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Pacific Oil Company Stalemate


Describe the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985.

Identify and evaluate the styles and effectiveness of Messrs. Fonatine, Guadin, Hauptmann, and Zinnser as negotiations in this case. Use sources to support your position.

What should Frank Kelsey recommend to Jean Fontaine at the end of the case? Why?


Title: Pacific Oil Company Stalemate
Length: 3 pages (825 Words)
Style: APA


Answer One

Supply contracts between the Reliant Company and Pacific Company have been built on the premise of collaborative grounds. The two companies have included their negotiating teams in an attempt to protect both companies against looming fluctuations in demand and supply (Raiffa, 1982). The problem that Pacific Oil faced then in the attempt to renegotiate contractual terms with Reliant Company is the aspect of price. The other issue is forecasting. While both parties especially the Pacific Oil are striving to make sure that they enter into long-term contract, they do not want to be the victim of the fluctuations of price. On the other hand, Pacific Oil employs this strategy in order to have its product outlets to appropriately plan manufacturing schedules. The underlying strategy by Pacific Oil is to secure this long-term contract to protect it against price fluctuations.


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