Canada Timber: Negotiating with the Japanese

Read the case study below, based on the experience of Canadians dealing with Japanese potential business clients in Japan. It concerns a team of Canadians attempt to make a deal for their business. When you have read it$,$ answer the questions that follow.

Tim Wilder, CEO of Canada Timber, was excited as he hung up the telephone

in his office in Vancouver, British Columbia. Tim had just received a call from Akiko

Morita, who represented the Japanese furniture manufacturer, Bonsai. Morita informed

Tim that Canada Timber was being considered as a major supplier to Bonsai. He told Tim that Canada Timber$$s reputation as a supplier of quality hardwoods was of interest to Bonsai. Canada Timber exported its products to the United States, Mexico, and several European countries; however, the company did not have customers anywhere in Asia. Tim was excited about the prospect of exporting to Asia.

After several long$-$distance telephone calls and several more faxes, it was

decided that Tim and two of his associates would travel to Japan in order to close an

initial sales contract. In addition, Tim asked his brother$-$in$-$law, Johnny Sharkey $-$ an

attorney $-$ to accompany them, and to act as their legal representative. The two associates Tim selected to join him on the trip were a production supervisor from Canada Timber and another member of the management team. Bill Hudak, production supervisor, was a long$-$term employee of Canada Timber. His knowledge of hardwoods and the production procedures of Canada Timber made him an obvious choice for inclusion on the negotiating team. Tim also asked Kevin Peterson, a regional salesperson, to go along as well because Kevin was married to a woman of Japanese descent, and Tim felt he would make a good impression on the Japanese. None of the Canada Timber employees, or Johnny, spoke Japanese. Kevin knew a few words in Japanese and was somewhat familiar with Japanese culture.

The Japanese had faxed a number of documents to Tim concerning the

meetings. Tim was very impressed with the degree of detail provided by the Japanese,

including the names and qualifications of the people they would meet during their visit to

Japan. A detailed agenda was provided, and the Japanese made all the arrangements for transportation and lodging for the Canadians.

After an exhausting flight, the Canadians arrived in Japan and were greeted by

Akiko Morita and other representatives of Bonsai. The Japanese bowed and handed Tim their business cards. Tim, exhausted from the flight, took the business cards from each Bonsai representative and quickly stuffed them into his shirt pocket. After a brief

conversation, the Bonsai employees took the Canadians to their hotel to rest. They would be back in the morning to escort them to Bonsai headquarters. The Canadians were very tired but excited to be in Japan. They rested a bit, and then spent the rest of the afternoon and early evening walking the streets of Tokyo.

When Tim and his associates arrived at Bonsai headquarters they were

presented with a gift from the company president, Mr$.$ Ono Kusushi. John was unsure if

he should open the gift or not, so he decided to thank Mr$.$ Kusushi for the gift and to stuff it into his briefcase. Once again a number of business cards were presented to John and the others, and at this point, Tim remembered that he had forgotten to bring his business cards along. He apologized for the oversight and once again quickly collected the cards from the Japanese.

The meeting began with Mr$.$ Kusushi asking, through an interpreter, how the

Canadians liked Japan so far. Tim and the others expressed an appreciation for being in the country and pointed out that Kevin had been to Japan previously while visiting the

family of his Japanese wife. The Japanese remained silent as the Canadians told of how they had explored the city the night before and commented on how crowded the city was compared to Vancouver. Tim, who is a very tall man, stated that he felt like a $$giant among men in Japan.$$

It appeared to Tim that the Japanese were very interested in the Canadians$$

perceptions of the country, and that they would begin to discuss business if he would

offer some compliments. Tim thought about the situation and offered some positive

comments on the food and drink they had enjoyed in their hotel. Tim then quickly began

to discuss business, pointing out how Canada Timber was a quality leader in supplying

hardwood products to several countries. He went on at great length about the positive

attributes of his company and how it would be a good business decision to select Canada Timber as a supplier.

Bonsai had faxed some preliminary estimates of their wood needs and Tim had

prepared a detailed report, which he presented at the meeting. At the end of the report,

Tim provided details on costs, and then asked Mr$.$ Kusushi if the numbers were

acceptable. A long period of sil