Gung Ho Case Study

This essay aims to provide more information in regards to the differences between the Australian and Japanese cultures, as well as fundamental insights into Japanese business etiquette and highlight important steps for effective communication when making business in a foreign country. As the Australian entrepreneur and owner of ‘The Aromatic Condiment Shop’ Emily is looking to expand her business deals in Japan it is paramount to make a favourable first impression and understand key points to better navigate cultural differences and grow her business.

Negotiation is a fundamental form of dispute resolution involving two or more parties (Michelle, M.2003). Negotiations can also take place in order to avoid any future disputes. It can be either an interpersonal or inter-group process. Negotiations can occur at international or corporate level and also at a personal level. Negotiations often involve give and take acknowledging that there is interdependence between the disputants to some extent to achieve the goal. This means that negotiations only arise when the goals cannot be achieved independently (Lewicki and Saunders et al., 1997). Interdependence means the both parties can influence the outcome for the other party and vice versa. The negotiations can be win-lose or win-win in nature.

The Chinese negotiation style is based on building relationships with people in the negotiation rather then to hammer out details of an agreement. They feel the beginning stages of the negotiation is the time establish a human relationship and to create the bonding of friendship with the goal to become “old friends” by the

Nowadays, exploring the differences in overall cultural value structures among different cultures has gradually grew business’s attention across the world. No matter small companies or global conglomerates, how to get involve and maintain their competitive advantages and long-term sustainable success in global business trade has been a heated topic to discuss. To fully understand the ethic differences and cultural influences, the following four aspects will help us to uncover the similarities and differences between the American and Chinese cultures.

The Japanese also believe that their culture is superior to others, called ethnocentrism. They believe they are much stronger than their surrounding Asian countries. They see things as fair or not fair only in terms of how it is fair to Japan and would not be concerned about whether it is fair to Company A’s home Country, the U.S. This could be something that Company A could have with trade issues. The Japanese will negotiate only on what is good for their Country, not the greater good of mankind. Americans telling the Japanese to act more like them would not go over well. In the past, America has tended to bash the Japanese so Company A will need to be almost apologetic from the start and cater more to Japan from the very

Negotiation is one important part of both the professional and personal life in our everyday situations. It is critical for people to resolve disputes, distribute limited resources, and/or create something new that neither party could achieve on his or her own. Negotiations can range from coordinating project timelines with clients to asking for a raise to discussing holiday plans with family members.

Dawson (1995) has highlighted three critical factors to every negotiation4: 1) understanding of power, 2) information factor and 3) time element. But according to Brooks and Odiorne (1984, pp. 45 - 46), strategic planning, power skill and timing, constitute the agenda in successful negotiations5; in which, strategic planning is the key factor in shapes the dimensions, form and context of the negotiations. On the other hand, Mills (1990, pp. 177 - 179) and Scott (1981, pp. 89 - 90) has provides sixteen and eight different elements that contribute to negotiation success6 and enable two parties to negotiate towards agreement to theirs joint advantage7. As a whole, these conclude that in any negotiations, it is important to remember that both parties are working toward mutual satisfaction.

Since Japan’s exit from isolation and entrance into global, cross cultural exchange, many aspects of the Japanese culture have been shaped and changed from their original traditionalism. Despite Western influence, however, Japan has been able to maintain a sense of cultural identity through unique practices that are rooted in the original culture. A prime example of this autonomy can be found when observing Japanese business culture and ethics, especially when the United States is used as a cornerstone of comparison. In observing the modern business practices of both nations one is immediately drawn to the manner in which business is both discussed and

2. Discuss the relative use of nonverbal behaviors, such as silent periods, interruptions, facial gazing, and touching, by people from various cultural backgrounds. How does this behavior affect the negotiation process in a cross-cultural context?

One of the most important facets for a successful business in the twenty-first century is how it communicates with their customers, partners, suppliers and governments from different countries and cultures from around the world. For a business to operate with any modicum of success in Japan, you must possess a basic understand of how their society functions. As a result of learning about the geography, climate, history, religion, cultural rituals, politics, education system, and the role of the family; it will allow a business or business person the insight needed to understand how society functions and the method in which business is conducted.

The culture of a place is an integral part of its society whether that place is a remote Indian village in Brazil or a highly industrialized city in Western Europe. The culture of Japan fascinates people in the United States because, at first glance, it seems so different. Everything that characterizes the United States--newness, racial heterogeneity, vast territory, informality, and an ethic of individualism-- is absent in Japan. There, one finds an ancient and homogeneous society, an ethic that emphasizes the importance of groups, and a tradition of formal behavior governing every aspect of daily living, from drinking tea to saying hello. On the surface at least, U.S. and Japanese

Communication styles in negotiation are probably one of the most important skills or characteristics one will develop over a lifetime. From the point a human being begins to develop cognitive skills, the process of learning and understanding situations become more apparent. One will learn from a very young age the dynamics and characteristics of communication and its role in negotiation. To better understand the communication process, one must be able to recognize how they communicate, whether it is on an assertive, aggressive, passive, or passive-aggressive level of communication. The manner in which one conveys his/her message is critical, and the many methods in which they do it is

In practice, the negotiation and may be situations where one party (or more) are going to negotiate, not intending to actually not only to decide anything, but even to share their views. For example, the negotiation of a party need only to divert the attention of a partner. So, when it comes to trade negotiations, one of the participants can begin their only to be interested is

There are 6 distinct stages to the negotiation process and they are all about effective communication. Since people’s culture has a strong bearing on how they communicate, the culture of the negotiating parties impacts how they negotiate and also determines whether they are successful in achieving the goals of their side.

This report has been prepared for Fonterra which recommends the most appropriate entry mode, international strategy and human resources approach to enter the Japanese market, with an assessment of ethical issues they should be aware of.