CORe Exam Dumps | TUV Inc., a small manufacturing firm, hopes to rebuild its customer base and return to profitability

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HBX.CORE.v2024-11-30.q151
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Question 62/151

TUV Inc., a small manufacturing firm, hopes to rebuild its customer base and return to profitability after a period of losing market share. Negotiations with a key supplier will be an important factor in this turnaround if target costs and pricing can be worked out.
Given this situation, which of the following would create the MOST challenging constraints In negotiations?

A. Demand for the supplier's products from competitors

B. Need for flexible delivery schedules

C. Troubled financial history of TUV

D. Unpredictable future volume

Correct Answer: C

* Company Situation: TUV Inc. is aiming to rebuild its customer base and return to profitability.
* Negotiations with Key Supplier: Achieving target costs and pricing is critical for the turnaround.
* Challenging Constraint: The troubled financial history of TUV poses the most significant challenge in negotiations. Suppliers may be hesitant to offer favorable terms to a financially unstable company, affecting credit terms, pricing, and trust.
* Financial Stability: Ensuring TUV's financial stability is crucial for gaining supplier confidence and securing advantageous terms.
References
* ISM. (n.d.). Negotiating with Suppliers: Addressing Financial Constraints.
* CIPS. (n.d.). Overcoming Financial Challenges in Supplier Negotiations.

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