Assessment Tasks and Instructions
Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXMGT002 Establish and conduct business relationships
Stream/Cluster
Trainer/Assessor
Assessment for this Unit of Competency/Cluster Details
Assessment 1 Short Answers
Assessment 2 Project
Assessment 3 Observations
Assessment conducted in this instance:Assessment 1 0 2 1 3 0
Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No 0No further information required
Yes 0Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:
Student to complete
0
My assessor has discussed the adjustments with me
0
I agree to the adjustments applied to this assessment
Signature Date
2nd Assessor to complete
0
I agree the adjustments applied to this assessment are reasonable
Name
Signature Date
Assessment Guidelines
What will be assessed
The purpose of this assessment is to assess your ability to complete tasks outlined in elements and
performance criteria of this unit in the context of the job role, and:
• 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.
Place/Location where assessment will be conducted
RTO to complete
Resource Requirements
Refer to the Assessment conditions attached to the Futura Group Mapping Document located in the teacher support tools folder or the “Assessment Conditions” for this unit in the SIT 1.0 Training Package.
For this assessment, the following materials must be available to support the negotiation process as relevant:
• preparatory facts and statistics
• key performance indicators
• market information.
• contract templates
Instructions for assessment including WHS requirements
The assessment for this unit of competency consists of 3 Parts, Part A, Part B and Part C.
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.
You are required to answer all questions and tasks as outlined in each Part below.
Statement of Authenticity
0
I acknowledge that I understand the requirements to complete the assessment tasks
0
The assessment process including the provisions for re-submitting and academic appeals were explained to me and I understand these processes
0
I understand the consequences of plagiarism and confirm that this is my own work and I have acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201
This assessment:
First Attempt 0
2nd Attempt 0
3nd Attempt 0
Extension 0– Date: / /
RESULT OF ASSESSMENT Part A 0
Part B 0
Satisfactory 0 Not Yet Satisfactory 0
Satisfactory 0 Not Yet Satisfactory 0
Feedback to Student:
Assessor(s) Signature(s): Date: / /
Student Signature Date: / /
Assessment 2
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 Quest ion 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 suppliersare considered, or re-negotiated where existing suppliers are preferred.
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.

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 talksand 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 0 Simulated Negotiation 0
Supplier details
represented by:
Location
Date
Nature of negotiation e.g. pricing structure, conditions etc.
Details List all aspects that are to be discussed


Observation Criteria
SITXMGT002Establish and conduct business relationships
Criteria S NYS S NYS Comments
Negotiation 1
Student is well presented
Student is prepared with all supportive documentation on hand
Uses good stance and posture
Professional introduction
Friendly, professional welcome/greeting
Initial conversation is general and friendly
Maintains initial, professional “level”
The business relationship is established
Establishes ground for the negotiation
Makes eye contact
Uses effective communication skills
Uses people’s names
Takes notes as required
Uses effective listening skills
Uses negotiation skills with confidence
Considers win-win situation during negotiations
Negotiates with strategy
Employs different techniques as appropriate: ___________________
Considers each aspect of the negotiation before agreeing to individual aspects
Negotiates with a plan B
Negotiates honestly
Considers the representative’s ground/limits
Each aspect prepared for the negotiation is addressed
A basis for an agreement is reached
The provisions for authorisation are discussed
Further provisions for communication are established
Maintains a professional level according to role
Thanks the representative
Farewells representative in a professional manner
Feedback
Negotiation 2
Real Negotiation 0 Simulated Negotiation 0
Supplier details
represented by:
Location
Date
Nature of negotiation e.g. pricing structure, conditions etc.
Details List all aspects that are to be discussed


Observation Criteria
SITXMGT002Establish and conduct business relationships
Criteria S NYS S NYS Comments
Negotiation 2
Student is well presented
Student is prepared with all supportive documentation on hand
Uses good stance and posture
Professional introduction
Friendly, professional welcome/greeting
Initial conversation is general and friendly
Maintains initial, professional “level”
The business relationship is established
Establishes ground for the negotiation
Makes eye contact
Uses effective communication skills
Uses people’s names
Takes notes as required
Uses effective listening skills
Uses negotiation skills with confidence
Considers win-win situation during negotiations
Negotiates with strategy
Employs different techniques as appropriate: ___________________
Considers each aspect of the negotiation before agreeing to individual aspects
Negotiates with a plan B
Negotiates honestly
Considers the representative’s ground/limits
Each aspect prepared for the negotiation is addressed
A basis for an agreement is reached
The provisions for authorisation are discussed
Further provisions for communication are established
Maintains a professional level according to role
Thanks the representative
Farewells representative in a professional manner
Feedback
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.
Supplier 1 Approved Not Approved Recommended Change
Contractual detail 1
Contractual detail 2
Contractual detail 3
Contractual detail 4
Contractual detail 5
Supervisor Name
Supervisor Signature
Date
Supplier 2 Approved Not Approved Recommended Change
Contractual detail 1
Contractual detail 2
Contractual detail 3
Contractual detail 4
Contractual detail 5
Supervisor Name
Supervisor Signature
Date
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
5. Present your final contracts to your supervisor and trainer for final approval
Part CMarking Guide Checklist
SITXMGT002Establish and conduct business relationships S NYS S NYS Comments
1.
The negotiated terms with supplier 1 are presented
Shortfalls or changes as result from Negotiation 1 are clarified
The requirements for changes with Supplier 1 are recorded
The negotiated terms with supplier 2 are presented
Shortfalls or changes as result from Negotiation 2 are clarified
The requirements for changes with Supplier 2 are recorded
2. (where relevant)
Supplier 1 is contacted for further negotiation as identified
Required changes are negotiated and agreed on
The final details are recorded
The final agreements are communicated internally
The final changes are approved
Supplier 2 is contacted for further negotiation as identified
Required changes are negotiated and agreed on
The final details are recorded
The final agreements are communicated internally
The final changes are approved
3.
Supplier 1 is contacted in writing and informed of agreed contract basis and finalisation of agreement
Supplier 2 is contacted in writing and informed of agreed contract basis and finalisation of agreement
4.
Contract 1
The contract for Supplier 1 is drawn up using a suitable format as suggested on legal websites or templates
Contract features names of contractual parties
Contract features contact details of contractual parties
Contract features ABN/ACN of contractual parties
All supply conditions as agreed on are detailed
The payment terms are clearly defined
The scope of goods or services are listed in detail
The contract outlines the warranty periods for defective goods or services
The limited liability (risk of loss or damage) clause and conditions are specified
The legal provisions for the protection of intellectual property are defined
The confidentiality clause specifies the limitations for each party
The insurance provisions are clearly defined
The provisions for dispute resolution and processes are clearly set out
The termination and exclusion clauses are explicit
Signature provisions are included
The legal aspects for supply contracts have been sufficiently identified.
Contract 2
The contract for Supplier 2 is drawn up using a suitable format as suggested on legal websites or templates
Contract features names of contractual parties
Contract features contact details of contractual parties
Contract features ABN/ACN of contractual parties
All supply conditions as agreed on are detailed
The payment terms are clearly defined
The scope of goods or services are listed in detail
The contract outlines the warranty periods for defective goods or services
The limited liability (risk of loss or damage) clause and conditions are specified
The legal provisions for the protection of intellectual property are defined
The confidentiality clause specifies the limitations for each party
The insurance provisions are clearly defined
The provisions for dispute resolution and processes are clearly set out
The termination and exclusion clauses are explicit
Signature provisions are included
The legal aspects for supply contracts have been sufficiently identified.
The contracts have been submitted for approval
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