I .

Introduction

 Pacific Oil Company is a Sweetwater Oil company in Oklahoma City, Oklahoma. It was
founded in 1902. One of the major chemical lines of the Pacific is the production of vinyl
chloride monomer or VCM which plays an enormous part in this entire case study.

           Pacific Oil Company is a one-stop-shop for all of the hazardous waste management
requirements. All regular hazardous and non-hazardous trash services are included. The Pacific
oil company collects, labels, packs, removes, transports, recycles, and disposes of all hazardous
and non-hazardous materials. These include automotive waste, industrial waste, and trash from
processing and manufacturing, and medical waste.

This case study will talk about the negotiation of Pacific Oil Company and Reliant Corporation
that started in 1979. The SWOT analysis which is the strengths, weaknesses, opportunities, and
threats will be assessed in this case study and be later on will be used for future business
purposes as a reference and as a guide. This will include my experiences after I finished this case
study that as a student I will be aware of real challenges and events in working in the business
world. This will allow us, students, to learn and investigate what we have studied relates to real-
world circumstances.

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After Pacific Oil is , known for starting the "black gold" rush. Pacific Oil company began
working or collaborating with the Reliant Corporation in 1979.The original contract was for the
purchasing of vinyl chloride monomer. As the contract came to an end in 1982, the businesses
collaborated to extend the deal from 1983 to 1987.The Pacific Oil's first major contract with the
Reliant Corporation was in 1979. The contract between Pacific Oil and Reliant was a standard one
for the industry and due to expire in December of 1982. The contract was negotiated by the
purchasing managers in Europe then it was reported to the vice presidents in the states.

In February 1982, Jean Fontaine marketing vice president of Pacific Oil Europe, discussed the
Reliant account with his VCM marketing manager, Paul Gaudin. Fontaine and Gaudin agreed
that the Reliant account had been extremely profitable and beneficial for Pacific and Relaint
also, overall the quality and the service of the agreement was satisfied. The latest projections
proved that there was a worldwide shortage of VCM and that demand was continuing to rise. If
the situation would remain the same for years then Pacific believed that it could justify a high
favorable formula price for VCM. Fontaine and Gaudin decided to renegotiate the current
agreement, so the strategy would be to ask Reliant for their five-year demand projections on
VCM and polyvinyl chloride products.

II. BACKGROUND OF THE CASE STUDY

The founder of Sweetwater Oil which is E.M. Hutchinson pioneered a major oil strike in North-
central Oklahoma that touched off the Oklahoma "black gold" rush of the early 1900s. Due to the
massive success of the fortune, he found in the oil, and acquisitions he made in the ’20s and 30’s,
his expansion lead him to rename his company which is now named Pacific Oil. After a few
decades of the company generating savings, they expanded to North Africa and the Middle East.
Pacific Oil is one of the largest worldwide producers of industrial petrochemicals. One of
Pacific’s major industrial chemical lines is vinyl chloride monomer or VCM.

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