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Pacific Oil

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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
for...

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