Pacific Oil Essay -- Business Analysis

The Pacific Oil Company was formed in 1902 and had been the leader in the manufacturing of a petroleum ingathering Vinyl Chloride Monomer (VCM). This product was Pacific Oils major product line and was the main component to the manufacturing of plastics, used in numerous products. In 1979, Pacific Oil had landed a major crusade with reliant and had all over the old age establish a great workings partnership. The reliant Corporation was one of Pacifics largest and most cherished customers and Pacific Oil Company wanted to renegotiate their current nip with the Reliant Corporation, with the goal of extending before it expired. Pacifics negotiation team, jean Fontaine, Marketing Vice President for Europe with Paul Gaudin, Marketing music director of VCM along with representatives Frederick Hauptmann, Senior Purchasing Manager and Egon Zinnser, Regional VP for European performance from The Reliant Corporation, where to spend nearly two year working by dint of the extension o f the contract. In the end, the contract settlement was down to a final exam period that Pacific was not happy about, that may my then utter the extension altogether. Facing Hard TimesPacific Oil ships company was facing some economic changes over the next 10 years and the demand for its VCM was loss o face some fierce competition. In the next 20 - 30 months other VCM manufactures will be producing the crank product to compete directly with Pacific Oil Company. The supply of the product over the next decade was expected to grow by over 1000 MM pounds from each one year, nearly doubling that as each year progressed. This poses a massive threat to Pacific oil as it negotiates its contracts only five years our and is now being pressured by Reliant to only extend their contract by three years. Reliant was... ...ine and Gaudin was going to present. Reliant had done their homework on their demands, potential softness of the food market and was preparing themselves adequately to be able to deal with any changes. Pacific was not as prepared at the negotiation table as Reliant, and was in the end backed into a corner on a single item in the renewed control, the option for Reliant to re-sale any VCM product they bedevil left over. The was a major oversight on the final advice from Kelsey in securing a huge customer and giving them time in nurture analysis the demand and impact that the new manufacturers would cause. ReferenceLewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation Readings, Exercises and Cases (6th ed.). new-made York, NY, US McGraw-Hill.Lewicki, R. J., Saunders, D. M., & Barry, B. (2011). Essentials of Negotiation (5th ed.). New York, NY, US McGraw-Hill.