Case Study: Pacific Oil Negotiation

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As a negotiator for Pacific Oil things would have been done differently prior and during the negotiation. The first change would have been to cancel the March 10 negotiation. Although Gaudin and Fontaine began their efforts with a sense of urgency to extend the contract with Reliant, they came into negotiation, not having really developed their strategy and how they would attack it. They lacked in preparation and did not properly research their client’s needs or adequately project what the outcome might be. They were not prepared to address the concerns and requests that Reliant brought up during the negotiation and were always on defense/reactive. This was due to very little preparation and no best alternative (BATNA) at the negotiation.

Preplanning is essential prior to being at the negotiation table. Effective planning begins with utilizing “10 Point Plan Before Negotiating” (Bruce). This plan would help a firm prepare for major factors such as what type of negotiation will be utilized (distributive, integrative or soft),
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Negotiations are already considered stressful due to lack of control, unpredictability and absence of feedback (Leary Pillemer, Wheeler). Negotiators need to know themselves, have high emotional intelligence, understand their stressors and tendencies. Also being able to monitor others feeling and emotions are helpful. For example, during the May 27 meeting Gaudin possessed high emotional intelligence when Hauptman displayed strong emotion. He capitalized on this and used this as a good stopping point, which resulted diffusing the high emotions and avoided damaging relationships. “The positive role of emotion in decision making, creativity, and relationship building-all key factors in reaching agreement” (Leary Pillemer,

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