face_to_face_with_ebola.docx

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Pacific Oil Case StudyName:University:Professor:Class:Date:Question 1:Describe the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985.Upon the renewal of their contract which was scheduled on the December 1984 Fontaine and Gaudin sat down to their end of year review for all existing contracts. Among the contract reviews, Reliant VCM contract also resurfaced to be reviewed. From the contract review Fontaine and Gaudin realized that the prospects for both the near and long-term future of their company became less clear even though earlier on everything seemed to be proceeding on smoothly. This is because of the following reasons:1. After both men reviewed the data which they had been receiving from corporate headquarters as well as the published projections of the supply situation for various chemicals over the proceeding decade, it was crystal clear that the supply-demand situation on VCM was changing. Even while the market seemed currently to be tight, the favorable situation that had existed for Pacific when the Reliant first contract was first negotiated. The supply of VCM was expected to expand rapidly over the next few years. Many of Pacifics competitors had announced future plans for the construction of VCM manufacturing facilities that were later on anticipated to come on line in the following twenty to thirty months. 2. Fontaine and Gaudin knew that Reliant was probably aware of t

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