Premium Essay

Pacific Oil

In: Business and Management

Submitted By ejenvi
Words 1141
Pages 5
Pacific Oil Company
MGT470-2: Conflict Management and Negotiation
Vimarie J. Negron, MBA
September 23, 2012
Professor Susan Weese

As part of this assignment I will discuss the negotiation between Pacific Oil Company and Reliant Chemical Company in early 1985.

Negotiation is a process by which two or more parties attempt to resolve the opposing interests (Lewicki, 2011). This scenario is about the problems Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985. 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. Through growth and acquisition in the 1920s and 1930s, Hutchinson expanded the company rapidly and renamed it Pacific Oil in 1932. After a period of consolidation in the 1940s and 1950s, Pacific expanded again. It developed extensive oil holdings in North Africa and the Middle East, as well as significant coal beds in the western United States. Much of Pacific’s oil production is sold under its own name as gasoline through service stations in the United States and Europe, but it is also distributed through several chains of independent gasoline stations. In addition,
Pacific is also one of the largest and best-known worldwide producers of industrial petrochemicals. In 1979, Pacific Oil established the first major contract with the Reliant Corporation for the purchase of vinyl chloride monomer. The Reliant Corporation was a major industrial manufacturer of wood and petrochemical products for the construction industry. Reliant was expanding its manufacturing operations in the production of plastic pipe and pipe fittings, particularly in Europe. The use of plastic as a substitute

Similar Documents

Premium Essay

Georgia Pacific

...The Georgia-Pacific Environment MGMT 4313 – Structure and Process of Organization Abstract Headquartered in Atlanta, Georgia-Pacific employs some 50,000 people worldwide. It’s a privately owned company with a Board of Directors and Executive Leaders. The employees are guided by Market Based Management Principles, based on integrity and compliance. Founded in 1927, the company has grown to become one of the world's leading manufacturers and marketers of paper products. Georgia-Pacific fosters a work environment and culture that makes the protection of health and safety of employees a number one priority. The company inspires and enables its people of diverse backgrounds to develop new skills. Georgia-Pacific works with many organizations on environmental issues to help achieve shared goals, which will enable the company to continue to make products that consumers want and need. “The Georgia-Pacific Environment” 1. Company Overview 1. Locations 2. Employees 3. Board of Directors/Executive Leaders 1. Company Vision & Principles III. Company History A. Founder B. Accomplishments IV. Georgia-Pacific Employees C. Job Satisfaction D. Safety E. Training F. Diversity V. Georgia-Pacific Protecting the Environment VI. Conclusion/Summary The Georgia-Pacific Environment Georgia-Pacific is one of the world's leading......

Words: 2141 - Pages: 9

Free Essay

Pacific Brands

...Pacific Brands Case Study Contents Introduction 1. Problem Identification 1.1 Cost Reduction 1.2 Structural Reorganisation 1.3 Ethics and Social Responsibility 2. Problem Analysis 2.1 Cost Reduction 2.2 Structural Reorganisation 2.3 Ethics and Social Responsibility 3. Recommendations 4. Bibliography Introduction Pacific Brands is an Australian based textile retail business that operates throughout Australia, New Zealand, United Kingdom and Asia. Within the following report is an exploration of the change process which Pacific Brands began implementation of in 2009. This step change was driven by a number of internal and external factors. These included falling profit and share price, increasing costs and the pressure of the worsening Global financial crisis. Added to this was the need to stay competitive in a market that has significantly shifted to cheaper imports. (TCF Review 2008, pp. 9-10) Pacific Brands restructure and the sale/discontinuation of unprofitable brands generated a focus towards core brands and the implementation of a profitable, streamlined structure that would guarantee the most cost efficient model. The disadvantage of such an aggressive restructure was the immediate media backlash and ensuing reputation damage caused by the outrage of employees, politicians and general public. 1. Problem identification 1.1 Cost reduction As in all developed markets the Textile, Clothing and Footwear industry that......

Words: 1205 - Pages: 5

Free Essay

Union Pacific

...Union Pacific is the largest freight railroad in North America. In 2007 they transported over one trillion ton-miles of freight earning revenues of $16.28 billion. They operate on 32,000 miles of rail covering the United States west of the Mississippi. Union Pacific is a successful firm both externally and organizationally. The Class I Freight Railroad industry encompasses the seven largest railroads in North America. In the U.S., where Union Pacific operates, Class I Freight Railroads move more than 40% of the freight transported per year, measured in ton-miles. The industry is in the maturity stage, experiencing slow consistent growth. For companies in this industry, it implies tightened operations and good human resource management are essential for success. The industry incumbents benefit from high barriers to entry due to the amount of capital requirements. Substitutes play a moderate role in the industry, while buyers and suppliers are on neutral ground with the railroads. Lastly, rivalry varies from area to area, but is average as a whole. This is shown in the analysis of captive versus noncaptive customers. Union Pacific mainly transports commodities in five primary industries; agriculture, automotive, chemical, energy, and industrial. These customers look for competitive pricing, on time delivery, and good customer service. In order to be successful in this industry, a railroad must have the resources to serve all the needs of these customers. Since Union Pacific......

Words: 9753 - Pages: 40

Premium Essay

Oil Companies

...Running Head: PACIFIC OIL PACIFIC OIL CSU GLOBAL AMANDA BAUMAN The case study analyzing negotiations between Pacific Oil Company and Reliant Chemical Company it shows how the role of power can dictate the outcome of negotiations. Pacific Oil did not prepare properly for the negotiations they were entering with Reliant Chemical Company. By assuming Reliant was comfortable with their current contract Pacific failed to properly prepare for any unknowns that arose during the negotiations. Pacific oil was in need of a supplier for VCM in order to produce PVC, navigating a VCM market surplus, and how to navigate the start ups of various businesses. By not entering negotiations with a specific strategy or goals in mind Pacific allowed their selves to lose negotiation power with Reliant Chemical Company. When Pacific Oil Company and Reliant Chemical Company reopened negotiations, assumptions were made that delayed and cost Pacific Oil some negotiation power. As Pacific Oil prepared for the negotiations they failed to do the proper research and homework needed to create successful business plans. Pacific Oil did not understand Reliant’s need, or think ahead to what they might need when reconsidering their contract. By assuming Reliant was just as comfortable as they were with the existing contract conditions, Pacific lost time to gather the necessary information in order to fully understand Reliant Chemical Company. By not having a well thought out and understood......

Words: 1202 - Pages: 5

Premium Essay


...New Zealand, the struggles that they face and the parents’ reliance on their eldest son to take care of his siblings on their behalf. I really enjoyed watching this short film because it captured and explained a lot of the issues the Pacific Youth are facing today in society. Watching this film allowed me to see a lot of similarities in what we are learning in this course. Respect is of the essence within many Pacific Island cultures. In this film we see this through the character of Tino. Tino’s facial expressions often show how he is afraid of his parents and that he has no choice but to obey. As Pacific people we can relate to Tino and his siblings as our parents constantly remind us of the importance of respect. Thus, we become cautious of the words we use when speaking to our elders and tend to be less open because of the ‘le va’ aspect of our culture. In order to break the silence of our young Pacific many strategies have been put into place to break them out of this norm by nurturing and empowering our youth instead of putting them down (Mason 2011). The use of black and white in the film portrays how the reality for Pacific youth is different from how they are portrayed by the media as being vibrant and outgoing. Yet, many Pacific youth feel trapped within their environment. The black and white colour of the film also forces viewers to feel the vulnerability Tino was feeling throughout the film. Vulnerability can be caused from feeling insecure together with......

Words: 657 - Pages: 3

Premium Essay

Pacific Oil Case Study

...Critical Thinking – PACIFIC OIL CASE STUDY Brian Crummy MGT 470-1: Conflict Management and Negotiation August 31, 2014 The Pacific Oil Company, known for touching off the “black gold” rush began working with the Reliant Corporation in 1979. The first contract between the two was for the purchase of vinyl chloride monomer. As the end of the contract drew close in 1982, the companies worked together to broaden the contract from 1983 to 1987. In 1984 Jean Fontaine, the marketing vice president in Europe for Pacific Oil, and Paul Gaudin began to re-examine the company’s chemical contracts. Upon examination of the Reliant contract, they realized the demand for VCM was rising, and that a new contract could be re-negotiated for a better price. Gaudin contacted Frederich Hauptmann, the senior purchasing manager for Reliant in Europe. From this point, negotiations began. When they first found out about the increased demand for VCM, Fontaine and Gaudin decided to use the two company’s long history together as a leverage point. This point ended up hurting them because Hauptmann asked for a little more concession wise each time the parties met based off the history the two companies had together. Each time, Fontaine and Gaudin agreed to provide these while thinking the negotiation would end with a contract extension like the previous deal with the company. Because of inadequate planning, Fontaine and Gaudin did little to use the power they had over Reliant to secure a......

Words: 486 - Pages: 2

Premium Essay

Pacific Oil

...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. But I sure don’t like the looks of it from this end. Keep in touch—I’ll talk to you early next week. In the meantime, I will see what others at the office think about this turn of events.” Frank Kelsey hung up the phone. He sat pensively, staring out at the rain pounding on the window. “Poor Fontaine,” he muttered to himself. “He’s so anxious to please the customer, he’d feel compelled to give them the whole pie without getting his fair share of the dessert!” Kelsey cleaned and lit his pipe as he mentally reviewed the history of the negotiations. “My word,” he thought to himself, “we are getting completely taken in with this Reliant deal! And I can’t make Fontaine see it!” Background 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 Source: Case prepared by Roy J.......

Words: 13412 - Pages: 54

Premium Essay

The Pacific Oil Company

...A Crack In The Mug: Case Study Don Tines I. Strategy: According to Starbuck’s website they see their primary target market as adults both men and women ages 25-40. This accounts for 49% of their total business. They are looking to attract a younger adult market ages 18-24. While it is true that Starbucks is selling coffee (high-quality coffee) that is only part of the story. They refer to their stores as “Coffeehouses” the real “sell” is the image they confer on those who patronage their stores. The “Starbucks’ experience” can be identified as genuine service and an inviting atmosphere where customers are invited to spend time socializing and collaborating with others of like mind. The “free” web hotspots allow customers to work, study, or play. The purchase of a $5 cup of coffee is soon forgotten as customers sit in soft living-room type furniture. Starbuck’s has come to distinguish itself through its high-end atmosphere and standardization. It’s quick service and good reputation for being environmentally friendly and for treating its employees well has won the battle for customer loyalty. It’s green logo and paper-bag brown colors has come to mean clean environmentally ethically friendly. Their image that this is “your store” “your private club” has contributed to its branding. II. Success Factors Starbucks Corporation was founded in Seattle, Washington a community known for its thriving economic strengths and home of Boeing, Microsoft, and Amazon. ......

Words: 898 - Pages: 4

Free Essay

Proc 5840 Pacific Oil Case Study

...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......

Words: 5908 - Pages: 24

Premium Essay

Title: Major Engineering Project – Eastern Siberia-Pacific Ocean Oil Pipeline

...Project for today is Eastern Siberia-Pacific Ocean oil pipeline transporting crude oil extracted from Russian oilfields to the Asia-Pacific ‘hungry’ oil refinery markets such as China, Japan and Korea. The idea of creating such pipeline was proposed since USSR period, but not implemented. However, in 2004 it was decided to run pipes from East Siberian Taishet to Pacific Pervoznaya. Construction works of first stage of this pipeline began in April 2006 and finished in April 2009. After establishing oil flow through first line, the construction works of second stage started including bifurcation of pipes of 1963 km long section from Skovorodino to the Pacific Ocean region terminal Kozmino. The investment attracted to the first stage estimated at approximately &14bn. If talking about second stage, the overall investment is even more and approximate completion could be in 2014 and it is estimated to have a capacity of 25-30 mn. tons of oil per year. This pipeline is special for both political and economic reasons. My impression that if Russia carry out this grandiose plan, oil price would decrease slightly because of high competence among oil exporter countries such as Saudi Arabia, Iraq, Iran, UAE as well as Russia. Assuming that China replaced USA as the largest consumer of crude oil and high demand of oil in Asian refineries, cooperation of Russia and Asia-Pacific region could be significant and play leading role in the determination of oil price. Moreover, dependence of......

Words: 427 - Pages: 2

Premium Essay

Pacific Oil Co.

...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 client’s needs or sufficiently project the outcome of these negotiations. Due to this error Pacific was not prepared to address the concerns and requests that Reliant brought up during the negotiation. Both parties wished to renew the contract in a timely manner, but Fontaine slowed down the negotiations because he did not have a complete negotiation strategy that included a contingency plan or best alternatives. The negotiators for Pacific were not prepared for all the changes that Reliant would ask for at each meeting, and they had no power to make any key decisions to settle the negotiations. Reliant’s negotiators used Pacific’s lack of preparation to negotiate a far better contract. (Lewicki, Saunders, Minton, & Barry, 2015).......

Words: 680 - Pages: 3

Free Essay

Pacific Century

...Copyright 2014 Asia Pacific Foundation of Canada TABLE OF CONTENTS ABOUT THE ASIA PACIFIC FOUNDATION OF CANADA _________________________________________________ 2 ABOUT THE NATIONAL OPINION POLL: CANADIAN VIEWS ON ASIA ________________________________ 2 METHODOLOGY KEY FINDINGS ___________________________________________________________________________________________ 2 ____________________________________________________________________________________________ 3 EXPLAINING CANADIANS’ VIEWS ON ASIA DETAILED FINDINGS ___________________________________________________________ 7 ____________________________________________________________________________________ 17 SECTION 1: PERCEPTIONS OF ASIA __________________________________________________________ 17 SECTION 2: VIEWS OF CANADA-ASIA ECONOMIC RELATIONS ____________________________ 23 SECTION 3: PROVINCIAL PERSPECTIVES ON CANADA-ASIA RELATIONS _______________ 31 SECTION 4: CANADA-ASIA ENERGY RELATIONS ___________________________________________ 35 SECTION 5: PROMOTING HUMAN RIGHTS IN ASIA ________________________________________ 39 SECTION 6: CANADA-ASIA SECURITY ISSUES ______________________________________________ 41 SECTION 7: DEMOGRAPHIC FINDINGS ______________________________________________________ 43 APPENDIX: READING THE TABLES _____________________________________________________________________ 49 NOP 2014 PG. 1 ABOUT THE ASIA PACIFIC FOUNDATION OF......

Words: 16362 - Pages: 66

Premium Essay

Trans Pacific Partnership Agreement

...ABSTRACT Trans- Pacific Partnership Agreement (TPPA) is now sound familiar to Malaysia, this is because that countries is one out of the twelve countries that involve in that agreement. The goals of the Trans-Pacific Partnership (TPP), a much-delayed but significant trade agreement between 12 countries in Asia-Pacific and the Americas pushed by the US are increasingly becoming clearer after ongoing talks reveal some of the intentions Washington is pursuing with this pact. The highlighted of the agreement is to increase in import growth is projected to outpace increase in export growth, as the reductions in import tariffs and non-tariff measures (NTM) are larger for Malaysia relative to the other TPPA countries. According to The New York Times, economists are sharply split over the positive and negative effects of TPP, and both "opponents and supporters of the trade accord have quickly seized upon whichever analysis buttressed their own views. ECIPE has said in 2014 that TPP "will be the first ‘competing’ economic integration that is large enough to have a considerable negative impact on Europe. In the long-term, the negative effects will come from dynamic impact, e.g. on investment, productivity and competitiveness". Pascal Lamy called the TPP ‘the last of big old-style trade agreements’. It has said to be a negative impact on the oil and gas sector whose share of GDP is 12 per cent. PETRONAS stands to benefit very little from TPPA as 74 per cent of its exports are to......

Words: 7586 - Pages: 31

Premium Essay

Cathay Pacific

...Cathay Pacific [Case Analysis] Due to substantial deregulation of the airline industry in the 1980s, a highly competitive environment arose for airline carriers. Cathay Pacific, for one, was particularly efficient in making the most of this new environment, and this is largely attributable to how the airline has managed its IT operations. By outsourcing (mainly non-strategic) functions that were not core competencies, for example, they did not only cut down on costs but they also effectively reduced risks. So as the airline continued to grow, it rigorously transitioned from “strictly building and operating to acquiring and managing.” Facilitated by its global linkages, Cathay Pacific now found itself in a better position to identify key suppliers and infrastructure. This new stance allowed the airline to narrow searches down to optimal combinations of suppliers that remained competitive. Although this would later become a hindrance, as newfound partners would hold “partner” statuses that made it difficult for the airline to issue standard requests for pricing, it had an overall significant effect that put the company in a stronger position to compete. Cathay, did however, eventually replace the “smart-sourcing” strategy around 2004, when the new theme of corporate purchasing process was competition. smartsourcing: Under this new strategy, the airline focused on using fewer and longer-term suppliers that consistently demonstrated flexibility and......

Words: 285 - Pages: 2

Free Essay

Pacific Oil Case Study

...Pacific Oil Company is a Sweetwater Oil company of Oklahoma City, Oklahoma. It was founded in 1902. One of the major chemical lines of Pacific's is the production of vinyl chloride monomer (VCM). “VCM is subjected to the process of polymerization, in which smaller molecules of vinyl chloride are chemically bonded together to form larger molecular chains and networks.” Pacific Oil's first major contract with the Reliant Corporation was in 1979. The contract between Pacific Oil and Reliant was a standard one for the industry and due to expire in December of 1982. The contract was negotiated by the purchasing managers in Europe then it was reported to the vice presidents in the states. In February 1982, Jean Fontaine marketing vice president of Pacific Oil Europe, discussed the Reliant account with his VCM marketing manager, Paul Gaudin. Fontaine and Gaudin agreed that the Reliant account had been extremely profitable and beneficial for Pacific and Relaint also, overall the quality and the service of the agreement was satisfied. The latest projections proved that there was a worldwide shortage of VCM and that demand was continuing to rise. If the situation would remain the same for years then Pacific believed that it could justify a high favorable formula price for VCM. Fontaine and Gaudin decided to renegotiate the current agreement, so the strategy would be to ask Reliant for their five-year demand projections on VCM and polyvinyl chloride products. In their negotiations...

Words: 1256 - Pages: 6