Pacific Oil Co.

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Pacific Oil Company Gene Arnold Negotiation Strategy Oklahoma Wesleyan University Pacific Oil Company The Pacific Oil Company went into negotiations with Reliant Manufacturing, and its goal was to sign a new long-term agreement. Pacific assumed that the new contract would be signed with no major obstacles, and that the principal point of negotiation would be price. Jean Fontaine, who is the marketing vice president for Pacific, went into a negotiation process with Reliant. Fontaine started the process three years before Reliant Manufacturing’s current contract was up, hoping to best his competition by offering Reliant a lower price and getting them to agree to a five year contract extension. Fontaine did not adequately research his…show more content…
By planning for only one issue, and failing to see the need to create an overall approach that covered all the elements that could come up during the negotiations, they overestimated themselves which gave an advantage to Reliant. Because of Pacific’s lack of strategic planning, they wasted valuable time and money. They also risked losing other opportunities that could have been more beneficial for them. Adding to the problem was Pacific’s assumption that Reliant would sign a new contract quickly. Because of the time and money spent on traveling and negotiating back and forth, and the potential need for new technology development, Pacific became increasingly desperate to finalize a contract with Reliant. As a result, Reliant obtained the advantage needed to make more demands during negotiations. Additionally, Reliant was aware of Pacific Oil’s dependence on its business, and took full advantage of these opportunities (Lewicki, et al., 2015). BATNA The biggest mistake Pacific made was not to bother and develop any kind of Best Alternative to a Negotiated Agreement (BATNA) for their own situation. They did not anticipate any other possibilities and also did not make any effort in exploring other options for forming some sort of alternative for this negotiation. The best alternative strategy for Pacific Oil Company may have been to hire a mediator to handle the negotiation process. If a mediator had been used in
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