ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS

 

STUDENT ASSESSMENT BOOKLET
SIT50416
DIPLOMA OF HOSPITALITY MANAGEMENT
SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS

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CONTENTS
Assessment Overview 4
Assessment plans 5
Assessment Task Cover Sheet – Assessment Task 1 7
Assessment Task 1: Written questions 9
Assessment Task Cover Sheet – Assessment Task 2 13
Assessment Task 2: Case study 15
Assessment Task Cover Sheet – Assessment Task 3 17
Assessment Task 3: Project 19
Assessment Task Cover Sheet – Assessment Task 4 21
Assessment Task 4: Role plays 23
Role play 1 – Establish and conduct a business relationship 23
Role play 2 – Conduct negotiations 25

Assessment Overview
This Student Assessment Booklet includes all your tasks for assessment of SITXMGT002 Establish and conduct business relationships.
About your assessments
This unit requires that you complete 4 assessment tasks. You must complete all tasks to achieve competency for this unit.
Assessment Task About this task
Assessment Task 1: Written Questions You must answer all questions correctly to demonstrate your knowledge of the unit requirements.
Assessment Task 2: Case study You must read the case study and answer all questions correctly.
Assessment Task 3: Project You are required to write a formal letter to a supplier to confirm arrangements made during negotiation.
Assessment Task 4: Role plays You are required to review the background information and participate in two role plays with your assessor.
How to submit your assessments
When you have completed each assessment task you will need to submit it to your assessor.
Instructions about submission can be found at the beginning of each assessment task.
Make sure you photocopy your written activities before you submit them – your assessor will put the documents you submit into your student file. These will not be returned to you.
Assessment Task Cover Sheet
At the beginning of each task in this booklet, you will find an Assessment Task Cover Sheet. Please fill it in for each task, making sure you sign the student declaration.
Your assessor will give you feedback about how well you went in each task, and will write this on the back of the Task Cover Sheet.
Assessment appeals
You can make an appeal about an assessment decision by putting it in writing and sending it to us. Refer to your Student Handbook for more information about our appeals process.

Assessment plans
The following outlines the requirements of your final assessment for this unit. You are required to complete all tasks to demonstrate competency for the unit/s in this topic.
Your assessor will provide you with the due dates for each assessment task. Write them in the table below.
Assessment Requirements Due date
1. Written questions
2. Case study
3. Project
4. Role plays

AGREEMENT BY THE STUDENT
Read through the assessments in this booklet before you fill out and sign the agreement below. Make sure you sign this before you start any of your assessments.
Have you read and understood what is required of you in terms of assessment? • Yes • No
Do you understand the requirements of this assessment? • Yes • No
Do you agree to the way in which you are being assessed? • Yes • No
Do you have any special needs or considerations to be made for this assessment? If yes, what are they?
• Yes • No
Do you understand your rights to appeal the decisions made in an assessment? • Yes • No
Student name:
Student signature: Date:
Assessor name:
Assessor signature: Date:

Assessment Task Cover Sheet – Assessment Task 1
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a copy of your work.
Name:
Date of submission:
Unit:
 SITXMGT002 Establish and conduct business relationships
Assessor to complete
Assessment Task Satisfactory/
Not satisfactory Date Was this a resubmission? Y/N
Written questions
STUDENT DECLARATION
I declare that these tasks are my own work.
þ None of this work has been completed by any other person.
þ I have not cheated or plagiarised the work or colluded with any other student/s.
þ I have correctly referenced all resources and reference texts throughout these assessment tasks.
þ I understand that if I am found to be in breach of policy, disciplinary action may be taken against me.
Student signature:
Student name:

ASSESSOR FEEDBACK
Assessors: Please return this cover sheet to the student with assessment results and feedback.
A copy must be supplied to the office and kept in the student’s file with the evidence.

Assessor signature:
Assessor name:
Date:

Assessment Task 1: Written questions
TASK SUMMARY
You are to answer all written questions.
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK
 Access to textbooks and other learning materials.
 Access to a computer, printer, Internet and email software
WHEN AND WHERE DO I NEED TO COMPLETE THIS TASK?
 This task may be done in your own time as homework or you may be given time to do this task in class (where applicable).
 Your assessor will provide you with the due date for this assessment.
WHAT DO I NEED TO SUBMIT?
 Your answers to each question in this task.
INSTRUCTIONS
 This is an open book test – you can use your learning materials as reference.
 You must answer all questions in this task correctly.
 You must answer the questions by typing your answers in Microsoft Word or a similar program – your assessor will advise as to whether you must email them your completed assessment, submit the file on a USB drive or hand in a hard copy.
QUESTION 1
a) Name the sectors which are seen as comprising the seven pillars/structure of the hospitality industry.
b) Name seven departments that commonly exist in a large, international-style hotel.
c) What is the name of the document that outlines the relationship between departments and roles in an organisation?
QUESTION 2
Visit http://aha.org.au/wp-content/uploads/2013/10/AHA-Fact-Sheet-8.-Resource.pdf (Australian Hotels Association and Department of Industry: Resource use and the supply chain).
How do they describe the supply chain for a hotel and what does it include?
QUESTION 3
a) In order, write the links in the hospitality supply chain from the producer through to the final consumer.
b) What is the difference between a ‘retailer’, a ‘wholesaler’ and an ‘agent/agency’?
QUESTION 4
Marketing’ may be defined as the ways in which businesses advertise, promote or sell their products and services. What marketing networks are available to the hospitality industry for them to market their goods and services?

QUESTION 5
Provide three reasons why managers, supervisors and workers in the hospitality industry should develop professional networks with other hospitality businesses, associations and personnel.
QUESTION 6
a) Go to the following link and read through the Australian Hotels Association website: http://aha.org.au/
What is the purpose of the AHA?
b) In your own words, discuss the benefits of becoming a member of a professional industry association.
QUESTION 7
a) List three professional networking activities and/or events.
b) List four ways that professional contact can be established and maintained with customers and suppliers.
QUESTION 8
a) Discuss the benefits of social media as a means of communication and business promotion.
b) Describe the concept of cooperative promotions and how this can assist with advertising costs.
QUESTION 9
List six principles of effective business negotiation.
QUESTION 10
Provide a definition for each of the following strategies, which can be used in negotiation.
 Problem solving
 Contending
 Yielding
 Compromising
 Inaction.
QUESTION 11
Explain four main points of difference between a verbal agreement made between two people representing two organisations, and a signed paper-based contract.
QUESTION 12
What are the six elements of a valid contract?
QUESTION 13
a) Discuss the obligations that are imposed on one party by the terms of a contract they have entered into
b) If one party fails to meet their obligations under a contract, what action might the other party take?
QUESTION 14
Provide a definition for each of the following contracts.
 A unilateral contract
 A bilateral contract
 An implied contract
 A conditional contract
 A ‘joint and several’ contract.
QUESTION 15
What is the purpose of an ‘exclusion clause’ in a contract?
QUESTION 16
What is the purpose of inserting a ‘dispute resolution clause’ in a contract?
QUESTION 17
Explain the following ways a contract may be terminated.
 Performance
 Discharge by agreement
 Discharge for breach
 Discharge by frustration
QUESTION 18
a) When negotiating a business contract, you must ensure that the terms and conditions of the contract are fair for both parties. According to Australian Consumer Law, list three examples of terms and conditions that may be considered unfair.
b) How can you ensure business relationships are established within appropriate cultural contexts?
c) Why is it important to make sure business relationships are established within appropriate cultural contexts?

What do I need to hand in for this task? Have I completed this?
Your answers to each question 

Assessment Task Cover Sheet – Assessment Task 2
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a copy of your work.
Name:
Date of submission:
Unit:
 SITXMGT002 Establish and conduct business relationships
Assessor to complete
Assessment Task Satisfactory/
Not satisfactory Date Was this a resubmission? Y/N
Case study
STUDENT DECLARATION
I declare that these tasks are my own work.
þ None of this work has been completed by any other person.
þ I have not cheated or plagiarised the work or colluded with any other student/s.
þ I have correctly referenced all resources and reference texts throughout these assessment tasks.
þ I understand that if I am found to be in breach of policy, disciplinary action may be taken against me.
Student signature:
Student name:

ASSESSOR FEEDBACK
Assessors: Please return this cover sheet to the student with assessment results and feedback.
A copy must be supplied to the office and kept in the student’s file with the evidence.

Assessor signature:
Assessor name:
Date:

Assessment Task 2: Case study
TASK SUMMARY
For this task you are required to answer the questions to demonstrate your knowledge of:
 How to act upon information to maintain sound business relationships.
 Techniques to honour agreements and comply with agreed terms.
 Adjusting agreements in consultation with customers.
 Sharing information regarding formal agreements with colleagues.
 Effective communication techniques for maintaining professional relationships.
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK
 Access to textbooks and other learning materials.
 Access to a computer, printer, Internet and email software (if required).
 Case study (provided).
WHEN AND WHERE SHOULD THE TASK BE COMPLETED?
 This task may be done in your own time as homework or you may be given time to do this task in class (where applicable).
 Your assessor will provide you with the due date for this assessment.
WHAT NEEDS TO BE SUBMITTED?
 Your answers to all questions.
 You must answer the questions by typing your answers in Microsoft Word or a similar program – your assessor will advise as to whether you must email them your completed assessment, submit the file on a USB drive or hand in a hard copy.
INSTRUCTIONS
Read the case study below and answer all questions correctly.
Case study: Fostering business relationships
You work at the Ellia Hotel, a 200-room hotel located in the Marino Enterprises Complex. You have just been promoted and given responsibility for fostering and maintaining positive business relationships with corporate clients with whom contracts exist regarding the use of the hotel as rewards for their employees who hit sales targets/goals and as incentives for other businesses to ‘spend big’, ‘switch’ or ‘stay loyal’ to their organisation.
While current occupancy and revenue figures are achieving projected targets, there is some concern about advanced bookings six-to-twelve months out and, given the current local downturn in economic conditions, you decide now is a good time to re-visit the ‘corporate client’ market segment with a view to securing confirmed bookings for the period July 2016 to January 2017.
Now, where to begin?
QUESTION 1
List three internal records you might first review when seeking to understand the current position of the relationship between the hotel and their corporate clients?

QUESTION 2
After reviewing the hotels internal records, you decide there is insufficient information available about these clients for you to make any genuine informed decisions about action to take to secure advanced bookings: what three actions might you take to proactively seek the information you need?
QUESTION 3
When meeting with representatives of established corporate clients to maintain the sound relationship that already exists, what are three examples of topics you might raise as the focus for discussions when seeking to foster/maintain the relationship but also secure additional forward bookings?
QUESTION 4
Describe three standard techniques you might initiate to ensure the hotel honours the existing agreements including all applicable terms and conditions it has with their corporate clients?
QUESTION 5
What are three examples of agreed performance indicators corporate clients may be obliged to meet as part of the arrangement they should honour with your hotel?
QUESTION 6
What are three examples of agreed performance indicators the complex may be required to achieve for corporate clients with whom they have formal agreements?
QUESTION 7
Your research shows corporate guests at the hotel feel upset when informed local sightseeing tours are not included as part of the package they are receiving, and get annoyed at having to pay for these extras themselves: how might you address this situation for mutual benefit?
QUESTION 8
What three ways might you make workers at the hotel aware of the contents of a new/revised agreement that has been entered into with a corporate client?
QUESTION 9
List four opportunities to maintain regular contact and nurture relationships with customers and suppliers.

What do I need to hand in for this task? Have I completed this?
Your answers to each question 

Assessment Task Cover Sheet – Assessment Task 3
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a copy of your work.
Name:
Date of submission:
Unit:
 SITXMGT002 Establish and conduct business relationships
Assessor to complete
Assessment Task Satisfactory/
Not satisfactory Date Was this a resubmission? Y/N
Project
STUDENT DECLARATION
I declare that these tasks are my own work.
þ None of this work has been completed by any other person.
þ I have not cheated or plagiarised the work or colluded with any other student/s.
þ I have correctly referenced all resources and reference texts throughout these assessment tasks.
þ I understand that if I am found to be in breach of policy, disciplinary action may be taken against me.
Student signature:
Student name:

ASSESSOR FEEDBACK
Assessors: Please return this cover sheet to the student with assessment results and feedback.
A copy must be supplied to the office and kept in the student’s file with the evidence.

Assessor signature:
Assessor name:
Date:

Assessment Task 3: Project
TASK SUMMARY
For this task, you are required to write a formal letter to a supplier to confirm arrangements made during negotiation.
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK
 Access to textbooks and other learning materials.
 Access to a computer, printer, Internet and email software.
 Background information (provided).
WHEN AND WHERE SHOULD THE TASK BE COMPLETED?
 This task may be done in your own time as homework or you may be given time to do this task in class (where applicable).
 Your assessor will provide you with the due date for this assessment.
WHAT NEEDS TO BE SUBMITTED?
 Answers to questions.
 Formal letter.
 Email.
INSTRUCTIONS
Review the background information and complete the tasks that follow.
Background information
You have negotiated with a wholesale butcher to provide beef to the restaurant you work at, The Best Bite Café, and believe you have negotiated a successful win-win outcome.
As you finalised the agreement you agreed to send a letter to the person you dealt with, John, confirming the final arrangements in writing so that a formal contract could be established.
The negotiations focussed on:
 Item1: Bone-in grain fed butt (1502 vacuum-packed), MSA Grade 5, 1200kg @ $5.50/kg
 Item 2: Chuck roll – long cut (2289 Trapezius removed; undercut retained; vacuum-packed), MSA Grade 4, 1000kg @ $4.99/kg
 Item 3: Scotch fillet grass fed (pre-cut 400 – 425gm; Marble score = 3), MSA Grade 5, 2000kg @ $10.25/kg
 Item 4: Striploin grain fed (6 ribs ; intercostals removed; upraspinous ligament removed), MSA Grade 3, 3000kg @ $7.75/kg
 Item 5: Mince – extra lean ( 20kg packs), MSA Grade 4, 4000kg @ $40/box
 Item 6: Grain fed T-Bones (Bone-in; 500 – 520 gm), MSA Grade 5, 800kg @ $9.98/kg
The name of the butcher is Robinsvale Butchers and you had agreed to buy a nominated amount of an agreed selection of meat for a 12-month period at agreed prices.
Delivery is to be made by 8am every morning as required Monday – Saturday every week. Orders to be placed by phone before 3pm the day prior to delivery.
Meat is to be invoiced every 14 days with payment to be made within 7 days of invoice.

1. Review the background information above and answer the following questions:
a) Name four people from whom you may seek specialist advice when entering into this type of formal business arrangement with an external party.
b) Describe three ways that specialist advice may impact the arrangements agreed to as part of this negotiation.
c) What organisational protocols may apply to entering into binding arrangements with third parties?
Continued…
You have consulted with your head chef and he believes that the contract should go ahead as it is very good value for money.
You are now ready to put the agreement into writing so that a formal contract can be established with Robinsvale Butchers.
The Best Bite café has a formal procedure for entering into formal agreements and contracts. The procedure states that ‘permission must be sought from management prior to entering into formal agreements and draft contracts must be submitted to management for consideration.’
2. Write a letter to the manager of Robinsvale Butchers confirming the agreement that was verbally discussed.
 Ensure that the letter includes all of the prices and performance indicators discussed.
 Ensure that your letter is clear, concise and professionally written.
3. Write an email addressed to the management of the Best Bite Café (your assessor) detailing the proposed formal agreements for approval and attach a copy of formal agreement letter.
4. Submit your answers, email to management and formal letter to your assessor. You must answer the questions and write the letter in Microsoft Word or a similar program – your assessor will advise as to whether you must email them your completed assessment, submit the file on a USB drive or hand in a hard copy.

What do I need to hand in for this task? Have I completed this?
Your answers to each question 
Formal letter 
Email 

Assessment Task Cover Sheet – Assessment Task 4
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a copy of your work.
Name:
Date of submission:
Unit:
 SITXMGT002 Establish and conduct business relationships
Assessor to complete
Assessment Task Satisfactory/
Not satisfactory Date Was this a resubmission? Y/N
Role plays
 Role play 1 – Establish and conduct a business relationship
 Role play 2 – Conduct negotiations
STUDENT DECLARATION
I declare that these tasks are my own work.
þ None of this work has been completed by any other person.
þ I have not cheated or plagiarised the work or colluded with any other student/s.
þ I have correctly referenced all resources and reference texts throughout these assessment tasks.
þ I understand that if I am found to be in breach of policy, disciplinary action may be taken against me.
Student signature:
Student name:

ASSESSOR FEEDBACK
Assessors: Please return this cover sheet to the student with assessment results and feedback.
A copy must be supplied to the office and kept in the student’s file with the evidence.

Assessor signature:
Assessor name:
Date:

Assessment Task 4: Role plays
TASK SUMMARY
For this task you are required to review the background information and participate in two role plays with your assessor to demonstrate your ability to establish business relationships and conduct formal negotiations.
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK
 Access to a simulated workplace environment.
 Background information and instructions (provided).
WHEN AND WHERE DO I NEED TO COMPLETE THIS TASK?
 You will do this task in a simulated workplace environment.
 Your assessor will provide you with the date of the role play.
WHAT DO I NEED TO SUBMIT?
Written report (Role play 2).
INSTRUCTIONS
Review the background information and participate in each role play with your assessor.
Role play 1 – Establish and conduct a business relationship

You are a Sales Executive with responsibility for international accounts/clients at Ellia Hotel, located in the Marino Enterprises Complex that has multiple bars, eating outlets and function rooms.
The venue has an enviable reputation for the quality of its service, the extent of its facilities and the fantastic location that puts it within walking distance of major arts and tourist attractions.
The hotel has received glowing reports from guests as well as industry reporters.
The hotel charges guests $150 per night for a studio room, $250.00 per night for a twin/double, $320.00per night for a king bed plus spa room, $440.00 per night for a 2-bedroom apartment and $1500 per night for the penthouse suite. A full buffet breakfast is available at an additional charge of $30.000 per adult/ 15.00 per child.
Two weeks ago, you received a call from a representative of a well-known international airline who wants to meet with you to discuss the services you may be able to provide to flight crews, overnight stay passengers, and some upcoming corporate events they want to conduct in your city.
You have done some research about this organisation and prepared yourself as well as possible for the meeting that is just about to happen.
The phone rings and it is reception informing you your new contact has just arrived and is waiting for you in the atrium.
1. Review the background information
2. Prepare for the role play. You will need to demonstrate evidence of prior planning and preparation before the negotiation.
3. Conduct the initial business meeting and negotiations with the representative from the airline (role played by your assessor).
 Your assessor will record their observations of your performance.
 The table below provides you with guidance as to what you will need to demonstrate.
During the role play, your assessor will be looking to see that you can:
 Apply appropriate communication and interpersonal skills.
 Use relationship- and rapport-building techniques.
 Show evidence of having planned and prepared for the negotiation process.
 Negotiate in a way that accommodates required organisational goals as well as known business and market information.
 Conduct the negotiation process in a professional way.
 Demonstrate the application of accepted negotiation techniques.
 Negotiate a mutually acceptable outcome.
 Achieve a positive, long-term business relationship with the client.
 Nurture an ongoing relationship with the client.
 Apply problem-solving skills to address issues/problems and respond to challenges raised by the client.

What do I need to hand in for this task? Have I completed this?
You do not need to hand anything in NA

Role play 2 – Conduct negotiations

You are representing the Marino Conference Centre and are seeking to negotiate a deal with a major-league football club who have contacted you saying they wish to discuss securing your services for their major events for the next 5 years.
To start with they wish to launch the club into its new country and home town by holding a 2,000 person event where players will be introduced to the media and the public and the club will kick-off its membership drive and local/domestic and national advertising campaign for the next season. They want your assistance in targeting all the ‘right’ media people and personalities as well as your professional services in providing advance publicity, handling bookings and providing suitable entertainment, food and drinks.
They have just relocated from an overseas country to your city and are desperate to establish a long-term relationship with a provider who can be available not only for regular major events but also for short-notice smaller intra- and inter-club functions.
In their previous location the club has a history of excess and behaviour that has attracted quite a deal of negative publicity. They are hoping their relocation will also help re-position the image of the club. Two of your colleagues (senior management) are concerned about the football club’s reputation and how it may affect the reputation of the convention centre.
The convention centre you work for currently has strong relationships with two local major league football clubs having catered for their annual balls, Best and Fairest nights and a range of associated birthday parties, weddings and media events.
The current goals and KPIs of your convention centre are to:
 Reduce dependency on sports clubs as a source of revenue by 50% (in revenue terms) and focus more aggressively on interstate and overseas corporate clients, school graduations, product launches, government agencies and local family events especially weddings.
 Achieve 95% room/space occupancy for the venue providing minimum required percentage returns for food (35%), beverages (75%), entertainment (50%) and ancillaries (10%)
 Increase customer database by two qualified leads/week.
 Achieve 1.75 repeat customer/business ratio over 2 years.
 Convert 75% of all contacts to clients/users.
 General market information shows:
 Predicted growth in the MICE industry over the next 5 years in the range of 15 – 17%.
 No new convention facilities planned/proposed in the city.
 Two large city hotels scheduled for demolition in next 12 months.
 Level of disposable income climbing in local area by 0.5% year-on-year.
 High levels of unemployment among industry workers.
Information relating specifically to the convention centre:
 Enquiries for use of the facilities are up 15% on the previous year.
 Revenue is 25% above YTD last year and projected to sustain that growth rising to +30% by year end.
 Advanced bookings for the next three years are running at 85%.
1. Review the background information.
2. Prepare for the role play. You will need to demonstrate evidence of prior planning and preparation before the negotiation.
3. Conduct the business negotiation with the representative from the football club (role played by your assessor).
 Your assessor will record their observations of your performance.
 The table below provides you with guidance as to what you will need to demonstrate.
During the role play, your assessor will be looking to see that you can:
 Apply appropriate communication and interpersonal skills.
 Use relationship- and rapport-building techniques.
 Show evidence of having planned and prepared for the negotiation process.
 Negotiate in a way that accommodates required organisational goals as well as known business and market information.
 Conduct the negotiation process in a professional way.
 Discuss the feedback and concerns of management regarding the club’s reputation.
 Demonstrate the application of accepted negotiation techniques.
 Negotiate a mutually acceptable outcome.
 Achieve a positive, long-term business relationship with the client.
 Nurture an ongoing relationship with the client.
 Apply problem-solving skills to address issues/problems and respond to challenges raised by the client.
After the role play, your assessor will ask you a series of questions about the following topics:
 Contracts and agreements between organisations in the hospitality sector.
 Strategies to handle unrealistic constraints on a negotiation.
 Timeframes.
 Communication and reporting techniques.
4. Report on the negotiation process.
 Write a report addressed to your manager (your assessor), detailing the negation process and the final outcome. Include the following information in your report:
 The information that you provided the football blub representative
 Ideas discussed throughout the role play
 Negotiating techniques used throughout the role play
 Negotiations made
 Final outcome of the negotiation.
 Write your report using Microsoft Word or a similar program – your assessor will advise as to whether you must email them your completed assessment, submit the file on a USB drive or hand in a hard copy.

What do I need to hand in for this task? Have I completed this?
Written report 