SITXMGT501 Establish and conduct business relationships
Assessment 2 Case Study and Report
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This Assessment task contains a case study and a written report
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CASE STUDY
Background Information
Supply Contract
You are the manager of an inner city, 4 star, 250 room hotel. The annually-renewable contracts for the supply of fruit and vegetables and dairy products are up for review and you are overseeing the choice of service providers for both these contracts. There is fierce competition for your business from suppliers within a 20 kilometre range of
the hotel. The current suppliers are not meeting your performance criteria and despite various discussions they are not complying with your standards. You have had a variety of suppliers in the 12 year history of the business and you are known in the industry for your efficient business structure including prompt payment of accounts rendered and
strict quality controls.
Your Task
1. Write a draft contract which clearly outlines all aspects of the enterprise’s performance criteria for one of the above service providers. Attach a an outline relating to key legislative requirements you have considered for this draft contract and where you would seek advice to any particulars you were not sure about.
2. Provide a comprehensive report on how you will establish and conduct the business relationship with the suppliers of these contracts. You must address how you will:
• Promote goodwill and trust between the enterprise and suppliers
• Build trust and respect through use of effective communication skills and techniques
• Identify and take up opportunities to maintain regular contact with the suppliers
• Nurture relationships through regular contact and use of effective interpersonal and communication styles
• Conduct negotiations in a business-like and professional manner
• Conduct negotiations in the context of the current enterprise marketing focus
• Maximise benefits for all parties in the negotiation through use of established techniques and in the context of establishing long term relationships
• Incorporate feedback and input from colleagues into the negotiation where appropriate
• Communicate the results of negotiations to all parties within appropriate timeframes – what are the provisions for approval?
• Pro-actively seek, review and act upon information needed to maintain sound business relationships
• Honour agreements within the scope of individual responsibility
• Make adjustments to agreements in consultation with the supplier and share information with appropriate colleagues. Explain the reasons for re-negotiations and adjustments.