Establish and conduct business relationships
Part 1.
You are working as the Purchasing Manager for International Hotel Group. You have been asked to source all furniture, large and small equipment, and food and beverage service equipment required for the new dining area that is going under some major renovation.
Read the case study and choose one area, product or service to focus on your negotiations. You must be able to establish and conduct business relationships with at least two of the following:
- cooperative partner with organisation
- contractor
- customer
- networks
- supplier
Task 1
a) Outline how you endeavour to build relationships with the suppliers/producers. Include the communication strategies, that describe how you will establish business relationships, how you intend to build trust and respect and how you intend to maintain any existing relationships that you may have with the existing suppliers/producers.
b) After contacting the supplier/contractor/business to negotiate with, research that organisation and its people. Describe results of your research and the cultural factors you'll need to consider during negotiations. Remember you need to select at least two to conduct business relationships with
c) List and prioritise your objectives, negotiable and non-negotiable requirements, desired outcomes
d) What concessions (if any) are you prepared to make during negotiations to achieve your objectives
e) Decide who will involve in the negotiations and what roles team members will play during the negotiations (your assessor will assist you to form a team for the role-play in Task 2)
f) 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
g) Who might you seek input from within your organisation before or during negotiations
h) Who will you communicate the results of negotiations to?
i) Write an agenda for the negotiations.
Task 2
Form a team of three members and with your team, role-play a negotiation with the suppliers in Task 1. The suppliers' prices are higher than you wish to pay, but they have a good reputation for providing high quality. Your assessor will use the observation checklist to assess you. Make sure you demonstrate these skills in your role play.
You can view the following videos to help you understand negotiation process and participate in role-play
Task 3
Based upon your research from Task 1 and negotiations from Task 2, develop a contract/agreement that confirms in writing all of the agreements negotiated, allowing for areas for signatures and approvals. You must draw the contract with the two suppliers you selected. You could use the template below. Prepare an email to the General Manager and the Supplier detailing the results of the negotiations and contract.
Supplier contract Template
(Enter name), known as the first party, agrees to enter into this contract with (Enter name), knows as the second party on (enter date).
This contract is based on the following provisions:
1. List provisions (e.g. the timely supply, credit arrangements etc.)
2. (list provision)
3. (list provision)
Furthermore, the first party agrees:
(other items applicable to the First Party included here) And the Second party agrees:
(other times applicable to the Second Party included here)
Invalidity or unenforceability of one or more provisions of this agreement shall not affect any other provision of this agreement
This agreement is subject to the laws and regulations of the state of New South Wales.
Task 4
Develop a report that details how you intend to foster and maintain the business relationships, including how you would source and act up on the information needed for relationship building. Ensure that you include in your answer how you intend to measure performance and make adjustments and amendments to further negotiations and contracts.
Part 1. Checklist and Scope of Submission
Before you hand in part 1, use the checklist below to make sure you have completed all the tasks and have included all relevant information.
- Provided appropriate responses for all questions from Task 1
- Participated in Role-play
- Developed a contract and prepared an email to the stakeholders
- Developed a report with details on how to foster and maintain business relationships
Attachment:- Establish and Conduct business relationship.rar