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Establish and conduct business relationships

Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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ASSESSMENT 2 – Project

This cover sheet is to be completed by the assessor and used as a record of outcome of this assessment task.

Student Name:

Student ID No:

Unit Code:

Unit Title:
Establish and conduct business relationships

Date of submission:

Student Declaration I declare that:

These tasks are my own work, and none of this
work has been completed by any other person.
These tasks are not plagiarised or colluded with
any other student/s.
I have correctly referenced all resources and
reference texts throughout these assessment

I have read and understood the policy on
Plagiarism, cheating and collusion and understand
that if I am found to be in breach of this policy,
disciplinary action may be taken against me.
I have a copy of my assessment work with me,
which I can produce if the original is lost.

Student name: _______________________________________ Signature: _______________________________
Date: ____/_____/_____

Assessment Criteria
The student:

If Not Satisfactory,
please comment

Establish relationships in line with organisational requirements and protocols.
Yes No

Use effective communication skills and techniques to build business

Yes No

Proactively identify and take up opportunities to maintain regular contact with
customers and suppliers.

Yes No

Use negotiation techniques in line with professional and organisational
protocols to maximise benefits of relationship for all parties.

Yes No

Incorporate feedback and input from colleagues into negotiations where

Yes No

Communicate results of negotiations to appropriate colleagues and
stakeholders within appropriate timeframes.

Yes No

Confirm agreements in writing according to organisational requirements, using
formal contracts where appropriate.

Yes No

Obtain approvals for all aspects of formal agreements according to
organisational procedures.

Yes No

Evaluate and act on the need for specialist advice as required.
Yes No

Proactively seek, review and act upon information needed to maintain sound
business relationships.

Yes No

Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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Honour agreements within scope of individual responsibility, complying with
agreed terms.

Yes No

Take account of agreed performance indicators.
Yes No

Make adjustments to agreements in consultation with customer or supplier
and share information with appropriate colleagues.

Yes No

Nurture relationships through regular contact and use of effective
interpersonal and communication styles.

Yes No

Satisfactory Not Yet Satisfactory
(Please tick the assessment result for this task)

If Not Yet Satisfactory – Please identify the re-assessment

Comments/ Feedback (If the student is deemed Not Satisfactory the Assessor MUST state the circumstances and
reasons why this judgment has been made):

Assessor Declaration:
I declare that I have conducted a fair, valid, reliable, and flexible assessment with this student, and I have provided
appropriate feedback.
Assessor Name: ___________________________________ Signature: ________________________________
Date: ____/_____/_____

Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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Assessment Guidelines for Student:
Conditions of assessment:
For this Assessment you are required to follow the instructions provided under Tasks to be
completed by the student
and submit your response by the date advised to your Assessor.
Your assessor will advise you the Dates and timing for this assessment as per the timetable.
Your evidence submitted for this Assessment Task will be graded as either S – Satisfactory or NS – Not
Satisfactory. Your Assessor will provide you with feedback.
If the evidence is graded as NS – Not Satisfactory you will be required to re-submit the evidence. In this
case you will be provided with clear and constructive feedback based on the assessment decision so
that you can improve your skills / knowledge prior to reassessment.
If you require an allowable adjustment to this assessment procedure you should discuss this with your
If you are dissatisfied with an assessment decision you should make an appeal to Glen Institute in
writing no longer than 10 days following advice of the assessment decision.
Context of and specific resources for assessment
Access to office equipment and learning resources, access to computer with internet, printer, projector,
and other office facilities.
Contextualised scenario.
Tasks to be completed by the student
This assessment consists of Three tasks 1,2 and 3.
Read the Contextualised scenario and respond to the task.
Contextualised scenario
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

Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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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 longterm 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.
You have to focus on following two for the purpose of your negotiations.
Service equipment: glassware, cutlery, crockery, etc.
Garden supplies and/or ongoing maintenance (annual contract)
Task 1
Provide the details of current suppliers and proved their prices, conditions etc against key
performance indicators/specifications that are required for the supply of each product or service from
each supplier.
List the key performance indicators/specifications that are required for the supply of each product or
service from each supplier/contractor.
Research alternative suppliers for each supplier and obtain an alternative quote for each supplier you
currently use, based on the key performance indicators/specifications.
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:
Payment conditions
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.

Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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Task 2
you are required to role-play negotiations with supplier and contractor. List points to be discussed in the
Task 3
Present the outcomes from each negotiation to your supervisor/manager or trainer and discuss the
viability of each term negotiated according to your notes.
Based on the feedback from your supervisor or trainer, contact the supplier and negotiate the final
changes if required.
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.
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:
Names of contracting parties including trading names and ABN/ACN, as well as their contact details
Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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supply conditions, including volume, price, discounts, ordering periods, take or pay and delivery
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
dispute resolution
termination and exclusion clauses
signature provisions

Present your final contracts to your supervisor/trainer for final approval
For this assessment your assessor will assessing you on criteria listed on the
assessment cover sheet:
Evidence to be collected for this assessment:
Task 1:
documents outlined in the task.
Task 2: list of meeting discussion points and completed Assessor observation checklist.
Task 3: final contract.
Document: ASSESSMENT 2 SITXMGT002 Establish and conduct business relationships
RTO # 41380 | CRICOS # 03632K |Version: 1.2 | Page
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Task 2 – Assessor Observation checklist

Student Name:

Student ID:



Key Legend

S = Satisfactory NS = Not Satisfactory

Assessment criteria
Observable skills/tasks
(During the observation did the student)



Established relationships and opened negotiations within organisational
protocols using effective communication skills and techniques.


Built trust and respect in business relationships through use of effective
communication skills and techniques.


Conducted negotiations in a professional manner to maximise benefits of
both parties.


Incorporated feedback and input from colleagues into negotiation where


Demonstrated the communication skills necessary to conduct and close
negotiations that may be of significant commercial value.


Incorporated knowledge of principles of negotiation.

Demonstrated understanding of stages in the negotiation process.

I have been assessed and received feedback for this session

Student Signature

I have assessed the student and provided feedback for this session

Assessor Signature



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