Tool cannot execute from Developer Command Prompt for VS2013

Problem

I opened the Developer Command Prompt for VS2013 to run the dumpbin.exe tool. I can see that this tool is present in my C:\Program Files (x86)\Microsoft Visual Studio 12.0\VC\bin\ directory. The command prompt opens with an error:

The system cannot find the path specified.
ERROR: Cannot determine the location of the VS installation.

Not surprisingly, trying to run this tool fails with it not being found. The same happens for the other C/C++ Build Tools that ship with Visual Studio 2013.

Solution

The Developer Command Prompt is nothing but the execution of C:\Program Files (x86)\Microsoft Visual Studio 12.0\Common7\Tools\VsDevCmd.bat. This batch file sets up the paths so that the various Visual Studio tools can be executed correctly. Something must have been going wrong in the execution of this file, I could not figure it out.

I had a Visual Studio 2012 installation on the same computer. I just opened its Developer Command Prompt and got the job done. It worked without any error.

Tried with: Visual Studio 2013 and Windows 7 Professional 64-bit