Scenario #8: Cultural Differences: Let’s Break a Deal
I. Introduction
The internationalization of companies has created the need to become more aware
of cultural differences in order to successfully conduct business. This scenario
depicts a situation where individuals in a business relationship have incongruent
cultural norms and values. Using this vignette as a springboard to discussing how
to manage cultural differences in the global economy would be valuable for
students of Management, Organizational Behavior, or Human Resources.
II. Learning Objectives
1. To assess students’ understanding of different cultural values and their impact on
business relationships.
2. To analyze and evaluate a cross-cultural business meeting.
3. To explore aspects of self-awareness using Johari’s Window as a model.
III. Scenario Description:
Overview: Michael Sokolow has just been tasked with handling international
clients. He needs to close a deal with Norio Tokunaka from PopWear that has
already been thoroughly worked out with Sokolow’s predecessor, Roger Small.
Michael is unaware of the need to establish a relationship with Norio before he
discusses business. Norio becomes disenchanted and refuses to sign the deal.
Profile:
 Michael Sokolow is the Director of Foreign Sales at Mustang Jeans.
After working at Mustang as a real estate attorney for six years, acquiring
property for retail and manufacturing, Sokolow moved into sales at an
executive level.
 Norio Tukunaka has worked at PopWear, a large retail clothing chain for
his entire career.
In his current position as Vice President of
Merchandising, Norio is responsible for expanding the contemporary
clothing line, which includes adding new suppliers and brands for
PopWear’s 36 stores throughout Japan.
References: The references included in the DVD are:
 National Cultural Values (PPT 8-3)
 Hofstede’s Model: Definitions (PPT 8-4)
 The Johari Window (PPT 8-10)
 The Johari Window: Definitions (PPT 8-11)
Back History: Michael Sokolow has been a sales manager at Mustang Jeans for
two years. He was “recruited” or “wooed away” from a competing company. He
was given “an offer you can’t refuse”, an indication of his stellar reputation.
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Sokolow is very much a no-nonsense straight-ahead kind of guy. He is friendly,
but not big on small talk. He fits the stereotypical American businessman in
many ways – informal, a little loud, all about money, very direct and forthright.
Michael’s career has focused in national sales – this is his first foray into
international business. Mustang Jeans is reorganizing to increase efficiency – all
managers are now assuming larger territories.
Tokunaka has been with PopWear for his entire career. He has been working
with American companies for many years, importing a variety of products. Most
of these American companies are alliances that were formed by Tokunaka’s
superiors, many years before. All of Tokunaka’s accounts are pre-existing
accounts as opposed to newly created accounts. This year, PopWear is expanding
their contemporary clothing line, which includes adding new suppliers and new
brands.
Tokunaka has been working on a deal with Michael’s associate for a very long
time. Michael has just taken over this region. The prior associate’s report
indicates that the Tokunaka account is a done deal, with only logistics and details
remaining. Sokolow and Tokunaka are having their first meeting.
Scene Set-up: Norio arrives at Michael’s office after arriving from Japan.
Scene Location: Michael’s office at Mustang Jeans corporate headquarters
The Meeting - Summary: Michael spends less than a minute building rapport
with Norio. He then begins to talk about signing the deal that had been previously
worked out with Small. Norio wants to continue to talk about good Japanese food
and seems insulted that Michael doesn’t like eel. Michael continues to press for
the deal but Norio is very evasive. Michael then gets interrupted by his assistant
notifying him of his next appointment. He apologizes to Norio about the short
amount of time that he has to spend with him. Norio says he’ll just leave and
come back later in the week.
3 Days Later – Norio comes back and Michael apologizes for the prior meeting.
When asked to sign the deal again, Norio suggests that he’s been talking to other
companies in the past few days in New York. He doesn’t commit to the deal and
says he’d enjoy hosting Michael in Japan and hopes they can maintain their
relationship. He leaves before signing the deal to catch a plane.
Afterthoughts – Summary: Michael notes his frustration with the interaction. He
acknowledges that he should have waited for Norio to start talking about the deal
first. He understands that the Japanese businesspeople place a high priority on the
relationship but also points out that he didn’t have a long time to devote to small
talk when it was unclear whether Norio was going to sign the deal or not.
Dossier: The specific artifacts included in the DVD are:
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1. Emails between Small and Sokolow after the 1st meeting
2. Small’s PopWear Account Notes
3. Voice message to Norio Tokunaka from Slo-Groove (competitor of
Mustang Jeans)
IV. Discussion Questions:
The References and related Discussion Questions may be found in PowerPoint slides 8-1
to 8-11.
Learning Objective #1: To assess students’ understanding of different cultural values
and their impact on business relationships.
1. How did the differences between Japan’s and the United States’ national cultural
values affect the interaction between Norio and Michael? Use the information on
PPT 8-3 and 8-4 to support your answer.
Long-term orientation differences seemed to have a major impact. While Norio is
likely to value a long-term approach to developing and conducting business,
Michael’s relatively shorter-term approach was insulting to Norio. However,
Norio demonstrates less achievement orientation than Michael in this particular
scenario which is somewhat contradictory to Hofstede’s research. You may ask
students their opinions and alternative explanations for this.
2. Hofstede’s research on national cultural values has practical implications for
business people. Assume you are Michael and you have to conduct a similar
meeting with another client from Russia. How will you modify your behavior to
effectively conduct business with this individual? Use the information on PPT 83 and 8-4 to support your answer.
Student’s answers will vary. Students should incorporate the fact that Russians
tend to have a short-term orientation, much like Americans, in their answer.

2. What is Michael’s strategy?
A. Find problem
B. Pressure Norio
C. Show patience
Michael says “let’s get the ball rolling’ indicating that he’s trying to pressure
Norio into signing the agreement because it’s important to the company and he
has other business to attend to.

3. How was this [initial] meeting?
A. Successful
B. A failure
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C. A good start
Seems to be a failure, they neither established a firm relationship or accomplished
Michael’s goal of signing the deal.
Learning Objective #2: To analyze and evaluate a cross-cultural business meeting.
1. What information should Michael have possessed before his meeting with Norio?
Michael should have been better prepared by Roger as to what to expect from
Norio. He needed to know the history of the interactions and the best way to
proceed and to explain the transition to Michael.
2. Why is Norio acting somewhat evasive with his responses?
Even though the deal was almost done, Norio was expecting to now build a
relationship with Michael. He seems to be offended that his contact has been
reassigned and is unsure he wants to move forward.

1. What is Norio hinting [when he mentions Roger likes sushi]?
A. Misses Roger
B. He’s hungry
C. Dislikes deal
He misses Roger and that fact he knows Roger likes sushi indicates that
they had a gotten to know each other. He expects to develop a
relationship with his business associates and Michael wants to get right to
business.
3. What could Michael have done better in the second meeting to continue the
business relationship?
Learn more about the cultural differences at play. He also could have tried to
contact Norio earlier and ask him to a social event (like the competition did) to
begin to build the relationship.
He makes the same mistake in the second
meeting by again insisting on signing the deal. His apology for the first meeting
is appropriate and seems to be well-received but is not enough to woo back Norio.

4. Norio is indicating [when he says he’s been meeting with other people]:
A. There’s competition
B. He enjoyed trip
C. Deal is off
He’s suggesting that there is competition but Michael doesn’t seems to
grasp that and makes a flippant comment that he expected Norio would
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have other meetings while in New York. Michael doesn’t take this
opportunity to discuss his stay in New York, but instead tries even harder
to have Norio sign the deal.

5. Michael’s concern [that they are having a communication problem] is:
A. Accurate
B. Off target
C. Insulting
It was probably insulting because it insinuated that Norio’s language ability may
have been contributing to the problem. They were misunderstanding each other
because there was a lack of sensitivity to each other’s cultural norms.
4. Both individuals in this scenario were acting in alignment with their cultural
norms and values. Who should have the primary responsibility for changing their
interaction style? When is it “too much”, as Michael suggests in the
Afterthoughts, and necessary to refuse to change one’s business style?
This question should generate an interesting discussion among students. Some
factors to consider may be who has more to gain (leverage) in the situation, whose
values and norms are relatively stronger, etc.
Learning Objective #3: To explore aspects of self-awareness using Johari’s Window as a
model.
1. Apply the concepts of the Johari Window to this scenario (see PPT 8-10 and 811). How do these concepts help explain what happened in this scenario?
As relationships progress, more information about oneself becomes known to
others and to oneself. Disclosure and feedback flow more freely which enhances
a relationship. In this scenario, Michael was not disclosing at all and did not seem
to interpret subtle hints of feedback. This approach was not consistent with what
Norio had come to expect from his interactions with Roger.

6. Michael should [when Norio says “I’m sure we’ll have a good
relationship in the future”]:
A. Be angry
B. Be gracious
C. Keep trying
At this point, being angry or continuing to try would not result in positive
outcomes. He needs to be gracious and then reevaluate his approach with Norio.
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