Applying Your Knowledge
Write up a plan for the two companies that will result in a more successful negotiation. Use the information below to help you
VII. Written Reflection
Go back to your groups and discuss the following
VI. Discussion
IV. Reviewing the Case. Answer the following questions and share your answers with a partner
1. How did the two companies first communicate with each other?
2. How did the American representative prepare for the first meeting?
3. How did the Japanese businessmen respond to the contract?
4. Why do you think Mike Waller brought a contract to the first meeting?
5. Why do you think the Japanese representatives didn't look at the contract during the first meeting? What did they expect from that meeting?
6. Why do you think the two parties failed to reach an agreement?
V. Role-play. Problem Solving: Information Gap.
The two companies are still interested in the proposed deal. They want to understand the differences between the negotiation processes in the two countries, so they may be more successful in their next round of negotiations. As a group you are to investigate the differences and then develop a plan for the next meeting.
Divide the class into two groups: A and B. Group A reads the U.S. cultural information (Task XIV). Group В reads the Japanese cultural information (Task XIV). After reading the information, complete your part of the chart below. Next, find a partner from the other group and ask questions to complete the chart.
| In Japan | In the United States | |
| 1. Which phases of negotiations are most emphasized? Why? | ||
| 2. At what point of the negotiation process are concessions made? What is their role in negotiations? | ||
| 3. In what phase do negotiators use a contract? What is its role in negotiations? | ||
| 4. How much time does a company spend in negotiations? Why? |
1. Now that you have more information about both cultures, do you want to change any of your answers from Task IV? Discuss your changes if any.
2. What difference between the two styles had the most serious effect on the negotiations?
3. What could Mike Waller have done after that first meeting, but before leaving Japan, to improve the relationship?
The two companies are still interested in this business venture. How can they compromise their negotiating styles in order to work out an agreement with each other more successfully?
A US airplane manufacturer and a Japanese airline company were negotiating the price of some airplanes. The American negotiating team suggested a price. In response, the Japanese were quiet. The American team then lowered the price. The Japanese team again was quiet. The American team lowered the price again. The Japanese team continued to keep silent. In the end, the Japanese team came away from the negotiation with a price lower than they ever expected. The Americans were disappointed because they sold the planes at a very low price.