Assessment 1 – Project
This assessment requires you to conduct research on
business contracts and negotiation techniques.
Your task is to establish and maintain two (2) business
relationships;
1. Customer
2. Supplier
Read the following scenarios relating to the potential
customer and supplier relationship. After reading this
scenario you will need to conduct research on
business contracts. After you are familiar with legal
requirements for business contracts you will prepare
your report. You will need to address the following questions and submit your responses in a professional
report attached with your prepared contracts (2) based on the given scenario.
Your report must be a professionally prepared document. Use the Font style ‘Times New Roman’ and size
12. A minimum of 500 words is expected though you should aim for 1000 words. Your contracts are not
included in this word count - of which forms an additional/separate document. The 2 scenarios however
can be included into the one report – just ensure that you stipulate what actions you took for which
scenario – customer vs supplier. All questions of the task must be addressed in detail.
The contracts you prepare will be used as part of your next assessment 2 Role play demonstration
You will utilise these contracts when you will be role playing your professional ‘negotiating skills.’
SITXMGT002 Establish and conduct business relationships
SITXMGT002 – Assessment Booklet –Student copy
Scenario – Part A
You are the Head chef and Owner of ‘PAX café’.
PAX café offers catering as a service for the surrounding offices and other businesses.
A new accounting firm (ABC Accounting Inc) has opened near your café and the Personal assistant (PA)
of the accounting firm came into the cafe to inquire if you offer office catering.
As this is one of the services you offer. You will need to commence the process of negotiating a business
to business contract for supply of goods and services.
Using the ideas and information you have learnt throughout this unit, develop an ‘Action Plan ‘in the
form of a professional report. Your report is a full outline on the steps you took to:
1. Initiating, the agreement
2. Negotiating contracts
3. How you will maintain your new business relationship with ABC Accounting Inc.
4. Finally, a completed contract based on the above scenario and your research.
Your ‘ACTION PLAN’ /Report needs to include the following:
What goods and services will be provide/purchased and at what price?
Names of all parties involved, and dates commenced to and from.
Do further research on contract law. Ensure that your prepared contract complies with State and federal
business laws.
Your contract between Pax Café and ABC Accounting Inc needs to cover as a minimum the following key
components of contract law in particular:
1. Terms and obligations of contract
2. Methods of contractual agreement
3. Exclusion clauses
4. Dispute resolution clause
5. Termination of contracts
Consider these questions in your research and address these areas in your action plan report and final contract. ✓ What are the terms of trade? ✓ Are you offering a business account – if so how many days credit will you allow? What are the consequences of late or non-payment? ✓ You will need to consider any additional staff or resources required to fulfil your contract to the customer. Have you considered these costs in your final negotiated price? ✓ When do you require final numbers for ordering? Do you require deposits/ if so how much? ✓ What are the options for special dietary requirements? ✓ What are your policies for order cancellations? ✓ You will also need to include a clause of terminating the contract for both partiesConsider these questions in your research and address these areas in your action plan report and final
contract.
✓ What are the terms of trade?
✓ Are you offering a business account – if so how many days credit will you allow? What are the
consequences of late or non-payment?
✓ You will need to consider any additional staff or resources required to fulfil your contract to the
customer. Have you considered these costs in your final negotiated price?
✓ When do you require final numbers for ordering? Do you require deposits/ if so how much?
✓ What are the options for special dietary requirements?
✓ What are your policies for order cancellations?
✓ You will also need to include a clause of terminating the contract for both parties..
Scenario Part B
The accounting firm have staff that have special dietary requirements. The accounting firm has requested if you supply gluten free products. Unfortunately, you do not have gluten free products and you have considered that it would be too risky for you to make them in house for Health and safety reasons. As this is a special customer request and a requirement to enter into a potential business contract you will need to find a solution that meets the customer s needs and allows you to make a profit. Your local research resulted in you finding a specialised company – ‘Gluten Muten’ that manufactures gluten free products which can also deliver to your café. As head chef of the PAX café it is role to arrange and establish a meeting with this new supplier regarding your wholesale gluten free products. Follow the similar process from part B except you create a separate contract document between ‘Pax Café and your new supplier ‘Gluten Muten’Scenario Part B
The accounting firm have staff that have special dietary requirements. The accounting firm has
requested if you supply gluten free products.
Unfortunately, you do not have gluten free products and you have considered that it would be too risky
for you to make them in house for Health and safety reasons. As this is a special customer request and a
requirement to enter into a potential business contract you will need to find a solution that meets the
customer s needs and allows you to make a profit. Your local research resulted in you finding a
specialised company – ‘Gluten Muten’ that manufactures gluten free products which can also deliver to
your café.
As head chef of the PAX café it is role to arrange and establish a meeting with this new supplier
regarding your wholesale gluten free products.
Follow the similar process from part B except you create a separate contract document between ‘Pax
Café and your new supplier ‘Gluten Muten’