Establish and Conduct Business Relationships Project Assignment

This project delves into the critical aspects of establishing and managing business relationships, specifically focusing on supplier selection, negotiation, and contract management within an organizational context. The assignment requires the student to select three current suppliers and analyze their products/services, key performance indicators, and research alternative suppliers to obtain competitive quotes. A detailed comparison of existing and potential suppliers is conducted, evaluating factors such as quality, price, payment terms, service provisions, reliability, and specific organizational needs. Based on this comparison, the student recommends whether to replace existing suppliers and identifies key negotiation points. The project further involves observing and documenting negotiation processes (real or simulated), followed by drafting contract agreements based on the negotiated outcomes, including supply conditions, payment terms, specifications, warranty, liability, intellectual property, confidentiality, insurance, dispute resolution, and termination clauses. The student then finalizes the agreements with the suppliers, creating and confirming the final contracts.

Establish and Conduct Business Relationships
Name
School institution

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 organization (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:
George Weston Foods
Products or services provided:
Bread and bakery products
Supplier 2:
Coca-Cola Amatil
Products or services provided:
Non-alcoholic ready-to-drink beverages
Supplier 3:
Nestlé S.A.
Products or services provided:
Food and beverage
2. List the key performance indicators/specifications that are required for the supply
of each product or service from each supplier.
a. Coca-cola Amatil - Quality vehicle fill by payload weight, load height and load unit
numbers.
b. George Weston Foods - Time utilization, which is the measure of what vehicles do
every hour.
- Speed

c. Nestlé S.A. – Reduced deviation from schedule resulting in timely deliveries.
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.
Coca-cola alternative suppliers - Cocacola has other competitors like PepsiCo.
Nestle –An alternative supplier is Mondelez.
George Weston Foods – An alternative supplier Bakels.
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
-Advantages-
PepsiCo is a big company whose brands are internationally known and recognized thus its
brand quality is good.
-Mondelez has great quality food and beverages whose quality can be trusted
- Bakels offers products of high quality and has a recognized brand.
-Disadvantages-
In as much as PepsiCo, Bakels and Mondelez are known brands, the organizations need to
improve the quality of products to meet quality standards.
 Prices
-Advantages-
-The prices of Pepsico products are much lower as compared to Coca-cola products.
-Mondelez offers fair priced food and beverages.
-Bakels products have standardized prices.

-Disadvantages-
- Although PepsiCo’s products are much lower in prices as compared to Coca-Cola,
they are still high for their quality.
- Mondelez offers fair prices which has made people overlook the quality of the
products since “prices determine quality”.
-Bakels has standardized its prices which have been an advantage to the company but
has resulted in reduced company revenue.
 Payment conditions
-Advantages-
The companies allow for payment upon receipt and inspection of the products.
 Service provisions
-Advantages-
For small purchases, Bekels has services which seem to be better as compared to
George Weston Foods.
Mondelez and Pepsico have great customer service through the provision of fridges
and other after-sales services which assist in the preservation of products.
-Disadvantages-
Bakels require the client to pick the products from the center. Pepsico and Mondelez
value the larger customer more hence tend to ignore the smaller customer.
 Reliability
-Advantages-
The three suppliers are reliable as they deliver products on-time with minimum
delays.

-Disadvantages-
PepsiCo gives liability to the customer on minor delivery mishaps.
 Specific needs of your organizations (quantities, $ terms, purchasing power
etc.)
-Advantages-
Bakels has a better understanding of the company products and the requirements. It is
also easy to communicate with and great customer care staff. Mondelez and PepsiCo
have reduced prices on large quantity orders.
5. Based on your comparison, write a recommendation for whether one or several new
suppliers (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?
Bakels should be considered to replace George Weston Foods to become the supplier of
bread and bakery products. The lead time and product prices will need to be negotiated.
6. How are the relationships with existing suppliers managed in your organization?
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)?
Suppliers are prequalified on a quarterly basis which ensures that the company has a pool
of trusted suppliers we can purchase from. This assists in quick communication with the
suppliers when there need to purchase new stock. Only prequalified suppliers are allowed
to submit quotations hence assisting in overcoming supply and service issues. Where the
provisions do not exist, the recommendation is to formulate new contractual agreements.

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 organization’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
organizational 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 Bakel foods replacing George Weston foods
represented by: morata

Location Sydney Australia
Date 26/11/2018
Nature of negotiation Price negotiation and bargaining
Details Price Reductions
Bonuses and discounts
Bulky supply
Volumes of product supplied
Ordering periods

Negotiation 2
Real Negotiation Simulated Negotiation
Supplier details Mondolez replacing Nestle
represented by: Malcolm
Location Victoria Australia
Date 26/11/2018
Nature of negotiation Dispute resolution and customer the
Details
Improvement of the brand quality
Payments terms and customer service
Returns of defective goods
Delivery issues

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 Approve
d
Not
Approved
Recommended Change
Contractual detail 1 Approve
d
Prices to be reduced by a
desirable margin to maintain
customer loyalty
Contractual detail 2 approved Discounts and bonus be
awarded upon bulky
purchases
Contractual detail 3 approved The volume of supplied items
should be as per the number
of items ordered
Contractual detail 4 Not
approved
Goods should be provided in

bulk and weekly
Supervisor Name
Supervisor Signature
Date
Supplier 2 Approved Not
Approved
Recommended Change
Contractual detail 1 Not
approved
The brand quality should be
improved and more
ingredient added to the
existing products

Contractual detail 2 approved The products should be
delivered right as per time
ordered
Contractual detail 3 approved Defective products being
returned or exchanged with
the right product
Contractual detail 4 approved The payments should be done
after delivery and products
must be attractive to
customers
Supervisor Name
Supervisor Signature
Date