Proc 5840 Pacific Oil Case Study

In: Business and Management

Submitted By kclark2
Words 5908
Pages 24
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. The negotiation for Pacific Oil had numerous challenges during the negotiation with Reliant Chemical. Those challenges will be assessed and discussed in this paper. Specifically, the paper will focus on the negotiation team perspectives, organizational structure of both companies, followed by their respective strengths and weaknesses, culminating in a recommended course of action for…...

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