Professional Documents
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Case Study Analysis Report-Individual
Case Study Analysis Report-Individual
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BUS341 Business Negotiations: An International Perspective (tja, 2023)
Murdoch University
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Table of Contents
(Background)
2. Discussion Features 6
3. How would you have handled the negotiation if you had been the Chief 8
4. Conclusion 9
5. References 11
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Introduction
This case study highlights the challenges of conducting cross-cultural and cross-language
business negotiations. The American team from Videomart, a leading video-game industry
company, attempts to secure a license agreement with Osatech, a renowned Japanese video
company in the US, failed to secure a software agreement with Osatech, a highly-regarded
Japanese video software company. Despite the potential advantages of such a partnership, the
negotiation failed due to the lack of cultural understanding and miscommunication between the
two parties. The study cites Moen et al. (2019) to highlight the benefits of international
partnerships, including access to new markets, knowledge transfer, and increased innovation.
International partnerships can also help firms mitigate the risks associated with operating in
unfamiliar territories and increase their global competitiveness. However, the failure of the
negotiation in this case highlights the importance of cultural understanding and effective
The opening moments of the meeting were marked by a positive atmosphere, with both parties
engaging in customary introductions and the exchange of business cards. Present at the table
were representatives from both the Japanese and American sides, with the American team
comprised of Vice Presidents (VPs) from Videomart, two VPs from the sales and marketing
departments, and an engineer. However, the American team made a significant misstep by
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neglecting to bring a translator to the meeting, rendering them incapable of understanding the
The American team's confrontational and assertive approach, combined with a lack of
negotiations. The clash between the Americans' focus on results and market share and the
Japanese team's emphasis on building relationships and trust before making commitments
created an impasse. The case underscores the significance of cultural understanding and
Discussion Features
Based on the case study, several intercultural communication issues could have contributed to
One of the issues was the lack of basic Japanese language knowledge by the American team,
which is considered a sign of respect in Japanese business culture. This lack of effort to
understand and reciprocate this gesture may have been perceived as a lack of interest or
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Secondly, there may have been different communication styles and expectations regarding the
meeting itself. The differences between American and Japanese approaches to goal setting and
negotiation and how these differences may impact competitiveness (Gudykunst, W. B., &
Nishida, T. (1994). The potential disparity in communication styles between the Americans and
the Japanese cannot be overlooked. While the Americans may have prioritized directness and
efficiency with “Dog and Pony Show” presentation necessarily providing substantial or relevant
content the Japanese may have preferred a more indirect and relationship-focused approach,
emphasizing feedback and goal setting (Greenleaf 2002). This could have hindered the
In the failed negotiation, the language barrier may have contributed to the breakdown of
communication between the American and Japanese teams. While both parties could speak
English, differences in language proficiency and cultural nuances could have led to
misinterpretations and miscommunications. Japanese culture is known for its use of silent nods
and gestures instead of verbal communication, which is rooted in the practice of emotional
suppression. This form of communication has been seen as a unique part of Japanese culture
that can lead to better relationships by creating an atmosphere of understanding between both
Westerners tend to process information in a linear and logical manner, with a focus on
associating sensory input with factually reasonable and logical conclusions. They tend to see
the world as an objective place, where reality can be observed and quantified. This approach to
thinking and problem solving often leads to a preference for direct and explicit communication,
as Westerners tend to value clarity and precision in their interactions with others. This is due to
the fact that culture shapes cognition, and critical thinking is highly valued in the West, leading
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to a great need for products, processes, and authors who can provide information in this way
As a result, when interacting with people from cultures that have a more indirect or ambiguous
communication style, Westerners may feel frustrated or confused. This can lead to
misunderstandings and miscommunications, which can erode trust and damage relationships.
Diving deeper into this case study analysis, it is important to consider two key concepts:
relationship building and the importance of cultural orientation. The Japanese approach to
relationship building may differ from that of Americans, and their lack of dialectic mannerisms
could be seen as a flaw. To fully understand the impact of culture on cross-cultural business, it
is necessary to adopt a Hofstede framework for analyzing cultural differences and their potential
effects on business outcomes (Huimin Gu, Donald L. Buresh, and Fan Wang, 2016).
Overall, the intercultural communication issues between the two parties could have led to a lack
How would you have handled the negotiation if you had been the Chief Executive Officer
of the United States Company, with the planning, setting of the climate, and framing of
the negotiation?
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The foundation of successful negotiation lies in the ability to strategically select the appropriate
approach and employ models and perspectives that foster cross-cultural comprehension.
Furthermore, the outcomes resulting from skillful planning, climate setting, and framing are of
As the Chief Executive Officer of the US Company, there are several strategies I would take to
handle the negotiation with the Japanese Company. Firstly, I would ensure that my team is well-
prepared by conducting extensive research on Japanese culture and business practices. This
would include studying their communication style, decision-making process, and negotiation
tactics.
Secondly, I would create a positive climate for the negotiations by establishing a friendly and
respectful relationship with the Japanese representatives. This would involve getting a translator
to represent us.
Thirdly, I would frame the negotiation in a way that emphasizes mutual benefits and highlights
the strengths and unique value propositions of both companies. This would involve prepping
beforehand, down to the technical aspect of the models of the software and agendas of the
meeting, as well as identifying areas of potential collaboration and demonstrating how working
Finally, the failed negotiation could have been improved if the team had used BATNA (Best
negotiation strategy. Establishing the BATNA strategy before the negotiation and identifying the
ZOPA could have given our team more leverage and increased its negotiation power. By
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focusing on finding common ground with the Japanese team, we could have worked towards a
mutually beneficial agreement, with a backup plan leading to a more successful outcome.
Conclusions
Based on the case study analysis, it can be concluded that cultural differences can significantly
mindset, focused on achieving their goals and objectives, while the Japanese negotiators, who
had a collectivistic mindset, focused on building relationships and establishing trust first. This
For example, when the Americans presented their proposal, they emphasized the benefits to
their own company and the potential for profit. In contrast, the Japanese negotiators were more
interested in how the proposal would benefit their company as a whole and how it would fit into
their long-term goals and plans. The Americans' individualistic approach may have come across
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References:
1. Moen, Ø., Blegen, M. A., & Nesset, E. (2019). Collaboration across borders: Benefits
DOI: 10.1016/j.jwb.2019.06.003
2002).
4. Wenner, Melinda. "Americans and Japanese 'Read' Faces Differently." Live Science,
differently.html.
5. Sellars, Maura, Razia Fakirmohammad, Linh Bui, John Fishetti, Sarfaroz Niyozov, Ruth
Reynolds, Nisha Thapliyal, Yu-Ling Liu-Smith, and Nosheen Ali. 2018. "Conversations
on Critical Thinking: Can Critical Thinking Find Its Way Forward as the Skill Set and
https://doi.org/10.3390/educsci8040205
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6. Gu, H., Buresh, D. L., & Wang, F. (2016). The role of relationship building and cultural
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