Week 3 Case Study Pacific Oil Company

1351 words 6 pages
The case study on Pacific Oil Company shows from beginning to end the role of power in the outcome of a negotiation. From the beginning, the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company was that they did not assert the power necessary to really end up with the outcome of the negotiation they were hoping for. The case study points out several factors that Pacific Oil Company is trying to achieve in the contract negotiations with Reliant Chemical company: the change to a surplus of VCM in the market, the possibility of Pacific Oil needing a supply of their own of VCM to produce their own PVC, and the start-up of several other companies in the production of VCM (Lewiski, n.d.). These …show more content…

It seems throughout the negotiations that Fontaine and Gaudin put maintaining this relationship first and the terms that are agreed upon second.

Hauptmann appears to have both low task as well as low relationship orientation (Bhand, 2010). It is probably because of the relative newness of Hauptman in his role in the company when the negotiations start. Lewiski (n.d.) tells that Hauptmann has only worked for Reliant Chemical for a few weeks. So, it goes to say that the relationship that Fontaine and Gaudin are banking on, Hauptmann knows only second hand from what he is told by his coworkers and of course by Fontaine and Gaudin. Hauptmann does not make many suggestion as to the terms that are to be included, but takes forward what he is told by Zinnser and others and then works with Hauptmann until a mutually agreed position is determined. “…These negotiators don’t achieve much and don’t help the other party to achieve much either. The negotiation quickly moves to a dead lock position and negotiators move away from the negotiation table” (Bhand). Many times over the course of the negotiation timeline Hauptmann leaves Gaudin in a position to have to return for further discussion. I think the involvement of Hauptmann is a key factor in the downturn of the negotiation process for Pacific Oil Company.
Finally, there is Zinnser. He is what Bhand (2010) classifies as a


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