Smith Forge is a successful wholesale provider of hand tools to small retail hardware stores in Florida. Six months ago, John, national sales director for Smith Forge, succeeded in securing a large contract to provide hand tools to HomeFix, a major national retail hardware chain. Furthermore, Smith Forge's contract with HomeFix allows Smith Forge to provide HomeFix with hand tools made of materials of lesser quality at a lesser price. Therefore, HomeFix can charge its retail customers a lower price, providing an attractive profit for both companies. Six months into the contract, both John and Smith Forge are disappointed that, although the hand tools meet the technical specifications of the contract between Smith Forge and HomeFix, the products are not selling. And, furthermore, HomeFix is receiving nonstop complaints from its customers about the quality of the hand tools, prompting HomeFix to consider canceling its contract with Smith Forge. In retrospect, in its eagerness to land a large contract with HomeFix, John and Smith Forge failed to adequately consider the needs of the

Question

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John and Smith Forge failed to adequately consider the needs of the final consumer. HomeFix's customers are the ones who are ultimately dissatisfied with the quality of the hand tools, leading to potential cancellation of the contract. If John and Smith Forge had considered the needs and preferences of the end user, they may have been able to provide a better quality product and avoid this situation.

Smith Forge Is a Successful Wholesale Provider of Hand Tools