Pacific Oil Company Failed Negotiation Essay example

Satisfactory Essays

Richard Paguirigan
National University/Law 402
Professor Hamlin
January 22, 2012

1. Identify the strengths and weaknesses 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 a while longer or until they could come up with a new business strategy for the future. There is nothing to …show more content…

If the relationship is ongoing, then it may be particularly appropriate to “back down” now, to keep communication lines open and not pressure the opponent to give in on something that they do not want to discuss (Lewicki 18)”.
Weaknesses: In most cases, this is a short-term strategy used with the expectation that accommodation now will create an opportunity to achieve outcome goals in the future. This strategy should only be used when the outcome is not very important or if the primary objective is to improve the relationship. Unfortunately, for Pacific the outcome was important though the relationship wasn’t. 2. Identify the strengths and weaknesses of Hauptman's and Zinnser's negotiating strategy.
Hauptman and Zinnser utilized Competitive Strategy (win to lose). Unlike Pacific, Reliant had done its research and was fully aware of Pacific’s situation and the market dynamics going on at the time and, presumably well into the future. They had a plan, developed a strategy and used it to their advantage. Essentially, Reliant had been given no incentive by Pacific to extend the contract. They had done their research, and armed with the knowledge gleaned and now aware as to the reasons why Pacific was so eager to extend the contract, they took the opportunity

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