Richard Johnson, an-up and-coming executive for a U.S. electronic company, was sent to Japan to work out the details of a joint venture with a Japanese electronics firm. During the first several weeks, Richard felt the negotiations were proceeding better than he had expected. He found that he had very cordial working relationships with the team of Japanese executives, and in fact, they had agreed on the major policies and strategies governing the new joint venture. During the third week of negotiations, Richard was present at a meeting held to review their progress. The meeting was chaired by the president of the Japanese firm, Mr. Hayakawa, a man in his mid-forties, who had recently taken over the presidency from his 82 years-old grandfather. The new president, who had been involved in most of the negotiations during the proceeding weeks, seemed to Richard to be one of the strongest advocates of the plan that had been developed to date. Hayakawa’s grandfather, the recently retired president, was also present at the meeting. After the plans had been discussed in some detail, the octogenarian past president proceeded to give a long soliloquy about how some of the features of this plan violated the traditional practices on which the company had been founded. Much to Richard’s amazement, Mr. Hayakawa did nothing to explain or defend the policies and strategies that they had taken weeks to develop. Feeling extremely frustrated, Richard then gave a fairly strong argued defense of the plan. To Richard’s further amazement, no one else in the meeting spoke up in defense of the plan. The tension in the air was quite heavy, and the meeting adjourned shortly thereafter. Within days, the Japanese firm completely terminated the negotiations on the joint venture.
Source: Adapted from Helen Deresky, “International Management, Managing Across Borders and Cultures, Text and Cases, 8th Edition, Pearson, 2014, p125
Task
You, a Cross-Cultural Consultant, have been engaged by Richard’s company to advice and guide Richard. In a 2-pages report (about thousand words), provide your
1) Analysis of what went wrong with Richard’s negotiation in Japan,
2) Recommendations to Richard to prevent/overcome cross-cultural blunders when negotiating business deal overseas.