The senior vice-president of the strategic partnership sector at Tower Foods Limited, a large food service and facilities provider, had to find a way to retain a large client, North Cove University, and make the current business profitable for the company. Many of the agreements negotiated for and agreed to in the current contract were verbal commitments; however, some of the client's upper management team had changed since the contract was signed and the new personnel were not told of these verbal commitments and therefore did not honour them. The president of the company advised the senior vice-president in charge of the account to walk away from the deal as they were losing too much money; however, he felt compelled to renegotiate and find a compromise for both the university and the food service provider. After months of losses and critical revenue projections at stake, the company knew it had a tough task ahead.
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