Pacific Oil Essay -- Business Analysis

The peace-loving oil color Comp every was formed in 1902 and had been the leader in the manufacturing of a petroleum proceeds Vinyl Chloride Monomer (VCM). This product was Pacific Oils major product line and was the main component to the manufacturing of plastics, use in many products. In 1979, Pacific Oil had landed a major contract with reliant and had over the twelvemonths establish a great working partnership. The Reliant Corporation was one of Pacifics largest and most valued customers and Pacific Oil Company wanted to negociate their current contract with the Reliant Corporation, with the goal of extending before it expired. Pacifics negotiation team, Jean Fontaine, Marketing Vice President for Europe with capital of Minnesota Gaudin, Marketing Manager of VCM along with representatives Frederick Hauptmann, Senior Purchasing Manager and Egon Zinnser, regional VP for European operation from The Reliant Corporation, where to spend nearly two year working through the extensio n of the contract. In the end, the contract settlement was pop to a final item that Pacific was not happy about, that may my then loose the extension altogether. Facing Hard TimesPacific Oil company was facing somewhat economic changes over the next 10 years and the demand for its VCM was going o face some fierce competition. In the next 20 - 30 months other VCM manufactures go out be producing the raw product to compete directly with Pacific Oil Company. The supply of the product over the next decade was expected to evoke by over 1000 MM pounds each year, nearly two-bagger 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 organism pressured by Reliant to only extend their contract by ternion years. Reliant was... ...ine and Gaudin was going to present. Reliant had done their homework on their demands, potence softness of the market and was preparing themselves adequately to be able to dea l with any changes. Pacific was not as prepared at the negotiation put back as Reliant, and was eventually backed into a corner on a single item in the renewed control, the option for Reliant to re-sale any VCM product they have left over. The was a major oversight on the final advice from Kelsey in securing a huge customer and giving them season in further analysis the demand and impact that the new manufacturers would cause. name and addressLewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation Readings, Exercises and Cases (6th ed.). New 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.