Pacific Oil Company Failed Negotiation

Richard Paguirigan National University/Law 402 Professor Hamlin January 22, 2012 1. Identify the strengths and weaknesses of Fontaines and Gaudins negotiating schema in their deliberations with dep haltent Chemical Comp all. Fontaine and Gaudin started off with a competitive outline, wherein the aftermath of the dialogue was more important than the relationship. This is evidenced by the fact that the trade for VCM would be oversupplied in a few years due to the structure of new chemical plants and a drop in demand.Pacific further needed to secure an ex latent hostility from reliant to enable them to maintain trading operations for just a while longer or until they could come up with a new business strategy for the future. There is nothing to suggest that Pacific had any motivator to maintain a relationship with Reliant after that prison term. Although Pacific was considering becoming a producer of PVC products in order to minimize its dependence on external sales, no croc ked decision had yet been made so Pacifics contingent survival was still up in the air.Fontaine and Gaudin were aware that they had less than a three year window in which to evanesce the contract. They also knew that Reliant was probably aware that the market was dismissal soft. Although Fontaine and Gaudin began their efforts with a sense of sine qua non to extend the contract with Reliant, they came into negotiation not having really demonstrable their strategy and how they would attack it. They were unprepared for the issues that Reliant brought up and were essentially on the antiaircraft throughout.The sense of urgency that exhibited coming into the negotiations was undermined by their failure to set time limits or deadlines. They were fair game for entrapment by the Reliant since they really had no information about Reliants situation and therefore could not counter or reverse the attack. Although matched Strategy was the intent, poor grooming and unanticipated problems along the way cause their strategy to beguile flipped around and they succumbed to utilizing an reconciling strategy (lose to win) in the end.Strengths The accommodating strategy may be employ to encourage a more interdependent relationship, to increase support and service from the other, or even cool off hostile feelings if there is tension in the relationship. If the relationship is ongoing, then it may be particularly permit to back down straight off, to keep communication lines open and not shove the opponent to delve in on roughthing that they do not ask to discuss (Lewicki 18). Weaknesses In most cases, this is a short-term strategy used with the expectation that accommodation now go away create an opportunity to reach out result goals in the future.This strategy should only be used when the outcome is not very important or if the primary objective is to advance the relationship. Unfortunately, for Pacific the outcome was important though the relationship wasnt. 2. Identify the strengths and weaknesses of Hauptmans and Zinnsers negotiating strategy. Hauptman and Zinnser utilize Competitive Strategy (win to lose). Unlike Pacific, Reliant had done its research and was to the full aware of Pacifics 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 to gain the upper hand. Since Pacific never imposed any deadlines, they stalled for as long as they could all the while arguing for, and get a number of concessions along the way.They were never on the defensive at any time since Pacific had nothing on them. They were in a favorable position to entrap Pacific, causing them to change strategies which resulted in failed negotiations. Strengths The Competitive strategy is effective in getting the other party to give in, and thus to satisfy the competitors needs now. Weaknesses. The outcome of the negotiation is more important than the relationship. It strains and endangers the relationships between the parties. 3. What action should Fontaine take at the end of the case?Fontaine needs to reverse the damage done. Perhaps a cooperative strategy is in order. If Fontaine can prevail on _or_ upon Reliant that they will get into the PVC business after all and possibly become a PVC products manufacturer, hence a competitive threat, maybe Reliant will then get off their high horse and agree to aid for the mutual benefit of everyone. Pacific will need to make some concessions. Price, exclusive contracts or even a non-compete agreement may convince Reliant it would not be worth it to retaliate against Pacific.