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The scenario A month ago you started a new job as finance director of a small
company, Hypothetical Marketing. Your previous job was at a large office supplies
company, Paperclips123, where you worked in the finance department and were involved
in developing strategy and producing the annual report. Hypothetical Marketing has a
contract with Paperclips123 to supply all office supplies, and the contract is up for
renewal. The head of procurement, Sofia, asks you for a meeting to discuss the contract
renewal. This isn’t out of the ordinary — you know that part of your new role is to discuss
any important contract renewals with Sofia to ensure you’re on the same page on budget
and key contract clauses. In the meeting, Sofia asks you for your take on Paperclips123’s
current financial performance and strategy. She thinks that the company might be willing
to compromise on price in return for better payment terms — there has been a rumour
that Paperclips123 has cash flow issues and needs to get some cash into the business
quickly. She reminds you that Hypothetical Marketing is struggling a bit at the moment
and saving some money on this contract could be really helpful for the company. She
also tells you that it would be beneficial for you if you could help the company save some
money so early in your employment. You know lots about the situation at Paperclips123
— you wrote its financial strategy just a couple of months ago! Can you share with Sofia
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