SITXMGT002: Business Relationship Project - Cascade Hotel

This project, completed as part of a Diploma of Hospitality Management course, focuses on establishing and conducting business relationships, specifically within the context of a hotel complex seeking garden supplies and maintenance. The project encompasses several key components: Task 1a involves selecting a supplier (Kenchi Lifestyle Gardens) and identifying relevant items for the project. Task 1b entails preparing a report that delves into the supplier's company culture and financial considerations, including the maximum budget and maintenance costs. Task 2 presents a role-play scenario between the purchasing manager, the supplier's manager, and a designer, simulating a negotiation process to determine the terms of supply, installation, and maintenance. Finally, Activity B includes a detailed supply agreement outlining the agreed-upon terms, payment schedules, and conditions for the project. The project demonstrates the student's understanding of negotiation strategies, contract development, and the importance of maintaining sound business relationships in the hospitality industry.

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DIPLOMA OF HOSPITALITY MANAGEMENT
(Name)
(University)
(Professor)
(Date)

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1. (d) Avoid stereotyping those you are dealing with, as everyone is an individual and
should be treated as such.
2. (a) Be professional, know your product, listen carefully, and ask questions to show
you are interested and want to understand.
3. (c) Invite them to your restaurant for familiarisation and a meal.
4. (d) All of these are good ways to conduct negotiations.
5. (b) Your objectives, needs, and limitations.
6. (a) All of these are good ways to achieve win/win negotiations.
7. (a) Numbers of each item required to service current and forecasted customer
bookings.
8. (d) The general manager, food and beverage manager and possibly the chef.
9. (a) In writing according to organizational requirements, using formal contracts where
appropriate.
10. (d) The accountant.
11. (a) The business’s lawyer.
12. (d) All of this information helps maintain sound business relationships.
13. (c) Honor agreements within the scope of your responsibility and comply with agreed
terms of contracts.
14. (b) Internal KPIs and contractual KPIs.
15. (a) Discuss the possible causes of the problems with the supplier, negotiate a
solution, and adjust the contract if necessary.
16. (c) Different people respond better to different styles of communication, and this can
also vary depending on the formality of the situation.
 Task 1a: The area chosen by students in Garden Supplies and/or ongoing maintenance.
In the study process, there is a limitation of time since there are only three months within
which the work has to be completed. The price and capacity of a given supplier to supply the

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needed products and services within the stipulated time frame are the major considerations
that have to be made.
The company which has been selected for this supply is Kenchi Lifestyle Gardens-
Landscaping department. This is a company that is based in Tweed Heads and a long clean
and proven record of providing landscaping services ranging from medium to large scale
through projects they have already completed. The website which is available for the
company is https://www.kenchi.com.au.
Kenchi Lifestyle gardens have a list of government, statutory bodies, and local councils as
part of references for the projects they have successfully worked on.
Task 1b: Report
Introduction
After selecting a supplier, there is a need to find out more information about the supplier
especially when it comes to people and the culture of the company. From the research which has
been conducted it has been established that aspects of culture which this business takes part in
include operation carried out in Fiji, New South Wales and Sunshine Coast. As a company,
Kenchi Lifestyle Gardens has a set of care and sustainability policies for the community.
Body
The highest BATNA amount of money which can be spent on the purchase and installation of
the required garden supplies is $120, 000. This also calls for maintenance which has to be done
every two weeks at $ 800 per month. This is the highest amount of money that can be spent on
this venture. Kenchi will remain responsible and bear the cost of removing rubbish during the
installation process. The management of the complex requires that in case there is damage that
will be caused by adverse weather conditions and accidents at the premises then the mess should
be cleaned within 48 hours from the time such an uncertainty happens. Even though the company
has an insurance cover for this but there is a need to maintain a tidy environment so that the
business processes are not interfered with by any chance. There should be a negotiation for the

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supply of appropriate decorations for the current garden like plants or any other appropriate
product which can serve the same purpose (Kennedy Gavin 2017).
Three students will be representing the purchasing manager, owner of Kenchi Lifestyle Gardens
and a designer from Kenchi respectively during the negotiation. A contribution will have to
come from the manager of the company whose role will be to approve the amount of money that
will go to purchasing and installing the garden supplies plus maintenance of a two-week basis.
After confirmation with the manager of the company, the same results will be sent to the general
manager.
Meeting Agenda for the negotiation
The objective of this meeting is to establish the details about the supply, installation, and
maintenance of garden supplies.
Date: 29/2/2020 Location: Board Room, Cascade Hotel Complex
Time: 8.00 a.m. Type of meeting: Contract Negotiation
Estimated meeting duration: 1 hour: Chairperson: Otto Von Bismark
Attendees: John Grant- CEO of Kenchi Lifestyle Designs
Jefferson Watson- Garden Designer Kenchi Lifestyle Designs
Otto Von Bismark- Purchasing manager Kenchi Lifestyle Designs
Preparation:
Bring Cascade Hotel Complex Architect’s Plan Seating: around Table
Writing Paper / Pens Water, Tea and Coffee on the side table
Items to be discussed:
1. Market position for the two businesses about responsibility to the community.

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2. Supply and installation of the garden supplies.
3. Complementing of the new landscape to the existing design.
4. Cost of the project and terms and conditions.
5. Maintenance of the garden
6. Cost of maintenance and its terms and conditions
7. Clean-up of weather and accident damages.
New Action Items:
1. Expected Next Step: Signing of the Supply agreement contracts by 3.3.2020.
2. Other Actions: Nil
Conclusion
An interactive approach to the interview will be taken to allow for a win/win situation as the
parties reconcile their positions towards reaching a benevolent agreement. The approach has
been opted for because it results in a very stable and long-lasting relationship that will benefit the
maintenance program which has to continue for a long time.
Task 2: Role Play
Otto Von Bismark: hello and welcome to this meeting, I am the purchasing manager of this
Company.
John Grant: Hello, I am the Manager of Kenchi Company and am seating here on behalf of the
management and ownership of the company.
Jefferson Watson: Hello, I am the designer at Kenchi Company and am here to take care of all
design matters and issues.
Otto Von Bismark: let us start with Grant.
John Grant: thank you very much, I am glad to inform you that Kenchi Lifestyle Designs is
currently the largest landscaping company in this part of the country. We have had the

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privilege of working on different projects as you can see from copies of contractual
agreements that I have carried to this meeting. From this, we have gained more
experience and are ready to take the task once an agreement has been reached.
Jefferson Watson: when it comes to the quality of designs that Kenchi has done, we hold an
admirable image because of our exceptional designs. I am happy that the existing
landscape at Cascade Hotel is friendly and easy to work on when it comes to the
construction that we are expected to carry out. I have an architect's plan of how the
renovations will be carried out.
Otto Von Bismark: could it be possible to opt for another type of design that will be different
from the one you have presented before me?
Jefferson Watson: there is a need to appreciate that we are not demolishing the whole structure to
reconstruct it again. Given that we are just renovating then we are compelled to do it in
line with the original structure of the house with just minimal changes to it. For instance,
if you take a look at this two brochure one for the national hospital and this for the
ministry of sports where we had to carry out similar renovations. We had to stick to the
style that was already in existence after the work had been done, the outcome was
pleasing to the eye. Furthermore, we understand that you are already promoting the hotel
and the renovation will be completed after three months to allow the business to kick-off
without delay.
John Grant: please take note that as a company we have been able to deliver our projects on time
whenever deadlines have been set and this will not be an exception.
Otto Von Bismark: that sounds pleasing, given that you have some understanding of the
operations we have to go through as a business, it becomes important for Kenchi to
provide us with a maintenance schedule which will be done twice a month so that we can
plan appropriately according to the schedule.
John Grant: as a company, we have many arrangements of that nature and they are running
smoothly.
Otto Von Bismark: what plans do you have with rubbish?
Jefferson Watson: we shall remove any rubbish which results from the renovation.
Otto Von Bismark: we need to maintain a good name for our business.

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John Grant: we have many clients whose concerns are similar to yours are we are meeting their
expectations appropriately so do not worry.
Otto Von Bismark: what about the appropriateness of a twice per month maintenance plan?
Jefferson Watson: that is fine with us.
Otto Von Bismark: can we now negotiate on the performance indicator or are you in need of any
information.
John Grant: kindly allow us 5 minutes to calculate the cost of your project. (Otto Von leaves and
comes back after five minutes). We are in a position to supply and install the garden at $
50, 000 which should be paid after the project. We will make sure that the style and type
of plants in the garden have been marched with the ones we will bring in during the
renovation.
Otto Von Bismark: What about the twice per month maintenance.
John Grant: We shall provide maintenance at $900 per month which should be paid at the end of
every month.
Otto Von Bismark: my manager had budgeted for $800 per month, can we make it $850 per
month?
John Grant: we will agree with that.
Otto Von Bismark? Can we agree on a 48 hour to clear any mess that will because of nature and
accidents?
Jefferson Watson: it might not be possible to tell the extent of cleaning that needs to be done
after the accident or damage, we shall, therefore, send someone to assess it within the
shortest time possible then we do the cleaning after the assessment.
Otto Von Bismark: I understand your take on that. Apart from what we have agreed on as the
payment, can we do with a 5% penalty when the deadline is surpassed?
Jefferson and John: yes, we are agree
Otto Von Bismark: Thank you for your time and I am looking forward to having a smooth
relationship with Kenchi Lifestyle Designs.

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Activity B
SUPPLY AGREEMENT
THIS SUPPLY AGREEMENT (the “Agreement”) dated this 3rd day of March 2020
BETWEEN:
Otto Von Bismarck on behalf of Cascade Hotel Complex
146 Midshipmen Drive, Eden’s Landing, Queensland’s, 4120
(The “Buyer”)
- AND –
John Grant of Kenchi Lifestyle Designs on behalf of Garden Supplies and Maintenance
59 Recreation Street, Tweed Heads, Queensland’s, 2785
(The “Supplier”)
This contract undersigned by representatives from both sides namely the buyer and the seller
guides the supply, installation, and maintenance of garden fixtures. The terms and conditions
which are operational include the following:
a. To supply and install a garden within three months to be paid at the end of the
project at $50, 000.
b. A penalty of 5% applies if the project is not completed within the stipulated time.
c. Use of alternative plants for the garden just provided that they match with what is
already in the garden. This will be done in consultation with the purchasing
manager of the hotel.

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d. Maintenance of the garden which was to be done twice a month for $850 per
month.
e. In case there are an accident or nature damages the hotel premises a representative
from Kenchi will inspect the damage within the shortest time possible and provide
an estimate of the cost and time within which it will be cleaned.
f. The project has to be completed within three months.
g. An assessment of the completed project will be done and once the buyer is satisfied
that indeed work has been completed the payment will be done.
h. The buyer will cooperate and provide access to the premises during the renovation
process for ample work.
i. In case the supplier is not able to access the premises at the fault of the buyer then
the project period will be extended by the time during which a delay was
experienced for compensation.
j. In case of any damage to the property at the premise as a result of the negligence of
the supplier during the renovation process, the supplier will have to bear the risk.
k. For paragraph (j) to be operative, the supplier will assess any form of damage in
the presence of the buyer before the renovation process starts.
If by any chance this contract has to be terminated then the following terms and conditions will
apply.
a. A party that intends to terminate this contract will notify the other party three months
before the termination is done.
b. Termination as per paragraph (a) will only become applicable if:
i. The other party fails to adhere to the terms and conditions of the contract.
ii. When the other party is no longer in a financial position to keep the contract
operational due to bankruptcy, a natural calamity which interferes with the
operation of the company and.
iii. If there is any other reason which can be explained clearly to the best
understanding of the other party.
c. If by any chance a contract has to terminate then the two parties have to agree on the
finalization process so that every party feels satisfied with the finalization process.

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d. If the two parties cannot agree to better terms and conditions as a result of the discussion
themselves then they will have to seek a third party to help them resolve just provided
that the third party has been accepted by the law and they will only provide guidance in
the negotiation process.
e. If the issue cannot be resolved by a mediator then a court of law will come in to help the
two parties reach a consensus.
No alteration of this Agreement will be operative unless it is in the inscription and is signed by
both parties. A party which seeks to make a change to this contract must do it through the
following steps:
a. Notify the other party of the intention to make changes.
b. Explain why the changes have to be made to the other party
c. Discuss with the other party after getting its view on the intended change
d. If an agreement on the changes is reached then a change is made.
e. An addendum is provided with these changes
f. In case the two parties do not agree on the changes proposed and the bargaining done
does not yield fruits then the contract to either remain operative, be terminated or be
revised in its entirety.
This Agreement binds and profits both parties and successors who are legalized recognized. Any
activity by a representative of any of the two parties to the contract such that it results in a loss or
an extra cost on the other party will be bared by the party represented by in such an act. All the
parties and their representatives have to act in a manner that reduces chances of loss to another
party failure to which the first part of this paragraph will apply.
Time is of the core of the contract. This document, and any attachments, is the entire contract
between the parties. This Agreement is governed by the laws of the State of Queensland,
Australia.
The parties have signed this contract on the date specified at the beginning of this contract.
John Grant on behalf Kenchi Lifestyle Supplies _____________________ (Signature)
Otto Von Bismarck on behalf Cascade Hotel Complex _____________________ (Signature)
John Grant By: Otto Von Bismak
(Name) (Name)
Witness (name): Jefferson Watson Witness name:
Witness Signature: ______________ Witness Signature: _______________

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This contract will become operational on the date the second and last signature is appended to it.
This contract will be prepared in quadruplets where the first copy will be sent to the seller, the
second copy belongs to the Purchasing manager of the hotel complex, the third copy will be kept
by the finance department and the last copy belongs to the general manager of the hotel.
This contract is only valid when it is signed and stamped by both parties and their representatives
and without this, it remains invalid and not legally binding.
Activity C:
1. To maintain a long term business relationship then efforts must be made just like one has
to do in another type of relationship. This will be done through several things which
include strong communications lines so that one can get feedback and important pacts of
information from the other party. There is a need also to make sure that one has adhered
to the agreements reached between them and the other party in terms of payment and/or
delivery of services.
2. The supplier has been given a project to supply, install and maintain the garden regularly.
To maintain contact with them I would keep updating them on defective areas that
require maintenance so that they can address it. I will also make sure that I remind them
of the forthcoming scheduled maintenance according to the maintenance schedule
provided by the company two days before the day they are supposed to provide the
service. During the supply and installation process, contact can be maintained by seeking
an update on the progress of the project so that I can tell whether they are going to finish
on time and they are doing the right thing according to the agreement reached (Brett,
Jeanne, and Leigh Thompson 2015)
3. I will comply with the terms by making payments through the finance department as
agreed. This will mean that a copy of this contract will be sent to the department so that
as the company strives to do their part, we as a hotel are also doing our part to ensure that
a strong business relationship has been created and maintained for a long time.
4. According to the contract, any changes which have to be made on the contract have to be
shared and agreed upon by the two parties. This will mean that sharing of the information
about the changes made remains imperative so that the other party to the agreement can
ascertain the changes (Geirhofer, S., Bhushan, N., Palanki, R., Damnjanovic, A. and
Agashe, P.A 2017). The changes made will be shared with both the contracting parties,

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the finance manager and the general manager of the hotel so that they are kept in a
picture of what has changed for their action whenever it is deemed necessary.
SECTION 1: BUILD BUSINESS RELATIONSHIPS
1. You're a senior sales representative of tour operation. You're about to visit China to meet a
travel agent to promote your holiday package. You don't know anything about China.
Explain how you would go about establishing an ongoing professional relationship.
To establish a long-lasting professional relationship with a travel agent I will have to do
many things like, I will develop my people skills so that when I met the other person we
can interact professionally and purposefully. I will then identify the reasons why I need
such a relationship so that when it is established I have goals behind my mind to guide
and govern the relationship (Gelfand, Michele J., and Christopher McCusker 2017). I will
then spend time building the relationship during which I will take care of my emotional
intelligence, remain positive, appreciate the other party for their time and support and
make sure that my boundaries have been managed appropriately.
1. Business relationships happen in a commercial context and vary depending on industry
structure and interrelationships. List two external customers you would form
relationships within each category.
Essential service suppliers
a. Raw material suppliers
b. Input suppliers
Hospitality suppliers
a. Hotels
b. restaurants
Communication suppliers