Pacific Oil : Case Analysis

1593 Words Nov 16th, 2015 7 Pages
Pacific Oil Overview

Pacific Oil resembles a lot of what goes on in business today in regards to negotiations. Negotiators have to be prepared and willing to push the envelope. Negotiations are the same whether you are negotiating over fantasy football or a multi-million dollar contract. The only difference is there is more at stake in the fantasy football trade…ok ok I am kidding. Going into these meetings prepared for anything is the way to approach it. If you prepared to the best of your abilities than the outcome should come out in your favor.
The case study this week had to do with a United States based company that had offices and facilities in another country. They were separated in respect to making their own decisions and running the overseas business with freedom using the U.S. offices for counsel or advice. The Pacific Oil Company was founded in 1902 and expanded rapidly through the 1920s and 1930s. Pacific grew to one of the largest and best-known worldwide producers of industrial petrochemicals.
In 1979 Pacific oil established a major contract with the Reliant Corp. to supply Reliant with VCM. Reliant produces PVC products. Pacific oil acquired a four-year contract and constructed a pipeline from Antwerp, France to Abbeville, France directly connecting Pacific’s facility to Reliant’s facility. When negotiating a contract you would like it to be long in years. The purpose for that is so you can avoid re-negotiatons in the future. With only a four year…

More about Pacific Oil : Case Analysis

Open Document