MAR0152 - Analyzing Intercultural Issues in US-Japan Business Deal

This case study explores the intercultural management challenges faced by American representatives in a failed joint venture with a Japanese company. It identifies cultural misunderstandings, communication barriers, and differing values that led to the unsuccessful outcome. The analysis highlights the importance of cultural sensitivity, active listening, and adapting communication styles when engaging in international business. Intercultural theories, such as Hofstede's cultural dimensions and the social science approach, are applied to understand the root causes of the problems. The case study concludes with advice for American representatives on how to improve their intercultural competence and build stronger relationships with Japanese counterparts, emphasizing the need for respect, sincerity, and a deeper understanding of Japanese culture.

Intercultural Management in
Business MAR0152

TABLE OF CONTENT
CASE-1............................................................................................................................................3
Understanding where did Americans go wrong...........................................................................3
Ways to American representatives for better understanding cross cultural problems.................4
Using inter cultural theories for understanding the problem.......................................................5
Advice to the American representative........................................................................................6
REFERENCES ...............................................................................................................................8

CASE-1
Understanding where did Americans go wrong.
Culture is defined as way that group of people live the lives and do different things. Also,
it is known that in various cultures individuals have different attitude and behaviours that defines
who they truly are. Moreover, through case study it is clearly understood that all the American
representatives way of attitude was not acceptable in Japanese culture and hence it does not lead
to formation of the successful joint venture. Furthermore, American representatives action of
rolling down sleeves and took off the jackets before start of the discussion was not considered
appropriate behaviour by other Japanese people before any kind of communication (Warter,
2018). Moreover, representatives had gone wrong as they need to get accurate details about
cultural values that are followed in the Japanese culture before organizing the meeting so that
accordingly changes in attitudes might be made to make the meeting more successful.
Also, Americans have totally gone wrong in understanding that communication is
impacted by several factors and it is not the same in all the culture. Hence, similar thing has been
happened during the meeting where the Americans adopted the way of communication of being
blunt in talking but the same was not accepted in Japanese culture that works more on being
subtle.
Furthermore, Japanese culture is more of collectivist approach rather than having
individualistic approach as Americans and hence it was another reason that was result of
unsuccessful meeting as American representative instead of approaching the whole gathering in
the meeting addressed only single individual that hurt the feelings of other group of people who
have put in lot of efforts for the meeting (Blazevski, 2018). Also, it is cultural identity in
Japanese to bow down to people and American shake hands before greeting with each other.
Thus, this was another major factor as during the round table meeting mentioned in the case
study Americans were not interested in bowing down and started off the meeting simply with the
shaking the hands.
Moreover, another wrong thing that Americans did that before the meet and greet of the
people the representative had already given the details regarding the project and expected
partnership that was not suited for most of the Japanese representative that had mindset to attain
the meeting in more formal manner rather than taking it in informal way as it was not part of
their culture. Furthermore, imposing certain thoughts or opinions on the other group of people

saying : “we better get to know each other ” is in way rude and disrespectful in the Japanese
culture where the values and families are the most important things that are considered in daily
living lives and hence American representative have failed badly in making this deal as
successful and efficient one.
Ways to American representatives for better understanding cross cultural problems
Cross cultural is defined as different cultures and detailed comparison with them so that
positive outcomes are derived while conducting any activity or task. Also, this type of cross
cultural problems are occurred especially while working in different countries or regions.
Furthermore, with upcoming of globalization cross cultural have been increased to larger extent
as people are travelling from place to another and are already to avail various goods or services.
Also, below are some ways that might be adopted by American representatives in understanding
all types of cross cultural problems that have been faced at the time of meeting
 Avoiding closed questions: It is necessary that to avoid the problem of cross cultural
without knowing much about the culture than all types of closed questions must be
avoided so that any kind of disrespect is not done unintentionally (Wang and et.al., 2020).
Furthermore, asking the questions in the format of Yes or No would only create
embarrassing situations and instead open-ended questions would allow in gathering more
information from other people.
 Being supportive: Another way of avoiding any kind of cross cultural problem is that
speaker should treat others with respect, build effective communication and give them
encouragement when they are responding on any question. Thus, this will build trust and
confidence among both parties for all the future prospects.
 Active listening: It is effective strategy that might be adopted by American
representative in improving the cross cultural communication (Presbitero and Attar,
2018). Also, summarizing what other person has said and understanding them correctly
through asking questions helps in building better rapport so that no valuable informations
is left out or misinterpreted.
 Speaking slowly: Through following this way American representatives might be able to
make any conversation in better in spite of having cross cultural differences among
various groups. Also, it is essential that words are pronounced clearly and properly sop

that other people are able to understand its meaning. Moreover, sentences need to be
break into small and short sentences for getting clear meaning of the message.
Thus above are some ways that might be adopted by the representatives so that cross cultural
might be improved to great extent. Also, understanding cross cultural is not difficult if group of
people are not making any statements based on the assumption as it might only results in and
relationship and might also harm the business. Also, earlier also if the American representative
have done enough research about the cultural facts about the Japanese people than this type of
situation would not have been existed and there would be successful joint venture business for
the golf (Vevere and Sannikova, 2018). Hence, it is essential that cultural behaviour is studied
deeply before making any kind of deal so that conducting business and making good long term
relationships and image become easier. Moreover, making business a diverse workplace and
working with different cultural groups would also help the firm in understanding different
culture in well-defined manner so that accordingly better decisions might be taken in the future.
Using inter cultural theories for understanding the problem
There are various type of inter cultural theories that are being given by some authors that
helps in understanding the concept in much better manner. Some of them are briefly described
as follows:
Hofstede cultural dimension theory:
It is type of framework that helps in understanding that there are various kinds of
differences that are present in any society or country and this theory helps in identifying various
elements on which the culture is differentiated from one another. Furthermore, six categories
based on this theory are power distance index that defines the amount of inequality or power that
is tolerated in any country (Abayadeera, Mihret and Hewa Dulige, 2018). Also, high power index
means that the country believes in following the rules of the authority and vice a versa.
Moreover, next element is individualism and collectivism where higher index of individualism
means that there is greater importance on the personal goals while collectivism means that
significance is on Well being of group rather than any individual.
Hence, it was exactly seen in the above case study where this element was not studied by
the American representatives before conducting the meeting with Japanese people that resulted
in failure of the project (WHAT IS INTERCULTURAL COMMUNICATION, 2022). Moreover,
other element is uncertainty avoidance index that indicates the tolerance for any kind of

uncertainty, risk taking, ambiguity and much more. Furthermore, Masculinity and femininity
also defines the culture in this theory along with long and short term orientation and indulgence
and restraint all being parts of this theory. Thus, if this theory was followed earlier in well
manner than dealing with Japanese people would have become much easier for American
representatives
Social science approach:
It is type of model that allows in observing behaviour of person from different culture so
that easy description and comparison might be made with other cultures. Also, it helps in
analysing the ways in which other people adjust their communication with other in different
types of situations (Moradi, 2019). Thus, through this theory it can be said that if the American
representative have observed other Japanese group of people closely than certain changes in the
way of talking and behaving might have been altered in the process of greeting at the round
table. Also, this theory is most the easiest way as it might be applied in various situations to
avoid bad or negative consequences later. Furthermore, it might be also be applied in times of
emergency when certain quick decisions or actions need to be made as in case of American
representative who weren't actually prepared for negative outcome.
Cultural convergence theory:
According to this theory two cultures will like each other more when the level of
interactions among them increases (Héliot, Mittelmeier and Rienties, 2020). Also, based on this
theory if more interactions are developed within each group than better knowledge of their
values, understanding, beliefs will start to reflect in each other personalities as certain work have
to carried out on daily basis. Hence, the similar theory had been applied in the above case study
with American (representative) than working in the joint venture than both parties would have
been able to be benefited from this golf project.
Advice to the American representative.
From the above whole scenario one better advice that would be suggested to the
American representatives is that there need to be made positive attempt by the these people in
showing some kind of respect and sincerity in way of interactions and understanding that it is an
only way through which positive relationships might be maintained with the Japanese people for
all the future aspects. Moreover, for greeting these Japanese people, representatives might learn
some Japanese word to develop sense of respect and honour in the eyes of others people in

meeting process. Furthermore, it would also promote in healthy discussion and develop interest
in the idea that is been suggested by the American people. Also, it is suggested that the
representative must know the consequences of speaking so that it is well aware before speaking
any kind of words among the large number of people.
Moreover, lack of knowledge and negative consequences had led the representatives to
lose the best opportunities for future growth of their business (Petrenko and Stolyarov, 2019).
Also, it is advice that all the representatives had conducted short meeting before the final
meeting with Japanese people so that list of do and don't have been already identified and read
by all the six members that would further lead to the success of the meeting. Moreover,
American representatives need to read articles and watch videos of Japanese culture before
conducting any kind of meeting in the future so that similar mistakes are not repeated in the
future. Also, use of proper body language is also sign of respect that is given by one party to
another while communicating and therefore it is advisable that American representative are very
much concern in using the body language in proper manner so that people are able to understand
the actions and words of the speaker in right manner.
Moreover, indirect communication in form of expression and gestures during the whole
communication also not recommanded when the discussions are of high importance or value to
both the parties. Also, in some culture use of same symbol in different in other cultures and
hence it might only create misunderstanding among other group of people as it was in case with
American while rolling up the sleeves. Moreover, it is advised to American representative that it
is necessary to show interest in future business partner through knowing more about them and
gathering information for the same (Przytuła, Strzelec and Krysińska-Kościańska, 2020).
However, American representative in the future need to also ensue that taking too many notes
and asking too many inquiries with that Japanese partner would only result in the loss of the
business project and bad image that need to be taken care of. Thus, these are some solutions that
is advisable to be followed by American representatives while conducting any kind of round
table meeting so that greater reputation and more revenues might be generated in the future for
the same.

REFERENCES
Books and journals
Abayadeera, N., Mihret, D. G. and Hewa Dulige, J., 2018. Teaching effectiveness of non-native
English-speaking teachers in business disciplines: intercultural communication apprehension
and ethnocentrism. Accounting Education. 27(2). pp.183-207.
Blazevski, I., 2018. THE RELEVANCE OF INTERCULTURAL COMPETENCE FOR
INTERCULTURAL MANAGEMENT. KNOWLEDGE-International Journal. 26(6).
pp.1681-1686.
Héliot, Y., Mittelmeier, J. and Rienties, B., 2020. Developing learning relationships in
intercultural and multi-disciplinary environments: A mixed method investigation of
management students’ experiences. Studies in Higher Education. 45(11). pp.2356-2370.
Moradi, E., 2019. Intercultural sensitivity: A comparative study among Business English
Undergraduate Learners in two Countries of Iran and China. Journal of Ethnic and Cultural
Studies. 6(3). pp.134-146.
Petrenko, Y. and Stolyarov, N., 2019. Features of the management of international projects,
taking into account intercultural differences of the partners. Entrepreneurship and
Sustainability Issues. 6(4). p.2037.
Presbitero, A. and Attar, H., 2018. Intercultural communication effectiveness, cultural
intelligence and knowledge sharing: Extending anxiety-uncertainty management
theory. International Journal of Intercultural Relations. 67. pp.35-43.
Przytuła, S., Strzelec, G. and Krysińska-Kościańska, K., 2020. Re-vision of future trends in
human resource management (HRM) after COVID-19. Journal of Intercultural Management.
12(4). pp.70-90.
Vevere, V. and Sannikova, A., 2018. Developing Intercultural Negotiations Skills to Meet
Current Challenges of Diverse EU Business Environment as Part of University Social
Responsibility. European Integration Studies. (12). pp.8-18.
Wang, Q. and et.al., 2020. The role of emotions in intercultural business communication:
Language standardization in the context of international knowledge transfer. Journal of
World Business. 55(6). p.100973.
Warter, L., 2018. INTERCULTURAL MANAGEMENT AND ETHICS MANAGEMENT IN
HIGHER EDUCATION. Journal of Intercultural Management and Ethics. 1(2). pp.3-5.
Online:
WHAT IS INTERCULTURAL COMMUNICATION. 2022. [Online]. Available
through:<https://ehlion.com/magazine/intercultural-communication/>.