feb 2019

Agent acceptance
The above prices/specifications and conditions of work are hereby accepted by

Bernard Dempsy, authorised representative/owner of B & B Total Suppl

This agreement shall become effective from 1/3/2109

NAME SIGNATURE

Bernard Dempsy

DATE

28th Feb 2019

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Part C Marking Guide Checklist
SITXMGT002 Establish and conduct business relationships S NYS S NYS Comments
1.
The negotiated terms with supplier 1 are presented
Shortfalls or changes as result from Negotiation 1 are
clarified
The requirements for changes with Supplier 1 are recorded

The negotiated terms with supplier 2 are presented

Shortfalls or changes as result from Negotiation 2 are
clarified
The requirements for changes with Supplier 2 are recorded

2. (where relevant)
Supplier 1 is contacted for further negotiation as identified
Required changes are negotiated and agreed on
The final details are recorded
The final agreements are communicated internally
The final changes are approved
Supplier 2 is contacted for further negotiation as identified
Required changes are negotiated and agreed on
The final details are recorded
The final agreements are communicated internally
The final changes are approved

3.
Supplier 1 is contacted in writing and informed of agreed
contract basis and finalisation of agreement
Supplier 2 is contacted in writing and informed of agreed
contract basis and finalisation of agreement

4.
Contract 1
The contract for Supplier 1 is drawn up using a suitable
format as suggested on legal websites or templates
Contract features names of contractual parties
Contract features contact details of contractual parties
Contract features ABN/ACN of contractual parties

All supply conditions as agreed on are detailed

The payment terms are clearly defined

The scope of goods or services are listed in detail

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The contract outlines the warranty periods for defective
goods or services

The limited liability (risk of loss or damage) clause and

conditions are specified

The legal provisions for the protection of intellectual

property are defined

The confidentiality clause specifies the limitations for each

party

The insurance provisions are clearly defined

The provisions for dispute resolution and processes are

clearly set out

The termination and exclusion clauses are explicit

Signature provisions are included

The legal aspects for supply contracts have been sufficiently

identified.

Contract 2
The contract for Supplier 2 is drawn up using a suitable
format as suggested on legal websites or templates
Contract features names of contractual parties
Contract features contact details of contractual parties
Contract features ABN/ACN of contractual parties

All supply conditions as agreed on are detailed

The payment terms are clearly defined

The scope of goods or services are listed in detail

The contract outlines the warranty periods for defective

goods or services

The limited liability (risk of loss or damage) clause and

conditions are specified

The legal provisions for the protection of intellectual

property are defined

The confidentiality clause specifies the limitations for each

party
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The insurance provisions are clearly defined

The provisions for dispute resolution and processes are

clearly set out

The termination and exclusion clauses are explicit

Signature provisions are included

The legal aspects for supply contracts have been sufficiently

identified.

The contracts have been submitted for approval

Feedback

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