CASE STUDY QUESTION (15 marks) A well-known US candy company was interested in selling its products overseas. The company found a possible partner based in Tokyo. The Tokyo company seemed to be perfect for the deal. After many phone calls between the two parties, a decision was made to meet in Tokyo. The US company chose one of their businessmen, Mike Waller, to represent it. He was the companys most persuasive negotiator. Before Waller left the United States, he and the company lawyer worked together to write a detailed contract for the deal. The contract was fifty pages long. The deal would be advantageous for both firms. It promised big profits. Waller left for Japan with the contract. He was pleased with his careful preparation. He thought his future partners would be satisfied with his work and would be ready to bargain about the details of the contract. He had studied their company interests and was sure they would want to change a few conditions in the contract. He planned to agree to those changes as concessions. He was certain the meetings would result in good negotiations and a quick final agreement. On the day of the meeting in Tokyo, Waller entered the boardroom with copies of the contract for the Japanese businessmen at the meeting. He handed them each a copy and began discussing the details. The representatives of the Tokyo firm did not open the contract. They didnt discuss the contract at all, but instead spoke about general business issues. They spoke about the proposed cooperation between the two companies but they didnt make any promises. Waller then went back to the United States. He felt extremely surprised and disappointed. The Japanese had never asked him one question about the contract. No agreements or commitments had been made. He wasnt even sure if there would be another round of negotiations. 3 Required: Read the case scenario above and answer the questions that follows: 1. Waller was the company's most persuasive negotiator. Why did he fail to reach an agreement? (3 marks) 2. The negotiation portrayed above has resulted in an outcome of Lose-Lose. Do you think there is any cultural dimension involved in this? Explain. (3 marks) 3. Do you think the Tokyo client were risk takers? Why or why not? (3 marks) 4. The concepts of "individualism" and "collectivism" are vital aspects of any negotiation. How does this relate to this case scenario? (3 marks) 5. The Tokyo company did not make any promises, agreements or commitments with the US Company. Do you think the attribute of "Power" has made any influence? Why or why not?