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What Is a Case Study?
When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to learn all about case studies.
Deep Dive into a Topic
At face value, a case study is a deep dive into a topic. Case studies can be found in many fields, particularly across the social sciences and medicine. When you conduct a case study, you create a body of research based on an inquiry and related data from analysis of a group, individual or controlled research environment.
As a researcher, you can benefit from the analysis of case studies similar to inquiries you’re currently studying. Researchers often rely on case studies to answer questions that basic information and standard diagnostics cannot address.
Study a Pattern
One of the main objectives of a case study is to find a pattern that answers whatever the initial inquiry seeks to find. This might be a question about why college students are prone to certain eating habits or what mental health problems afflict house fire survivors. The researcher then collects data, either through observation or data research, and starts connecting the dots to find underlying behaviors or impacts of the sample group’s behavior.
Gather Evidence
During the study period, the researcher gathers evidence to back the observed patterns and future claims that’ll be derived from the data. Since case studies are usually presented in the professional environment, it’s not enough to simply have a theory and observational notes to back up a claim. Instead, the researcher must provide evidence to support the body of study and the resulting conclusions.
Present Findings
As the study progresses, the researcher develops a solid case to present to peers or a governing body. Case study presentation is important because it legitimizes the body of research and opens the findings to a broader analysis that may end up drawing a conclusion that’s more true to the data than what one or two researchers might establish. The presentation might be formal or casual, depending on the case study itself.
Draw Conclusions
Once the body of research is established, it’s time to draw conclusions from the case study. As with all social sciences studies, conclusions from one researcher shouldn’t necessarily be taken as gospel, but they’re helpful for advancing the body of knowledge in a given field. For that purpose, they’re an invaluable way of gathering new material and presenting ideas that others in the field can learn from and expand upon.
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Pacific oil case study questions and sample answers, the complications that pacific oil company confronted as it reopened discussions with reliant chemical company in early 1985.
When Pacific Oil Company was first negotiating with Reliant Chemical Company, the demand on product was very high and supply was minimal thus project stable market and good returns for over a long period. However, after negotiation was completed and contracts were sign, another development in the market emerged(Raiffa, H., 1982). Several chemical manufacturing firms were built thus increased the supply of the products into the market. This led to excess products available in the market thus affected the long-term contract sign between Pacific Oil Company and Reliant Chemical Company. The changes in the market dynamics was projected to affect adversely the performance of the Pacific Oil Company if the contract was to be sustained, as a result they opted for re-opening negotiations to factor in the present changes experienced in the market.
The shifting from high demand of VCM products to excessive supply was occasion by immenseimproved in global manufacturing abilities for VCM. During the negotiation process, Pacific Oil Company failed to anticipate for increasing manufacturing capacities due to the emerging manufacturers of VCM in the world. During negotiations Pacific Oil Company relied heavily on the demand of the VCM at that time and projected the supply and demand to remain constant for over a long period of time(Lewicki, R., 1993). As a result, Jean who represented the Pacific Oil Company failed to effectively research on the demands of the Reliant Chemicals Company as well as project precisely what the outcome might be. Additionally, Pacific Oil Company had not organizedsufficiently to address future distresses and did not applied comprehensivearbitration strategy that included best alternative as well as eventuality plan. What come out clearly during the first negotiation was that Pacific Oil Company overlooked the need to formulate the best alternative as well as bottom line in advances. Although both Pacific Oil Company and Reliant Chemical Company wanted to move forward quickly to signing contract , Pacific Oil Company was not cautious about market dynamics(Meerts, P., 1999).Increased manufacturing capacities for VCM in the world also increase market completion, as a result, Pacific Oil Company bow down to the pressure by lowering the prices of VCM.
The strategies and success of Messrs, Fontaine, Gaudin, Hauptmann and Zinnser as mediators in this cases
Fontaine the marketing vp europe of pacific oil company &gaudin of vcm marketing manager of pacific oil company.
- Both express worries of losing an important customer reliant by over-emphasizing the significance of a long-term business relationship during negotiations. The expressions signal the representative of Reliant Chemical Companies how valuable they were to the Pacific Oil Company. During negotiation, parties should not show the signs of fears or worries of losing a client because the customer might decide to take advantage of the situation and compromise the discussion(Lewicki, R., 1993).
- They easily concede to the influences of the counterparty without thoughtful challenging fundamentalexpectations. The strategy did not work well in their favor since they ended up giving in to the demands of the counterparty thus compromised the future re-opening of the negotiation incase market dynamics shift against the business projections(Lewicki, R., 1993).
- Did not makebenefit of market demand and supplies to pressurize on counterparty: As part of the negotiations, the two should have applied market demand and supplies to put pressure on their counterparty to give in to their demands or settled on a more balanced agreement.
- They did not deliberate on the 24-30 months’ time frame it takes until challengers can supply their products to Reliant. This is the important issue that needed to be addressed at first instance of negotiations without assuming the long-term consequences. The longer time frame is enough to be affected by market dynamics(Lewicki, R., 1993).
- They failed to achieve a compromise regarding the pipeline metering issues: The parties should have engaged in sharing the cost of constructing and metering the pipeline. Since they could not convince Reliant Chemical Company to share cost, they end burdening the Pacific Oil Company with the expense and later affected by the supply and demand in the market.
Hauptmann the senior purchasing manager reliant Europe and Zinnser the regional VP operation reliant Europe
- They began by demanding for amendment of main contract terms such as minimum quality, price and duration and they managed to successfully achieve compromise regarding all three aspects(Raiffa, H., 1982). This is the expression that they both either into the negotiation table when they have researched adequately and projected about the future performance of the market.
- Proficiently turn to most significant points by affirming that only a few trivial issues needs to be deliberated including pipeline metering, meeting competition clauses, favored nations clause and contractual rights to re-sell(Raiffa, H., 1982). It is clear that Hauptmann and Zinnser had realized the weaknesses of counterparty thus entering into the discussion with confidence of achieving their goals without compromising the performance of the business even when faced with future changes.
- Hauptmann and Zinnser control the discussions by determining the order of the point deliberated and set consistent pace and managed to achieve their goals sequentially. It seems they were not ready to concede for anything less than what they were presenting on the table. This could be translated to mean they had nothing to lose and they had projected market accurately before availing themselves for the discussion(Raiffa, H., 1982).
Negotiation Tactics used
- Mandate: They exercise their mandate to fully address issues of concern despite the minimal effect they had on the final outcome.
- Limited Authority: They seek the requisite consent from the corporate headquarters used by both parties
- Sequential process: Hauptmann and Zinnser ensured that they achieve their goals one at a time without compromising the state of the next goal.
- Active engagement: Hauptmann questionthe willingness of Pacific Oil Company to engage in long-term business relationship.
What should Frank Kelsey Commend to Jean Fontaine at the end of the case?
- Do not give approval to re-sell provision: The reason being that Reliant Chemical Company will be buying VCM at a lower cost from Pacific Oil Company thus making more profits while Pacific Oil Company making loses.
- If Reliant continues on re-sell provision suggest to include additional provision that excludes Reliant to re-sell below or above contract price: This is because in the first contract there was clause permitting the re-sell of VCM thus introducing the clause of re-selling with the price they obtained from Pacific Oil Company give options to the POC to expand customer base.
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The Pacific Oil Case: Conflict Management and Negotiation
Pacific Oil Case Conflict Management and Negotiation Paul Gaudin and Jean Fontaine negotiated a favorable contract for Pacific Oil Company in 1982 with Reliant Chemical Company. Gaudin and Fontaine prepared well for this negotiation, but they assumed it that negotiations would be quick and easy. Gaudin and Fontaine believed that even with the current and future market condition, a positive outcome could be obtained by offering the best service possible and having an established positive relationship. However, their aspiration to gain a favorable “re-negotiated” contract was hamstrung by competition; market expansion for vinyl chloride monomer “VCM”, and a different style of negotiation by Reliant. The first problem with the renegotiation of this contract was the projected demand for VCM creating a “buyers market”, according to the textbook, “the demand was high, but the supply was to increase exponentially” (Lewicki, Saunders, and Barry 2010) Reliant was already locked into a five year contract with Pacific Oil, but there would be stiff competition at the expiration of the that contract. Knowledge of this market situation put Reliant in a position of leverage and trapped Pacific Oil into a desperate sign at all costs scenario. Gaudin and Fontaine assumed that even with a fluctuation with price; Reliant would sign a new because of their established relationship Pacific Oil. Gaudin and Fontaine’s assumption opened themselves up to more concessions by not attaching conditions to the price adjustment. They could have countered with a reduction of the formula price on the condition of contract length. Another problem that Pacific Oil Company faced was their own internal research and development of expanding the ... ... middle of paper ... ...d be in peril because Reliant could essentially control the prices of the product. Then sell it to potential Pacific clients, thus eliminating any future revenue streams. If Reliant insists that this is a deal breaker, then stopping or stalling the negotiations may be the only resort, because Pacific Oil needs to regain control the negotiation. This may allow another competitor to come in and make their pitch, but Pacific Oil cannot afford any more concessions nor can they afford to allow Reliant to take away potential customers or control their formula costs. References TRACY, B. (2013). The Six Styles of Negotiating. Mworld, 12(3), 21. Craver, C. B. (2003). Negotiation Styles. Dispute Resolution Journal, 58(1), 48. Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
In this essay, the author
- Explains that gaudin and fontaine negotiated a favorable contract for pacific oil company with reliant chemical company in 1982. they assumed that negotiations would be quick and easy. however, their aspiration to gain favorable "re-negotiated" contracts was hamstrung by competition, market expansion for vinyl chloride monomer
- Analyzes how gaudin and fontaine's assumption opened themselves up to concessions by not attaching conditions to the price adjustment.
- Explains that pacific oil company faced internal research and development of expanding the use of vinyl chloride monomers, which could affect demand and price for vcm. gaudin and fontaine had internal knowledge that if they started their own line, there could be a conflict of interest.
- Explains that pacific oil faced a change in the negotiating team for reliant. frederich hauptmann and egon zinsler were new to the company not part of previous negotiations.
- Analyzes how fontaine and gaudin's style of negotiation was a lose-win situation. pacific oil was desperate to keep this account so they were conceding everything.
- Analyzes how hauptmann and zinsler engaged in a win-win negotiation where the outcome was nothing but winning. reliant methodically worked every aspect of the negotiation and had leverage throughout.
- Argues that frank kelsey should recommend to jean fontaine to allow the concession to be made, but only if pacific oil gets a majority percent share of the profits.
- explanatory
- argumentative
- Explains that the 1989 exxon valdez oil spill polluted the waters of prince william sound, coated more than a thousand miles of pristine coastline and killed hundreds of thousands of birds, fish, and animals.
- Explains that the exxon valdez oil spill occurred in the early morning hours of march 24, 1989, in alaska's prince william sound.
- Explains that the oil spill covered 11,000 square miles of ocean, extended 470 miles southwest, and coated 1,300 mile of coastline. exxon worked hard to clean up their mess and over a year, much of the visible damage was cleared up.
- Explains that the exxon valdez oil spill is considered one of the worst human-caused marine environmental disasters ever to occur.
- Explains that exxon did not do a very good job in handling all of this on the public relations side of things.
- Analyzes how exxon failed to follow well-established procedures of crisis communications in the aftermath of the spill.
- Analyzes how the denial aspect of the corporate apologia theory is at play with exxon’s response to the crisis.
- Analyzes how exxon executives declined to comment for almost a week after the spill. public statements that they were releasing contradicted other news sources.
- Analyzes how exxon had a completely unmanaged crisis, even though they defended their handling of the incident. oil companies may not be able to predict when disasters could occur but, they know that it can happen.
- Opines that the image restoration theory would have been beneficial for exxon to follow, since an organization knows that its reputation is being threatened, but quickly determines which publics must be addressed and persuaded to maintain and restore image.
- Explains that what was the exxon valdez oil spill?
- Explains that the film, which is about the important resource of oil, begins at midway sunset, the largest oil-producing field in california.
- Analyzes the film's use of seismology, the science of earthquakes, and drilling of oil wells. steam injection works by the injection of steam into a reservoir to decrease oil viscosity.
- Explains that the transportation of oil is a tricky process. the oil must be transported without any leakage into the surrounding area.
- Explains that oil spills occur when tankers, barges, pipelines, refineries, and storage facilities leak oil into the environment.
- Explains that single hull tankers are being phased out due to their detrimental effects on the environment.
- Explains that the refinery stage of oil processing was also an important part of the film.
- Explains that the united states uses 700 million gallons of oil per day, while the world uses 3 billion. oil is refined into gasoline, lubricants, plastic, and roads, among other things.
- Cites the san joaquin geological society's 'famous gushers of california' and the marine environment protection committee’s 46th session.
- Describes the questions that have been argued about standard oil and its business practices since its prime in the 1870s and 1880s.
- Describes john d. rockefeller as the founder and owner of standard oil. he was extremely industrious and methodical.
- Explains how rockefeller and flagler set up a plan to be highly competitive in the oil market. they built high quality refineries and created their own cooperage or barrel making plant.
- Explains that standard oil was economical to build a plant to create products from the waste of the refining of kerosene. they produced lubricating oil that replaced lard for machinery.
- Explains that rockefeller's dealings with the railroad barons provided him with leverage in terms of bargaining.
- Explains that the last key to success for standard oil was price wars and competitor buyouts. the prices were dropped as low as necessary to drive the competition to bankruptcy and then buy them out.
- Explains that rockefeller's strategy was to go for the strongest refineries first. he would have the refinery appraised, offer the value of the property plus "good will" as in extra compensation in the equivalent standard oil stock or cash.
- Explains that standard oil violated the sherman antitrust act, which prohibits all combinations that restrain trade between states or with foreign nations.
- Explains that standard oil violated the law, but it did not hurt efficiency and the social wealth of the country. rockefeller lowered production costs through cheaper transportation and creation of their inputs.
- Explains that rockefeller's purchase of the refineries also produced positive results. former refiners who were entrepreneurs had this buyout money and could move on to other ventures.
- Opines that rockefeller was a business genius as seen by his use of vertical integration and economies of scale to create extremely low production costs. his dealings with the railroads, price wars and competitor buyouts did violate the sherman antitrust act.
- Explains that the end of the soviet union gave rise to a sharp increase in potential foreign investment.
- Explains the importance of an early position in the russian oil market for a foreign firm because of its high amount of risk.
- Explains that a successful oil firm could be profitable for many years before competition even begins to enter the market.
- Explains that investment in russian oil is expensive due to the risky economic, political, and financial position of the country.
- Analyzes how phibro, conoco, and mobil's strategies for growth into the russian oil market were different.
- Explains that conoco was less aggressive at first. they tried to limit their exposure and risk, reduce middlemen, and improve relations with the russian government.
- Opines that mobil was the most cautious player in russia. they continued to position themselves for financial success by attempting to cut costs.
- Opines that the choices made by both conoco and phibro are dangerously close to reckless.
- Opines that mobil's presence in russia is a strong potential asset. it will be able to move in strongly once progress is made in the construction of basic oil infrastructure.
- Explains that western companies can help protect their investments in russia by buying puts on the ruble or shorting it.
- Explains the various hedges available to foreign investors, such as long-term contracts for oil at fixed prices and investments in other growing markets.
- Explains that the russian oil environment is extremely volatile and risky. it was not suitable for speculation during the early 1990s because of the uncertainty and detrimental taxation regulation.
- Describes how they played the roles of the human resource director, leigh bultema, and their partner, joe tech, a recent mba graduate seeking permanent employment with the technology company.
- Explains that joe and leigh's negotiation had distributive bargaining elements, but their relationship and the outcome of the negotiation were important to both parties.
- Opines that joe tech agreed to a job offer at robust routers, which included $95,000 annual salary, 1,000 stock options, 500 incentive options and $5,000 signing bonus.
- Explains that the terms of the agreement do not differ significantly from the company’s target goals.
- Explains that joe's response to robust routers' request for employment was not different because he was unprepared to negotiate. the negotiation was non-eventful, and joe easily agreed to the terms of the agreement, including relocation.
- Explains that they won the negotiation because the settlement was better than their resistance point and it encouraged longevity with the company.
- Analyzes how the negotiations between leigh and joe were quickly settled because joe realized this job offer was his best chance at pursuing a career in business development.
- Explains lewicki, barry, & saunders, m. d., essentials of negotiation, 5th ed.
- Opines that lewicki, barry, and saunders, m. d. (2010), negotiation: reading, exercises and cases.
- Explains that distributive bargaining consists of two parties in competition to maximize their share of a limited resource. they set their resistance point at $105,000 to allow for some flexibility.
- Explains that joe tech accepted robust router's internship offer because of his inexperience and education from a lower-rank mba program.
- Explains that preparation is the key to every negotiation and creates the foundation for your argument.
- Explains ury's lesson of "step to their side": when faced with hostility and closed ears, the best strategy is to step to their side.
- Explains ury's "don't escalate: use power to educate" as the final step in the negotiation process.
- Analyzes how william ury's book getting past no breaks down the negotiation process into five basic steps called breakthrough negotiation.
- Explains ury's first step to a successful negotiation is to "don't react: go to the balcony".
- Explains how ury uses the example of the great home-run hitter, sadahara oh, using each pitch as an opportunity and the pitcher as his partner in the game.
- Explains how to use a batna without carrying it out, such as involving an attorney if you are going to court.
- Recommends william ury's book getting past no: negotiating difficult situations to anyone in high school or older.
- Explains that niko resources ltd. was able to revive two abandoned gas fields in bangladesh to replicate their famous indian success story. it became the focus of bangladeshi politicians, journalists, activists, and villagers who tarnished their reputation.
- Explains that villagers protested for more compensation due to being unable to open their shops to earn money as gas is abundant in the market.
- Explains that due to gas in the market place, shop owners are not able to open their shops and generate revenue to fund for their family's basic needs.
- Opines that compensation money is not enough to replace the money they have lost from not being able to open their shops.
- Explains that the victims suffered trauma due to the blowouts as the flames and the noise were something they had never seen before.
- Opines that countries may be hesitant to do further business with canadian companies due to their doubt of safety measures and technology standards.
- Opines that bangladesh's future potential may be jeopardized and revenue generating resources may not be accessible.
- Opines that the outcome of the negotiation will decide whether or not politicians can manipulate the local community to their advantage by using niko's declining reputation.
- Opines that they want to negotiate more contracts with bangladesh to revive abandoned gas fields with low-cost canadian technology while ensuring adequate safety measures are taken.
- Opines that niko resources ltd. wants to ensure that the development of gas fields will provide maximum benefit to them and not have any negative implications on bangladesh.
- Describes the success story niko had in india to positively enhance their reputation and put an end to vicious media attacks.
- Explains how to become a globally recognized company with thriving reputation by providing benefits to south asian countries as an example.
- Explains how niko resources ltd. can expand its operations to more international countries by using south asia as an example.
- Recommends providing employment opportunities to the local community and better income to workers with proper safety precautions.
- Argues that increasing economic benefits of the country by allowing chemical and fertilizing industries from across the world to use gas as an energy source for their products.
- Opines that they should be provided with more employment opportunities and better income to provide for themselves and their families.
- Opines that the government should increase economic generation in the country as a whole so they can improve their way of living.
- Opines that bangladesh should become more developed and welcome international companies to invest in bangladesh to enhance their reputation as a country.
- Opines that niko resources ltd. should not seek to jeopardize the health and safety of workers, villagers, and anyone else in the country.
- Seeks compensation money to replace what shop owners have lost as a result of not being able to run their businesses.
- Explains how niko resources was exploited for compensation money due to corruption, and used the situation against them to gain free money.
- Argues that bribery is a fundamental aspect in negotiations in bangladesh, as the media reports that getting cash or gifts from multinational developers is common.
- Explains that developing countries officials view negotiations with multinational corporations as win-lose competitions. this theory justifies some of the exaggerated compensations that the local community and government have claimed.
- Explains that americans prefer detailed contracts that attempt to anticipate all possible circumstances and eventualities, no matter how unlikely. bangladesh's preference of a general contract allows for private benefits to be hidden in there.
- Explains fisher, roger, ury, and patton's book getting to yes: negotiating agreement without giving in.
- Explains that to achieve win-win outcomes, it is essential to separate the people from the problem.
- Explains that niko resources ltd. wants to maintain a presence in bangladesh by pursuing more contracts to revive thriving gas fields.
- Explains that financial gain and safety are mutual interests between niko resources ltd. and the local community of bangladesh.
- Explains that the cultural differences between the two parties provide an explanation as to why negotiations have been prolonged for so long and why each other's perspectives are unclear.
- Opines that niko must integrate a strategy into their negotiation that will help bridge the cultural differences that are complicating the negotiation.
- Explains that kelly was hired by soto board of education in japan. she worked with the japan exchange and teaching program (jet) and conference of local authorities for international relations (clair).
- Describes how kelly was hired as an assistant language teacher and worked three days a week in the board of education office and two days helping with the english program.
- Narrates how kelly's boss, mr. higashi, told her she needed to bring a note from the doctor when she returned to work. she took vacation time instead of sick leave since that was the custom in japan’s workforce.
- Explains that mcs (means-control strategy) involves influencing the process of resolution but not imposing a resolution. the final decision is left to the disputants.
- Explains that manager intervenes in the dispute by influencing the outcome, decides what the final decision will be, imposes the resolution on the disputants, but does not attempt to influence the process.
- Explains that managers don't intervene actively in resolving disputes; they either urge the parties to settle the dispute on their own or stay away from it; low on both process and outcome control.
- Explains that manager intervenes in the dispute by influencing the process and outcome. he or she asks the disputants specific questions to obtain information and imposes a resolution.
- Explains how managers share control over the process and outcome of disputes with disputants. they also take an active role in evaluating options, recommending solutions, persuading them to accept solutions.
- Explains that the ends-control strategy (ecs) is the best intervention strategy to resolve the conflict involving whether kelly’s sick leave or vacation leave should be used.
- Analyzes how kelly's interpretation of the contract and the actions surrounding the time when she was ill indicated to kelly that she had used sick leave.
- Explains that mr. higashi received a call from kelly in regard to her illness and advised her to go to the doctor, but that was the fatherly advice he freely gave on all issues and problems.
- Opines that ecs should resolve the conflict because each party will be allowed to state their side of the problem. the manager from clair will settle the dispute armed with the contract and information from kelly and mr. higashi.
- Explains that if ecs isn't a chosen intervention strategy, the second best intervention is part control strategy (pcs), where the manager shares both controls over the process and the outcome with both parties.
- Opines that pcs is a secondary option to ecs because contracts signed by kelly will weigh heavily in this situation.
- Explains that the comprising strategy would be used as the best alternative if the first strategy failed.
- Explains that the miami heat's deal with juwan howard involved many risks, including a problem with the numbers matching up and the nba saying the deal was no good.
- Explains that negotiation is an effective conflict management approach that many individuals use to redefine old relationships that are no longer working. howard implemented value by comparing and contrasting the teams offers with respect to his personal value.
- Cites brubaker, asher, and lewicki-barry-saunders' book, negotiation: readings, exercises and cases. mcgraw-hill.
- Summarizes the case study analysis of juwan howard's free agent contract from the perspective of howard and both teams' general managers.
- Explains the ins and outs of the high stakes world of professional basketball and the deals and huge money that is the main focus of owners, agents, players, the players union, managers, and nba league every year.
- Explains that juwan howard's contract with the washington bullets allowed him to become a free agent after his second season.
- Explains that the nba salary cap was created to level the playing field of all nba teams and ensure a balance for competition in the leagues.
- Explains that the miami heat were risking either gaining or losing juwan howard in the howard deal. the nba could void mourning's contract, fine the club $5 million, suspend riley for a year, and still leave the heat without howard.
- Explains that the miami heat's intangible assets were at stake. losing the trust of other potential players, current team members, and fans would have an impact on the moral of the current players.
- Explains that diplomacy is the negotiator's ability in conducting negotiations between the representatives of nation states in a peaceful manner.
- Explains that the first stage of the negotiation is preparation, which includes the outlining of both sides negotiator interests for the purpose of identifying common interests among them.
- Explains that the second stage of the discussion process is to exchange information. both sides of negotiator will come into consensus upon making known the information regarding the matter discussed.
- Explains that the third stage of proposing is to gain either positive or negative feedback from the opposition regarding the presented proposal.
- Explains that the fourth stage is the bargaining process, which ensures the negotiation process runs smoothly. bargaining skill is an important skill that will help the process of a negotiation to be favoured by the negotiator side.
- Explains the five stages of the negotiation process in diplomacy that begin with preparation, discussion, proposing, bargaining and end with settling process.
- Explains that lewicki, r. j., saunders, d. m. & barry, b.
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Pacific Oil Company Case Study
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xunyvq131634
Business Finance
Arizona State University
Description
Read the case study and answer these questions
1.Identify the strengths and weaknesses of Fontaine’s and Gaudin’s negotiating strategy in their deliberations with Reliant Chemical Company.
2. Identify the strengths and weaknesses of Hayptman’s and Zinnser’s negotiation strategy.
3. What action should Fontaine take at the end of the case?
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Explanation & Answer
See attached😎 1 Pacific Oil Company Case Study Student's Name Institutional Affiliation Course Number Instructor's Name Date 2 Pacific Oil Company Case Study Introduction Pacific Oil Company was caught in a scuffle with Reliant. In the case study, several pitfalls and failures the Pacific Oil Company made in its negotiations with Reliant have been highlighted. The company's negotiating strategies and those used by Reliant have been given in various case studies. This paper will analyze the strengths and weaknesses that both parties had in their negotiation strategies. Question 1. Strengths and Weaknesses of Fontaine's and Gaudin's Negotiating Strategy Strengths One of the strengths of Fontaine and Gaudin was the strong connection that they had already formed. When the companies formulated their strategies, they had made long-life strategies with Reliant Chemical. Even though they had a strong bond, the connection was more out of the competitive process than a relationship. With a strong competitive strategy, they had a strong connection that strengthened their negotiating strategy. They also had good bargaining techniques. Their bargaining technique is evidenced by the agreement they made. They negotiated for 1% for every pound in the deal compared to the initial offer of 2% proposed by Reliant Chemical on Vinyl Chloride Monomer's formula price. They establish a good negotiating climate by establishing rapport with the other team before the negotiations kick-off. This strategy encourages more independent relationships between the groups and breaks any tensions that arise during the negotiating strategy. It creates room for the parties to back down while maintaining a healthy communication line (Lewis et al., 2017). Weaknesses 3 Fontaine and Gaudin had poor planning strategies in their negotiation tactics. They failed to plan, or their planning was insufficient for any renegotiations. Without any good plans, they had no tactics or arguments that they could use to get Reliant Chemical back on the negotiating table. They had underestimated the negotiating power of Reliant Chemical, and they also took the negotiations casually. This lack of forethought and planning made it difficult for them to make any meaningful negotiations, especially when Reliant Chemical had different strategies. They had made the wrong assumption that the talks would be about prices and that it would be over quickly. Due to lack of preparation and failure to consult with Reliant Company, they couldn't stand their ground and had no decisions on what issues they would concede. Another weakness that was evident with Fontaine and Gaudin was their lack of transparency. Their haste to have their contract signed quickly, they chose to reopen an agreement already in their favor. Reliant took the opportunity and asked for changes and additions to the contract. Pacific Oil overly gave in to Reliant and the demands that it was making. In their haste, they ended up giving away more company secrets to Reliant, and in the process, losing their negotiating capabilities (Naghavi & Mubarak, 2019). Question 2. Strengths and Weaknesses of Hauptmann's and Zinnser's Negotiation Strategy Strengths One of the advantages of Hauptmann's and Zinnser's strategy is that they had adequately planned and prepared for the negotiations. They had carried out adequate and exhaustive research on Pacific, and they were aware of the situation at Pacific Oil. The strategy they had planned and developed worked well to their advantage. They used a competitive strategy that worked to their benefit more than it did for Pacific Oil Company. Other than relying on their wit and intuition, they did their research into Pacific Oil. From 4 that research, they developed a strategy to front a strong negotiation with the Pacific. They were aware of the Pacific's situation, and they capitalized on it in their strategy, gaining the upper hand in the talks. Failure by Pacific to enforce any deadlines on the contract meant that reliant Chemical took the opportunity to win the upper hand. They stalled and delayed the negotiations for as long as they could. This tactic made it easy for them to secure concessions with every passing minute. Bec...
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Pacific Oil Company: Bargaining and Negotiating Essay
Back in the days, petrochemical processes were determined by a detailed elaboration of prices known as formula prices, it comprised of several element. The first one being feed stock characteristics; feedstock supply varied in chemical composition.
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The difference in the feedstock considerably affected the procedures of refining and operating efficiency. A few chemical products were drawn from a chosen feedstock. Increased number of orders necessitated the mixing of combined feedstock together with distinct structural characteristic.
Fuel cost was inclusive of price and quantity of energy that the manufacturing corporation expected in cracking, producing a particular steam and refining.
Labor cost was part of employees’ salary, to operate the manufacturing with the objective of generating a fixed unit amount of a particular product. Value of petrochemical was determined by the commodity cost, as the demand and supply fluctuated in the market; this factor was again featured in the formula price.
The computation of the price formula, as opposed to determining a market price had a list of advantages and disadvantages. It permitted the supplier to surpass expenses charged to buyer; this minimized the risks for the engaged parties, in the case of express fluctuation of prices throughout the period of the contract.
When market demands went down, contract guaranteed a wide market to the supplier; however, the price for the product was to some extent unbeneficial in comparison to product cost.
When it came to quantity, formula prices were typically computed, their major focus was given to quantity. Costs changed significantly, this was however dependent upon the efficiency of the production taking place. Payments were to be issued in dollars without deduction or discount, except only if noted.
Some of the challenges pacific oil faced in early 1985 with Reliant chemical company were quite a number. Pipelines routine inspection had been subcontracted to a company with quality equipment for monitoring things like leaks.
It happened that leaks had been detected in late December prior the year; this extended the effect to early 1985. The executive of the company were out of reach for many days hence the problem could not be solved immediately until a certain period of time.
There was a concern with the system of delivery, and the way meter reading was being conducted. Pacific oil built a line and was in charge of maintenance, installation of meters was done towards the outlet of the pipeline, and Reliant was giving metered total to Pacific.
According to Zinnser some spot checking at the manufacturing facility indicated that they were not getting all that they were billed for. They later discovered that, the integrity of the meter or the meter reader wasn’t question but, felt that since the pipes had been in existent for years, there was a possibility they had develop leaks.
The executive vice president became distressed over the turnout of events. Pacific headed for tremendous destruction. Realizing the techniques of challenging it would be to maintain strong negotiations, a review of the negotiations were done were done on Reliant contract.
They also experienced delay when Hauptmann lost his mother; meetings were rescheduled as a result hence, there was a delay. The investigation of pipeline gave no evidence of a considerable discharge. It only traced minor leaks, which did not seem serious. It was impossible to identify the percentage of the product lost in the process.
Emotion in negotiation is one of the styles used in the case. Emotions carries the capacity to contribute either positively or negatively in negotiation.contribute either positive or negative in a negotiation scenario. According to Fisher, and Shapiro (2005) negative emotion at times leads to intense or irrational behavior, resulting to escalation of conflict.
This is evident in the conversation that takes place between Kelsey and Fontaine as emotions flare an in turn leads to unhealthy and even unnecessary confrontation.Distributive negotiation is another style used; the term distributive basically means giving; or scattering things.
Fisher, and Shapiro (2005) further states that there is a limitation in things being distributed; it entails individuals who have never before had an interactive relationship.
And there isn’t a likelihood of doing so in the future. In this form we see each individual fighting to have their way; it is appropriate but, requires an extent of limit in order not to regard the other side as an enemy but a partner.
According to Shell, R.G. (2006) integrative negotiation means joining several parts and making the whole, this implies some cooperation or teaming up to achieve a common goal. More often than not, trust is of a higher degree in shaping of the relationship.
Both parties walking away feeling a sense of achievement, ideally the process has two phases. The process entails value concession, plus creative problem solving. This is the style that is mainly used by Guadin, Hauptmann, and Zinnser in their negotiations.
Instead of Kelsey allowing emotions to flare, what he could have recommended to Fontaine were few and simple facts.
The reality being that, a supply contract binds legally, it’s a document that only attempts to elaborate on strategies or ways the two companies can work together, and hence it is the foundation of an intricate long term relationship that exists between a seller and a buyer. He could have informed of the constant monitoring, discussion and evaluation required by representatives of the organizations.
He could have further recommended that it is possible for the purchaser to meet the conditions of the negotiated contract. This is can be made possible since the purchaser can accept a fair price formula, without attempting to push the supplier to an artificial low price. He is trustworthy pursue an action plan, basing it on sound business ethics as agreed in the contract.
The purchaser cannot take advantage of aberrations in the spot market, they will have no choice but accept the reality of a formula price having been negotiated, and both parties agreeing to live up to the negotiated contract over the suggested period of time.
Problems encountered in product quality, labor difficulties can result to challenges in manufacturing, unloading and loading, shipping and cleanliness of shipping tools. This can however be explored to mutual satisfaction.
Furthermore, change in business projection of both parties can be shared hence; the complexity anticipated by the supplier in producing the products can be solved. On the other hand the difficulty encountered by buyer in consumption of the product can also lead to amicable solution for both parties.
Finally, the ability to solve these problems necessitates mutual trust, open communication and honesty. And most importantly an approach that offers the best solution to both the parties.
Fisher,R. and Shapiro, D (2005) Beyond Reason: Using Emotions as You Negotiate .New York: Penguin Books.
Shell, R.G. (2006). Bargaining for advantage . New York: Penguin Books.
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Proc 5840 Pacific Oil Case Study
In: Business and Management
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 Pacific Oil to obtain a more equitable conclusion to the negotiation. Problems Pacific Oil faced during the renegotiation with Reliant Chemical Company. One of the most obvious challenges the Pacific Oil Company negotiation team faced was they viewed the whole endeavor as a “renegotiation” and NOT a negotiation, which resulted in a lack of preparation. Pacific Oil negotiated the first vinyl chloride monomer (VCM) contract with Reliant Chemical in 1979. Pacific Oil renegotiated the contract for a second time in February 1982. The contract renegotiation in 1982 was led by, Jean Fontaine. (Lewicki, Saunders and Barry 2010) To better understand Pacific Oil’s challenges, their previous contract negotiations need to be assessed as well as Reliant Chemical’s transformation. The Pacific Oil negotiation conducted in 1979, was a fairly standard contract for the industry and negotiated by each company’s European offices, who then reported back to their respective corporate headquarters in the U.S. (Lewicki et al. 2010) The success of the negotiation demonstrated the strategic importance of good communication from the negotiation team all the way up to their respective corporate offices. It appeared to be a collaborative (Win-Win) strategy for both companies based on the fact that both companies spoke very highly of their relationship and the outcome of the negotiation was considered to be equally important to both companies. The 1982 negotiation was a repeat of the 1979 negotiation and was again viewed as a success by both companies. (Lewicki et al. 2010) In December of 1984, during a Pacific Oil end of year review meeting, it was briefed that the market projections for VCM were going to change in favor of Reliant Chemical and other VCM buyers. It was at this meeting that Fontaine had decided to make an effort to re-sign all major VCM buyers to protect Pacific Oil from the projected market changes. The Pacific Oil negotiation strategy was to resign their buyers to avoid the increase in VCM supply, which was projected to occur between Sep 1986-July 1987 (20-30 Months). That was not a negotiation strategy, but a course of action. Pacific Oil also discussed entering into the polyvinyl chloride (PVC) manufacturing and distribution business. A decision to enter into the PVC business would position Pacific Oil in the VCM market as a buyer and put them in direct competition with Reliant Chemical. This pending decision was announced at the meeting, which meant it would eventually become public knowledge. To avoid complicating the negotiation a corporate decision concerning PVC needed to be made as quickly as possible. If a decision was not made quickly, then Pacific Oil would be perceived as “competitor” during the upcoming negotiations. This set the stage for the “Changes in Perspective” detailed in the case study. It was now inevitable the two companies would experience a change strategy. Due primarily to market projections, however, Pacific Oil’s pending decision to enter the PVC/VCM market as a buyer also contributed . Regardless of the underlying potential for change, each team attempted to get the best deal for their respective companies and should have anticipated challenges during the upcoming negotiation. (Lewicki et al. 2010) Strength and weaknesses of the Pacific Oil renegotiation team strategy with the Reliant Chemical negotiation team. Strengths 1. Renegotiating Team Cohesion and experience As noted in the case study, Jean Fontaine had been appointed Pacific Oil European Vice President sixteen months earlier and had been with Pacific Oil for a total of eleven years. He had a reputation as a strong, rising player in Pacific’s European operations. He also had experience negotiating the previous VCM contract with Reliant Chemical. Paul Gaudin, who was the junior member of the team, had only recently been appointed the European VCM marketing manager. (Lewicki et al. 2010) 2. Pacific Oil Company’s position in the VCM market as well as their business relationship with Reliant Chemical Company was strong. Fontaine and Gaudin actually formulated what they believed was a negotiation strategy as a result of the “Changed Perspective” that they received during the meeting in December 1984. They both realized an over supplied VCM market meant they needed to make a concerted effort to re-sign all of their major VCM customers in advance of the projections. They also realized Reliant Chemical would pursue a more favorable VCM price on the contract. Pacific Oil’s pending decision to enter the VCM market as a competitor, should have also weighed heavily on Fontaine and Gaudin’s preparation for their renegotiation with Reliant Chemical. As a result of the changing interests, whether a market projection or a change in relationship, Fontaine and Gaudin should have prepared for a more detailed and aggressive renegotiation with Reliant Chemical to ensure they obtained the best deal possible for Pacific Oil. (Lewicki et al. 2010) Weaknesses 1. Pacific Oil exercised poor organizational control between their U.S. based corporate headquarters and their European operations as well as poor decision making by the negotiation team. The case study characterization of the organizational relationships for both companies and the readings, “Managerial Decision Making” highlight challenges for Pacific Oil. (Lewicki et al. 2010) The case study described the previous contract negotiations, as “fairly standard one for the industry and that the contract was negotiated by Reliant’s purchasing managers in Europe, and the senior marketing managers of Pacific Oil’s European offices. Each of these individuals reported to the vice presidents in charge of their companies’ European offices, who in turn reported back to their respective corporate headquarters in the States.” (Lewicki et al. 2010) However, in 1985 Pacific Oil had shifted to a balanced functional matrix organization. This meant reporting organizations relationships were determined by business areas and regional operating divisions. (Lewicki et al. 2010) The matrix organization is designed to work best in the management of “large projects”, drawing its employees from different functional areas and disciplines for assignment to a team. This is accomplished without removing the employees from their respective positions. Employees report on their day-to-day performance to the project manager (Jean Fontaine) whose authority flows horizontally across corporate or departmental boundaries (Warren Meredith and Frank Kelsey). They also continue to report on their overall performance to the head of their department (Stan Saunders) whose authority flows vertically within his department. This aspect of the organization is hierarchical and is the only remnant of the previous Pacific Oil negotiations with Reliant Chemical. A balanced functional matrix organizational relationship requires the development of new support mechanisms, organizational culture and behavior patterns. The balanced functional matrix organization is the most difficult system to maintain and control because of the delicate task of the sharing of power. (Matrix structure 2013) This fundamentally changed the Pacific Oil “hierarchal” organizational relationship that had existed in the previous negotiations. It was obvious that Fontaine struggled with his communication and reporting responsibilities to both Meredith and Saunders. To highlight the changes in organizational relationships, the case study had a dedicated section concerning Frank Kelsey the Pacific Oil Strategic Planning Manager. This section pointed out Kelsey’s frustrations and challenges with his position and or relationship between Meredith and Fontaine. Kelsey had a background in chemistry and a wealth of experience in marketing, planning as well as research and development. Kelsey reported to the corporate Vice President of Marketing, Warren Meredith, and had an advisory or functional role to Fontaine. Fontaine as the VP for European operations reported directly to Stan Saunders, head of European operations. However, he also had a primary functional relationship with Warren Meredith. When Meredith had become concerned about the negotiation with Reliant Chemical he asked Kelsey to review the situation. Then when Fontaine asked Meredith for approval to give Reliant Chemical both the “favored nations” and “meet completion” clauses, Meredith recommended against it. Fontaine obviously disagreed, because several days later Saunders called Meredith and expressed his trust and confidence in Fontaine’s judgment and approved the granting of the clauses. This was a power sharing challenge as a result of Pacific Oil’s balanced functional matrix organizational structure. Saunders had the power to make decisions but had not been kept abreast of the status of the negotiation. Ultimately, it was Fontaine’s responsibility to keep Saunders apprised of the negotiations. Regardless, the balanced functional relationship that Meredith (Kelsey) shared with Fontaine (Saunders), excluded Meredith and Kelsey from making a management decision. (Lewicki et al. 2010) The second challenge, as noted in “Managerial Decision Making” and the decision making processes of the two cognitive systems that influence decision making. System 1 is characterized as fast, automatic, effortless and often an emotional process. This suggests the system relies on habit and is difficult to break. In contrast, system 2 is characterized as slow, controlled and requires effort, is rule-governed, and flexible. This suggests system 2 is a more “rational” decision making process. (Lewicki et al. 2010) Since negotiations are a decision-making process involving people that do not have the same desires and or preferences, the goal of a negotiation is not to simply reach an agreement. The goal of negotiations is to reach a good agreement. System 1 is clearly the system the Pacific Oil renegotiation team utilized for the majority of the negotiation. System 2 should have dominated Pacific Oil’s preparation for the negotiation and supported any System 1 decisions that may have come up. (Lewicki et al. 2010) 2. Pacific Oil Company negotiation teams “hidden assumptions” associated with Reliant Chemical. The biggest challenge that faced the Pacific Oil Company negotiation team was the perception of the negotiation as a “renegotiation”. Fontaine and Gaudin knew the market was going to change and Reliant Chemical would probably be negotiating for more favorable terms. Therefore, Fontaine and Gaudin correctly assumed Reliant Chemical would seek an adjustment to the “price” formula. Fontaine and Gaudin could have simply validated their assumption by asking additional questions, or utilizing hypothetical situations, “What if…” This is tactic called, “probing/testing”, which could have validated their “price” assumption. However, there “lack of preparation” and “over confidence” negated any use of tactics to ascertain Reliant’s intent and contributed significantly to Pacific Oil’s defensive position. (Lewicki, Saunders and Barry 2010) 3. Pacific Oil renegotiation teams’ failure to recognize, resolve and or reconcile the changing interests of Reliant Chemical before selecting the best approach for the Reliant Chemical renegotiation. “In resolving a dispute, the parties must focus their attention on one or more basic factors. They may seek to (1) reconcile their underlying interests…..” Interests underlie people’s positions—the tangible items they say they want.” It states further, “That reconciling interests are not easy. It involves probing for deep-seated concerns, devising creative solutions, and making trade-offs and concessions where interests are opposed.” The Pacific Oil negotiation team knew Reliant Chemical interests were going to change and failed to reconcile those interests. (Lewicki et al. 2010) 4. Pacific Oil Company negotiation teams’ failure to determine the relationship with the Reliant Chemical team negotiator(s) and the selection of a strategy. Selecting a strategy is a fundamental necessity in any negotiation. Unfortunately, Pacific Oil ignored basic negotiating fundamentals, which set the negotiation team up for a string of strategic errors. The five strategies, avoiding (lose-lose), accommodating (lose-win), competitive (win-lose), collaborative (win-win) and compromising (split the difference) depend upon two basic concerns: the relationship with the other negotiator and the outcome of the negotiation. Both Pacific Oil and Reliant Chemical had previously enjoyed a collaborative relationship. If Pacific Oil had prepared for the upcoming negotiation and reconciled Reliant Chemical’s interests, they would have assessed a shift in the relationship. In fact, based on available information, the appropriate assumption for the upcoming negotiation would have been a compromising or accommodating strategy for Pacific Oil and perhaps a more aggressive compromising strategy for Reliant Chemical. (Lewicki et al. 2010) 5. Pacific Oil negotiation teams’ failure to prepare for the Reliant Chemical negotiation based on the “changed perspective” in the market. It is easy to understand why the Pacific Oil negotiation team failed to prepare based on Pacific Oil’s “hidden assumption” of the renegotiation, i.e., being focused on a “price” formula. However, the Pacific Oil negotiation team should have taken a more systematic approach to their preparation for the negotiation. Negotiations: Readings, Exercises and Cases, Section 1.4, The Negotiation Checklist is a perfect example of a systematic approach to preparing for a negotiation. What are the issues? How important is each issue to you? What is your best alternative to a negotiated agreement (BATNA)? What is the other side’s BATNA? What is the other side’s resistance point, if any? What is your target? What deadlines exist? Establish a timeline, agenda and have set meeting locations for negotiations. What are the future consequences of each strategy, tactic, or action you are considering and the reaction you might have on their actions? What do you know of the other party’s styles and tactics? What are the limits to the other party’s authority? Just to name a few. Pacific Oil’s lack of preparation drove them to a defensive negotiating position relative to Reliant Chemical. (Lewicki et al. 2010) 6. Pacific Oil negotiation team framed the negotiation thru loss aversion, over confidence and escalation of commitment, which allowed the Reliant Chemical to strengthen their negotiating position. Pacific Oil demonstrated a decision making biases, which involves what is called framing. Pacific Oil framed the negotiation through a bias of, “overconfidence”, “loss aversion” and “escalation of commitment”. The Pacific Oil negotiation team had a “hidden assumption” of a “renegotiation”, which naturally progressed into a bias of “overconfidence”. The “loss aversion” bias developed as Pacific Oil began to perceive the negotiation going backwards, or losing ground. Unfortunately, due to the lack of an overall strategy, avoiding the “loss aversion” bias would have been nearly impossible; however, being aware of its existence could have helped Pacific Oil make better decisions. For example, Fontaine and Gaudin had framed the negotiation around securing a contract in advance of the projected market changes in supply. In their rush to renegotiate, their “over confidence” coupled with their “loss aversion” as the negotiation continued to be prolonged by Reliant Chemical culminated in an “escalation commitment”. Again Pacific Oil’s failure to prepare drove them to an untenable defensive position. (Lewicki et al. 2010) 7. Pacific Oil negotiation team had anticipated a change in Reliant Chemical’s strategy, but failed to counter with the appropriate bargaining tactics, moves and techniques. Negotiation: Readings, Exercises and Cases specifically described the “Ten Hard-Bargaining Tactics” for negotiation teams to be on the lookout for during negotiations. The Reliant Chemical negotiating team (Zinnser and Hauptmann) utilized a minimum of four out of the ten tactics against Pacific Oil. These tactics seemed to continually keep the Pacific Oil team off balance. In fact, Pacific Oil was astonished by Reliant Chemical’s positions and never realized that their positions were actually tactics. Pacific Oil failed to recognize the overall Reliant course of action was incorporate numerous tactics and techniques to gain concessions from Pacific Oil. Reliant Chemical utilized the tactic of salami or “incrementalism”, which is the art of taking the negotiation and dividing it up into increments or slices. This tactic is especially useful in negotiations that can be divided up into negotiable elements, i.e., a contract. (Lewicki et al. 2010) The VCM contract negotiable elements were: price, quantity, product quality, contract duration, delivery point and credit terms. This coupled with Pacific Oil’s “overconfidence” and “escalation of commitment” would prove to be a very effective use of the “salami” tactic. Pacific Oil was completely unaware of Reliant Chemical’s use of the tactic. (Lewicki et al. 2010) For example, there were six separate uses of the “salami” tactic beginning in March 1985, when Pacific Oil’s negotiating team met with the Reliant negotiating team to discuss the VCM “price” formula. This was followed up in May 1985, when Reliant Chemical negotiator, Hauptmann, met with Pacific Oil negotiator, Gaudin, to discuss commitment to a “contract” renewal. Then again in August 1985, Reliant Chemical negotiator, Hauptmann, met with Pacific Oil negotiator, Gaudin, to accept to a three year “contract” renewal. Then again in September 1985, Reliant Chemical negotiator, Hauptmann, met with Pacific Oil’s negotiator’s, Fontaine and Gaudin, and negotiated minimum “quantity” requirements. And again in November 1985, Reliant Chemical negotiator, Hauptmann, again met with Pacific Oil negotiator, Gaudin, and agreed to a minimum “quantity” requirement. Then finally, as a “fait accompli”, in Febrarary 1986, Reliant Chemical negotiator, Hauptmann, presented two clauses that he said both he and Zinnser had formulated. Because the tactic fit so well into the negotiable elements of the contract, Pacific Oil was unaware of the tactic and never countered with a restorative move during the negotiation. Another tactic that Pacific Oil failed to counter was the use of “forbearance”, sometimes referred to as “waiting in haste”. This strategy is not utilized by those who are in a hurry to close a negotiation; in fact, this strategy has a tendency to provoke frustration and anger in an opponent who is in a hurry, i.e., Pacific Oil. In the Pacific Oil negotiation, each physical meeting was consistently spaced two to three months apart. This had the effect of dragging the negotiation out to allow Reliant Chemical to extract as much information as possible, while validating assumptions and magnifying the effects of their tactics. (Lewicki et al. 2010) From the onset of negotiation in December 1984, and each successive meeting, February 1985, March 1985, May 1985, August 1985, September 1985, November 1985, December 1985, January 1986, February 1986 effectively delayed the negotiations to maximize the tactics being employed by Reliant and the framing elements effecting Pacific Oil, i.e, “over confidence”, “loss aversion” and “escalation commitment”. Reliant Chemical utilized “surprise” effectively on four different occasions. The intent was to make their negotiating position less predictable, so Pacific Oil was less confident in their assumptions and or demands. Therefore, each time Reliant Chemical brought up items for discussion beyond Pacific Oil’s “hidden assumption” of “price” it seemed to throw the Pacific Oil team off balance, which contributed significantly to the lack of restorative moves/turns by Pacific Oil. (Lewicki et al. 2010) The first example of the use of “surprise” was in March 1985, Pacific Oil’s negotiating team met with the Reliant Chemical negotiating team to discuss the contract VCM “price” formula. Reliant proposed a rather elaborate method for adjusting the coefficients of the formula factors. Pacific Oil was able to work thru the formula changes but it was an “exception” to the normal process. The next meeting in September 1985, Reliant Chemical negotiator, Hauptmann, met with both Pacific Oil’s negotiator’s Fontaine and Gaudin, and negotiated the minimum “quantity” requirements. Fontaine and Gaudin were “surprised” by the conservative VCM projections that Reliant Chemical was utilizing. In December 1985, Pacific Oil’s negotiating team met again with Reliant negotiating team to discuss how the delivery pipeline was being metered. This too caught Pacific Oil by surprise, especially since they had no indication that there was even a problem with the pipeline. The final use of “surprise” was in February 1986, when Reliant Chemical negotiator, Hauptmann, presented two clauses for consideration and was definitely an exception to the normal negotiation process. Once again the Pacific Oil team was caught off guard. Reliant Chemical also utilized a common tactic called, “probing/testing”. It is a tactic designed to gain information and leverage their position during negotiations. It can also be used to validate “assumptions” and setup appropriate follow on tactics or moves. In December 1985, Reliant Chemical negotiator, Zinnser, stated that they had become concerned about the way the Pacific Oil delivery pipeline was being metered. According to Reliant Chemical, a preliminary inspection had raised concerns they were paying for VCM they were not receiving. Although there was no evidence to support Zinnser’s claims, he refused to address any other negotiation items until this concern was resolved. Reliant Chemical’s probe/test of the metering concerns was an outstanding use of the tactic. It had an element of “surprise”, but was intended to validate the assumption of Pacific Oil’s “escalation of commitment”. Ultimately, it also set up the follow on move of the “fait accompli” with the “favored nations” and “meet competition” clauses. (Lewicki et al. 2010) Pacific Oil also failed to notice Reliant Chemical’s use of the tactic of an “agent of limited authority”. This allowed the Reliant Chemical team members to claim to be an agent of lesser authority during negotiations, which meant they did not have the authority to make a decision without their principal’s concurrence. This effectively allowed Reliant Chemical time to gather additional information before formulating a decision while continuing to employ other tactics such as “forbearance” and “surprise”. Reliant Chemical utilized this tactic on numerous occasions to delay decisions to enhance their tactics and support their overall strategy. (Lewicki et al. 2010) Examples include the December 1984 meeting when Pacific Oil negotiator, Gaudin, had contacted and then met with Reliant Chemical negotiator, Hauptmann, concerning a contract extension beyond December 1987. Hauptmann responded by saying, “that he would consider the offer but needed to consult with “other people” in Brussels as well as senior executives at corporate headquarters in Chicago.” This was the first use of “limited authority” and may have seemed reasonable at the onset of negotiations, but it set a precedent for Reliant Chemical. In September 1985, Reliant Chemical negotiator, Hauptmann, met with both Pacific Oil’s negotiator’s, Fontaine and Gaudin, and negotiated aggressively concerning the conservative projections that Reliant Chemical had applied to the minimum quantity requirements. Hauptmann again departed the meeting stating the he needed to consult with Zinnser and others in Brussels and the states. This effectively delayed a decision and enhanced Reliant Chemical’s overall strategy. And finally, in January 1986, Reliant Chemical negotiator, Hauptmann, said “that as far as he was concerned, all issues had been settled; however, he thought Zinnser might have one or two issues to raise.” Again utilizing the “agent of limited authority” to set up a negotiation within a negotiation. The final tactic utilized by Reliant Chemical was a tactic called a “fait accompli”. This tactic is normally considered a risky move, however, within the context of Reliant Chemical’s overall strategy and the predictable decision making of Pacific Oil it made sense. A “fait accompli” forced Pacific Oil to act on the request. Reliant Chemical had executed their overall strategy consistently thru out the negotiation and even validated their assumptions with the VCM pipeline “probe/test”, which set up their “fait accompli”. The “fait accompli” was executed during the Feb 1986, Reliant Chemical negotiator, Hauptmann, presented the two clauses, the first of which was the “favored nations” clause that Hauptmann argued was to protect Reliant Chemical. The second was the “meet competition” clause, which he argued was advantageous to Pacific Oil. Hauptmann also suggested that if Pacific Oil did not agree to the clauses then perhaps they were not as interested in a long-term relationship as they had been advocating. (Lewicki et al. 2010) Strength and weaknesses of Reliant Chemical negotiation team strategy with Pacific Oil. Strengths 1. Reliant Chemical has strong organizational relationship within its European operations with direct management oversight thru to its corporate headquarters. The organizational relationships for Reliant Chemical and Pacific Oil for the negotiating teams that participated in the 1979 and 1982 contract negotiations, was described as a “fairly standard contract and negotiation for the industry. The contracts were negotiated by Reliant’s purchasing managers in Europe, headquartered in Brussels, and the senior marketing managers of Pacific Oil’s European offices, located in Paris. Each of these individuals reported to the vice presidents in charge of their companies’ European offices, who in turn reported back to their respective corporate headquarters in the States.” There was a single line of communication and management oversight was consistent. This was ensured because all three levels of management decision making was hierarchal and consistent thru the strategic (corporate), operational (European operations) and tactical (negotiation team)) to ensure the company goals and objectives were consistent. (Lewicki et al. 2010) 2. Reliant Chemical negotiation team recognized, resolved and or reconciled the changing interests of Pacific Oil Company before selecting the best approach for the Reliant Chemical negotiation. “In resolving a dispute, the parties must focus their attention on one or more of the basic factors. They may seek to (1) reconcile their underlying interests…..” It involves probing, for deep-seated concerns, devising creative solutions, and making trade-offs and concessions where interests are opposed.” Reliant Chemical negotiation team (Zinnser and Hauptmann) reconciled their interests and it was reflected in the execution of their strategic and tactical courses of action. (Lewicki et al. 2010) 3. Reliant Chemical negotiation team determined the relationship with the other negotiator(s) and the outcome of the negotiation itself, and selected a strategy and tactics prior to going into the negotiation with Pacific Oil Company. Selecting a strategy is a fundamental necessity for any negotiating team. The five strategies, avoiding (lose-lose), accommodating (lose-win), competitive (win-lose), collaborative (win-win) and compromising (split the difference) depend upon two basic concerns: the relationship with the other negotiator and the outcome of the negotiation itself. Reliant Chemical and Pacific Oil enjoyed a collaborative relationship, but the market had favored Pacific Oil in the past negotiations. Reliant Chemical negotiation team, Zinnser and Hauptmann, reconciled Pacific Oil’s interests and then assessed their relationship with the that of the opposing negotiator as well as the outcome of the negotiation. Reliant Chemical had stated that they had a collaborative relationship with Pacific Oil; however, their assessment had shifted to an aggressive compromising strategy. (Lewicki et al. 2010) 4. Reliant Chemical negotiation team demonstrated that they had prepared for the negotiation, by maintaining a consistent strategy thru the validation of assumptions and a repetitive series of tactical decisions. The Reliant Chemical negotiating team strategy and tactics represents their primary strength in the negotiation with Pacific Oil. Their selected tactics are discussed in detail as part of Pacific Oil’s weakness to recognize and counter Reliant Chemical’s tactics. (See Pacific Oil Weakness number 7, Pg 11) Weaknesses 1. Reliant Chemical gains were obtained from their use of negotiation strategy and tactics and NOT entirely as a result of the “Changed Perspective” in the market, which means they could be vulnerable to “Restorative Moves and Turns”. Based on Pacific Oil’s renegotiation team’s performance it is unlikely their overall position will change and Reliant Chemical’s position is relatively secure. (Lewicki et al. 2010) What negotiation action(s) should Pacific Oil take to resolve the case? The Pacific Oil negotiation team lead, Jean Fontaine, needs to immediately implement changes in his communications with Pacific Oil management (Balanced Functional Matrix organizational) to ensure the negotiation is more favorable to Pacific Oil and protect his position in the company for the remainder of the Reliant Chemical negotiation. The Pacific Oil negotiation team also needs to make several strategic move(s) to restore the balance or equity in the negotiations. This is to address the obvious advantage that Reliant Chemical negotiation team has obtained in the last thirteen months of negotiations. The original contract expiration is December 1987 and Pacific Oil has twenty two months to secure a more favorable contract extension with the Reliant Chemical negotiation team. Twenty two months shouldn’t be required based on the new strategy but it is important to note they have time. (Lewicki et al. 2010) Pacific Oil management structure (balanced functional matrix organizational issues) and the proposed closing negotiation strategy First, Fontaine should call Frank Kelsey to propose a closing negotiation strategy and management decision process. The proposal should include the following: Pacific Oil will continue with a positive collaborative strategy towards Reliant Chemical. However, Pacific Oil should be prepared to utilize any of the following strategies: competitive, compromising, accommodating and or avoiding when dealing with individual contract items to ensure negotiations with Reliant Chemical conclude with Pacific Oil in a more equitable position. Pacific Oil should initiate a “strategic move” to reposition its negotiation team. This strategic move will be to request a formal closing negotiation with Reliant Chemical. Since this hadn’t occurred in previous negotiations, if Reliant Chemical questions the reason for the formal closing, Pacific Oil should state since the company reorganization in 1985, corporate headquarters requires a formal closing negotiation on all contracts. This tactic will allow Pacific Oil to introduce an arbitrator/mediator (Kelsey or a third party, if Reliant Chemical objects) into the negotiation process. This is a “restorative turn” to ensure the Pacific Oil negotiation lead maintains a credible role in the negotiation and Kelsey adds to the strength of the team. The “restorative turn” may put Reliant Chemical on the defensive; therefore “participative turns” will also be critical to ensure Reliant Chemical continues to view itself as a partner. The will allow Pacific Oil the ability to structure and control the closing negotiations by selecting a time, location, duration and setting an agenda, etc., while allowing Pacific Oil to regroup and establish a BATNA, Resistant Point, Target and other neglected elements their negotiating position. (Lewicki et al. 2010) Formal closing negotiations will allow Pacific Oil negotiating team (Kelsey, Fontaine and Gaudin) to utilize a wider range of tactics. These tactics will allow Pacific Oil to revisit issues and continue to negotiate more favorable terms. One technique would be to “summarize” the issues and emphasize selected concessions that Pacific Oil had agreed to. Linkage of these concessions can be very helpful in leveraging concessions from Reliant Chemical. Closing individual issues and or the entire contract by “splitting the difference” can also be utilized. (Lewicki et al. 2010) To ensure the Reliant Chemical negotiation team does not become too defensive, Pacific Oil should also use a number of channels of persuasion. Pacific Oil should rely on the following persuasions to further its goals and objectives. The first is, Channel #1: Interest Based Persuasion should be utilized to ensure Pacific Oil addresses Reliant Chemical’s underlying needs. Second, Channel #4 Rationality should be applied when trying to influence Reliant Chemical’s attitudes, beliefs or actions and offer reasons and or evidence to justify a proposal on its merits. And finally, Pacific Oil should continue to focus on the collaborative relationship with Reliant Chemical. Therefore, Channel #6 Relationships to stress the use of similarity, liking, rapport, and reciprocity to maintain open doors as part of an idea-selling strategy is necessary. (Lewicki et al. 2010) Second, if Frank Kelsey concurs, then call or meet with Stan Saunders to brief him on the change in strategy and tactics. Stan Saunders should not be opposed to the changes, since he is already on record with Warren Meredith that he trusts Fontaine’s judgment in doing what’s right for Pacific Oil. Also, have Frank Kelsey call Warren Meredith to brief him on the change in strategy. Third, if Stan Saunders and Warren Meredith concur, then arrange a teleconference with Frank Kelsey, Warren Meredith and Stan Saunders to establish a new method of reporting for the Pacific Oil negotiation team with Frank Kelsey acting as a mediator/arbitrator, or a third party. Set up mandatory conference calls prior to and after each negotiation session to ensure both Warren Meredith and Stan Saunders are aware of the negotiation team progress. Also, at the February 1986 meeting, Fontaine had deferred the “favored nations” and “meet competition” clauses to confer with corporate headquarters. Fontaine should instruct Gaudin to inform Reliant Chemical that he was requested to travel to Pacific Oil corporate headquarters to discuss the formal contract closing negotiation process. Gaudin should frame the reason for Fontaine’s travel to corporate as a result of the recent restructuring of the Pacific Oil organization to reflect a matrix organization and that he anticipates: a. Formal closing negotiations with corporate representation (Probably Frank Kelsey, Corporate Strategic Planning). b. The reorganization and formal closing negotiations, although never conducted before, is consistent with the public reorganization of Pacific Oil to a matrix based organization. Although this will certainly be a “surprise” to Reliant Chemical it probably won’t be challenged and sets up the introduction of the formal closing negotiation process and an arbitrator/mediator (Frank Kelsey’s involvement). Strategically, that should give the Pacific Oil negotiation team several weeks to continue to refine their new strategy and tactics proposed by Fontaine during the teleconference. (Lewicki et al. 2010) Conclusion The number of variables associated with the Pacific Oil and Reliant Chemical negotiation was as diverse as most human interactions. As a result, negotiation preparation and subsequent communication of a strategy, tactics/techniques cannot be understated. The Pacific Oil case study allowed for an in depth look at the fundamentals of negotiation from the basis of determining the “interests” of the other side, to assessing and determining your own. Once the “interests” were determined then the appropriate strategy, tactics/techniques should have been selected to obtain those respective goals and objectives. The actual negotiation between Pacific Oil and Reliant Chemical was a reflection of each negotiator’s knowledge of the other interests, and how well you knew your own interests, punctuated with tactics (moves and turns) as well as techniques. All required to accomplish your individual strategy “course of action” to obtain your goals and objectives. (Lewicki et al. 2010) References Krulak, C.C., et al, (1997). The Theory of War, MCDP 1, Warfighting (pp. 28-30), HQMC Washington D.C.: Department of the Navy. Lewicki, R.J., Saunders, D.M., Barry, B., (2010). Negotiation: Readings, Exercises and Cases, New York, NY: McGraw-Hill Irwin. Matrix Organization. (n.d.) Wikipedia.org Retrieved September 14 2013 from Wikipedia.org Website: http://en.wikipedia.org/wiki/Organizational_structure#Matrix_structure Matrix Structure. (n.d.) BusinessDictionary.com Retrieved September 14 2013 from BusinessDictionary.com Website: http://www.businessdictionary.com/definition/matrix- organization.html#ixzz2eyDhxmX4 Sun Tzu. (n.d.) BrainyQuote.com Retrieved September 7. 2013, from BrainyQuote.com Website: http://www.brainyquote.com/quotes/quotes/s/suntzu155752.html.
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"Pacific oil company case negotiation" Essays and Research Papers
Pacific Oil Company Failed Negotiation
of Fontaine’s and Gaudin’s negotiating strategy in their deliberations with Reliant Chemical Company . Fontaine and Gaudin started off with a competitive strategy‚ wherein the outcome of the negotiation was more important than the relationship. This is evidenced by the fact that the market for VCM would be oversupplied in a few years due to the building of new chemical plants and a drop in demand. Pacific only needed to secure an extension from Reliant to enable them to maintain operations for just
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Pacific Oil Company
Pacific Oil Company Pacific Oil Company was founded in 1902 as the Sweetwater Oil Company of Oklahoma City‚ Oklahoma. The founder of Sweetwater Oil ‚ E.M. Hutchinson‚ pioneered a major oil strike in north central Oklahoma that touched off the Oklahoma "black gold" rush of the early 1900s. It developed extensive oil holdings in North Africa and the Middle East‚ as well as significant coal beds in the western United States. In 1979‚ Pacific Oil established the first major contract with
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strengths and weaknesses of Fontaine’s and Gaudin’s negotiating strategy in their deliberations with Reliant Chemical Company . How effectively did Fontaine and Gaudin approach the negotiation ? Answer: Fontaine’s or Gaudin’s had good bargaining techniques. In my opinion these employees did not have enough time on the job‚ experience or in the business Their preparation for negotiations with Relient was inadequate. Adequate preparation should include careful study of strengths and weakness of both
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Week 3 Case Study Pacific Oil Company
The case study on Pacific Oil Company shows from beginning to end the role of power in the outcome of a negotiation . From the beginning‚ the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company was that they did not assert the power necessary to really end up with the outcome of the negotiation they were hoping for. The case study points out several factors that Pacific Oil Company is trying to achieve in the contract negotiations with Reliant Chemical
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Oil Company
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The Pacific Oil Company “Look‚ you asked for my advice‚ and I gave it to you‚” Frank Kelsey said. “If I were you‚ I wouldn’t make any more concessions! I really don’t think you ought to agree to their last demand! But you’re the one who has to live with the contract‚ not me!” Static on the transatlantic telephone connection obscured Jean Fontaine’s reply. Kelsey asked him to repeat what he had said. “OK‚ OK‚ calm down‚ Jean. I can see your point of view. I appreciate the pressures you’re under
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Case Study: Rosneft Oil Company
Rosneft Oil Company Introduction: Rosneft is one of the world’s largest petroleum companies and it’s the leader of Russia’s petroleum business. Rosneft actions contain hydrocarbon examination and construction‚ hydrocarbon refining‚ upstream offshore projects‚ and crude oil ‚ gas and product marketing in Russia and many other countries. Rosneft Company is a leader in the development of extraordinary quality reconstruction and innovational modifications in the petroleum trade of Russia. Rosneft
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Oil And Gas Company Case Study
should government of an oil or gas-producing nation seek advice from outsider on how its oil or gas reserves should be developed and the resulting revenues should be used? Fiscal management is one of any government’s sovereign functions. However‚ not all governments have the capability to effectively manage its own revenue generation and revenue flows. At some point‚ outsiders must be sought for guidance and advice‚ especially in the case of a government that found its first oil /gas reserve and had no
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Mearl Oil Company Case Summary
Mearl oil company case review The case is about a manager environmental support system of Mearl Oil Company named Leslie Milne which noticed that there are serious potential environmental and health hazard problems in areas which industrial facilities were discharging wastewater into open ditches. According to this discovery‚ company made a memorandum of wastewater discharge‚ environment and health standard to all Mearl subsidiaries which were then called by Environmental Impact Targets (EITs)
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Case Analysis - Negotiations
Pacific Oil Company I. Introduction a. Summary of the Problem • Pacific Oil Company ‚ previously known as the Sweet Water Oil Company ‚ started out in 1902 as a pioneering venture of an oil business in the north central Oklahoma‚ USA. It went through a series of expansion and acquisition first in 1920s and 1930s‚ Hutchinson renamed it Pacific Oil Company . Pacific is also a leading manufacturer of industrial petrochemical raw materials‚ with some of these products being made by very few
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Cathay Pacific Company Report
External Influences 3.0 Evaluation 4.0 Cathay Pacific vs. British Airways 6.0 References Abstract CATHAY PACIFIC AIRWAYS LTD. Address: Cathay Pacific City‚ 8 Scenic Road‚ Hong Kong International Airport‚ Hong Kong. Website: www.cathaypacific.com The following report‚ comprising of secondary research found from numerous different sources will address the organisational profile of the Hong Kong based airline‚ Cathay Pacific . An organisational profile will be constructed detailing
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report in oil company
role is played by industry in which company operates. During my studies‚ I have noticed that oil companies are frequently used as examples of different models‚ due to specifics of the business. Particularly‚ the three models that this report is focused on – Event Process Chain‚ Data Flow Diagram and Entity-Relationship Diagram are commonly used in oil industry. Considering amount of data‚ its flow and relationships between different sets of data at oil companies ‚ Data Flow Diagram and Entity-Relationship
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Negotiation Case
Negotiation Case A Free Trade Agreement between USA and EU I will analyze a negotiation between these two great powers who can be said to be equals in terms of trade‚ where they negotiate a free trade agreement with each other. Both parties have different interests however‚ they are likely to reach a consensus when it comes to increasing trade which will lead to enormous economic development as well as other important economic improvements on both sides of the ocean. The main issues in this agreement
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Pacific Medical Supply Company
PACIFIC MEDICAL SUPPLY COMPANY | Case 6 | | Submitted to | Samy AhmedFaculty Member: MKT 445Sales Management | Submitted by | Medhad Nasser Chowdhury082735530Section : 01 | 3/24/2013 | Case Background Pacific Medical Supply Company was a prominent supplier in the southern California region. They used to supply medical instruments and all other itineraries using a distribution channel consisting of sales commission based Sales force. Jim Shine‚ the owner of Pacific Medical‚ started
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Post- Negotiation Analysis For The Paradise Project In this case ‚ I was playing the role of chief project manager of the Paradise Project‚ and I was negotiating with my Manager of Artistic Design (Angel) and Manager of Client Contracts and Customer Relations (Elion) in order to resolve the conflict between each of them. Overall‚ I was satisfied with the final agreement‚ which paid 3‚000 more pesos to Angel and ensured that he would change the color of the tiles and finish the job before the deadline
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Negotiation case
Assignment #4 - Negotiation case As we are two exchange students from Spain and Israel‚ we have experienced a common situation when we arrived to Brandeis University this semester for an exchange programme in IBS. Therefore‚ the following case situation is real and it includes the real names of the characters who took part in the story. You are very welcome‚ of course‚ to change the names in case you want to use it for your future classes. Character #1 – The new exchange student Jose is a
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Company Profile of Pacific Coffee
The idea of Pacific Coffee was inspired by the coffee culture of Seattle‚ where coffeehouses were community hubs‚ serving great Italian espresso based coffee in generous western culture sizes‚ with informality and a friendly attitude. Pacific Coffee is one of the leading coffee chains in Hong Kong‚ with retail outlets in Hong Kong‚ China and Singapore. Since opening its first outlet in 1992‚ the chain has played an instrumental role in bringing a coffee drinking culture to Hong Kong.With comfortable
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Case Study: Premier Oil Company
Stearic acid Cost: Price - $1‚600/1000 kgs. FOB USA Sea Freight Cost - $1‚800 per container van (1‚000 bags @ 25kg. per bag) Fixed Ordering Cost – Php 3‚000 per shipment Custom Duty – 10% based on C&F cost Land transport cost from port to company – Php 5‚000 per container van Exchange rate – Php 26/ 1$ Order Size : 3‚000 bags Ave. Shipping time: 30 days Release from Customs: 30 days Substitute: Hydrogenated Castor Wax 15% by weight required to produce the same quantity of grease Hydrogenated
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Analysis Case Study: Shell Oil Company
Royal Dutch Shell Oil Company involving their monumental proposed investment into their Nigerian operations. When global companies experience extreme criticism such as Shell‚ they are usually tasked with identifying optimum solutions to reverse the negativity. In addition to assessing the challenges‚ this analysis provides some potential strategies that can be implemented to resolve the issues within this case . Problem Statement Royal Dutch Shell Oil Company proposed to execute
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Oil and Gas Company Case Study: ExxonMobil
publicly traded oil and gas producing company . ExxonMobil does business in 200 countries world-wide (1). Some countries are designated for exploring gas and petroleum‚ and some are designated for manufacturing chemicals‚ lubricants‚ and market fuels (1). ExxonMobil ’s world-class petroleum portfolio gives access to proven reserves of 21.9 billion oil -equivalent barrels of oil and gas‚ which is the highest in the industry (1). The company ’s discovered resources consist of 72 billion oil equivalent
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Pacific Systems Case
1. What is your recommended sourcing strategy in this case ? Please support your decision with quantitative and qualitative evidence gathered during the case analysis. Also‚ present your plan to reduce any risks associated with your sourcing decision. Pacific Systems Company should single source their DVD drives and build a good relationship with the chosen supplier. Not only computer industry is hungry for DVDs‚ other electronic sectors such as home entertainment devices
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The United States is not one of the top 10 richest countries, notes Business Insider. However, several large oil companies are headquartered here. Oil plays an important role in the economy of some of the richest countries, and oil is big i...
When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to lear...
Case studies are important because they help make something being discussed more realistic for both teachers and learners. Case studies help students to see that what they have learned is not purely theoretical but instead can serve to crea...
Essay running head: contract negotiation pacific oil company case study student name institution affiliation note contract negotiation pacific oil company.
Pacific Oil Case Study Analysis. The lack of detailed planning in the case of Pacific Oil Company's (POC) negotiation of a new contract with Reliant had dire
The case study on Pacific Oil Company shows from beginning to end the role of power in
The complications that Pacific Oil Company confronted as it reopened discussions with Reliant Chemical Company in early 1985 When Pacific
How effectively did Fontaine and Gaudin approach the negotiation? I don't think Pacific should give in to the favored nations and meet competition clauses. A
Paul Gaudin and Jean Fontaine negotiated a favorable contract for Pacific Oil Company in 1982 with Reliant Chemical Company. Gaudin and Fontaine prepared well
Read the case study and answer these questions 1.Identify the strengths and weaknesses of Fontaine's and Gaudin's negotiating strategy in their
It permitted the supplier to surpass expenses charged to buyer; this minimized the risks for the engaged parties, in the case of express
2 CASE STUDY Discussion Question Describe the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985
The Pacific Oil strengths included their negotiation team and the strength of the VCM market. Their weaknesses included poor organizational control, managerial
The case study points out several factors that Pacific Oil Company is trying to achieve in the contract negotiations with Reliant Chemical.