impasse & deadlocks

8/7/2019 Impasse & Deadlocks

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Impasses and Deadlocks

Presented by-

Ankur Luthra (IMB2010023)

Arnima Srivastava (IMB2010041)



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.



� 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".



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.



Relationship Between Deadlocks andImpasses

� Actually Both are the same

How?



A Scenario



Phases in a Joint Venture

1.Negotiation

2.Agreement

3.

Business



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.



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.



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.



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



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.



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.



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.



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



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.



Excerpts f rom the solution

W hen employing any resolution mechanism:-

� The parties have to be mindful of the pitfalls andthe vulnerability to abuse.

� Then be prepared to live with the potentialconsequences.

impasse & deadlocks

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