...Running Head: PACIFIC OIL PACIFIC OIL CSU GLOBAL AMANDA BAUMAN The case study analyzing negotiations between Pacific Oil Company and Reliant Chemical Company it shows how the role of power can dictate the outcome of negotiations. Pacific Oil did not prepare properly for the negotiations they were entering with Reliant Chemical Company. By assuming Reliant was comfortable with their current contract Pacific failed to properly prepare for any unknowns that arose during the negotiations. Pacific oil was in need of a supplier for VCM in order to produce PVC, navigating a VCM market surplus, and how to navigate the start ups of various businesses. By not entering negotiations with a specific strategy or goals in mind Pacific allowed their selves to lose negotiation power with Reliant Chemical Company. When Pacific Oil Company and Reliant Chemical Company reopened negotiations, assumptions were made that delayed and cost Pacific Oil some negotiation power. As Pacific Oil prepared for the negotiations they failed to do the proper research and homework needed to create successful business plans. Pacific Oil did not understand Reliant’s need, or think ahead to what they might need when reconsidering their contract. By assuming Reliant was just as comfortable as they were with the existing contract conditions, Pacific lost time to gather the necessary information in order to fully understand Reliant Chemical Company. By not having a well thought out and understood negotiation...
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...Pacific Oil and Reliant: a good example of negotiating without the 7 step process Managing Conflict in Negotiations The Pacific Oil Company went into negotiations with Reliant Manufacturing, and its goal was to sign a more long-term agreement. Pacific assumed that the new contract would be signed with no major hurdles or objectives, and that the dominant point of negotiation would be price. Jean Fontaine, who is the marketing vice president for Pacific Oil, went into a negotiation process with Reliant. Jean started the process several years before Reliant Manufacturing’s contract was up, hoping to beat her competition to the lower price offers and leave with a contract extension of 5 years. Unfortunately, Jean did not properly research her client’s needs or adequately project what the outcome might be. Because of this, Pacific Oil Company was not prepared to address the concerns and requests that Reliant brought up during the negotiation. Though both parties wanted to move quickly toward signing a contract, Pacific Oil Company elongated this process because it did not have a thorough negotiation strategy that included a contingency plan or best alternatives. Pacific oil also neglected to draw out its best alternatives or bottom line in advance. Staying on the Same Page in Business Negotiations Pacific believed that other elements of the contract might be discussed, but that no dramatic changes would be expected. Because of Pacific’s lack of strategic planning, they wasted...
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...Case Study #2: Pacific Oil Company PROC 5840: Pacific Oil Case Study 30 Sep 2013 Abstract This paper assesses a negotiation between Pacific Oil Company, a seller of vinyl chloride monomer (VCM), and Reliant Chemical Company, a buyer of VCM. Each negotiation team’s strengths and weaknesses will be assessed. The Pacific Oil strengths included their negotiation team and the strength of the VCM market. Their weaknesses included poor organizational control, managerial decision making, and their failure to recognize the changing interests of Reliant Chemical and selection of a negotiation strategy. Reliant Chemical strengths were assessed as a strong organizational relationship and management decision making. It recognized, resolved and or reconciled the changing interests of Pacific Oil, derived the best approach for the negotiation, determined the relationship with the other negotiator(s), and selected the appropriate strategy and tactics. Reliant Chemical had one assessed weakness, which was its possible vulnerability to effective counter tactics. The paper concluded by providing a recommendation to close the negotiation with Reliant Chemical on more favorable terms to Pacific Oil. Introduction The Pacific Oil Company negotiation filled with examples of how people (Corporations, Management and Negotiator(s)) should prepare, interact and react during a negotiation...
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...Pacific Oil Company MGT470-2: Conflict Management and Negotiation Vimarie J. Negron, MBA September 23, 2012 Professor Susan Weese As part of this assignment I will discuss the negotiation between Pacific Oil Company and Reliant Chemical Company in early 1985. Negotiation is a process by which two or more parties attempt to resolve the opposing interests (Lewicki, 2011). This scenario is about the problems Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985. Pacific Oil Company was founded in 1902 as the Sweetwater Oil Company of Oklahoma City, Oklahoma. The founder of Sweetwater Oil, E.M. Hutchinson, pioneered a major oil strike in north central Oklahoma that touched off the Oklahoma “black gold” rush. of the early 1900s. Through growth and acquisition in the 1920s and 1930s, Hutchinson expanded the company rapidly and renamed it Pacific Oil in 1932. After a period of consolidation in the 1940s and 1950s, Pacific expanded again. It developed extensive oil holdings in North Africa and the Middle East, as well as significant coal beds in the western United States. Much of Pacific’s oil production is sold under its own name as gasoline through service stations in the United States and Europe, but it is also distributed through several chains of independent gasoline stations. In addition, Pacific is also one of the largest and best-known worldwide producers of industrial petrochemicals. In 1979, Pacific Oil established...
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...The Pacific Oil Company “Look, you asked for my advice, and I gave it to you,” Frank Kelsey said. “If I were you, I wouldn’t make any more concessions! I really don’t think you ought to agree to their last demand! But you’re the one who has to live with the contract, not me!” Static on the transatlantic telephone connection obscured Jean Fontaine’s reply. Kelsey asked him to repeat what he had said. “OK, OK, calm down, Jean. I can see your point of view. I appreciate the pressures you’re under. But I sure don’t like the looks of it from this end. Keep in touch—I’ll talk to you early next week. In the meantime, I will see what others at the office think about this turn of events.” Frank Kelsey hung up the phone. He sat pensively, staring out at the rain pounding on the window. “Poor Fontaine,” he muttered to himself. “He’s so anxious to please the customer, he’d feel compelled to give them the whole pie without getting his fair share of the dessert!” Kelsey cleaned and lit his pipe as he mentally reviewed the history of the negotiations. “My word,” he thought to himself, “we are getting completely taken in with this Reliant deal! And I can’t make Fontaine see it!” Background Pacific Oil Company was founded in 1902 as the Sweetwater Oil Company of Oklahoma City, Oklahoma. The founder of Sweetwater Oil, E.M. Hutchinson, pioneered a major oil strike in north central Oklahoma that touched off the Oklahoma “black gold” rush Source: Case prepared by Roy J. Lewicki...
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...Pacific Oil Company is a Sweetwater Oil company of Oklahoma City, Oklahoma. It was founded in 1902. One of the major chemical lines of Pacific's is the production of vinyl chloride monomer (VCM). “VCM is subjected to the process of polymerization, in which smaller molecules of vinyl chloride are chemically bonded together to form larger molecular chains and networks.” Pacific Oil's first major contract with the Reliant Corporation was in 1979. The contract between Pacific Oil and Reliant was a standard one for the industry and due to expire in December of 1982. The contract was negotiated by the purchasing managers in Europe then it was reported to the vice presidents in the states. In February 1982, Jean Fontaine marketing vice president of Pacific Oil Europe, discussed the Reliant account with his VCM marketing manager, Paul Gaudin. Fontaine and Gaudin agreed that the Reliant account had been extremely profitable and beneficial for Pacific and Relaint also, overall the quality and the service of the agreement was satisfied. The latest projections proved that there was a worldwide shortage of VCM and that demand was continuing to rise. If the situation would remain the same for years then Pacific believed that it could justify a high favorable formula price for VCM. Fontaine and Gaudin decided to renegotiate the current agreement, so the strategy would be to ask Reliant for their five-year demand projections on VCM and polyvinyl chloride products. In their negotiations...
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...ABSTRACT Trans- Pacific Partnership Agreement (TPPA) is now sound familiar to Malaysia, this is because that countries is one out of the twelve countries that involve in that agreement. The goals of the Trans-Pacific Partnership (TPP), a much-delayed but significant trade agreement between 12 countries in Asia-Pacific and the Americas pushed by the US are increasingly becoming clearer after ongoing talks reveal some of the intentions Washington is pursuing with this pact. The highlighted of the agreement is to increase in import growth is projected to outpace increase in export growth, as the reductions in import tariffs and non-tariff measures (NTM) are larger for Malaysia relative to the other TPPA countries. According to The New York Times, economists are sharply split over the positive and negative effects of TPP, and both "opponents and supporters of the trade accord have quickly seized upon whichever analysis buttressed their own views. ECIPE has said in 2014 that TPP "will be the first ‘competing’ economic integration that is large enough to have a considerable negative impact on Europe. In the long-term, the negative effects will come from dynamic impact, e.g. on investment, productivity and competitiveness". Pascal Lamy called the TPP ‘the last of big old-style trade agreements’. It has said to be a negative impact on the oil and gas sector whose share of GDP is 12 per cent. PETRONAS stands to benefit very little from TPPA as 74 per cent of its exports are to non-TPPA...
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...Pacific Oil Company Gene Arnold Negotiation Strategy Oklahoma Wesleyan University Pacific Oil Company The Pacific Oil Company went into negotiations with Reliant Manufacturing, and its goal was to sign a new long-term agreement. Pacific assumed that the new contract would be signed with no major obstacles, and that the principal point of negotiation would be price. Jean Fontaine, who is the marketing vice president for Pacific, went into a negotiation process with Reliant. Fontaine started the process three years before Reliant Manufacturing’s current contract was up, hoping to best his competition by offering Reliant a lower price and getting them to agree to a five year contract extension. Fontaine did not adequately research his client’s needs or sufficiently project the outcome of these negotiations. Due to this error Pacific was not prepared to address the concerns and requests that Reliant brought up during the negotiation. Both parties wished to renew the contract in a timely manner, but Fontaine slowed down the negotiations because he did not have a complete negotiation strategy that included a contingency plan or best alternatives. The negotiators for Pacific were not prepared for all the changes that Reliant would ask for at each meeting, and they had no power to make any key decisions to settle the negotiations. Reliant’s negotiators used Pacific’s lack of preparation to negotiate a far better contract. (Lewicki, Saunders, Minton, & Barry, 2015). Analysis ...
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...Concourse | Negotiations https://webster.campusconcourse.com/view_syllabus?course_id=12777 W EBSTER UNIVERSITY • JOINT BASE ANACOSTIA-BOLLING • GEORGE HERBERT W ALKER SCHOOL OF BUSINESS & TECHNOLOGY • MANAGEMENT NEGOTIATIONS PROC-5840 3 Credits 01/07/2013 to 03/09/2013 Section 34 S1 2013 Modified 12/05/2012 MEETING TIMES Saturdays - 8:00am-12:00pm CONTACT INFORMATION Monica Y. Watts, MBA Email: monicawatts98@webster.edu Phone: 202-344-2938 Fax: 202-344-1254 Preferred contact method: Email DESCRIPTION The course involves scope, strategies, and objectives related to negotiated acquisitions. The preparation, conduct, and documentation of the negotiation process are included. Requisites None OBJECTIVES The following is a list of the basic learning outcomes for the course: Identify the strategies, tactics, and skills needed to successfully negotiate an agreement/contract in industry or the federal government. Compare and contrast negotiation process in industry and the federal government. Acquire a working knowledge of the negotiation process that includes planning, closure and documentation. Perform a series of negotiation exercises that will allow the student to apply hands-on negotiation strategies, techniques, and tactics used in industry and the federal government to ensure successful negotiation outcomes (win-win). OUTCOMES The following is a list of the learning outcomes for the course: Graduates will know and explain the important terminology...
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...Critical Thinking – PACIFIC OIL CASE STUDY Brian Crummy MGT 470-1: Conflict Management and Negotiation August 31, 2014 The Pacific Oil Company, known for touching off the “black gold” rush began working with the Reliant Corporation in 1979. The first contract between the two was for the purchase of vinyl chloride monomer. As the end of the contract drew close in 1982, the companies worked together to broaden the contract from 1983 to 1987. In 1984 Jean Fontaine, the marketing vice president in Europe for Pacific Oil, and Paul Gaudin began to re-examine the company’s chemical contracts. Upon examination of the Reliant contract, they realized the demand for VCM was rising, and that a new contract could be re-negotiated for a better price. Gaudin contacted Frederich Hauptmann, the senior purchasing manager for Reliant in Europe. From this point, negotiations began. When they first found out about the increased demand for VCM, Fontaine and Gaudin decided to use the two company’s long history together as a leverage point. This point ended up hurting them because Hauptmann asked for a little more concession wise each time the parties met based off the history the two companies had together. Each time, Fontaine and Gaudin agreed to provide these while thinking the negotiation would end with a contract extension like the previous deal with the company. Because of inadequate planning, Fontaine and Gaudin did little to use the power they had over Reliant to secure a more...
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...Lewicki−Barry−Saunders: Negotiation: Readings, Exercises, and Cases, Fifth Edition Cases 1. Capital Mortgage Insurance Corporation (A) © The McGraw−Hill Companies, 2007 Case 1 Capital Mortgage Insurance Corporation (A) Frank Randall hung up the telephone, leaned across his desk, and fixed a cold stare at Jim Dolan. OK, Jim. They’ve agreed to a meeting. We’ve got three days to resolve this thing. The question is, what approach should we take? How do we get them to accept our offer? Randall, president of Capital Mortgage Insurance Corporation (CMI), had called Dolan, his senior vice president and treasurer, into his office to help him plan their strategy for completing the acquisition of Corporate Transfer Services (CTS). The two men had begun informal discussions with the principal stockholders of the small employee relocation services company some four months earlier. Now, in late May 1979, they were developing the terms of a formal purchase offer and plotting their strategy for the final negotiations. The acquisition, if consummated, would be the first in CMI’s history. Furthermore, it represented a significant departure from the company’s present business. Randall and Dolan knew that the acquisition could have major implications, both for themselves and for the company they had revitalized over the past several years. Jim Dolan ignored Frank Randall’s intense look and gazed out the eighth-floor window overlooking Philadelphia’s Independence...
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...integrated energy company with its headquarters located in Calgary, Alberta. It is a publicly traded company operating mainly in North America and Asia-Pacific, consisting of businesses in upstream and downstream segments (“Husky Energy Inc.”, 2014). Husky Energy Inc. was founded in 1938 by Glenn E. Nielson in Cody, Wyoming, USA. Originally named Husky Refining Company, it operated as a small family-owned business selling road asphalt and bunker railway fuel to railways and farmers (“Husky Energy Inc.”, 2014). In the early years, two refineries were built in Cody and Riverton, Wyoming. After the Second World War, the company moved to Alberta, Canada to meet the market demand in asphalt and heavy oil. During the 1960s, Husky’s business boomed after the asphaltic crude project, the ‘Lloydminster Project’, was introduced because the Canadian government issued a strategy on displacing imported crude oil (“Husky Energy Inc.”, 2014). Nowadays, Husky Energy Inc. has its foundation in Western Canada with a large amount of natural gas and oil assets, production of heavy oil, and the company is also seeking new oil and gas resources around this area. With the success in Western Canada, the company operates in the rest of the world and is greatly profitable in Asia-Pacific (China and Indonesia), the Atlantic region, and the oil sands (“Husky Energy Inc.”, 2014). In the year of 2012, the company has achieved net earnings of $2.0 billion with annual production at 301,500 barrels of oil equivalent...
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...cost for each thousand bars (in millions of dollars), and user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year. Refer to the data above. Suppose that a new government regulation is going to shut down OZ's mining operation 1 year from now. If the current price per bar of gold is $25,000, how many bars (in thousands) should OZ extract and sell this year? A) 3. B) 4. C) 5. 3. Over the past two decades, total and per capita water use in the United States have: B) leveled off and fallen, respectively. 4. Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same production costs. Refer to the information above. The forest is more likely to be harvested and replanted at a sustainable rate if: A) property rights are well-defined and enforced. 5. Refer to the diagram above, representing Slippery Slope Oil Company. A $10 increase in the user cost would shift: A) up the extraction cost curve only, and reduce the amount of oil extracted in the present. C) up the total cost curve only, and reduce the amount of oil extracted in the present. D) down the total cost curve, and increase the amount of oil extracted in the future. 6. Total Allowable Catch policies and Individual Transferable Quotas both: B) limit catch sizes, but TACs...
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... the first trans-Siberian oil pipeline is to run 4,150 kilometers - more than three times as long as the trans-Alaska pipeline. At a cost of $15.5 billion, it looms as modern Russia's biggest infrastructure investment, President Vladimir Putin's answer to the Trans-Siberian Railway of the czars. Because China and Japan both rely on the Middle East for about 85 percent of their oil imports, both economic giants competed fiercely over what could be the world's longest and most expensive oil pipeline. Trumping China with a more generous financing offer, Japan, the world's second-largest oil importer, hopes that the pipe, 1.2 meters, or four feet, in diameter, will bind it to Russia, the world's second-largest oil exporter. It may be a decade before the 2,580-mile pipeline is completed. But the line would represent an increase of about one-third in Russia's oil pipeline export capacity and would signify a major Russian shift toward the Pacific, where oil could be sold to any country, including the United States. The project faces major hurdles. There are no guarantees that there will be enough oil to fill the pipeline, although Russia has as much as 67 billion barrels of untapped oil reserves along the pipeline route. When the oil reaches the Sea of Japan, there are no public commitments binding Russia to sell it to Japan, whose ports are only a day's sail away. And Russia's last-minute switch of the Pacific terminal site from an existing oil port to this pristine bay...
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...Oceanic Damage: What have we done to our planet? Negative press, research, and reports from around the world raised issues regarding our problematic oceans. Misguided and crucial errors humans make harm oceans using unsustainable practices which eventually eliminate many species of sea creatures and destroy the water they inhabit and we need for our survival as well. Countries around the world have been heavily positively praised while some have been lauded negatively, for instance, the United States. A crying shame how most countries on Earth seem in continuing spiraling towards ecological harm in an abundance of forms, regarding ocean garbage, coral reefs and oil spills over a twenty-five year period have caused our oceans’ ecology suffering to escalate. Incidents regarding a floating garbage patch in the Pacific, even cruise ships repeating sewage and garbage dumping are atrocious. The problem is, most people do not pay attention and take situations such as these as non-existent. Evidence documented over decades suggest our oceans’ trouble will continue unless change happens sooner rather than later. Change in how we respond to problems should not take years for resolution, because some of the damage may be minute and builds up over time, while some comes in big bunches that there is not time to waste in resolving. In some of these cases, years elapsed before any significant progress had been made, resulting in more damage than first observed. The problems have similarities...
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