CCHD 1.1 SITXMGT002 AssTool 2

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Qualification: SIT50416 Diploma of Hospitality Management

Cluster number and name: CCHD – 1.1 Business relationships
Units of competency: SITXMGT002 Establish and conduct business relationships
Student’s ID and name: 45350 jina kim

Assessor’s name:
ASSESSMENT TASK 1: KNOWLEDGE QUESTIONS

Assessment type:
 Written Questions
Instructions provided to the student:
Assessment task description:

 This is the first (1) unit of assessment task student has to successfully complete to be deemed
competent in this unit of competency.
 The Unit Knowledge Test is comprised of nineteen (19) written questions.
 Student must answer all the question and submit them to the Trainer/Assessor.
 Student must answer all questions to the required level, e.g. provide the number of points, to be
deemed satisfactory in this task.
 Trainer/Assessor is required to provide the feedback within two weeks and notify students when
results are available.
Applicable conditions:
 All knowledge tests are untimed and are conducted as open book tests (this means student can refer
to textbooks during the test).
 Student must read and respond to all questions.
 Student may handwrite/use computers to answer the questions.
 Student must complete the task independently.
 No marks or grades are allocated for this assessment task. The outcome of the task will be Satisfactory
or Not Satisfactory.
 Trainer /Assessor must assess student’s written skills and knowledge as he/she complete this
assessment task.
 The trainer/assessor may ask student relevant questions on this assessment task to ensure that this is
his/her own work.
 Where a student’s answers are deemed not satisfactory after the first attempt a resubmission attempt
will be allowed.
Location:
 This assessment task may be completed in a classroom, learning management system (i.e.
Purpose of the assessment

This assessment task is designed to evaluate student’s knowledge essential to establish and conduct business
relationships in a range of contexts and industry settings & Knowledge regarding to the following:
 Knowledge to establish relationship in line with organisational requirements and protocols and use
effective communications skills and techniques to build business relationships.
 Knowledge to proactively identify and take up opportunities to maintain regular contact with
customer and suppliers
 Knowledge to use various negotiation techniques to maximise benefit of relationship for all parties.
 Knowledge to analyse and incorporate feedback and input from colleagues into negotiation where
appropriate.
SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 1 of 52

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Knowledge to communicate results of negotiations to required stakeholders and colleagues within
required timeframes.
 Knowledge to confirm agreements in writing based on organisational requirements and using formal
contracts where appropriate.
 Knowledge to obtain approval for all aspect of formal agreements based on organisational procedures.
 Knowledge to evaluate and act on the need for specialist advice as required.
 Knowledge proactively seek, review, and act upon information needed to maintain sound business
relationships.
 Knowledge to honour agreements within scope of individual responsibility, complying with agreed
terms.
 Knowledge to take account of agreed performance indicators.
 Knowledge to make adjustment to agreements in consultation with customer or supplier and share
information with appropriate colleagues.
 Knowledge to nurture relationship through regular contact and use of effective interpersonal and
communication styles.
 Knowledge to collect, review, interpret/understand and analyse/review text-based business
information from a range/number of sources.
 Written knowledge to organise and deliver information to effectively communicate to a range of
stakeholders/interested people.
 Numeracy/numbers- mathematical Knowledge to interpret/understand mathematical data when
reviewing and analysing scenario/setting-situation business information.
 Knowledge to interact/cooperate with others using appropriate conventions/systems when
communicating to, and consulting/discussing with stakeholders/interested parties.
 Knowledge to analyse relevant/appropriate information to identify scope/range of work, goals and
objectives and to evaluate/review options/other choices.
 Knowledge to initiate and enterprise to proactively seek opportunities for building business
relationships.
 Knowledge to use familiar/known digital technology to access/get to information, document
findings/results and communicate them to stakeholders.
Assessment Conditions
 Skills must be demonstrated in an environment or activity in any industry sector where contracts are
negotiated and agreed. This can be:
 an industry workplace
 a simulated industry environment.
Assessment must ensure access to:
 other people with whom business relationships can be established; these can be:
 those in an industry workplace who are assisted by the individual during the assessment
process; or
 individuals who participate in role plays or simulated activities, set up for the purpose of
assessment, in a simulated industry environment operated within a training organisation.
 materials that support the negotiation process:
 preparatory facts and statistics
 key performance indicators
 market information.
Questions:

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1.1. Explain the following institutions with whom a business may seek to establish business
relationship based on organisational requirements and protocols. Answer each way in 50 – 75
words.
a. Cooperative partner with organisation
b. Contractor
c. Customer
d. Networks
e. Supplier
a. cooperative partner with organisation
A business may also use the following loose classifications of customers to describe. Business
should join a relevant organisation if it is not already a member, and mutual support so the
relationship is genuinely cooperative where all parties help. establishes and conduct business
relationships. Agreement may relate to corporate accounts, service contracts, agency agreements.
Conduct negotiations in the context of current organisation goals. Confirm agreements in writing
according to organisational requirements.
b. contractor
a contractor agreement should at least address the following issues.
Agreement to provide services rather than contract of service, duration, obligations of the parties,
service fees, performance review, ability of contractor to assign benefit of contract, equipment
and expenses, insurance.
General distinction between employees and independent contractors for distinguishing and
employment from an independent contracting relationship established safety protocols, provided
safety training, provided clothing
c. customer
these are the people who deal with or buy from the business. Customers may also be referred to
as clients or patrons.
Customers may be divided into, or classified in many ways, often aligning with marketing or sales
targets or business specific target markets such as:
Corporate customers and clients
Government customers such as local and or national government agencies
d. networks

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business networking is the process of establishing a mutually beneficial relationship with other
business people and potential clients or customers. Business networking benefits are the
intangible gains made by communicating with other professionals in or relating to your industry.
Networking provides great opportunities to establish business contacts and referral networks. This
is probably the most widely known benefit of networking businesses network in order to reach
more people, generate more referrals and, in the process, increase the amount of business that
the company is getting.
e. supplier
these are businesses or individual who provide products and service to the
wholesale businesses: these are businesses who sell only to the retail sector. They will buy from a
manufacturer and on sell to the retail sector
retail businesses: who buy from wholesalers and on sell to members of the public, private
individuals and other businesses
combined wholesalers: retailers
suppliers are important to businesses because they provide the goods a business sells and they
provide a variety of services the business requires to sustain its ongoing presence in the
marketplace.
1.2. List any eight (8) effective communication skills and techniques that can build business
relationships.
1. eliminate assumptions
2. find a good place and time for all involved to talk
3. to be heard, listen first
4. ask questions
5. expressing emotion is important, but always respectful
6. pay attention to nonverbal messages
7. recognize and reinforce positive behaviours
8. be patient and don’t expect miracles
1.3. Explain the following opportunities for maintaining regular contact with customers and suppliers
in hospitality industry. Answer in 50 – 75 words.
a. Association membership
b. Cooperative promotions
c. Industry functions

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d. Informal social occasions
e. Program of regular telephone contact
f. Social media
a. association membership
should make an effort to attend its meetings and functions to get a feel for what it is all about.
At these meetings
introduce yourself, explain your role and distribute business cards obtain contact
details of others and promise to make contact
off to be of use to others and to participate in efforts the association is making
these efforts often involve:
- industry research
- petitions to government
- applications for funding
- review and or generation of industry standards, codes of practice and similar
Volunteer for office bearer responsibilities be prepared to take on official roles to assist the
association.
b. cooperative promotions
these cooperative promotions may involve:
sharing of market research data relevant to the promotion, target markets being
sharing advertising and promotional costs
developing and offering package deals combining products and services from both businesses.
For example: a cooperative promotion involving a hotel and an airline would feature air travel
and accommodation, food, beverages and entertainment
joint acceptance of reservations and payment element establish and conduct business
relationships
establish and maintain a business relationship
regular contact to communicate progress of the promotion, fine tune activities and revise action
to be taken
mutual support so the relationship is genuinely cooperative where all parties help
support may be practical assistance or it may simply be participating in
discussions and listening to the problems others are encountering.
c. industry functions
again, there are many industry functions ranging from product launches to trade exhibitions,
and they all provide rich opportunities to meet people and establish and build business
relationships.
Should plan attendance at these events:
-Take business card if they do not offer one
-wear a name tag identifying you and the business you represent

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- determine who you want to make contact with plan a strategic approach to making new
contacts, and touching base with established contacts
- take pen and paper to record and capture questions asked of you, promises made and or
arrangements entered into.
d. informal social occasions

can include:
- meetings
- get together
- parties
- business events which always include an informal social component
All relevant industry sectors are characterised by these informal occasions and they present
excellent opportunities to:
- make new contacts
- cement existing ones
- learn new information
To use these opportunities effectively all it takes is the effort to attend, and the desire to
network or work the room.
e. program of regular telephone contact

if you decide to use the telephone you can make regular, inexpensive but much appreciated
contact with suppliers and customers.
Telephone contact is much more personal than an email and enables and encourages two way
communication (as opposed to the very limited benefits of one way communication).
Time to make these important calls should be diarised to ensure the calls are made.
These contacts must be regarded as important and need to be allocated the time and priority
they deserve.
Where people indicate they do not want or appreciate telephone contact make sure you respect
this and stop calling perhaps a letter or email is a better alternative for these people.
Face to face meetings may be even more appropriate.
f. social media
-set up a dedicated handle for social media customer support
- find and monitor conversations relevant to your business
- create social media guidelines
- be proactive
- expand your idea of what customer service can be
- manage customer expectations
- always respond
- respond quickly with templates for common questions

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- try a chatbot for common service requests
- use the right channels most likely face book and twitter
1.4. Explain any five (5) negotiating techniques that can be used to maximise benefits of relationship
for all parties. Answer in 3 -5 lines for each.
1. prepare the right way
There’s danger in over preparing or going about preparation with the wrong mindset of focus.
Novice negotiators often prep by doing hours of in depth research on their counterpart’s
industry, company philosophy, and personal history. You can learn the majority of what you
need to know simply by employing effective communication skills.
2. use emotional intelligence

Emotional intelligence refers to an individual’s ability to recognize their emotions and those of
others, manage their emotional responses, and use internal and external emotional insight to
inform their communication choices, style, and behaviour. Communicating in an emotionally
intelligent way will help you build stronger and more trusting relationships, improve your
conflict resolution abilities, and ultimately improve your effectiveness as a negotiator.
3. listen using tactical empathy

When you become an adept listener it boosts your potential influence. It’s human nature to
enjoy talking about yourself so if you give people the space to do so, you’ll learn what you need
to know about your counterpart in order to gain that influence. Listening will help you pick up
on their emotional triggers and you’ll respond in the most ideal way. If a conversation suddenly
becomes heated, naming your counterparts frustration and demonstrating that you’ve heard
what they’ve said can help reset the conversation and rebalance their emotions.
4. use time to your advantage

A couple ways to use time to your advantage:
Slow the pace of the conversation: doing so will give you more time to understand your
counterpart’s negotiation style and respond in the most effective way.
Allow uncomfortable pauses. Silence encourages your counterpart to speak and provide more
insight into their thought process. It also prevents you from over explaining or appearing
defensive.
5. understand the power of influence

Replace the word leverage with influence and it becomes immediately apparent how flexible
and fluid every situation and negotiation is. To be a successful negotiation, it’s important to

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focus on influence. Influence isn’t dictated by who has objectively more to win or lose. Instead,
influence is earned throughout a negotiation by listening, using emotional intelligence, and
choosing the right communication style.
1.5. Explain five (5) basic Principles of negotiation. Answer in 3 – 5 lines for each.
1. gather your information.
Information is the foundation of effective value creation. Without knowing who our counterpart
is, it is almost impossible to establish any food negotiation points. We must learn who and how
that person/company we are negotiation with is. By knowing that, it will be easier to generate
rapport with them. It is also important to identify the parties goals and issues. We must be
aware of what issues are important for us and what issues are important for them. Also, we
must identify what are our and their positions, interests and priorities in the negotiation.
2. build relationships
Trust is essential for any conflict handling as well as in the value creation of negotiations.
However, trust doesn’t magically appear or has to do with chemical compatibility. It must be
built through relationships and even friendship. Like and project that is worth the effort,
building relationships takes time and dedication. We can start by discovering common
backgrounds and interests. For this matter, we can also include in the negotiation approach
team members that have shared interests with our counterpart. We shouldn’t forget that first
impressions are very important.
3. know your BATNA and your opponents BATNA

BATNA is, we could say that it is what we are going to do if we cannot reach agreement and
how good that option will be for us. We must also know our counterpart’s BATNA. By knowing
that, we could have a better understanding of what the ZOPA of this negotiation will be (zone of
possible agreement). By knowing our BATNA we could also define our botton line or limit. In
other words, the most that we are willing to give or the least we are willing to take to reach a
negotiated agreement.
4. listen
When preparing for a negotiation, most of us will be focused on what we will say. However,
training ourselves to be food listener is also a great strategy. We must pay attention to the
verbal and no verbal communication happening before, during and after the negotiation. This
skill can always reveal better solutions for both parties.

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5. take care of your target.
Target is what you think is reasonably possible to get our of a negotiation. However, the rule is
never reveal your target at the beginning of any negotiation, because your counterpart will
hardly agree with your first propose. For that reason, we should manage our first offers and
concessions carefully. We must remember that after the first offer, negotiators need to make
concessions because they enable the parties to move toward the zone of potential agreement
(ZOPA).
1.6. Explain five (5) stages in negotiation process. Answer in 3 – 5 lines for each.
1. preparation and planning
Before the start of negations, one must be aware of the conflict, the history leading to the
negotiation of the people involved and their perception of conflict, expectations from the
negotiation, etc.
Moreover before any negotiation takes place a decision need to be taken as to when and where
a meeting will take place to discuss the problem and who will attend.
2. definition of ground rules

Once the planning and strategy are developed, one has to begin defining the ground rules and
procedures with the other party over the negotiation itself that will do the negotiation.
During this phase, the parties will also exchange their initial proposals or demands.
3. clarification and justification

When initial positions have been exchanged both the parties will explain amplify, clarify, bolster
and justify their original demands. This need not be confrontational.
Rather it is an opportunity for educating and informing each other on the issues why they are
important and how each arrived at their initial demands.
4. bargaining and problem solving

The essence of the negotiation process is the actual give and take in trying to hash out ans
agreement, a proper bargain.
It is here where concessions will undoubtedly need to be made by both parties.
5. closure and implementation.

For major negotiations, this will require hammering out the specifics in a formal contract.
Negotiation process has five stages. In all steps of a negotiation process, the involved parties
bargain in a systematic way to decide how to allocate scarce resources and maintain each

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other’s interests.
1.7. Explain the importance of incorporating input and feedback of colleagues and stakeholders into
negotiation and communicating these, with the results of negotiation, within appropriate
timeframes. Answer in 100 – 150 words.
As understanding stakeholders becomes more and more important for businesses, stakeholder
consultation will become a vital process to maximize success. Stakeholder consultation can be
used to evaluate reactions and to track the perceptions of a company’s activities, and ensure
collaboration and partnership with all stakeholders. The long term effectiveness of an
organization can depend on its relationships with stakeholders, ensuring commitment and but
in to any future strategies and challenges. This makes for a more informed organization that is
responsive to the need of all its users and stakeholders.
-enable more informed decision making
-lead to greater stakeholder satisfaction
-improves chances of project/initiative success
-promote open, two-way communication
1.8. Why should agreements be confirmed in a formal written contract, based on organisational
requirements? Answer in 50 – 100 words.
Contracts provide a written document that outlines the full understanding of the business
relationship and scope of the work so that no one can claim any misunderstandings later down
the road.
They specify exactly what rights are being purchased and what rights you are retaining.
They are binding and legally enforceable.
They protect both you and the client.
They stipulate how and when you get paid, what needs to trigger that payment, and what
recourses you have if the client stiffs you.
They minimize risk.
Never feel awkward about insisting a client works with a contract. It is a mark of
professionalism and should actually inspire confidence, knowing that you take your business
seriously.
1.9. List any five (5) stakeholders from whom approval, permission and/or signatures must be
obtained before a formal agreement can be entered.
1. government
2. contractors & subcontractors
3. top management
4. external customers
5. suppliers

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1.10. Why it is important to evaluate and act on the advice from specialist. List any three (3) other
legal requirements that impacts negotiations and agreements where organisation commonly
seek specialist advice. Answer in 50 – 100 words.
There are legal obligations for most small businesses. They will vary depending on the nature of
business.
To avoid problems in the future it is important to understand your obligations. Typically, most
business will have some legal responsibilities relating to:
- business structure and registrations
- licensing
- selling goods and services
- contracts
- leasing premises
- employing staff
- occupational health and safety
- privacy and information protection
- intellectual property
Seek advice from a qualified lawyer or contact the law society of WA
Learn more about business contracts
Understand your obligations under the competition and consumer
1.11. Explain any four (4) ways to proactively seek, review, and act upon information needed to
maintain, build and nurture sound business relationships through regular contacts and using
effective interpersonal and communication styles. Answer in 3 – 5 lines for each.
1. be authentic
Be who you are and accept others as they are. It’s easy to create a false Persona, especially
online, but that is not the way to start a relationship and short lived when we start qualifying
people ans companies. Find people and companies you fell a natural connection and ease of
communication with and things you both have in common. the authenticity of connecting
personality, beliefs and point of view can accelerate relationships.
2. develop mttual respect

Find this takes time, unless someone is referred to you by a trusted connection. We prove
ourselves over time and through different activities and experiences. Join a chamber,
professional group, or online community which are all great environments to develop
relationships. Be patient, selective and watch people in action. Building mutual respect is and
essential for growing relationships.

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3. get more personal
If you really want to get to know people, ask them to go for coffee so that you can talk more
personally, one on one. Be willing to share experiences, ideas, points of view and simply learn
more about each other’s story, family and professional history.
4. plan something fun to do together

All work and no play makes us dull. Be willing to go out and do something fun together that
may not have anything to do with work. Music, art, entertainment, meet ups and community
events are all fun things to do to see different sides of people. Not to mention some random and
memorable conversations and laughs that can come out of it.
1.12. Explain how an organisation can ensure that the agreements made during negotiation are
honoured and complied with agreed terms. Write your answer in 50 – 100 words.
Behaving ethically
Contracted staff involved in contract management will usually have clauses built in to their
employment contract ensuring they comply with commonwealth laws and policies,
declare conflicts of interest and not act fraudulently. The contracted staff member may be
in breach of thir contract if they do no uphold these obligations.
Ethical behaviour:
-ensures transparency and accountability in a procurement process
-gives suppliers confidence in their dealings with the government
-can reduce the cost of managing risks associated with fraud, theft, corruption and other
improper behaviour
-supports confidence in public administration
-the need to uphold the APS values and code of conduct
-the need to achieve the contract outcomes
-the need to maintain a positive working relationship with the supplier
As a contract manager, you should ensure all individuals materially involved with the
management of a contract make a conflict of interest declaration and update it on a
regular basis, particularly for longer term contracts. Ensure you get an update or as
required by your entity’s accountable authority instructions or other obligations. There
may be clauses in your contract that require supplier personnel to identify, disclose and
appropriately manage any conflicts of interest.

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1.13. Explain the meaning of performance indicator and explain any two (2) performance indicators
that can be measured in hospitality industry. Answer in 3 – 5 lines for each.
A key performance indicator is a measurable value that demonstrates how effectively a
company is achieving key business objectives. Organizations use KPIs at multiple levels to
evaluate their success at reaching targets.
- ADR: average daily rate
Measured simply as the average price paid per room on a given day. Works well in isolation as
an ongoing performance metric. The ADR is most useful when compared to previous
periods or seasons to identify performance.
Average daily rate = total room revenue / total rooms occupied
- REVPAR: revenue per available room

REVPAR is a very useful measure of performance and it is also one that needs to viewed in the
correct context. Measured by the average daily room revenue generated by available
room, it can differ significantly based on industry specific factors
REVPAR = total room revenue / total rooms available
1.14. Explain why adjustments to the original agreement, in consultation with relevant
customers/suppliers, is sometimes required in 100-150 words. List any three (3) ways to share
information with appropriate colleagues
Even the best plans can go wrong.
The same applies to agreements and arrangements, so there will be instances where
adjustments in consultation with the customer or supplier need to be made from time to time, in
order to achieve the mutually desired outcomes originally agreed on.
This section addresses adjustments which may be made to agreements. Making adjustments in
effect making adjustments alters the original agreement.
This may necessitate alterations to be written into a new or revised contract, and signed by both
sides.
1. deals which required a legal approach in the first place, will also require the services of a
legal advisor when changes are being made.
Your approach to the issue of changes must be the same as your approach to the initial
negotiation you need to be flexible, polite, friendly, and aware of the facts, know the revised
outcome you want to achieve, aware of the constraints and parameters.
2. in lots of ways, factoring in adjustments throughout the period of the formal agreements is
very similar to entering fresh negotiations. Never make changes to existing arrangements,
agreements or formal contracts without consulting the other party.
3. clarify revised arrangements so there is genuine, mutual agreement and understanding.
Determine if extra charges need to be made to reflect the revised agreement
Advise others about the revised arrangements so they can plan and deliver as required.

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1.15. Explain the following commercial context for business relationship in hospitality industry.
Answer in 3 – 5 lines.
a. Industry structure and interrelationships
Hospitality is not only restaurant or hotel. To keep hospitality industry, we need many
factors that is structure. The hospitality industry is made of food or equipment supplier,
human resource, finance. And the industry can also divide in different ways. Commercial
or service sector, profit making or working within a budget, Restricted customers or
open to the general public. To keep hospitality industry, we need tourism industry or
travel industry for more customers. It is called interrelationships. Each industry can get
create a synergy effect.
b. Sources of supply
Hospitality suppliers are food and beverage products producers, furniture producers,
water and energy suppliers, complimentary producers. They provide almost everything
the industry needs. Some suppliers are more professional for their industry such as hotel
bar tap beer supplier or disposal cup or plate suppliers.
c. Distribution and marketing networks
Sources of supply distribute their goods for hotel or restaurant, then hotel or restaurant
distribute the goods with their service for customers. We call it distribution. Supplier
advertise or send salesman to sell their goods and hotel or restaurant try their best to
sell their food or service for customers. It is marketing networks.
d. Professional networks
Professional networking means that to build professional relationships with skilled
worker. By meeting and building relationship, we can get more experience and find
more people are earlier in their careers than us. We can get more confidence and tips to
work this industry from them.

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1.16. Explain effective interpersonal communication skill in 50 – 100 words.
Think of the situation as if you were a defence lawyer and try to prepare for the negotiation as
if you were the other party then prepare your case better. Try to work out what they might say,
what they might present as their point of view, and how they may try to pitch their case. In
negotiation you will need to be especially aware of, and use:
Listening skills: particularly active listening
Questioning techniques: open and rhetorical questions are useful
Body language: be aware of both yours and theirs
Assertiveness: this is not to be confused with aggression
Feedback: need to note the feedback you receive, and be aware of the feedback
You are sending: remember it is feedback that turns a monologue into a dialogue
Timing: be aware it is not only what you say and the way you say it, but it may also
Be important when you say it: if you hold out a while before conceding, the other party will feel
they have achieved more than if you conceded straightaway
1.17. Explain key roles, features and inclusion of a contract in 25 – 50 words each.
-key roles: in business, contracts are important because they outline expectation for both
parties, protect both parties if those expectations aren’t met and lock in the price that will be
paid for services.
- features: a contract has six important elements so that it will be valid which is offer,
acceptance, consideration, intention to create legal relation, certainty and capacity. If the main
elements are not in contract, it would be an invalid contract.
- inclusion: inclusions are a list of all the items in the house that a purchaser will expect to
remain in the property when they take ownership
1.18. Explain any three (3) different types of formal commercial agreements and contracts an
organisation participates on. Answer in 3 – 5 lines for each.
1.Written contracts
Written contracts provide more certainty for both parties than verbal contracts. They clearly set
out the details of what was agreed.
Matters that can be set out in a contract include: materials, timeframes, payments

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A procedure to follow in the event of a dispute
It’s much safer to have something in writing than to rely on someone’s word. A written contract
will give you more certainty and minimise your business risks by making the agreement clear
from the outset.
2. verbal contracts
Many contracting arrangements use verbal contracts, which only work well if there are no
disputes. A handshake agreement may still be a contract and may (though often with difficulty)
be enforced by a court. However, verbal contracts can lead to uncertainty about each party’s
rights and obligations. A dispute may arise if you have nothing in writing explaining what you
both agreed to do.
3. standard form contracts

A standard form contract is a pre prepared contract where:
Standard form contracts often include a lot of legal fine print and terms that you may not
understand. They tend to be on sided documents that mostly benefit the person who prepared
the contract (for example, by shifting as mush risk as possible to the contractor).
If you don’t understand the fine print or any other part of the contract, you should get adivice.
If you sign the contract, you will be required to comply with the fine print, even if you didn’t
actually read it.
1.19. Explain the following components of contract law in 3 – 5 lines for each.
a. Terms and obligations of contract
b. Methods of contractual agreement
c. Exclusion clauses
d. Dispute resolution clause
e. Termination of contracts
a. terms and obligations of contract
contract obligations are those duties that each party is legally responsible for in a contract
agreement. In a contract, each party exchanges something of value, whether it be a product,
services, money, etc. this may result in a damages award to reimburse the non breaching party
for their economic losses.
b. methods of contractual agreement

a contractual arrangement or relationship involves a legal agreement between people. The
company has not fulfilled certain contractual obligations. This will be done by contractual
arrangement.
- written contracts, verbal contracts, part verbal, part written contracts, standard form
contracts, period contracts, getting contract advice.

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c. exclusion clauses
these types of clauses operate to exclude or restrict the rights of a party. For example, if a party
to a contract wishes to limit its liability in the event that it breaches the contract, it will usually
include an exclusion clause limiting the amount of damages that the other party can claim to a
specified total.
d. dispute resolution clause

a dispute resolution clause is a written understanding between you and the other party
specifying what should happen in the case of a disagreement. The agreement will form part of
your contract and set out steps to resolve issues before they escalate.
e. termination of contracts
on termination of a contract, the obligation of t he parties to further performance is discharged,
while any rights which have accrued prior to termination remain. The innocent party will have a
right to damages and one or both parties may have a right to restitution.

ASSESSMENT TOOL

Assessor’s name:
ASSESSMENT TASK 2 – ROLE PLAY

Assessment type:
 Role Play

 This is second (2) unit assessment task that student should successfully complete to be deemed
 This assessment task is comprised of a Role Play.
 This role play should be done based on given case study and scenario.
 Student is required to act as a manager in a hotel to build business relationship, conduct negotiation,
make formal business agreements and foster and maintain business relationship with contractor.
 Student is required to perform role play with a student and a trainer/assessor based on various roles
provided in the part of task.
 Student must attempt all criteria to the required level, e.g. Assessment criteria mentioned in the
performance checklist to be deemed satisfactory in this task
 This skill test is timed.
 Time allowed to conduct role play is 50 to 60 minutes.
 Time allowed to develop required resources for the session is 3 weeks prior to the role-play.
 Electronic devices are allowed during this assessment task.
 Trainer /Assessor must assess student’s practical skills, technique and knowledge as he/she complete
this assessment task.
his/her own work.
will be allowed.
Location:
 This assessment task may be completed in an independent learning environment or learning
management system
How trainer/assessor will assess the work?

 This assessment task requires the student to act as a manager in a hotel to build business relationship,
conduct negotiation, make formal business agreements and foster and maintain business relationship
with contractor.
 Role play must demonstrate the student’s understanding and knowledge of the unit.
 Students need to be briefed on the role play a minimum of 3 weeks prior to the due date as set out in
the delivery and assessment guide for this unit
 Trainer/assessor shall provide students with initial oral feedback in class, after the session. This may
take the form of individual feedback, if time allows, or it may be incorporated in observations of a
general nature in the debriefing exercise following the role play.

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 Written feedback incorporating the feedback on student’s individual presentation, role play and
preparatory work must be provided within two weeks from the due date of this assessment, using the
Observation Checklist.
 If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
 If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome is Not
Yet Competent (NYC).
 Once all assessment tasks allocated to this Unit of Competency have been undertaken,
trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome will be
either Competent (C) or Not Yet Competent (NYC).
 The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Purpose of the assessment task:

This assessment task is designed to evaluate Student’s following skills and abilities:
 Skill to establish relationship in line with organisational requirements and protocols and use effective
communications skills and techniques to build business relationships.
 Skill to proactively identify and take up opportunities to maintain regular contact with contractor.
 Skill to use various negotiation techniques to maximise benefit of relationship for all parties.
 Skill to analyse and incorporate feedback and input from colleagues into negotiation where
appropriate.
 Skill to communicate results of negotiations to required stakeholders and colleagues within required
timeframes.
 Skill to confirm agreements in writing based on organisational requirements and using formal
 Skill to obtain approval for all aspect of formal agreements based on organisational procedures.
 Skill to evaluate and act on the need for specialist advice as required.
 Skill to proactively seek, review, and act upon information needed to maintain sound business
relationships.
 Skill to honour agreements within scope of individual responsibility, complying with agreed terms.
 Skill to take account of agreed performance indicators.
 Skill to make adjustment to agreements in consultation with customer or supplier and share
 Skill to nurture relationship through regular contact and use of effective interpersonal and
 Reading skills to collect, review, interpret/understand and analyses /review text-based business
 Written and oral/speech communication skills to organize and deliver information to effectively
communicate with a range of stakeholders/interested people.
 Numeracy/numbers- mathematical Skill to interpret/understand mathematical data when reviewing
and analysing scenario/setting-situation business information.
 Skills to work independently/freely as well as collaboratively/together to make decisions about project
initiation processes.
 Skills to interact/cooperate with others using appropriate conventions/systems when communicating
to, and consulting/discussing with stakeholders/interested parties
 Skills to analyse relevant/appropriate information to identify scope/range of work, goals and
 Skills to use familiar/known digital technology to access/get to information, document findings/results
and communicate them to stakeholders.

ASSESSMENT TOOL

Assessor’s name:
Read the scenario below and complete the following activities.
Scenario:
You are a manager at The Red Road hotel, Melbourne looking after the logistics and marketing
team. The hotel has the following facilities:
a. 10 Standard rooms with queen beds and attached bathroom.
b. 1 Dining hall with capacity of 50 guests.
c. 1 Conference rooms (capable of handling 30 – 50 guests)
d. 1 Indoor swimming pool
e. 1 Tennis lawn
Hotel provides following services:
a. Lodging
b. Catering
c. Small events hosting
Case:
Recently management has decided to work with a contracting company for laundry. Management
has asked you to get in touch with possible contracting companies specialising in the laundry
business and negotiate with them on possible rates and services.
Currently, the hotel is using 10 hours per day for laundry. It cost around $40 per hour to hotel.
Around 200kg of laundry is cleaned every day. Also, hotel is struggling to find appropriate staff and
rotating available ones for the job which has added dissatisfaction in the staff.
Part A:
2.1. Write a prospective post for five (5) social media platforms outlined below, sharing information
about this new opportunity for a laundry service provider. This message should specific the
locality, basic details on the opportunity and ask for service providers to submit their relevant
details and current work portfolio (in the local community) to the hotel, via email. You need to
write each post and put them into an email, addressed appropriately to the hotel owner (your
trainer). You will need to print this out and hand it in as part of this task.
a. LinkedIn
b. Twitter
c. Facebook
d. Instagram

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e. Industry/association forum/job board
Note: For email – print the email and show to the trainer / instructor.
Hi!
This is the red road hotel and I would like you to post the social media platform outlined below.
a. LinkedIn
at the red road hotel in Melbourne, we are looking for laundry company to help us every day. All
interested parties should send us portfolio to redroadhotel@gmail.com.au
"Customer’s satisfaction is our happiness”

We are happy every day. Do you want to be a partner can make someone’s happiness?
The Red Road hotel, Melbourne is looking for professional laundry service provider.
As a partner of our laundry cleaning service you will be responsible for undertaking pick up
laundry and deliver clean laundry in an efficient and friendly manner to achieve the highest
level of guest satisfaction.
Above all your company will need to be a passionate and hardworking company, with an
enthusiastic vision that will enable to make happy our guests who visit us from all over the
world.
Key responsibilities:
 Pick up dirty laundry at 1 pm and deliver at 1 pm
 Laundry should be clean and well pressured
 10 hours a day about 200kg laundry
About the Company:

The Red Road hotel, Melbourne is centrally and conveniently located to all that Victoria
capital city has to offer. With its chic, urban design, ultra modern 4 Star facilities and its
professional and friendly service, The Red Road hotel, Melbourne is sure to impress even the
most seasoned business traveller. 10 standard rooms with queen beds and all rooms have
their own bathroom and we also have fabulous dining hall with capacity of 50 guests. Ultra
modern conference room can handle 30-50 guests function and any event. Our indoor
swimming pool and tennis court can make our guest happy. The Red Road Hotel, Melbourne
also provide loading service, catering service and hosting small events.
Apply for being our partner:
Please send your company current portfolio and details explaining your company relevant
experience, skills and availability. For further details and enquiries, please email manager Jina
redroadhotel@gmail.com.au
Applications to be received by close of business Friday 28th May, 2021

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b. twitter
the red road hotel needs a laundry provider to help our growing business. The work is simple, but
200kg of laundry and reasonable payment are possible every day. Please send us your business
portfolio. Redroadhotel@gmail.com.au
@redroadhotel : twit twit ‘Customer’s satisfaction is our happiness.’ We are happy every
day. Do you want to be a partner can make someone’s happiness? The Red Road hotel,
Melbourne is looking for professional laundry service provider. As a partner of our laundry
cleaning service you will be responsible for undertaking pick up laundry and deliver clean
laundry in an efficient and friendly manner to achieve the highest level of guest satisfaction.
Please send us your portfolio and details by email. Please retwit this post for interested
partners!
c. face book
Melbourne’s red road hotel is looking for a laundry with a clean and sanitary service. We offer
good contracts to laundry provider. Please send your application to: redroadhotel@gmail.com.au
‘Customer’s satisfaction is our happiness.’ We are happy every day. Do you want to be a
partner can make someone’s happiness? The Red Road hotel, Melbourne is looking for
professional laundry service provider. As a partner of our laundry cleaning service you will be
responsible for undertaking pick up laundry and deliver clean laundry in an efficient and
friendly manner to achieve the highest level of guest satisfaction. Please send us your
portfolio and details by email. For more inquiry, please email redradhotel@gmail.com.au or
leave comment here.
d. Instagram
Melbourne’s red road hotel is looking for a clean, hard working laundry provider to work with us. If
you are interested, please send me your portfolio via email.
@redroadhotel ‘Customer’s satisfaction is our happiness.’ We are happy every day. Do you
want to be a partner can make someone’s happiness? The Red Road hotel, Melbourne is
looking for professional laundry service provider. As a partner of our laundry cleaning service
you will be responsible for undertaking pick up laundry and deliver clean laundry in an
efficient and friendly manner to achieve the highest level of guest satisfaction. Please send
us your portfolio and details by email. Further inquiry email or DM.
e. industry/association forum job board

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Assessor’s name:
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The red road hotel is looking for the new laundry service provider. We have spent 10 hours a day
doing about 200kg of laundry. We are looking for a professional laundry for an organization.
information about our hotel.
- 10 standard rooms with queen beds and attached bathroom.
- 1 dining hall with capacity of 50 guests.
- 1 conference rooms (capable of handling 30-50 guests)
- 1 indoor swimming pool
- 1 tennis lawn
Hotel provides following service:
- lodging
- catering
- small events hosting
"Customer’s satisfaction is our happiness”

We are happy every day. Do you want to be a partner can make someone’s happiness?
The Red Road hotel, Melbourne is looking for professional laundry service provider.
As a partner of our laundry cleaning service you will be responsible for undertaking pick up
laundry and deliver clean laundry in an efficient and friendly manner to achieve the highest
level of guest satisfaction.
Above all your company will need to be a passionate and hardworking company, with an
enthusiastic vision that will enable to make happy our guests who visit us from all over the
world.
Key responsibilities:
 Pick up dirty laundry at 1 pm and deliver at 1 pm
 Laundry should be clean and well pressured
 10 hours a day about 200kg laundry
About the Company:

The Red Road hotel, Melbourne is centrally and conveniently located to all that Victoria
capital city has to offer. With its chic, urban design, ultra modern 4 Star facilities and its
professional and friendly service, The Red Road hotel, Melbourne is sure to impress even the
most seasoned business traveller. 10 standard rooms with queen beds and all rooms have
their own bathroom and we also have fabulous dining hall with capacity of 50 guests. Ultra

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Assessor’s name:
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modern conference room can handle 30-50 guests function and any event. Our indoor
swimming pool and tennis court can make our guest happy. The Red Road Hotel, Melbourne
also provide loading service, catering service and hosting small events.
Apply for being our partner:
Please send your company current portfolio and details explaining your company relevant
experience, skills and availability. For further details and enquiries, please email manager Jina
Applications to be received by close of business Friday 28th May, 2021
2.2. A contractor has replied back, with interest in the opportunity. They wish for you to call them
to discuss the opportunity in further detail. You will need to call the laundry service provider
and establish and begin building a relationship, using effective communication techniques.
Your trainer/assessor will be acting as the laundry service provider.
Clean company (below C) : Hello, this is clean company. How can I help you?
Manager Jina : Hello, this is Jina from Red Road Hotel, Melbourne. And I received your
application for laundry service provider. I would like to talk about your application. When
would be a good time to have a talk?
C : Thank you for calling to our company. My name is John and I am in charge of contract. And
now I am happy to talk with you.
Jina : Hello, John. Nice to talk with you. Your company has very good reference, experience and
ability. I was very impressed that your application and I am pretty happy to talk with you our
business.
C : I’m glad you like our company. Thank you.
Jina : I would like to give opportunity to talk about our business with you as laundry provider if
we meet the minimum requirement. And I would like to explain our tiny requirement as we
already posted website. Our laundry amount is around 200 kg and normally takes 10 hours.
Can your company handle this amount?
C : Yes, we have enough skilled staffs and we can start business right away.
Jina : That’s great. So can you start business anytime soon?
C : Yes, we can.

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Jina : Thank you for prompt answer. Thank you for talking the time to discuss your requirement
and interest. You can reach me with any questions or additional information. I have to get
confirmation from Head Manager. I will get back to you soon.
C : Thank you for the opportunity. I am looking forward to see you.
Jina : My pleasure. Thank you for you time today. Bye.
C : Thank you. Bye.
Part B:
2.3. Assume the laundry service provider has confirmed to work with the hotel as a contractor.
Conduct a negotiation meeting with the contractor.
For negotiation meeting, instructor / trainer will act as the contractor and one of the students
will act as a colleague in the negotiation. If no other students are present, trainer will assume
multiple roles.
Ensure following requirement while negotiating:
Minimum requirement:
 Contractor should pick up dirty laundry at 1:00 pm and return clean ones at 1:00 pm
the following day. Should be available during weekends and public holidays as well.
 Laundry should be clean and well pressed.

Good to have:
 Contract period of 6 months.
 Laundry rate of $2.25/Kg as per current cost for hotel. Cost of laundry can be up to
10% above/below the current cost for hotel.
For student acting as colleague: suggest alternative options to help the negotiation, suggest
that labour conditions in the contract, should be as per labour laws of Australia. Further,
suggest amendments to contract to stipulate that state this task is being administered in, has
oversight in case of legal proceedings.
Jina : Hello John, finally we can meet. It is really nice to meet you.
John : Nice to meet you, Jina. Thank you for having me here to discuss your business.
Jina : I am thank you. Please take a seat.
John : Thank you.
Jina : How are you?
John : Good. Good. Thanks to you. How are you?
Jina : Good. Thank you. Today, I would like to explain our contract details. Could you please
give me 2 minutes to explain detail?
John : Absolutely.

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Jina : Thank you. If we make contract, contractor should pick up dirty laundry at 1 pm and
return clean ones at 1 pm the following day. Unfortunately, our business is hotel business so
it is also should be available at weekend and public holiday as well. Is it okay with you?
John : Oh, I am expecting that we have to work weekends and holidays because we also have
a lot of hotel laundry service experience.
Jina : Good for you. Regarding contract period, frankly speaking, although I trust your
company and ability and also your company chose us with trust. And I am sure our hotel and
your company are good at business and same vision. It is customer’s satisfaction is most
important thing. But sometimes, we may have different working way or different vision, not
wrong way nor wrong vision. And also, we want long and stable relationship with partners
once we contract. The reason why I explain too much… is that our 1 st contract period would
be 6 months. Next contract can be longer because after 6 months later, we have real trust
and we know each other well. I would like to hear your opinion with that.
John : That was not our company expected. Because normally, we contract yearly. Regarding
contract period, I also have to further check with our head manager.
Jina : Yes, it is only 1 st time contract period. Next one can be different. Please understand our
side.
John : Yes, I totally understand your side. But our company also have own policy so I have to
check one more time. You can also understand my side.
Jina : Absolutely. I think we already understood each other. But companies… haha.
John : You’re right.
Jina : Thank you for understanding. The last thing is… always important thing as you know. It
is price. We are willing to pay as much as market price. Could I ask how much you think for
this?
John : We’ve been doing a lot of business with hotel and we always get same price it is $2.2
per Kg.
Jina : That’s great. We do not need to negotiate price. It is first time to accept price without
negotiation. How great start we have!
John : Thank you Jina, I am very happy to give you satisfy price.
Jina : Good. Everything is going to great. Please just make sure that laundry should be clean
and well pressed I am pretty sure you won’t have much problem with that.
2.4. Use various negotiation techniques to maximise benefit of relationship for both parties. Proper
professional and organisational protocol should be followed. During negotiation, incorporate
feedback and input from colleague where appropriate. The negotiation should cover following:
a. Rate of laundry
b. Time to pick up and delivery
c. Contract period
d. Payment schedule

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e. Compensation / penalty in case of delay service
f. Compensation / penalty in case of damaged laundry
g. Late fee / penalty in case hotel delays to pay contractor
h. Performance indicator of the service
List out the negotiated item in following format:
Sno Negotiated item / task Acceptable result Remarks

1 Rate of laundry $2.2/Kg
2 Time to pick up and delivery Pick up before 1 PM and delivery before 1

PM
3 Contract period 6 months Further
confirmation
needs
4 Payment schedule fortnightly Wednesday
5 Compensation / penalty in 3% claim for delay hours

case of delay service (3% * Kg *$2.2 * hours)
6 Compensation / penalty in deduct $4.4/Kg for damaged laundry
case of damaged laundry
7 Late fee/ penalty in case 3% claim for delay days for payment
hotel delays to pay (3%*Kg*$2.2*days)
contractor
8 Performance indicator of Service performance indicator report will be
the service sent on the 1st day of every month for the
before month
Should be 95% satisfaction
Jina : Sorry, I told you it was the last but I have few more details we have to talk about. Could you
give me some more time?
John : Of course. Sure.
Jina : I am pretty sure that your company is very professional and skilled. But there should be mistake
anywhere. And I also understand everyone makes mistake. I made a mistake all the time. However,
our guests come from long distance away, we can’t make them feel disappoint. So at least we have to
try our best to reduce mistake. Shall we make minimum penalty for our tiny mistake? Because if
there is no rule, few workers break the promise and hard workers feel unfair.

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John : I think that’s a good idea. That arouse cautions for everyone.
Jina : Thank you for understanding John. Here’s the rule. In case of delay service, we will claim 3% of
deduction for total amount the day. Hotel business is open 24 hours and every hour is very
important, so we will claim based on how many hours late. It looks very harsh, but you know,
without your company’s service, we can’t give any service for our customers.
John : I totally understand hours penalty but please give flexibility time. It is 1 hour. Can you accept
1st 1 hour delay? Because 1 hour delay is not mistake it would be uncontrolled condition such as car
accident or traffic jam.
Jina : Oh, I totally understand uncontrolled situation. However, From 2pm, we have to receive our
guest so 2 pm is not acceptable. Moreover, if we accept 1 hour exception, due time could be 2 Pm
because there is no penalty.
John : I got your point. Let’s keep 1 pm due and delay claim hourly.
Jina : and also if there is damaged laundry, we will deduct $4.4/Kg for damaged laundry because we
can’t pay for unused laundry due to damage and also we have to pick up and put it back again. We
work twice. So I think we have to deduct twice /Kg. What do you think?
John : Normally, in case of dirty laundry, we don’t charge for dirty laundry and next laundry for dirty
one also can’t be charged. I think you and I on the same way.
Jina : That’s great and it make sense. And penalty is not only for your company. For fair partnership,
we also can get penalty in case of delays payment.
John : How thoughtful. Our company also have policy for delay payment. But it is hard to charge
payment delay surcharge for customer.
Jina : Payment is most important thing for great partnership and long relationship. Partners should
happy so our hotel can be happy then finally our customers are happy!
John : Thank you for understanding. I really appreciate.
Jina : So payment will be complete on fortnightly Wednesday. And payment delay claim percentage is
same with service delay we applied. But payment is not matter of time so you can claim for delay
payment daily.
John : That’s right. Our wage day is fortnightly Thursday and your payment is related to our staff
wage. So daily base claim will be reasonable.
Jina : The last one.. we will send Service performance indicator report on the 1 st day of every month
regarding the before month service. Everything on the service report is that we discussed already. It
is on time delivery and pick up and damaged laundry percentage. That’s all. Our company policy is

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that partnership’s service satisfaction should meet 95%. I am sure of that you may get 100%
satisfaction.
John : That would be great. We do not have enough time to review our service. We will refer for
better service.
Jina : Thank you. It would be great way for both to provide tremendous service for our guests.
I will prepare contract document soon and will send it to you by email. Everything based on our
discussion we’ve just have. So please keenly see contract once I send you. Then please submit
completed contract to me by hard copy and soft copy for each. Is this your email address? Right?
John : Right. I will get back to you as soon as possible with completed contract. I am looking forward
to it. Thank you.
Jina : Thank you for today. It was really nice to talk with you. John.
John : No worries. My pleasure. I am happy to work with you. Jina. Thanks,
Jina : Thanks, I will send email. Bye
2.5. Communicate the result of negotiation via email to appropriate colleagues and stakeholders
/contractor (Trainer/Instructor) after negotiation is completed.
Dear Amy, (Head manager)
How are you?
Today, I have an interview with cleaning company A. In charge manager, John came to our office.
Please see the result of negotiation below.
1. Rate of laundry : $2.2/Kg (we expected $2.25/Kg)
2. Fixed time to pick up and delivery : 1 pm
3. (pending) Contract period : John understand 6 month contract for the 1 st time but he also
need further confirmation internally.
4. Payment schedule : fortnightly Wednesday
5. Compensation : 3% delay service claim hour basis / $4.4/Kg deduct for damage laundry/ 3%
payment delay claim daily basis
6. Service report : I gave the notice of that service performance indicator report will be sent on
the 1st day of every month for the before month and it should be 95% satisfaction.

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Except contract period, everything met our expectation. And I’m sure of that contract period will also
meet our requirement because John understand our stance.
Please check above the result, let me know if I need further discussion with John. I can talk to him.
Thanks,
2.6. Prepare a written contract to confirm the agreement with the contractor. Obtain approval for
all aspects of the formal agreements from the contractor and stakeholders present in the
meeting. Use the template provided.
2.7. Assume another student is a specialist and ask for any suggestions that need to be part of the
contract. Student must provide one relevant suggestion that will be implemented into the
contract. If there are insufficient number of students, trainer will assume this role.
Jina : Hi Liz, How are you?

Liz : Hi Jina, Good. Thank you. How are you?
Jina : Great. Thank you. I just came here to ask any suggestions for our new laundry contracts.
Liz : I saw your email and just finished review that contract. I think it would be great if we add
one more thing.
Jina : Oh, thank you Liz. what is that?
Liz : Regarding damage laundry, we can deduct the amount as you did. But to be more specific,
we can also deduct or charge damaged laundry original price. For example, 1 damage towel,
we can deduct amount of laundry cleaning fee and also original towel price $3. Because we
can’t use damaged laundry anymore and we have to dispose it.
Jina : Oh, I didn’t think about that we can’t use it anymore and have to dispose it.
Liz : Yes, that is the way to not lose our money. But we may not charge it as a favour for our
partnership.
Jina : That’ good. Thank you for your suggestion. I will talk with our manger. Thanks,
Liz : No worries. Thank you.
2.8. Sign the contract to confirm the contract between two parties and hand this to your
trainer/assessor to demonstrate completion of this task.

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Template for contract preparation. You can change the content as per need.
Contract for Services Rendered
This is a contract entered into by laundry cleaning A (hereinafter referred to as "the Provider")
and The Red Road Hotel, Melbourne (hereinafter referred to as "the Client") on this date, 15
JUNE 2021 .
The Provider's place of business is Laundry cleaning A.
and the Client's place of business is The Red Road Hotel, Melbourne.
The Client hereby engages the Provider to provide services described herein under "Scope and
Manner of Services." The Provider hereby agrees to provide the Client with such services in
exchange for consideration described herein under "Payment for Services Rendered."
Scope and Manner of Services
Terms and obligations / Exclusion / Dispute Acceptable result

resolutions
Rate of laundry $2.2/Kg
Time to pick up and delivery Pick up before 1 PM and delivery before 1 PM
Contract period 6 months
Payment schedule fortnightly Wednesday
Compensation / penalty in case of delay 3% claim for delay hours

service (3% * Kg *$2.2 * hours)
Compensation / penalty in case of damaged deduct $4.4/Kg for damaged laundry
laundry
Late fee/ penalty in case hotel delays to pay 3% claim for delay days for payment
contractor (3%*Kg*$2.2*days)
Performance indicator of the service Service performance indicator report will be
sent on the 1st day of every month for the
before month

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Should be 95% satisfaction
Payment for Services Rendered
The Client shall pay the Provider for services rendered according to the Payment Schedule as
below, within calendar days of the date on any invoice for services rendered from the Provider.
Payment date: fortnightly Wednesday
Should the Client fail to pay the Provider the full amount specified in any invoice within calendar
days of the invoice's date, a late fee equal to 3% shall be added to the amount due and interest
of percent per annum shall accrue from the calendar day following the invoice's date.
The contract will last for 6 months and will be terminated if not renewed. On agreement of both
parties, the contract can be terminated any time before the end of contract period.
Applicable Law
This contract shall be governed by the laws of the County of Australia in the State of Victoria and
any applicable Federal law.
Signatures
In witness of their agreement to the terms above, the parties or their authorized agents hereby
affix their signatures:
The red road hotel, Melbourne Cleaning company A
(Name of Client or agent) (Name of Provider or agent)
____________________________________ _________________________________
(Signature of Client or agent) (Date) (Signature of Provider or agent) (Date)

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Part C:
Scenario
Assume the laundry service provider is working as per the contract. On Thursday afternoon, there
were three chair covers which had been stained with wine after being laundered and one curtain
from the kitchen had a tear.
2.9. Call the laundry service provider to seek and review the concern and try to maintain sound
business relationships. Inform him that the agreed performance indicator on cleanness has not
been met. Document feedback below.
Your instructor will act as contractor.

JINA : Hi John, This is Jina from The Red Road Hotel, Melbourne. How are you?
John : Hi Jina, Good. Thank you. How are you?
Jina : Great. I have something to discuss with you? Do you have a minute?
John : Of course. Please tell me.
Jina : I am really happy these days because of your great laundry service. We really satisfy your
service and on time pick up and delivery.
John : I am glad to hear that. Thank you.
Jina : The thing is that we received laundry on Thursday, but there are three chair cover which had
been stained with wine and tear kitchen curtain after being laundered.
John : oh, Sorry Jina. I am really sorry for our mistake.
Jina : you know John, everyone makes mistake and I think that wouldn’t be a big problem but it’s
been only 1 week we start business. Everyone is carefully concerning laundry service. Please make
the first good impression.
John : I totally agree with that. I should have concerned more than usual.
Jina : Furthermore, we can’t check all laundry condition one by one so if customer use dirty one, they
never come back here.
John : I am really sorry about that. I will keep that in mind. However, Jina. Kitchen curtain is quite old
one so it may have damaged anytime soon. So it is not relate to our service. Please make sure that
old laundry standard. If there is tear on not that old laundry, we are willing to pay that.

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Jina : Thank you for understanding John and I am really understanding old laundry. I will check with
our collegues, then make adjustment for that.
2.10. Based on the feedback and consultation with contractor, make adjustments to the agreement
and share the information with appropriate colleagues and stakeholders via email.
Adjustments should take into account the fact that a small percentage of laundry will be
damaged in the course of business and that goods older than X year and/or washed X amount
of times previously may sustain damage. Ensure accurate performance indicators/measures
around this issue are incorporated into the agreement.
Dear Amy, (Head manager)
How are you?
Regarding damaged laundry we found on Thursday, I’ve spoken with John a while ago.
The thing is our kitchen curtain is 10 years old so it may have damaged anyway. John and I think this
is not related to laundry service. We have to contain an exceptional clause for old laundry.
In case of more than 10 years old laundry, we don’t charge if it has damaged by laundry service.
Please be advised that I will revise this clause on the contract. And will send it to you.
If you have any question with that, please let me know.
Thanks,
2.11. Call the contractor to thank them and share the updated contract. Use effective interpersonal
and communication styles to nurture the relationship. During the call, talk about cooperative
promotions to market each other clients. The contractor can promote the hotel in its outlets
while the hotel can recommend the contractor to other hotels with in its association.
Jina : Hi John, This is Jina from The Red Road Hotel. Can I talk to you second?
John, Hi Jina, good. How’s it going?
Jina : Good. I reported about the old laundry exceptional clause for my manager. And I will revise our
contract.
John : oh, thank you. Can I ask the content of adding clause?

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Jina : Yes, sure. I was about to tell you. The clause is that In case of more than 10 years old laundry,
we don’t charge if it has damaged by laundry service. Is that okay with you?
John : Of course Jina. I am really appreciate for your help. If I work with you forever, I think we can
keep this business forever.
Jina : haha. Good to hear that, John. Thank you for understanding. so I will send the amend contract
by email then please double check the contract and sign on it and send back it to me.
John : Got it. I will wait your email Jina. Thank you again.
Jina : you’re welcome. Thank you John.
ASSESSOR’S CHECKLIST
Did the student demonstrate the following YES NO
Appropriate and professional body language, gestures and tone.
Established relationship in line with organisational requirements and protocols

and use effective communications skills and techniques to build business
relationships.
Proactively identified and took up opportunities to maintain regular contact
with contractor.
Used various negotiation techniques to maximise benefit of relationship for all
parties.
Analysed and incorporated feedback and input from colleagues into
negotiation where appropriate.
Communicated results of negotiations to required stakeholders and colleagues
within required timeframes.
Confirmed agreements in writing based on organisational requirements and
using formal contracts where appropriate.
Obtained approval for all aspect of formal agreements based on organisational
procedures.
Evaluated and act on the need for specialist advice as required.
Proactively seek, reviewed, and acted upon information needed to maintain
sound business relationships.
Honoured agreements within scope of individual responsibility, complying with
agreed terms.

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Took account of agreed performance indicators.
Made adjustment to agreements in consultation with customer or supplier and

shared information with appropriate colleagues.
Nurtured relationship through regular contact and use of effective
interpersonal and communication styles.
Ability to understand the questions and answering correctly.
ASSESSMENT 3 – ROLE PLAY

Assessment type:
 Role Play

 This is the last unit assessment task that student should successfully complete to be deemed
 This assessment task is comprised of a Role Play.
 This role play should be done based on given case study and scenario.
 Student is required to act as a manager in a hotel to build business relationship, conduct negotiation,
make formal business agreements and foster and maintain business relationship with customer.
 Student is required to perform role play with a student and a trainer/assessor based on various roles
provided in the part of task.
 Student must attempt all criteria to the required level, e.g. Assessment criteria mentioned in the
performance checklist to be deemed satisfactory in this task
 This skill test is timed.
 Time allowed to conduct role play is 50 to 60 minutes.
 Time allowed to develop required resources for the session is 3 weeks prior to the role-play.
 Electronic devices are allowed during this assessment task.
 Trainer /Assessor must assess student’s practical skills, technique and knowledge as he/she complete
this assessment task.
his/her own work.
will be allowed.
Location:
 This assessment task may be completed in an independent learning environment or learning
management system
General Instructions for attempting the skills test:

 Students must explain the topics appropriately.

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 Tone, gestures, body language should be according to the role students are portraying.
 Students are required to correctly discuss all topics appropriately in easy-to-understand, slang and
abbreviation free language, friendly yet professional manner for this assessment task
How trainer/assessor will assess the work?

 This assessment task requires the student to act as a manager in a hotel to build business relationship,
conduct negotiation, make formal business agreements and foster and maintain business relationship
with customer.
 Role play must demonstrate the student’s understanding and knowledge of the unit.
 Students need to be briefed on the role play a minimum of 3 weeks prior to the due date as set out in
the delivery and assessment guide for this unit
 Trainer/assessor shall provide students with initial oral feedback in class, after the session. This may
take the form of individual feedback, if time allows, or it may be incorporated in observations of a
general nature in the debriefing exercise following the role play.
 Written feedback incorporating the feedback on student’s individual presentation, role play and
preparatory work must be provided within two weeks from the due date of this assessment, using the
Observation Checklist.
 If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
 If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome is Not
Yet Competent (NYC).
 Once all assessment tasks allocated to this Unit of Competency have been undertaken,
trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome will be
either Competent (C) or Not Yet Competent (NYC).
 The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Purpose of the assessment task:

This assessment task is designed to evaluate Student’s following skills and abilities:
 Skill to establish relationship in line with organisational requirements and protocols and use effective
communications skills and techniques to build business relationships.
 Skill to proactively identify and take up opportunities to maintain regular contact with customer.
 Skill to use various negotiation techniques to maximise benefit of relationship for all parties.
 Skill to analyse and incorporate feedback and input from colleagues into negotiation where
appropriate.
 Skill to communicate results of negotiations to required stakeholders and colleagues within required
timeframes.
 Skill to confirm agreements in writing based on organisational requirements and using formal
 Skill to obtain approval for all aspect of formal agreements based on organisational procedures.
 Skill to evaluate and act on the need for specialist advice as required.
 Skill to proactively seek, review, and act upon information needed to maintain sound business
relationships.
 Skill to honour agreements within scope of individual responsibility, complying with agreed terms.
 Skill to take account of agreed performance indicators.
 Skill to make adjustment to agreements in consultation with customer or supplier and share
 Skill to nurture relationship through regular contact and use of effective interpersonal and

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 Reading skills to collect, review, interpret/understand and analyses /review text-based business
 Written and oral/speech communication skills to organize and deliver information to effectively
communicate with a range of stakeholders/interested people.
 Numeracy/numbers- mathematical Skill to interpret/understand mathematical data when reviewing
and analysing scenario/setting-situation business information.
 Skills to work independently/freely as well as collaboratively/together to make decisions about project
initiation processes.
 Skills to interact/cooperate with others using appropriate conventions/systems when communicating
to, and consulting/discussing with stakeholders/interested parties
 Skills to analyse relevant/appropriate information to identify scope/range of work, goals and
 Skills to use familiar/known digital technology to access/get to information, document findings/results
and communicate them to stakeholders.
Scenario:
You are a manager at The Red Road hotel in Melbourne, looking after the logistics and marketing
team as provided in the scenario of UAT2.
You are at a social networking function when you overhear one of the guests talking about plans to
work with a hotel to provide lunch box services to a school on a daily basis.
Part A:
3.1 Approach her to verify if a lunch box delivery service provider has already been decided upon
and if there is any chance that you can help her. Establish a relationship with the prospective
client with effective communication skills and techniques to build business relationships.
Your trainer/instructor will act as that prospective client.
Jina : Could you excuse me? Hello, my name is Jina and I work at The Red Road hotel in
Melbourne.
Lucy : Hi Jina. Nice to meet you. My name is Lucy.
Jina : I didn’t mean to overhear, but I am really interested in your lunch box service. Do you have
a minute to talk about it?
Lucy : Sure. Of course.

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Jina : Now our hotel is seeking a way to give surprise for our customers in a different way. And
our marketing team is working for that. I think we can make your school will be surprise. Do you
have any specific hotel you want work with?
Lucy : No, not that specific status. It just came out the idea only few days ago and I review my
idea by myself and with others to get better idea.
Jina : Great to hear that. I love your way to prepare. We also don’t have specific plan for the
lunch box service idea, but it would be great to start lunch box service for your school.
Lucy : hmm.. but I don’t want to expensive lunch box.
Jina : No worries Lucy. We will offer much cheaper than dine in price. We can take care of that.
Lucy : That sounds great because my biggest concern was finance.
Jina : Oh great. so could I ask your email address? I can send it to you with more details.
Lucy : That’s right. Please give your email address, I will send my draft plan first.
Jina : That would be great. Lucy. I am looking forward to it. Here’s my email address.
Lucy : It was nice to meet you Jina. Thank you for asking.
Jina : Thank you.
3.2 Maintain the contact with the lady via emails to thank her and show willingness to work together
for the prospect work.
a. First email the prospective client, thanking her for the opportunity and looking
forward to working together, as well as, any further additional information.
Dear Lucy,
This is Jina from The Red Road Hotel in Melbourne. We met early in this morning at
networking party. It was really nice to meet you and talk with you. I am really
impressed with your passion and keen on details.
I’ve talked with my colleague about lunch box service. Everyone likes it. They really
happy to share our food for more people in a easier way.
Thank you for the opportunity to work with you and I am really looking forward to
work with you. If you are planning to send any more details, could you please send it

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by next Monday? Because I would like to share it with our colleague on weekly
meeting as a priority.
If you have any question, please feel free to ask me.
I will wait your good news.
Regards,
Jina Kim
Logistics and marketing team
The Red Road Hotel, Melbourne
b. Second email responding to:

i. Additional information
ii. Reputation in the community
iii. Ability to meet timeframes required
Dear Lucy,
Thank you for your prompt reply. I’ve checked your draft plan for our great journey.
Let it begin.
Our hotel’s restaurant only serves Authentic Australian food and Asian fusion. So you
can select menu on these restaurant. For more detail menu, you can find web site
below link :
www.theredroadhotel.com.au/restaurant_menu
Our restaurant menus are loved by every local family. Especially, steak sandwich,
wonton soup and fish and chips are best. You can make it main menu to attract our
existing customers.
To be more specific plan, we’d better meet and discuss our details to proceed our
plan perfectly. And I would like to introduce you to everyone in our F&B staff. You will
be our hero. Every Tuesday and Thursday are free after lunchtime, so please leave
your available time by email. I will arrange our first meeting.
If you have any question, please do not hesitate ask me.
Regards,
Jina Kim

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c. Third email responding to queries regarding:

i. Specific lunch menu items
1. Vegetarian items
2. juice
3. seasonal variations
ii. Pricing requirements
Dear Lucy,
Thank you for sending your more details. We are so fast! We can launch great service
anytime soon.
I have few questions regarding lunch menu items.
1. Our vegetarian menu includes egg, honey, milk and cheese. It is for
lacto-ovo-vegetarian menu.
2. Orange, apple, avocado juice for fresh juice menu. Others are
provided by bottle.
3. For winter menu, we offer wonton soup. For summer menu, we also
offer cold noodle.
Regarding price arrangement, of course, it shouldn’t be more expensive than dine in
price but not too much cheaper. Normally, market price is $10-$15 for lunch box, but
we offer hotel chef’s food, so that would be more than $15.
Hope it will help you with all this information.
Please feel free to ask me anything.
Regards,
Jina Kim
These emails will need to all be printed and given to your trainer. Each email should be
written in a professional manner, addressed appropriately and in no more than 150-200
words each.
Part B:
3.3 Assume that the school you approached has agreed to work with your hotel and wants further
negotiations.

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Conduct a negotiation meeting with the customer.
For the negotiation meeting, your instructor / trainer will act as the customer and one student
will act as a colleague in the negotiation.
Ensure the following requirements are negotiated:
Requirements:
 Minimum of 75 lunch boxes should be ordered per day. If the number of boxes ordered
is less than 75, extra 10% charge will be applied to each box.
 Each food box will contain a mix of 2 non-vegetarians and 1 vegetarian item with 1
seasonal fruit and a juice.
 For vegetarians, 3 vegetarian items, 1 seasonal fruit and a juice will be available.
 For above configurations, the cost price is $10 a box at 75 boxes. You need to sell more
than this for the deal to be commercially viable.
Other:
 Can reduce price if 1 food item is reduced.
 Can provide different food combination on each day for a week.
 Contract period should be for a minimum of 3 months.
For student acting as colleague: suggest alternative options to help the negotiation. Document
negotiation notes below.
Jina : Hello Lucy, Good to see you again. How are you?
Lucy : Hello Jina, Great. How are you?
Jina : Thank to you, it has been great these days. I am looking forward to our journey.
Lucy : Me too. Please let it begin!
Jina : We really happy to offer lunch box service. We try our best to prepare and would like to
most fresh, best delicious and fantastic food for your school. To be that, we have minimum order
qty per day, which is 75 lunch boxes. Because we can give the cheaper price than dine in price in
case of more than 75 lunch boxes. Otherwise we lose our profit, so extra 10% charge will be
applied to each box in case of less than 75.
Lucy : We have enough people to buy it but I am not sure how many people will be order at the
first time because it is also our first time to order hotel lunch box. So could we please make
minimum qty from 1 month later?
Jina : Oh, is it your first time? Yes I understand you can’t catch how many people will order,
however, we also can’t prepare if less than 75, because we will hire more staff to prepare lunch
box service. Then we definitely lose our profit.
Lucy : Ok, I will think about that. If you provide delicious menu, 75 boxes don’t matter with us.
Jina : That’s right. I am very confidence with that. No worries about it. Can I explain more detail
for menu?
Lucy : Please do.

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Jina : Each food box will contain a mix of 2 non-vegetarians and 1 vegetarian item with 1 seasonal
fruit and a juice. For vegetarians, 3 vegetarian items, 1 seasonal fruit and a juice will be available.
If you reduce any 1 food item, we can reduce price as well.
And of course, this might be a reason you chose us … that we can provide different food
combination on each day for a week.
Lucy : so how much that would be?
Jina : 3 items with 1 seasonal fruit and a juice choice, that would be $18 based on 75 boxes.
Lucy : That’s quite expensive.
Jina : That’s right. It is more expensive than normal lunch box. However, we get fresh food from
hotel food supplier and our head chef prepare this lunch box. So it can’t be same price with
casual dining lunch box.
Lucy : That make sense… Please give more time to think about the price.
Jina : As I mentioned, we can reduce price if you reduce 1 menu.
Lucy : That would be a way.. because 3 items could be heavy on lunch for some people. I should
ask more people about it.
Jina : That’s good idea. And the last thing is that minimum service contract period should be 3
months because we hire more people based on your contract. Please give time to arrange lunch
box service for you.
Lucy : To be honest with you, I expected 6 months contract and that is quite long so I wanted 3
month contract. I agree for it.
Jina : Great! Thank you, Lucy.
3.4 Use various negotiation techniques to maximise the benefit of the relationship for both parties.
Proper professional and organisational protocols should be followed. During the negotiation,
incorporate feedback and input from colleagues where appropriate. The negotiation should
cover the following:
a. Minimum number of lunch boxes that need to be ordered.
b. Cost per packet.
c. Content of the lunch box.
d. Time for delivery
e. Contract period
f. Payment schedule
g. Quality requirement
h. Compensation / penalty in case of delay in service
i. Compensation / penalty in case of issue with food item.

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j. Late fee / penalty in case school delays to pay
k. Performance indicators of the service
List out the negotiated items in the template provided under task 2 and 2.3.
Sno Negotiated item / task Acceptable result Remarks

1 Minimum number of lunch 75 boxes
boxes that need to be
ordered
2 Cost per packet. $18
3 Content of the lunch box. 2 non-vegetarians and 1 vegetarian item Further
with 1 seasonal fruit and a juice. confirmation
For vegetarians, 3 vegetarian items, 1 needs
seasonal fruit and a juice
4 Time for delivery By 11:30 am
5 Contract period 3months
6 Payment schedule Fortnightly Thursday
7 Quality requirement Should be fresh and more than 600kcal with
good combination nutrition
8 Compensation / penalty in 10% discount for the day of late
case of delay in service
9 Compensation / penalty in Return $36 per box with food issue
case of issue with food item
10 Late fee / penalty in case 3% surcharge per delay days
school delays to pay
11 Performance indicators of Survey every month for customers
the service
Jina : by the way, we will deliver lunch box by 11:30 am. Is that okay with you?
Lucy : it is little bit early because our lunch time starts 12:30 pm. Can you make it 12:00 pm?
Jina : Yes we can. To make it later than 11:30 doesn’t matter with us. we will deliver 12 pm as you
requested.
Lucy : what if you late than 12:30?
Jina : Great Lucy, I am about to talk about penalty.
Lucy : Penalty? You would pay penalty?

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Jina : Yes I would. For our mistake. In case of delay in service, we will give 10% discount for the day of
late and if there is issue with food item, we will return $36 (twice) per issue item box.
Lucy : Sounds good. That’s reasonable.
Jina : Thank you Lucy. Can you do me a favour?
Lucy : Tell me.
Jina : As you know, payment is most important thing everywhere. So our company policy has penalty
for late payment. Would you accept this?
Lucy : How much do we have to pay for late payment?
Jina : 3% surcharge per delay days. We expect that payment will be made on fortnightly Thursday.
Lucy : Our finance team never late but sometimes bank problem may occur late payment. We can’t
control bank. Please make exceptional case for bank problem.
Jina : Okay, if there is proof of on time payment, we will not charge for it.
Lucy : Thank you for understanding.
Jina : Thank you Lucy. The last thing is that we are planning to survey about our service at your
school every month. Is that Okay with you? It is for better service.
Lucy : for that reason. I can’t reject it. Do it as you want.
Jina : Thank you. We will improve our service every month.
3.5 Communicate the result of the negotiation via email to the appropriate colleagues and
stakeholders /customer (Trainer/Instructor) after the negotiation is completed.
Dear Amy, (head manager)
I had a meeting with Lucy today regarding school lunch box service.
Here’s agreement point. Please see below.
1 Minimum number of lunch boxes 75 boxes

that need to be ordered
2 Cost per packet. $18
3 Content of the lunch box. 2 non-vegetarians and 1 vegetarian item with 1

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seasonal fruit and a juice.
For vegetarians, 3 vegetarian items, 1 seasonal fruit
and a juice
4 Time for delivery By 12 pm

5 Contract period 3 months
6 Payment schedule Fortnightly Thursday
7 Compensation / penalty in case 10% discount for the day of late
of delay in service
8 Compensation / penalty in case Return $36 per box with food issue
of issue with food item
9 Late fee / penalty in case school 3% surcharge per delay days (except bank system
delays to pay problem)
10 Performance indicators of the Survey every month for customers
service
I offer $18 per box, Lucy is concerned about the price. She will let me know the result. If she does not
satisfy the price, I would reduce by $16 per box.
Others are as above table. If you have any question or more comments, please let me know.
Thanks,
Jina
3.6 Prepare a written contract to confirm the agreement with the contractor. Obtain approval for all
aspects of formal agreements from customer and stakeholders present in the meeting. Use the
contract template provided in task 2, task 2.5.
Contract for Services Rendered
This is a contract entered into by The Red Road Hotel, Melbourne (hereinafter referred to as "the
Provider") and AAA school (hereinafter referred to as "the Client") on this date, 15 JUNE 2021 .

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The Provider's place of business is The Red Road Hotel, Melbourne.
and the Client's place of business is AAA school.
The Client hereby engages the Provider to provide services described herein under "Scope and
Manner of Services." The Provider hereby agrees to provide the Client with such services in
exchange for consideration described herein under "Payment for Services Rendered."
Scope and Manner of Services
Terms and obligations / Exclusion / Dispute Acceptable result

resolutions
Minimum number of lunch boxes that need 75 boxes
to be ordered
Cost per packet. $18
Content of the lunch box. 2 non-vegetarians and 1 vegetarian item with
1 seasonal fruit and a juice.
For vegetarians, 3 vegetarian items, 1
seasonal fruit and a juice
Time for delivery By 12 pm

Contract period 3 months
Payment schedule Fortnightly Thursday
Compensation / penalty in case of delay in 10% discount for the day of late
service
Compensation / penalty in case of issue with Return $36 per box with food issue
food item
Late fee / penalty in case school delays to pay 3% surcharge per delay days (except bank
system problem)
Performance indicators of the service Survey every month for customers
Payment for Services Rendered
The Client shall pay the Provider for services rendered according to the Payment Schedule as
below, within calendar days of the date on any invoice for services rendered from the Provider.
Payment date: fortnightly Thursday
Should the Client fail to pay the Provider the full amount specified in any invoice within calendar
days of the invoice's date, a late fee equal to 3% shall be added to the amount due and interest
of percent per annum shall accrue from the calendar day following the invoice's date.

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The contract will last for 3 months and will be terminated if not renewed. On agreement of both
parties, the contract can be terminated any time before the end of contract period.
Applicable Law
This contract shall be governed by the laws of the County of Australia in the State of Victoria and
any applicable Federal law.
Signatures
In witness of their agreement to the terms above, the parties or their authorized agents hereby
affix their signatures:
AAA School The red road hotel, Melbourne
(Name of Client or agent) (Name of Provider or agent)
____________________________________ _________________________________
(Signature of Client or agent) (Date) (Signature of Provider or agent) (Date)
3.7 Your trainer/assessor will act as a specialist who you will need to hold discussions with, regarding
specialist advice for the contract. Assume your trainer/assessor is a business advisor.
Lisa from finance team.
Lisa : Hi Jina, I’ve checked AAA school lunch box service contract. Can I give some comment for
it?
Jina : Of course! Any comment is welcome.
Lisa : In case of less 75 boxes, they may skip the day of lunch box. It would lose our profit more
because of MOQ. So how about set new price in case of less than 75 order?
Jina : Wow, that would be great. Better than never.
Lisa : so we set each price range. 65-74 is $19 and 55-64 is $20. Actual minimum order is 55
because less than 55, it is really minus profit.
Jina : got it. I will ask the school. Thank you for your help.

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Lisa : Thank you.
3.8 Sign the contract to confirm the contract between two parties.
Part C:
3.9 Assume that is the 2nd week of catering to the school and that, based on prior agreement,
payment should be today (Friday). You have called the liaison officer for this program at the
school, to discuss any relevant feedback relating to the current service, which is within the scope
of your individual responsibilities. As part of this call, you need to discuss when payment will be
taking place, for the current services rendered. Finally discuss the addition of the new clause, put
forward by your specialist business advisor.
Trainer/assessor will act as customer.

Liaison officer is Eric
Eric : Hello, this is Eric from finance team. How can I help you?
Jina : Hello Eric, This is Jina from The Red Road Hotel which is the company of lunch box service.
Eric : Oh, Red Road Hotel! Thank you for giving us great lunch every day.
Jina : I am happy to hear that. Thank you.
Eric : I am thank you. so how can I help you today?
Jina : I am sorry to push you but the thing is that today we expect that payment will be made but we
can’t find yet. I would like to check with you.
Eric : Let me check… we already made payment a while ago. Please wait for few more hours. You can
find it soon.
Jina : Ok, at least I checked you already did. That helps a lot.
Eric : good.
Jina : Can I ask 1 more thing?
Eric : sure.
Jina : Your school agreed to order minimum 75 but we would like to offer better idea. In case of less
75 boxes, how about set new price?
Eric : How come?

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Jina : We set each price range. 65-74 is $19 and 55-64 is $20. Actual minimum order is 55 because
less than 55, it is really minus profit for us.
Eric : That would be fine with us. I don’t want miss lunch box due to minimum order.
Jina : Thank you for understanding.
3.10 Based on the feedback and consultation with the customer, make adjustments to the
agreement, have the customer sign the adjusted agreement and share the information with the
appropriate colleagues via email. (The signed copy of this document should be handed to your
trainer/assessor at the end of the task).
Dear Lisa,
Following your comments, I offer the flexible price range for minimum order.
And finally they accept it as below.
Actual minimum order : 55 boxes
55-64 boxes : $20
65-74 boxes : $19
More than 75 boxes : $18
I will amend it on final contract and send to customer.
I will get back to you as soon as I get revised contract from customer.
Thanks,
Jina
3.11 Call the customer to thank them and share the updated contract. Use effective interpersonal
and communication styles to nurture the relationship. During the call, talk about cooperation for

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utilising networks for marketing and provide positive review in the company Facebook page and
company website.
Lucy : Hello, this is Lucy from AAA school.
Jina : Hi Lucy, this is Jina from The Red Road Hotel.
Lucy : Hi Jina, how are you?
Jina : Good. Thank to you. How are you?
Lucy : Great. I’ve just finish your great lunch.
Jina : Oh if so, please give comment or review or any opinion on our website? Or facebook
anywhere. I would like to share with others for better service.
Lucy : Ok I will do.
Jina : Thank you. The reason why I call you is that we’ve checked the updated contract and say
thank you for sharing that.
Lucy : No problem. We finally start our journey.
Jina : Really. I was very happy to meet you at the party.
Lucy : Me too. Please be there every time.
Jina : will do. Thank you anyway.
Lucy : Thank you Jina. Have a good day!
Jina : Have a good day!
Performance criteria checklist for unit assessment task:

ASSESSOR’S CHECKLIST
Did the student demonstrate the following: Yes No
Appropriate and professional body language, gestures and tone
Established relationship in line with organisational requirements and protocols
and use effective communications skills and techniques to build business
relationships.
Proactively identified and took up opportunities to maintain regular contact
with customer and contractor.

ASSESSMENT TOOL

Assessor’s name:
\
Used various negotiation techniques to maximise benefit of relationship for all
parties.
Analysed and incorporated feedback and input from colleagues into
negotiation where appropriate.
Communicated results of negotiations to required stakeholders and colleagues
within required timeframes.
Confirmed agreements in writing based on organisational requirements and
using formal contracts where appropriate.
Obtained approval for all aspect of formal agreements based on organisational
procedures.
Evaluated and act on the need for specialist advice as required.
Proactively seek, reviewed, and acted upon information needed to maintain
sound business relationships.
Honoured agreements within scope of individual responsibility, complying with
agreed terms.
Took account of agreed performance indicators.
Made adjustment to agreements in consultation with customer or supplier and
shared information with appropriate colleagues.
Nurtured relationship through regular contact and use of effective
interpersonal and communication styles.
Ability to understand the questions and answering correctly

Assessor’s feedback:

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ASSESSMENT TOOL

Qualification: SIT50416 Diploma of Hospitality Management

Student’s ID and name: 45350 jina kim

ASSESSMENT TASK 1: KNOWLEDGE QUESTIONS

Instructions provided to the student:

Assessment task description:

Purpose of the assessment

SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 1 of 52

Student’s ID and name: 45350 jina kim

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Student’s ID and name: 45350 jina kim

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Student’s ID and name: 45350 jina kim

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Student’s ID and name: 45350 jina kim

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Student’s ID and name: 45350 jina kim

d. informal social occasions

e. program of regular telephone contact

SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 6 of 52

Student’s ID and name: 45350 jina kim

2. use emotional intelligence

3. listen using tactical empathy

4. use time to your advantage

5. understand the power of influence

SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 7 of 52

Student’s ID and name: 45350 jina kim

3. know your BATNA and your opponents BATNA

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Student’s ID and name: 45350 jina kim

2. definition of ground rules

3. clarification and justification

4. bargaining and problem solving

5. closure and implementation.

SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 9 of 52

Student’s ID and name: 45350 jina kim

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Student’s ID and name: 45350 jina kim

2. develop mttual respect

SITXMGT002 Marking Guide V.2 Issued 4/3/2019 Page 11 of 52

Student’s ID and name: 45350 jina kim

4. plan something fun to do together

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Student’s ID and name: 45350 jina kim

- REVPAR: revenue per available room

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Student’s ID and name: 45350 jina kim

a. Industry structure and interrelationships

c. Distribution and marketing networks

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Student’s ID and name: 45350 jina kim

1.16. Explain effective interpersonal communication skill in 50 – 100 words.

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Student’s ID and name: 45350 jina kim

3. standard form contracts

b. methods of contractual agreement

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Student’s ID and name: 45350 jina kim

d. dispute resolution clause