Concession Making, in negotiating

Incorrect. Concessions are about finding common ground, not asserting dominance.

Correct. Concessions help break deadlocks and foster collaboration.

Incorrect. Concessions involve give and take, not dictating terms.

Incorrect. Strategic concessions demonstrate flexibility and a commitment to a deal.

Incorrect. Price adjustments are a frequent concession.

Incorrect. Adjusting timelines is often part of the negotiation.

Incorrect. Compromising on technical details is common.

Correct. This is unlikely to be a relevant or effective concession in oil & gas negotiations.

Incorrect. Gradual concessions build trust more effectively.

Correct. Understanding your priorities is crucial for strategic concession making.

Incorrect. Concessions should be linked to your desired outcomes.

Incorrect. Refusing concessions can lead to a stalemate.

Incorrect. Building trust focuses on collaboration, not potential litigation.

Correct. Trust is fundamental to lasting relationships in the industry.

Incorrect. Trust is a process, not a guarantee of perfect honesty.

Incorrect. Formal agreements are still necessary, even with trust.

Incorrect. Concessions can be crucial for breaking impasses.

Incorrect. Concessions can demonstrate commitment to the deal.

Correct. Concessions are a tool, not a guarantee of success.

Incorrect. Trust is a key benefit of strategic concession making.

1. Key Priorities: * Secure a 50/50 ownership stake in the joint venture. * Ensure a reasonable timeline for project completion that aligns with your company's capabilities. * Maintain control over key aspects of the project, such as environmental standards and technology selection. 2. Strategic Concession Strategy: * **Concession 1:** Offer a 55% ownership stake to the foreign partner. This concession addresses their primary concern about a larger share, while still maintaining a significant stake for your company. * **Linked Outcome:** Achieve a more equitable ownership structure and secure a mutually acceptable partnership. * **Concession 2:** Offer flexibility on the timeline for completing the project by proposing a range of acceptable dates. This shows commitment to working together while ensuring your company can meet its commitments. * **Linked Outcome:** Facilitate a timeline that accommodates both parties' needs and ensures a successful project launch. * **Concession 3:** Consider compromises on specific technical aspects of the project, such as agreeing to use certain equipment preferred by the partner, while still ensuring that your company's environmental standards and technology expertise are incorporated. * **Linked Outcome:** Maintain control over crucial aspects of the project while demonstrating a willingness to collaborate on technical details. Important Considerations: * **Gradual Approach:** Present concessions progressively, starting with smaller ones and building up to larger offers as the negotiation progresses. * **Link to Outcomes:** Clearly explain the benefits of each concession for both parties, ensuring a clear understanding of the value exchange. * **Evaluate Potential Risks:** Assess the potential risks associated with each concession, ensuring that they don't compromise your core interests or long-term goals.