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  • Essay / The Pacific Oil Company - 917

    IntroductionThis article will describe the problem that the Pacific Oil Company faced when reopening negotiations with Reliant Chemical Company in early 1985. Second, I will identify and evaluate the styles and the effectiveness of MM. Fonatine, Guadin. , Hauptmann and Zinnser as negotiations in this matter. Finally I will explain what Frank Kelsey recommends to Jean Fontaine at the end of the affair? Why?Managing Conflict During NegotiationsThe Pacific Oil Company began negotiations with Reliant Manufacturing, and its goal was to sign a longer-term agreement before the contract ended in three years. Pacific anticipated that the new contract would be signed without obstacles or major changes and that the dominant point of the negotiation would be price and potentially quantity. Jean Fontaine, vice president of marketing for Pacific Oil, has engaged in a negotiation process with Reliant. Fontaine began the process several years before Reliant Manufacturing's contract ended, with the positive hope of leapfrogging competitors with lower price offers and walking away with a five-year contract extension. Unfortunately, Pacific did not adequately research and do its homework on its client's needs or adequately analyze what the long-term outcome might be. Pacific Oil Company was not prepared to address the concerns and demands raised by Reliant during negotiations. Although both parties wanted to move quickly toward signing a contract, the Pacific Oil Company lengthened this process because it did not have a well-planned negotiation strategy that included a contingency plan or best alternatives. It seemed like going into the negotiation phase it was a win win situation for Pacific touting their long term relationships in the past middle of paper... sort of an alternative for this negotiation. Certainly, the market was already difficult for them, but they limited themselves mentally, and then in reality, to a single option, keeping Reliant as a customer at all costs. Although the case does not tell us what the end result of all these maneuvers was, the final point outlined in the case was a very dire prospect for the Pacific when they had no control over the negotiations and were at the complete mercy of Reliant. .Works CitedLewicki, JR, Barry, B. and Saunders, MD (2011). Negotiation Essentials (5th ed.). New York, NY: McGraw Hill. ISBN-13: 9780073530369Lewicki, J.R., Barry, B. and Saunders, M.D. (2010). Negotiation: readings, exercises and cases (6th ed.). New York, NY: McGraw Hill. ISBN-13: 9780073530314Fisher, R and Ury, W. Getting to Yes [Penguin Books, 1991], 100-01)