SITXMGT501 Establish and Conduct Business Relationships

Assessment 2: Case Study and Report (2026 Version)

Unit and Assessment Overview

Unit code and title: SITXMGT501 Establish and Conduct Business Relationships
Assessment title: Assessment 2 – Case Study and Written Report (Hotel Supplier Contracts)
Assessment type: Individual written assessment (contract drafting and business relationship report)
Length: 2,000–2,500 words equivalent (approximately 6–8 typed pages)
Weighting: As per course outline (typically 30–40% of unit grade)
Submission format: Word-processed document, uploaded via LMS (Turnitin or equivalent) as a single file

Student and Assessor Details

Complete before submission:

• Student Name:

• Student ID (if applicable):

• Date of Birth:

• Assessment Date:

Student Declaration: I certify that this is my own work and that all sources have been appropriately acknowledged.

Student Signature: _____________________________

Assessor Use Only

• Assessor Name:

• Assessor Comments:

• Result: □ Satisfactory □ Not Yet Satisfactory

• Assessor Signature:

• Date:

Case Study Context

You are the manager of a busy, inner-city, 4-star, 250-room hotel operating in a highly competitive hospitality market. The hotel has a strong reputation for efficient business practices, including strict quality control standards, robust supplier management, and prompt payment of accounts.

The annually renewable contracts for two critical supply categories are due for review:

• Fresh fruit and vegetables

• Dairy products

Existing suppliers have failed to meet agreed performance criteria and have not complied with required standards despite corrective meetings. There is strong competition from alternative suppliers within a 20 km radius. You are recognised for maintaining professional, mutually beneficial supplier relationships across the hotel’s 12-year operating history.

Assessment Task Description

You are required to complete two integrated parts based on the case study:

i. Part A – Draft Supply Contract (Fruit and Vegetables OR Dairy)
ii. Part B – Business Relationship Report

Part A – Draft Supply Contract (1,000–1,200 words)

Select one supplier category:

• Fruit and vegetable supplier, or

• Dairy supplier

Prepare a professionally structured draft contract documenting the hotel’s performance criteria and commercial expectations. The contract should be suitable as a basis for formal supplier negotiation.

Required Contract Sections

Your draft contract must include:

1. Parties and Purpose

   • Full legal names of parties (hotel and supplier; reasonable names may be created).

   • Scope and purpose of the agreement.

2. Term and Renewal

   • Commencement date, duration (12 months), renewal provisions.

3. Product and Service Specifications

   • Quality standards, freshness, grading, temperature control, shelf life.

   • Product range requirements.

   • Packaging, labelling, food safety and hygiene expectations.

4. Delivery and Logistics

   • Delivery schedules and time windows.

   • Ordering process and cut-off times.

   • Procedures for late or incomplete deliveries.

5. Pricing, Payment Terms and Invoicing

   • Pricing structure.

   • Payment terms such as 30 days EOM and EFT.

   • Discounts, rebates, incentives.

6. Performance Criteria and KPIs

   • On-time delivery targets.

   • Product rejection thresholds.

   • Service responsiveness standards.

7. Non-conformance and Dispute Resolution

   • Issue reporting procedures.

   • Escalation pathways.

   • Negotiation, mediation or arbitration processes.

8. Legislative and Regulatory Compliance

   • Food safety standards and HACCP.

   • Work health and safety obligations.

   • Consumer and competition law.

   • Privacy and confidentiality.

9. Insurance and Risk Management

   • Public and product liability coverage.

   • Indemnity and recall procedures.

10. Termination and Variations

• Grounds for termination.

• Notice periods.

• Contract variation process.

11. Signatures

• Authorised signatories, titles and dates.

Legislative Requirements and Expert Advice (Attachment)

Attach a 250–300 word outline covering:

• Key legislation influencing contract clauses.

• Areas requiring specialist advice such as legal or food safety consultation.

• External compliance sources including government regulations and industry codes.

Part B – Business Relationship Report (1,000–1,300 words)

Prepare a structured report explaining how supplier relationships will be established, conducted and sustained.

Report Structure and Required Content

1. Introduction (150–200 words)

   • Restate case context.

   • Identify chosen supplier category and its operational importance.

2. Promoting Goodwill and Trust (200–250 words)

   • Transparent communication.

   • Fair negotiation.

   • Prompt payment and collaborative planning.

3. Communication Skills and Techniques (250–300 words)

   • Active listening and open questioning.

   • Stakeholder-specific communication styles.

   • Communication channels.

4. Maintaining Contact and Nurturing Relationships (200–250 words)

   • Review meetings.

   • Supplier forums.

   • Joint problem solving.

5. Negotiating Strategically (250–300 words)

   • Structured negotiation planning.

   • Alignment with brand positioning.

   • Win–win trade-offs.

   • Internal stakeholder consultation.

6. Documenting Outcomes (150–200 words)

   • Communicating agreements.

   • Approval processes.

   • Delegation of authority.

7. Monitoring and Continuous Improvement (200–250 words)

   • KPI tracking.

   • Supplier scorecards.

   • Feedback and renegotiation processes.

8. Conclusion (100–150 words)

   • Summarise long-term relationship strategies.

Assessment Instructions and Requirements

Submission Requirements

Submit one document containing:

• Cover page

• Part A Contract

• Legislative Attachment

• Part B Report

Use 11 or 12-point font, 1.5 spacing, standard margins and structured headings. Reference sources using Harvard or APA style.

Academic Integrity

• Individual assessment only.

• No unauthorised collaboration.

• All sources must be acknowledged.

• Contract cheating or plagiarism constitutes misconduct.

Assessment Conditions

• Complete in own time.

• Submit by due date.

• Learning resources permitted.

• Appendices allowed if labelled.

Marking Guide and Rubric

Marking Overview

Students must achieve minimum competency in each criterion.

Assessment 2 Rubric – SITXMGT501

Strategic supplier relationship management is central to hospitality procurement performance. Hotels that formalise communication protocols, performance scorecards and joint review frameworks tend to achieve stronger supply reliability and cost predictability. Integrating contractual governance with relational trust mechanisms supports service consistency and reduces operational disruption across perishable inventory categories (Chua et al., 2019).

An effective supplier contract in a 4-star hotel environment does more than list prices and delivery times. It establishes a governance framework that protects quality, mitigates operational risk and sustains long-term collaboration. Clearly defined delivery KPIs, quality thresholds and service response standards enable early intervention where performance declines. Managers who reinforce agreements through structured review meetings, demand forecasting transparency and prompt payment practices strengthen supplier commitment and operational resilience. Negotiation approaches that prioritise mutual value creation, such as exchanging volume guarantees for preferential pricing or priority logistics allocation, contribute to stable procurement channels. Aligning supplier criteria with brand positioning such as sustainability or local sourcing ensures operational decisions reinforce marketing strategy and guest expectations.

References (Harvard Style)

Chua, B-L., Lee, S., Goh, B., Han, H. (2019) International Journal of Contemporary Hospitality Management.

Büyüközkan, G. and Göçer, F. (2018) Computers in Industry.

Liu, Y. and Wang, L. (2020) Tourism Management.

Australian Competition and Consumer Commission (2022).

Food Standards Australia New Zealand (2021).

Ivanov, S. and Webster, C. (2019) Robots, artificial intelligence and service automation in travel, tourism and hospitality.

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