Pacific Oil Company

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Assignment 1.2
Identify the strengths and weaknesses of Fontaine's and Gaudin's negotiating strategy in their deliberations with Reliant Chemical Company. How effectively did Fontaine and Gaudin approach the negotiation?

Answer:
Fontaine's or Gaudin's had good bargaining techniques. In my opinion these employees did not have enough time on the job, experience or in the business Their preparation for negotiations with Relient was inadequate. Adequate preparation should include careful study of strengths and weakness of both side along with the study of the need of the other party and ways to satisfy those needs. Every time that Fontaine's and Gaudin's met with Relient they should of tried to aim high to successfully get a good outcome Instead they let Relient corner them by reminding them about their good business relationship that they had down through the years. This is called artificial pressure. Pacific Oil always tried to compensate Relient with whatever they wanted to keep their business. Pacific Oil should have given themselves time to compromise. It seemed to me is that their only concern was the bottom line which was to get Relient to extend their contract. Pressure should have been put on Relient to settle earlier than a year and not to keep rescheduling the meetings. Pacific Oil took a year trying to come to a conclusion. Pacific volunteered their weakness wanting to reopen a contract that was already in their favor. Relient realized this and started asking for all kinds of different thing to add to the contract such as adjusting the VCM price by two cent per pound, they did not want a minimum quantity requirement; they had to re-meter the pipe line etc. Pacific Oil did not use their concessions wisely. They appeared overly generous to give Relient what they wanted. Too much room was left for Relient to maneuver like holding out a whole year and still did not come to a decision. Pacific did not try to sell their ideas or the company. It

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