Australian Ideal College

Registered as Australian Ideal College Pty Ltd

RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Assessment Submission Sheet

Course SIT50416 Diploma of Hospitality Management

Unit Code SITXMGT002

Unit Name Establish and conduct business relationships

Assessor
Name
Student
Name
Student ID

Date Due
Please read and sign this assessment coversheet and submit it together with your assessment to
your Assessor by the due date.
Student Declaration
 I declare that the work submitted is my own, and has not been copied or plagiarised from any
person or source.
 I have read the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the
Student Handbook and I understand all the rules and guidelines for undertaking assessments.
 I understand that by typing my full name in the student field this is equivalent to a hand-written
signature.
 I give permission for my assessment material to be used for continuous improvement purposes.

Student Date
Signature Submitted

Assessor Use Only

Assessment Items Result

Task 1 Knowledge Test S NS

Task 2 Project S NS

Final Result for this unit C NYC

Student Declaration: I declare that I have
been assessed in this unit, and I have been
advised of my result. I am also aware of my
appeal rights.
Signature
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have
provided appropriate feedback
Signatur
e

Date

AIC- SITXMGT002-AT–V1.0
Page 1 of 16
 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Assessor’s Final Comments

AIC- SITXMGT002-AT–V1.0
Page 2 of 16
 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Task 1
Assessment Instructions
This is an individual assessment. There are two parts in this task. If you need help understanding any
questions, ask your assessor to explain.

Procedure
Answer the following questions. Each question must be completed.

To be deemed competent you will need to successfully demonstrate the following:

You must submit:
Satisfactory answers to all the questions.

Question 1
List 3 key groups of people you may build business relationships with in the hospitality Industry.
1.

2.

3.

Question 2
List 4 reasons business relationships are important.
1.

2.

3.

4.

Question 3

List 2 distribution, marketing or professional networks in your industry that would provide
opportunities to help build business relationships.

1.
2.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 4
Why is building trust and respect in a business relationship not always easy?

Question 5
List 4 traits that can build respect and trust in a business relationship.
1.
2.
3.
4.

Question 6
List 6 ways you can maintain regular contact with customers and suppliers.
1.
2.
3.
4.
5.
6.

Question 7
List 2 methods of Networking. These may be formal or informal.
1.
2.

Question 8
There are several types of negotiations. List 3 different types of negotiations a hospitality manager
might be involved in.
1.
2.
3.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 9
Name 2 cultural differences you may need to consider when negotiating.
1.
2.

Question 10
When going into a negotiation, name 2 things you can do to make a good first impression.
1.
2.

Question 11
What should you do before going into a negotiation to make sure the outcome is in the best interests of
your company?

Question 12
If the negotiation becomes protracted, who should you inform? And how?

Question 13
List 6 techniques to negotiate effectively.
1.
2.
3.
4.
5.
6.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 14
How do open questions help a good negotiator gain information?

Question 15
Give an example of a written contract you may enter into in the hospitality industry.

Question 16

‘Obtaining organisational approvals’ is one of the nine steps of procuring a formal business agreement.
Name 3 others:

1.
2.
3.

Question 17

Name 3 types of common clauses which might be included in a contract.

1.
2.
3.

Question 18

What is the name of the clause which is designed to exclude or limit a person’s liability if the breach the
contract?

Question 19

What is the purpose of a dispute resolution clause?

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 20

Before formally making an agreement, what approval should you seek?

Question 21

List 4 professional services you might employ to get specialist advice.

1.
2.
3.
4.

Question 22

If you were unsure of how to comply with consumer protection laws, who would you consult to get
professional advice?

Question 23

List 4 specialist services an accountant may be able to assist you with.

1.
2.
3.
4.

Question 24

Once you have gained the confidence of a new business associate, what can you build on that
relationship?

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 25

If you have signed a contract that stipulates that you will be paying $5,000 property management fees
per year for 5 years, but your business goes broke in its first year, are you still liable to pay the money?
Why/Why not?

Question 26

When setting KPIs in business agreements, why should KPIs be quantitative rather than qualitative?

Question 27

When should you review, negotiate and update your contracts?

Question 28

List 4 factors that could change over time which could affect terms and conditions in your contract.

1.
2.
3.
4.

Question 29

Name 2 legal requirements from your industry that you may impact negotiations or agreements.

1.
2.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Question 30

You are looking at entering a 3-year lease agreement for a commercial property. The contract states
the lease payments will be $5,000 per month for the first year, and then increase by 3.8% every year
thereafter.

What will the total annual lease payments be for:

Year 1?

Year 2?

Year 3?

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

Task 2
Assessment Instructions
This is an individual assessment. There are three parts in this task. If you need help understanding
any questions, ask your assessor to explain.

Procedure
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.

To be deemed competent you will need to successfully demonstrate the following:

You must:
 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.

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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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:
Products or services provided:

Supplier 2:
Products or services provided:

Supplier 3:
Products or services provided:

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

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.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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.

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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
represented by:
Location
Date
Nature of negotiation e.g. pricing structure, conditions etc.
Details List all aspects that are to be discussed

Negotiation 2

Real Negotiation Simulated Negotiation

Supplier details
represented by:
Location
Date
Nature of negotiation e.g. pricing structure, conditions etc.
Details List all aspects that are to be discussed

AIC- SITXMGT002-AT–V1.0
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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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.

Approved Not Recommended Change

Supplier 1 Approved
Contractual detail 1

Contractual detail 2

Contractual detail 3

Contractual detail 4

Contractual detail 5

Supervisor Name:
Supervisor Signature:
Date:

Approved Not Recommended Change

Supplier 2 Approved
Contractual detail 1

Contractual detail 2

Contractual detail 3

Contractual detail 4

Contractual detail 5

Supervisor Name:
Supervisor Signature:
Date:

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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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.

Supplier 1 Outcome approved not

approved
Details negotiated

Supplier 2 Outcome
Details negotiated

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.

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

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 Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
Educating for Excellence T: +61-2-9262 2968 (Sydney) | +61-8-8123 5780 (Adelaide) | +61-3-6231 2141 (Hobart)
E: info@aic.edu.au | W: www.aic.edu.au

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

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