Pacific Oil Company Case Study

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Action

Through all this, Jean Fontaine should take some after negotiation action. First, review the negotiation and determine the missteps. Ohara 2016 recommends one learns from the experience, there’s value to be had. A good way to start is by abandoning the adversarial mindset. If just thinking about saving face, then the negotiation and its aftermath has been made into a battle. Document some lessons learned. Learning from the experience may prevent recurrence. Consider using a mediator during the next negotiation. A mediator cannot force an outcome, but can be very effective in finding a solution. They do this by helping the parties determine the facts, they show empathy and impartiality with the parties, and help generate new ideas. Mediators can also use persuasion to get people to soften hard line positions. Problem solving using mediation would work well in this situation. “Unlike arbitration, where the intermediary listens to the arguments of both sides and makes a decision for the disputants, a mediator assists the parties in developing a solution themselves”, (Spangler, 2003). If a mediator for Pacific and Reliant’s negotiation had been used it would most likely turned out a little different. Mediators can provide ideas, suggestions, and formal proposals for a settlement. Still, their main objective is aid in the negotiation process. Finally, leverage for the future and look for unexpected benefits. One never knows how the previous negotiation can help for future negotiations.

Conclusion

Jean Fontaine and Paul Gaudin’s initial strategy was strong, but many weaknesses put Pacific Oil in danger of losing their long-time client Reliant Chemical. Frederick Hauptmann and Egon Zinnser had some weaknesses, but their notable strengths dominated the negotiation for a renewal contract with Pacific Oil. In the end, Jean Fontaine should review the negotiation, learn from the experience, use a mediator when necessary, leverage for the future, and look for the unexpected benefits.

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References

Lewicki, R. J., Barry, B., & Saunders, D. M. (2015). Negotiation: readings, exercises and cases

(7th ed.). New York, NY: McGraw-Hill.

Garner, E. (2014, June 25). How to Prepare for Negotiations. Retrieved May 28, 2017, from

http://www.businessknowhow.com/growth/negotiations.htm

Spangler, B. (2003, October). Retrieved June 04, 2017, from http://www.beyondintractability.org

Lewicki, R. J., Barry, B., & Saunders, D. M. (2015). Negotiation (7th ed.). Boston: McGraw-

Hill.

O'Hara, C. (2016, June 14). How to Bounce Back After a Failed Negotiation. Retrieved June 04,

2017, from https://hbr.org/2016/04/how-to-bounce-back-after-a-failed-negotiation

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