Black & Decker, Inc. - A Case Study Black & Decker operates globally and is divided into four operating regions: North America, South America, Europe and Asia. Black & Decker is in the power tool business supplying these products to large retailers around the world and is one of the top suppliers in its industry. It holds different supplier positions in each of its regions but is strongest in North America and Europe. Black & Decker measures its customers on revenue, its key accounts for each region and countries represent around 65% of their total business. In Quarter 4 2018, Black & Decker conducted a detailed profitability study and implemented a model to measure key account profitability each month. The key account in this case study is Home Depot, number three by revenue in the North American region and number two in Canada. This Key Account (Home Depot) is significantly more profitable than the average because it requires very little management and requires few high cost support services. The relationship is long term and very positive. The business has been stable for the past five years. Black & Decker manages its key accounts by region and by country - therefore there is both a regional major key account representative in North America and a Canadian key account manager for Home Depot who manages this client across Canada. In Canada where Home Depot is the second largest customer, a new General Manager was appointed in March 2017. Black & Decker's Canadian key account manager received a letter in early September 2017 signed by the new General Manager saying that he was giving advance notice to all suppliers that he would require them to cut prices by a significant amount by the end of the first Quarter. The amount of the price cut demanded was not specified. The Canadian key account manager has enjoyed a very good relationship with the primary Senior Buyer of Home Depot (confirmed as part of the Key Account planning assessment in Q4 of 2018). The other contacts in Home Depot are the product selection managers in the local stores who are visited as required. The North American major key account manager at Black & Decker is new in his position and is not involved in establishing a pricing model per country, they are agreed to within each country. Current Situation Having received the letter, the Canadian key account manager called the Senior Buyer. He was not able to get much more information other than the Senior Buyer confirming that the new General Manager was making very aggressive demands throughout the company and there was concern that internal cuts and redundancies would be made. The Key Account Manager and Senior Buyer for Home Depot have agreed to meet at the end of October to review the situation. The Senior Buyer thinks he may have more information by this time. Question What should the Key Account Manager do before the meeting with the Senior Buyer? Please respond in the Module 5 Black & Decker Discussion Forum with a maximum of two paragraphs