Jappanie Culture

Individual Homework Assignment (10 points) Deadline: January 16, 2014

American – Japanese Negotiations

Mr. Jim Lee, an American – Chinese employee of a large American pharmaceutical firm, was based in Yokohama, Japan. His main aim was to get a major joint venture going with one of the largest Japanese pharmaceutical manufacturers. After four years of negotiating, the grand moment had come for signing contracts. Obviously the lawyers from HQ in the US were well prepared and sent the contract to Jim one week before the signing ‘ceremony’.

After four years of Japanese experience, Jim was shocked when he received the document from the USA. He said: “I could not even count the number of pages. There were just too many. But I remember the number of inches it measured when laying it on the table. I would guess that with every inch one of the Japanese would leave the room in despair. I hope they come will come with a group of ten. Then at least I will keep one person to talk to. The Japanese will sign the contracts, but this can’t be taken this far.”

Jim Lee decided to call HQ and ask for some help in this matter. The legal department said that the relationship was so complex that the contract needed to cover many possible aspects. Moreover, a consultancy firm that advised them regularly said that Asians in general and Japanese in particular had a reputation of being quite loose in defining what was developed by them and what came from the USA: “we better be clear in terms of our relationship now, than to run into problems later because of miscommunication. If they sign it at least they show that they are serious.”

Jim was worried, but he only had a day to decide what to do. The meeting was tomorrow. Should he perhaps call the Japanese CEO, with whom he had built up a good relationship? Or should he just go for it? Jim saw his dilemma quite clearly. “Whatever I would do, it would hurt my career. If I insist on the Japanese partners signing the contract,...