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1. Case description
The primary subject matter of this case involves an international business negotiation between a Japanese vehicle manufacturer that has developed a strategic plan to export its product to Hawaii, Alaska and the United States west coast and a United States transportation enterprise that owns a fleet of roll on/roll off vessels. Issues include national cultural and foreign market penetration considerations. The case is appropriate for senior level undergraduate and graduate students. The case is designed to be discussed during an initial one-hour class and is set up to take an additional two, one-hour class sessions for two negotiation sessions. One negotiation session is hosted by the representatives of the Japanese vehicle manufacturer; and one negotiation session is hosted by the representatives of the United States transportation enterprise. It is expected to require substantial preparation by students outside of the class sessions. The case is designed for use in the International Business and International Management courses.
2. Case synopsis
Two large-scale, complex business entities are profiled. Students are asked to enter into and reach contractual agreement for an international business negotiation. The negotiation involves the transportation of vehicles manufactured in Japan to Hawaii, Alaska, and the United States west coast. The specific elements of the negotiated contract include the number of automobiles and thus vessels to be used under the agreement as well as the identification of the destination ports. Also, the logistical support provided by the United States transportation enterprise will be negotiated. Finally, the shipping costs will be determined. Students are required to formulate their negotiation strategies based upon the facts presented in the case and the national cultural considerations that influence the business decision making process in Japan and the United States. The case deliverables are:
- a research paper presenting the influence of national cultural considerations in the business decision making process; and
- a written contract, signed by all representatives, presenting the agreements reached by the two business entities during the two negotiation sessions.
3. The companies
This case study presents the operations of Nippon Automobile Corporation (NAC), a Japanese vehicle manufacturer, and US Shipping Lines, Inc. (USSL), a United States transportation enterprise. These two business entities have entered into negotiations to discuss the possibility of transporting vehicles...