Although the office is a big new group of two firms, it seems like they are all having problems shuffling between all the clients.
Also, there's a debate going on about the new name for the firm. All of the partners have their egos heavily invested in where they get included in the acronym. Bertram Cooper and Roger Sterling don't seem to care if they're included.
Very ironically, the thing gets resolved among everyone to have the name be Sterling Cooper and Partners.
Joan went out on a date and it turns out it's the one of the marketing heads at Avon. She takes it upon herself to making the account happen, much to the chagrin of Pete Campbell.
Joan sets up a business meeting with her date and purposefully leaves Pete out of it. Pete continues to have his ego smashed at work and keeps thinking he is left out of all the important projects. He is also the only one vocal against the firm's new name.
Draper and Sterling are out in Los Angeles working on getting Carnation instant dairy products as an account.
We're clearly dead in the middle of 1968, as the show's entire cast witnesses the riots in Chicago at the Democratic convention. Everyone seems to feel very strongly about it, but politics is a very sensitive issue around the workplace.
Harry Crane is guiding Roger and Don through Los Angeles, and after the group make their rounds with clients, he gets them into a party in the hills. Everyone there is on drugs and dressed like hippies, and according to Harry, a bunch of movie studio big shots are in attendance.
Don takes a seat in a hookah circle and proceeds to get into a major hash session with strangers. Don is extremely high, and it turns out he's caught in a dream. When he wakes up, he's being resuscitated by Roger by the pool-- apparently he nearly drowned.
At the end of the episode, it seems Joan has a good chance at nailing a big account with Avon-- this time without sex.
Pete doesn't seem to like the direction of anything at the firm. Don even tells him he should consider another line of work. Pete just takes a seat on the couch and smokes a joint as we exit to the tune of Janis Joplin.