Case - Week 03 - After Hours Dinner in Japan PDF

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An after-hours business dinner in Japan (Case 6: Steers 2017) Robert Brown, Senior Vice President of Business Development of an electronics manufacturing firm in Australia, and his associate Luke Thomson, Vice President of Manufacturing, have been tasked with finalising the negotiations of a five year strategic alliance contract with a Japanese multinational firm based in Tokyo, wherein the Japanese firm will supply critical electronic component parts to the Australian firm. Robert has a nickname – “the finisher” – for his tough negotiation tactics and has developed a reputation for closing deals quickly. Both Robert and Luke have significant experience negotiating contracts with suppliers from several Asian countries and they are both fairly confident even though this is their first experience negotiating a deal with a Japanese firm. They even refused pre-departure training offered by their firm, given their vast experience in Asia. The first day of negotiations in Tokyo goes down well for Robert and Luke and before they finalise the terms and conditions of the strategic alliance, which has been scheduled for the next day, they are invited by their Japanese counterparts Takeshi Miyamoto and Yoshi Shimizu to continue their discussions over dinner at a popular Japanese restaurant in downtown Tokyo. Robert and Luke are given an hour’s time to get back to the hotel, relax, and freshen up before the hosts will pick them up and take them to the restaurant. Robert and Luke catch a taxi back to their hotel and decide to meet in the lobby five minutes before the scheduled pick-up time. Robert calls his wife in Melbourne from his hotel room and briefly chats with her about his experiences in Japan, freshens up, and comes down to the lobby in a suit and tie in order to make a good impression on the hosts. Luke, on the other hand, takes a shower in his room and decides to dress casually in a T-shirt, shorts, and flip-flops as he finds the summer heat in Tokyo unbearable. Takeshi, Yoshi, and Robert are discussing different types of Japanese sake (wine) in the lobby when Luke greets them in his casual attire. Both Takeshi and Yoshi are taken aback that Luke would dress down for a formal afterhours business dinner, however they do not want to disrespect their guests, hence they politely request both Robert and Luke to get into the car as the restaurant is fifteen kilometres away and other senior executives from the Japanese firm, including the chairman, are to meet them at the restaurant. Neither Robert nor Luke were expecting others to join the dinner, certainly not the chairman. Once in the car, Robert whispers to Luke, “I’m not sure the hosts are very pleased that you’ve dressed down”. “Why is the chairman coming to the dinner? I thought we were meeting him tomorrow to finalise the deal?” Luke responds. “Not sure”, says Robert. Luke, getting frustrated, says to Robert, “And when did the dinner become a business dinner? I thought we were just going to have a casual dinner with the hosts and perhaps a tour of the city after that. Remember Jakarta, Hong Kong, and Kuala Lumpur?”

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After 40 minutes navigating the busy streets of Tokyo in rush hour, they finally arrive at the dinner venue, an exquisite Japanese garden restaurant. They are greeted at the entrance by two Japanese women dressed in traditional Japanese kimonos and requested to remove their footwear and place them in designated lockers for safe keeping. It is customary that guests keep their socks on. Unfortunately Luke, who was only wearing flip-flops, was embarrassed that he did not have a pair of socks. Takeshi is taken aside by one of the women and they have a discussion. A man who appears to be the manager of the restaurant also joins the discussion and seems upset about something. A few minutes later, the woman brings a pair of new socks and gives them to Luke, who promptly puts them on. The four executives are escorted through a beautiful Japanese garden with an immaculate water feature – a bridge over an artificial stream with several species of fish swimming around – as they make their way to a private room with a traditional Japanese dining setting where they are all expected to sit on bamboo mats on the floor. This comes as a shock to both Robert and Luke, who have never experienced anything like this in all their travels across several Asian countries. They both look at each other stunned. Five additional Japanese men, all dressed in expensive business suits and ties, are waiting for them in the room. Takeshi introduces them one by one to Robert and Luke, starting with the chairman, Hideo Suzuki, who bows and welcomes them both. He is, however, surprised to see Luke in a pair of shorts and utters something in Japanese to Takeshi, who nods in reply. The two seem to exchange a conversation using facial gestures and whispers. Robert and Luke both bow, shake hands with the chairman and the other four executives and then take a seat on the floor. Takeshi explains to both Robert and Luke that Chairman Suzuki is not extremely confident with his English and volunteers to act as a translator to facilitate any discussions or conversation between them if required. Chairman Suzuki and the other four Japanese executives one by one present their business cards to Robert and Luke who accept them with both hands. They note that the cards are printed on both sides, one side in Japanese and the other in English. Robert reciprocates by presenting his English business card to the chairman and the four executives, who flip the cards over only to realise that they are single-sided. Chairman Suzuki seems to struggle to read Robert’s card and Takeshi promptly translates Robert’s position title for him. Luke apologises and explains that he left his business cards back in his hotel room. This is followed by an uncomfortable silence in the room. Takeshi steps in and informs Robert and Luke that they will be having a 15 course Japanese kaiseki (a traditional, multicourse dinner) along with sake. They both seem excited to try it out and ask Takeshi for more information. Takeshi explains that kaiseki is a meal at one with nature and expects the food to be adorned with natural summer flowers and leaves. He also mentions that the Japanese “eat with the eyes”, hence particular emphasis is placed on presentation, design, and display of the food. “All 15-courses will be prepared fresh and served immediately to respect the integrity of the ingredients.” He points to the tableware, which is confusing to Robert and Luke, and says with a smile, “No need to be confused, I will let you know what to use when”. Robert and Luke both explain that they are confident using chopsticks. Chairman Suzuki, as the host,

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volunteers to pour sake for the two Australian guests. They all chat, discussing the Australian versus the Japanese lifestyle, soccer, baseball, Australian beaches, and wine. The first five courses arrive one after the other. They include shiizakana (appetisers), mukouzuke (sashimi – slices of raw fish), kuchitori (small side dish), suimono (a soup) and nimono (simmered vegetable). Both Robert and Luke are wonderstruck with the presentation of the food items and the contrast of the bright colours (representing summer), flavours, textures, and shapes as found in nature, the essence of kaiseki. Takeshi tells them, “The menu changes with every season. And the tableware will be changed as well to complement the changing menu.” While they wait for the next course, Luke attempts to refill his glass of sake and that of Robert’s, but Takeshi explains that it is customary in Japan for the host to fill the guest’s glass at all times during the dinner. Luke passes the bottle of sake to Takeshi, who does the needful. Chairman Suzuki gestures to Takeshi, who promptly requests permission from both Robert and Luke to continue discussing business. Robert and Luke both seem uneasy – they thought the business discussions would continue the next day in the office, culminating in the finalisation of the strategic alliance. However, they are not in a position to refuse the chairman’s request so they agree. The chairman explains that their firm places maximum emphasis on long-term commitment. He further explains that he has over thirty years’ experience working in strategic alliances and joint ventures with American firms, however this is his first potential alliance with an Australian counterpart, and he wonders what the Australian firm values most. Robert explains that his firm values quality assurance and timeliness. “We value those too”, says the chairman, through Takeshi. “And what about long-term commitment?” he quizzes. “That is also important for us”, says Robert, somewhat unconvincingly. The chairman nods. Then the sixth course arrives – a seafood dish dressed with sauce (aemono). “This is fugu or pufferfish, which is a delicacy. It is extremely poisonous, however, it’s prepared by a licensed chef who knows what he is doing. You can enjoy it without any worry”, Takeshi explains. While Robert feels uneasy, Luke starts to devour it. One of the other executives remarks, “Luke is very brave”. For the first time that evening, Luke feels at ease. Even the chairman quips, “You seem to fit right in – well, except for the shorts”, and they all laugh. Luke is now flushing red with embarrassment; however he realises that his hosts are warm, welcoming, and accommodating. The next courses include a kounomono (Japanese pickles), hassun (food from the mountains), sunomono (food marinated in vinegar), yakimono (grilled fish), mushimono (steamed food), and nabemono (hot pot) served with rice and miso soup. Though the portion sizes are small, Robert and Luke are enjoying a culinary experience unlike any they have encountered in other parts of Asia. After the final course, a dessert with ice-cream, custard, and berries, Robert asks his hosts if he might walk around the Japanese garden and take some pictures. “Sure”, says Takeshi, volunteering to take some pictures for him. Luke says, “This is the best dining experience I have had in my life. Now I know what you meant when you said the Japanese eat with their eyes.” Chairman Suzuki smiles and acknowledges Luke’s warm remark. Robert cannot believe that they have been at the restaurant for three hours. Takeshi explains, “That means you have enjoyed the dinner”. The chairman and

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the other Japanese executives bow and say good night to Robert and Luke. The chairman shakes hands with Robert and Luke and says, “I look forward to seeing you tomorrow to finalise the deal”. Robert responds, “We look forward to the same.” He adds, “Chairman Suzuki, your English is excellent”. The chairman smiles and leaves the restaurant. As Robert and Luke are leaving the restaurant, after collecting and putting on their footwear, with Takeshi, who has offered to drop them back to their hotel, Robert notices two signs outside the restaurant: one, of a pair of shorts with a cross on it; the other, of a pair of flip-flops and sandals with a cross on it. He shows these to Luke, who realises that the restaurant has a strict dress code and that it has made a special exception to allow Luke in, thanks to their hosts. “I am so grateful to them”, says Luke, adding, “Japanese culture is unlike any in all the other Asian countries I have visited. We need to let our human resource management department know about this.” Sitting in the car on the way back to their hotel, they reflect on the mesmerising yet eventful evening. “You can no longer be called the finisher”, says Luke to Robert. “You didn’t finish your fugu.” After a few chuckles, Robert replies, “I can’t believe you are wearing flip-flops with socks”. QUESTIONS 1. Identify the clashes in cultures, customs, and expectations, between the Australian and Japanese counterparts. 2. Discuss the differences in communication and values displayed by Japanese and the Australians. 3. How could Robert and Luke have been better prepared for their trip to Japan? 4. What lessons does the case offer for global managers? 5. If you were invited to prepare a training manual for global managers such as Robert and Luke, what would you include for preparation to work across cultures?

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