Pacific Oil Case Summary

What was Pacific Oil's problem in late 1974? What were the events that transpired, beginning in January of 1975? (It is extremely helpful to draw a "time line" and summarize the events so that you can see the

The case study on Pacific Oil Company shows from beginning to end the role of power in the outcome of a negotiation. From the beginning, the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company was that they did not assert the power necessary to really end up with the outcome of the negotiation they were hoping for. The case study points out several factors that Pacific Oil Company is trying to achieve in the contract negotiations with Reliant Chemical company: the change to a surplus of VCM in the market, the possibility of Pacific Oil needing a supply of their own of VCM to produce their own PVC, and the start-up of several other companies in the production of VCM (Lewiski, n.d.). These

There were three primary changes that I would make if given the opportunity to redo this negotiation. First, I would more immediately suggest that a contingent contract be used to address the quality of product vs. long-term contract debate. In hindsight, it could have been very efficient to propose an agreement that allowed for Rawmat’s longer term deal while also recognizing Myti-Pet’s desire for higher quality. By not initially considering a contingency contract, our group fell into the trap discussed in Bazerman and Gillespie (1999). We simply did not allow ourselves to consider a contingency contract, and when the idea was first proposed we initially felt uncomfortable with the concept. In hindsight, this reaction was highly unproductive.

The company thrived immediately from the beginning so they started buying out their competitors. The company made very quick moves, so they eventually controlled most of the refineries in Cleveland. Then, they started to make deals with railroads to ship their oil and they started purchasing terminals and pipelines to handle the transportation of their oil. The Standard Oil Company started to buy their own plots of land for drilling and for lumber. By doing this, they started owning every part of the oil business. Standard then started buying out other competitors on the east and west coast. Through this, they established a monopoly, and controlled around 90% of the United States’ oil

With his position assured, Ewers and Lockhart needs to go over the financials of both organizations and what they will look like for the new organization. It should become clear to Lockhart that the musicians’ collective bargaining agreement will need to be renegotiated. Because of his relationship with the musicians, Lockhart should be able to convince them that there is no alternative to negotiating a new contract if the new organizations is to get off its feet.

This calculation could be rounded up or down, depends on assumptions made. January is the first month of production and it is possible that make all arrangements and start of production of new lager can give company some delays. There is materials budget per mashing:

3.) . Should the February 1, 2012, agreement and the May 1, 2012, agreement be accounted for separately or as a single arrangement?

Bell Microproducts, Inc. mailed to McGurn an offer of employment that stated that if McGurn were terminated without cause during the first 12 months of employment, he would receive a severance package of $120,000. McGurn crossed out 12 and replaced it with 24, and signed the contract. Bell did not acknowledge the change that had been made to the contract and hired the applicant. McGurn was terminated without cause 13 months later.

My overall goal: Maximize my sale price for the syndication of Ultra Rangers cartoon. Since financing costs and re-run costs (up to 8 runs/episode) is quite costly, I will feed those costs into my total sale price. Additionally, I want to build a sustainable relationship with WCHI so that I can negotiate future deals. Therefore, starting this business relationship on good terms is important for me. What are the issues at stake (in order of importance): 1. Convince Pat Olafson to make the oak bill payment of $700,000 in 15 days 2. Convince Pat Olafson to make the remainder of the lumber bill payment, $250,000 in 30 days 3. Convince Pat Olafson not to recall the $200,000

On the other hand, Hauptmann indicated that Reliant wanted to renegotiate the current agreement, but over stated their supply throughout the negotiation. Also, they communicated to Pacific they only wanted to make a commitment for a two-year contract renewable. But the style of Frederich Hauptmann’s, senior purchasing manager for Reliant Chemicals in Europe, negotiation tactics was that of power. He was only brought in four weeks prior to the Pacific and Reliant contract talks. Hauptmann stated that Reliant did not want to over extend their obligation and did not agree on Pacific’s analysis and minimum requirements. Zinnser communicated that they pleased with the current relationship with Pacific but was concern ed for about the Future. Reliant felt that Pacific’s basic formula price on VCM was currently fair, but might not remain competitive in the near future. Hauptmann wanted Pacific to freeze the minimum projections for two years and then they would increase it in the third year. Fontaine and Gaudin were very surprised by this outcome and tried repeatedly to persuade Hauptmann that the minimums were understated and that the PVC market was going to prosper beyond Reliant’s forecast. New information will frequently come to light during a negotiation, and negotiators need to manage the paradox between sticking with their prepared strategy and pursuing a new opportunity

In other words, Reliant was a major customer. Perhaps if Pacific Oil focused on increasing their smaller business relationships would prevent them from large losses in negotiating. Then, Pacific Oil's decision to not proceed with manufacturing their own PVC might not have been a very good decision. If the decision was made because it was determine not to be lucrative, maybe all avenues were not addressed, such as outsourcing. This could have given Pacific Oil the power of competition. If they would have proceeded with the manufacturing venture, they would be less dependent on Reliant as a customer. The power advantage would then shift from Reliant to Pacific Oil. Pacific Oil could also approach the various competition to get an advantage over Reliant's threat to take their business somewhere else. Pacific Oil also could have gained some advantage by encouraging Reliant to address all of their issues up front by asking more questions about their concerns (Lewicki, Saunders & Barry, 2011). Finally, conducting all of the negotiations away from Pacific Oil's main office diminished some of their power. Having some higher leadership more engaged in the negotiating process could have diminished some of Reliant's power advantage through perception. Reliant was in a position to demand more

Span needs to carefully select which items it needs to negotiate fiercely and which ones it needs to concede. There must be balance; Span has to successfully renegotiate the current contract without the perception of being weak.

Fontaine and Gaudin started off with a competitive strategy, wherein the outcome of the negotiation was more important than the relationship. This is evidenced by the fact that the market for VCM would be oversupplied in a few years due to the building of new chemical plants and a drop in demand. Pacific only needed to secure an extension from Reliant to enable them to maintain operations for just a while longer or until they could come up with a new business strategy for the future. There is nothing to

The Pacific Oil Company a well-established oil company with an assorted diversified product line including “Vinyl Chloride Monomer (VCM)”. (Lewicki, 2010, p. 583) As one of the pioneer producers of VCM, Pacific Oil cornered the market share for contracting, distributing and selling their niche product, VCM worldwide. One of Pacific’s longtime customers was Reliant Corporation. This partnership was more than a decade old and was strong. However, if Pacific Oil decided to further diversify its product line to include Polyvinyl Chloride (PVC) a VCM derivative, “it would not want to be in the position of supplying a product competitor with the raw materials to manufacture the product line, unless the formula price was extremely

Peter has been working with the Bigness Oil Company’s local affiliate for several years, and he has established a strong, trusting relationship with Jesse, manager of the local facility. The facility, on Peter’s recommendations, has followed all of the environmental regulations to the letter, and it has a solid reputation with the state regulatory agency. The local facility receives various petrochemical products via pipelines and