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Case Battle: Suji - INS

Cultural Differences in International Negotiations

manuela hug

on 18 February 2013

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Transcript of Case Battle: Suji - INS

4. Agreement INS Flynn Suji ??? Mr. Othma Be aware of cultural differences Understand Suji's
company culture Adapt negotiation style How can we help Flynn to improve his understanding? INS establishes a joint venture in Japan with Suji… Current problems that arise from cultural differences and lack of mutual trust Election of new president Effectiveness of Rose & USA-based
Value Added Network service provider
Is in the process of expansion
recently established presences in the UK and other EU countries Japan-based
Telecommunication equipment manufacturer
Contribute facilities and network equipment 1. Non-Task Sounding 2. Task-Related Exchange of Information 3. Persuasion Cultural Differences and its consequences for doing Business Skills needed to adapt in new cultural environment "What is said is not as important as how things are said" Include soft competences in the expatriates' recruitment process Implementing organizational
support systems Relationships are a key element to do perform business practices in harmony, "Wa". To Do's While Flynn takes off... ...Key take aways what can we learn from that case?
3 Lets look how they currently fit together... Seniority-based promotion and rank Lifetime employment in exchange for employees' loyalty to the company Decisions based on consensus
+ Importance of the Group The fear of losing control in a unknown environment The feeling that the US-Japanese Joint Venture is turning into a Japanese subsidiary Disagreement with Mr. Satho as president INFORMATION..
INFORMATION.. doubts regarding competencies and experience The way Mr. Satho was selected And even after all this information, questions will be asked... Source: Hofstede Analysis of the Hofstede’s dimensions for both countries: Let’s compare both cultures…. Source: The Silent Language in Overseas Business (1960), Edward T. Hall “To defeat the enemy psychologically is the superior strategy. To defeat the enemy militarily is the inferior strategy.” Art of War, Sun Tzu HARD COMPETENCES SOFT COMPETENCES What are the critical fats in this joint venture? Technical and post requirements such as language skills, international experience… Personality traits, knowledge skills and ability to adjust to living and working in an intercultural context. All employees stem from the Japanese side
The BOD is equally represented
Suji owns the majority (2/3) of the joint venture whereas INS owns 1/3 "Under the Table" "Behind the Scenes" EMOTIONAL INTELLIGENCE should play a significant role Outsider-feeling
Commuication boundaries
Experience not valued by Japanese To reach the consensus and some compromises, it’s important to have the willingness to build an ongoing relationship on the long term.
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