Was the chairman of the US company wrong for not having found out In advance about Japanese business practice? Not seek information Yes it was wrong for not having found out in advance about Japanese business practice. The tomato market In US has not been exceeding Its goals because It was not enough to absorb Increasing Imports. To enter the Japanese market was one of the potential bright spots for the Supreme Canning Company. Japan has been decreasing their trade barriers and attempting to encourage imports.
Since the US rim did not have well-known brand name/llama of it own Like the Japanese firm, which was much larger and handled a large number of products with great success, it was a good business opportunity for the US company to enter the Japanese market and act as a large-scale supplier of products made to customer's specifications. The US company should have considered that Japan's business practice Is a lot different than Is recognized In US with various cultures both In business and day to day life and they should have sought knowledge of how the Japanese carry out their business reactive.
If the US Company had done that there is a big possibility that they could have a long lasting successful collaboration in the tomato market in Japan. The president and chairman of the board of Supreme Canning Company went on a four- day business trip to Japan to discuss business matters with the Japan company. Some misunderstanding came up but the visit was concluded successfully and the Americans invited the Japanese to visit their plant in California.
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The Japanese company was willing to sign up a mutual contract but the US Company rather wanted mom specific agreements and contract which Is the first sign of different business culture. When the Japanese were supposed to visit the US company for four days 1 OFF senior executive came. The vise president of the board of the California company was offended and wrote them a letter saying he was not satisfied with their behavior and the Japanese decided to cancel the visit and no further negotiations or serious contracts were made.
Seek information If the US company had sought information about Japanese business practice this misunderstanding would never have occurred. The Japanese found it offending when he vise president wrote them a letter asking why they were not going to send their president and were only staying for two days instead of four. The older the people get in Japan the more respect they receive. Therefore the Japanese company sent an older man who did not present a card nor did introduce himself when he and three other middle aged local businessmen of Japanese extraction visited the plant some months later.
The older man Just got along and listened what they talked about. This behavior is recognized in Japan but the vise president and the chairman of the US many did not know that because they did not seek information about Japanese business practice. Whether companies are going to export their product's in Japan or some other countries it is extremely important to study the business practice so that communications between the companies can go as smooth as possible with few misunderstandings and respect.
Question 2 Where the Japanese wrong for not having found out about US business practice before they initiated contacts? The Japanese were both right and wrong. They were wrong because they didn't do heir homework, they didn't know enough about western negotiation habits. If they would have some knowledge of western culture they would have understood the chairman's reaction, even as he reacted a little harshly. Even though the Japanese company was much larger than the US company, the Japanese had no right to behave like they owned the US company.
If they wanted this contract they would have learned that US negotiators typically prefer direct statements, vigorous defense of their position, agreements on a point-by-point basis, the covering of all contingencies n a written contract, and rapidly get to know their potential associates first, prefer to avoid argument and confrontation, wish to consider the agreement as a whole, and need to concur frequently among themselves and with their colleagues at the company before agreeing anything.
If these differences are not recognized and allowed for, feelings of mistrust may cause failure in reaching agreements that would otherwise be beneficial to both parties. Methods of negotiation also are culturally influenced. But the Japanese were not wrong about several things. The managers of the US many should have also learned more about Asian negotiation techniques before they arrived in Japan. The only thing that went wrong was huge misunderstanding between the two companies.
The managers of the both companies were insulting each other without even noticing. Dealing with foreign managers or subordinates in overseas offices presents potential for misunderstanding and conflict. That is exactly what happened between these two companies. Question 3 What should the president of the US company do now? The presidents of the US company should apology on behalf of the company for not Ewing so globalize, and try to have the Japanese back to the negotiations.
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