impasse & deadlocks
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Impasses and Deadlocks
Presented by-
Ankur Luthra (IMB2010023)
Arnima Srivastava (IMB2010041)
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What is a Deadlock
� A situation when a two or several entities cannot
proceed due to in availability of a resource.� Examples from real life:-
� The Door.
� The Computer.
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� A deadlock is a situation wherein two or more
competing actions are each waiting for the otherto finish, and thus neither ever does. It is oftenseen in a paradox like the "chicken or the egg".
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What is an Impasse?
The word impasse may refer to any situation
in which no progress can be made.
� A bargaining impasse occurs when the twosides negotiating an agreement are unable to
reach an agreement and become deadlocked.
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Relationship Between Deadlocks andImpasses
� Actually Both are the same
How?
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Phases in a Joint Venture
1.Negotiation
2.Agreement
3.
Business
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Issues discussed during Negotiations
� Consequences of a deadlock or a breakdown in
the management of a joint venture.
� The need to expressly include a Deadlock
Resolution Mechanism.
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When does this deadlock happen?
In the context of a joint venture, a deadlock occurs where
the shareholders have an irreconcilable disagreement.
Like in the case of a
Split Vote
Use of Veto Power by a Minority or Majority stake
holder. Meeting could not be convened due to the absence of
requisite quorum.
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Eff ect of an impasse-
� Almost invariably mutually harmful
either as a result of direct action or simply due to the resulting delay in negotiatinga mutually beneficial agreement.
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How to deal with the situation?
1
� Escalate The Deadlock to a senior
person in the Management.
2� Arbitration
3� Closure of the Joint Venture
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Escalate The Deadlock to a seniorperson in the Management.
� This is done with the hope that these people will
have a broad view to the problem and willunderstand the issue.
� If the deadlock is not resolved then it can be inferred
that there is a fundamental breakdown in the
relationship between the shareholders.� Cynics argue that in many cases its just waste of time
as the men in action are instructed by these people
in t he first place.
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Arbitration
� Here in you involve a third party .
Like a legal body or an ex
pert.This is effective only when :-
The Parties are willing to resolve the deadlock .
The third party involved is capable of facilitating
the negotiation process.The dilemma of exposing your business to other
people.
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Closing Down the Venture
� This aspect is the worst of all scenario¶s
�But, many a times it catalyses the deadlock resolution process.
� Best Illustrated by the Jet Airways and Air
Sahara deal.
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Resiliency(A tool f or breaking impasse)-
³The human capacity to face, overcome and
be strengthened by ex
periences of ex
tremeadversity´
In the international negotiation context itcan be a critical factor facilitating the emergence
of success in the face of failure
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Negotiation resilience ²
The capacity of negotiating parties to recoverfrom actual or anticipated setbacks, stalematesand deadlocks experienced in the negotiation
process by finding ways to restart the process.It can help negotiators in achieving
negotiated outcomes when they face real orpotential failures.