Challenges and Best Practices in Deal Negotiation PPT
This PPT slide, part of the 26-slide Strategic Alliance Management PowerPoint presentation, focuses on the deal negotiation phase within the Strategic Alliance Management process, highlighting various challenges that arise during this critical stage. It emphasizes that negotiators often prioritize capturing maximum value, neglecting the interests of their partners, which can lead to a breakdown in the partnership. This imbalance is particularly detrimental when one partner holds less negotiating power, resulting in an unfair distribution of risks and potential losses.
The slide stresses the importance of not rushing through negotiations. Gathering feedback throughout the process is crucial for refining future negotiations and ensuring that all parties feel heard and valued. Establishing a project steering committee is recommended to facilitate information sharing and coordination, which can enhance the negotiation process and foster a more collaborative environment.
Additionally, the slide suggests that proactively planning for deal exit terms and procedures at the beginning can mitigate potential conflicts later on. This foresight is essential for maintaining a healthy partnership and ensuring that both parties are aligned on expectations.
An example involving LEGO illustrates the practical application of these concepts. LEGO's careful negotiation approach while developing "The Lego Movie" demonstrates how thoroughness in defining roles and responsibilities can prevent misunderstandings and preserve strategic partnerships. By keeping future collaboration options open based on performance and value generated, LEGO showcases a model for successful alliance management.
Overall, the slide serves as a guide for organizations looking to navigate the complexities of deal negotiations effectively, ensuring that partnerships are built on mutual respect and shared goals.
This slide is part of the Strategic Alliance Management PowerPoint presentation.
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