Negotiating Joint Ventures
(i) Pre-negotiation stage
This occupies a critical step. During this stage, the best tips suggested are to take initiatives that will build relationships and trust. This stage of negotiation should in essence concentrate on identifying issues, preparing the negotiation process, and also simultaneously focusing on getting to know each other. In short, this stage being preparatory in nature sets the foundation of the process of joint-venture negotiations.
(ii) Actual Negotiations
In this stage, face-to-face interaction, persuasion, and application of tactics are involved. In particular it analyzes in depth the differences in preparations and expectations in order to develop the framework for an agreement. Interaction, persuasion, and tactics should all be applied in a concurrent manner, keeping in mind that in any successful negotiation a negotiator tries to obtain something greater in value in exchange for something of a relatively lower value. This means that there should be scope for comparing relevant outcomes in order to evaluate the gives and takes, and a mutually beneficial settlement will ultimately gel well in creating the path for post success in joint ventures.
(iii) Post Stages
Successful joint venture agreements do not end with the accomplishment of agreements. In other words in order to sustain the success, seasoned negotiators look for intangible outcomes, which include ultimate satisfaction, continued levels of commitments, etc.