SITXMGT501 Establish & Conduct Business Relationships - Assignment D & F - Case Study & Task 1

SITXMGT501
Establish & Conduct Business
Relationships
Assignment D- Case Study & F- Task 1
Student Name:
Student ID:
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Contents
Case Study.......................................................................................................................................3
Introduction..................................................................................................................................3
Question 1: What two areas have you chosen to use as the basis for your negotiation?.............4
Question 2: What information must you research before you make initial enquiries with
potential suppliers?......................................................................................................................4
Question 3: Once you’ve contacted suppliers to negotiate with, research the people and the
organisation. Describe the results of your research and the cultural factors you’ll need to
consider during negotiations with two different suppliers..........................................................4
Question 4: When negotiating with both suppliers, list the following for each supplier:...........6
Question 5: What concessions are you prepared to make during negotiation to achieve your
objectives for each supplier?.......................................................................................................8
Question 6: Where will the negotiations for each supplier take place?.......................................8
Question 7: List the internal and external issues that could affect the business negotiation as
well as any challenge you might occurring during the negotiation process for both suppliers.
Describe how you will deal with it..............................................................................................8
Question 8: Who will you communicate the results of negotiation to?.......................................9
Question 9: Write a meeting Agenda for Each of the Negotiations............................................9
Conclusion.................................................................................................................................10
F – Task 1......................................................................................................................................11
Contract 1: Agreement for Supply Of Furniture Goods............................................................11
Contract 2: Agreement for Supply Of Service Equipment........................................................15
References......................................................................................................................................19
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Case Study
Introduction
Negotiation is the process where two parties mutually consult their respective problem and try to
reach at a common and positive outcome. Negotiation is a mode under the contract law to set
aside the differences through mutual consent. There are various problems faced by parties when
contracting with each other regarding mode of acceptance, delivery of product or goods,
payment, mode of payment etc. Negotiation is a part of contract which allows parties to settle
disputes related to the contract signed between the parties on which parties think further issue
may arise. This process basically is done in the present of representatives of both the parties.
They come together and put forward their issues and expectations from the contract. Both parties
try to solve each other problems through compromise in some or other way. At the end of the
process both the parties have an option to either agree or disagree. If the parties disagree than the
agreements comes to an end at that very point of time. If the parties agree to the terms they can
finalise the terms and conditions of the contract by approval from their respective authorities.
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Question 1: What two areas have you chosen to use as the basis for your negotiation?
Considering the immediate requirement of products and work of renovation of the hotel’s bistro
the chosen areas for the negotiation are:-
1. Furniture: tables, chairs and service stations
2. Service Equipment: glassware, cutlery, crockery, etc.
Question 2: What information must you research before you make initial enquiries with
potential suppliers?
There are a number of factors which affect the point of negotiation between suppliers.
Negotiations are done on the basis of various aspects such as reputation of the supplier in the
market, work culture of the supplier, the consequences of a previous contract or agreement (if
any) and distance as it will decide how much time it will take to actually deliver the products.
The background check of the supplier company as well as the financial background so that there
is no further issue regarding the loyalty of the supplier (Bryman, & Bell, 2015).
Question 3: Once you’ve contacted suppliers to negotiate with, research the people and the
organisation. Describe the results of your research and the cultural factors you’ll need to
consider during negotiations with two different suppliers.
The consequences of negotiations depend on how well the starting negotiations were made.
There should be a lot of care and diligence taken while starting a negotiation. If opening of
negotiation is not good than the negotiation may fail as a consequence. It is better to judge the
other side before taking to them regarding their expectations and if there any possibility that their
expectations can be fulfilled. Try not to leave too much money on the table while negotiating as
it lowers down repute in the eyes of other party and they may take you for granted in future
contracts (Hakansson, 2014).
There are more chances of acceptability of the negotiations if you try to manage the expectations
of the other party and it should start at very beginning of the negotiation talk. These talks should
be done at a moment when you are trying to take out their expectation. Management of
expectation can change the outcome of the negotiation.
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