Case Analysis : The Pacific Oil Company

1633 Words Sep 9th, 2016 7 Pages
Introduction Contract negotiations can be time consuming, complex and risky, and require throrough preparation as well as the skillful use of negotiation strategies and tactics to achieve a successful outcome. In this paper, I will present an case study analysis where one party believed they were entering into a collaborative negotiation process. They were overconfident and ill prepared and did not manage the adroit negotiation tactics the other party employed. They made numerous concessions over a two year process and were left in a risky position without a signed contract.
The Pacific Oil Company was founded in 1902 as the Sweetwater Oil Company of Oklahoma City, Oklahoma, following an oil discovery that launched a “black gold” rush. The company, now known as the Pacific Oil Company, grew quickly and expanded internationally in the late 1950’s. Although Pacific Oil was known for its oil production, it was also a producer of vinyl chloride monomer (VCM). Numerous consumer products used VCM, including a collection of products used in the construction business. Reliant Corporation was an industrial manufacturer of construction products that included plastic pipes and fittings. Due to the acceptance of plastic over the standard cooper and iron pipes in Europe, Reliant expanded its manufacturing operations and built a polyvinyl chloride production company in Abbeville, France. Reliant entered into a standard contract with Pacific Oil in 1979 for the…

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