USSL NAC Team Representatives

International Business
Negotiation mid-term exam

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
• a research paper presenting the influence of
national cultural considerations in the
business decision making process;
• a written contract, signed by all
representatives, presenting the agreements
reached by the two business entities during
the two negotiation sessions.
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
from Japan to Hawaii, Alaska and the west
coast of the United States.
The negotiations to date
• The first round of negotiations took place in
an undisclosed major city in Europe. This
negotiation round was kept out of the public
eye so as not to arouse interest on the part of
either NAC’s or USSL’s competitors.
NAC representatives
• Team Leader: Senior Vice President, Product
Placement
• Team Members: Assistant Vice President,
World-wide logistics; Director, North American
Market; Director, Vehicle Engineering; Senior
Engineer, Vehicle Engineering
• NAC: The Senior Vice President reports directly to the President who, in
turn, reports directly to the CEO who is also the Chairman of the Board
of Directors. At the present time, the Assistant Vice President has
responsibility for developing the firm’s global strategy. The Director,
North American Markets reports to the Assistant Vice President and has
specific responsibility to develop the United States vehicle market for
NAC. The Director, Vehicle Engineering report to the Vice President for
Vehicle Engineering and has been brief thoroughly and is very
knowledgeable about US consumer preferences with respect to the
vehicles that they consider for purchase decisions. The Senior Engineer is
the technical adviser to the Director for Vehicle Engineering. All
members of the negotiation team are fluent in English based on their
graduate education in US educational institutions. They have been
selected for their positions and the negotiation team, in part, for their
English language skills. This, in itself, is most unusual but represents
NAC’s commitment to be a global leader in the industry
USSL representatives
• Team Leader: Senior Vice President, Ocean
Shipping
• Team Members: Assistant Vice President,
Pacific Shipping; Director, West Coast Port
Facilities; Director, International Sales;
Director, Finance; Corporate Lawyer.
• USSL: The Senior Vice President reports directly to the President of the Ocean
Shipping subsidiary who, in turn, reports directly to the CEO of USSL who is
also the Chairman of the Board of Directors. The Assistant Vice President has
responsibility for developing the Pacific Maritime transportation strategy. The
Director, West Coast Facilities reports to the Assistant Vice President, World-
wide Port Facilities. The Director, Finance reports to the Vice President,
Finance of the Ocean Shipping subsidiary and has earned a bachelor’s degree
in accounting and a MBA specializing in finance. Additionally, the Director,
Finance, a certified public accountant, is rumored to be in consideration for
the Vice President, Finance position when the incumbent retires next year.
The Corporate Lawyer has slightly more than twenty years experience as in-
house counsel for USSL. All members of the negotiation team have neither
traveled to Japan nor done business with Japanese companies previously.
They are not conversant in the Japanese language. They have been selected
for their position and the negotiation team, in part, based on their years of
service working for USSL and its subsidiaries and recommendations form
their immediate supervisors.
Timeline
7:45-8:45: NAC to lead the second round of
negotiation
8:45-9.30: Break, USSL to prepare the 3rd round
9.30-10.30: USSL to lead the third round of
negotiation
10.30 onward: NAC, USSL to be interviewed by
the reporter
Timeline
1:45-2:45: NAC to lead the second round of
negotiation
2:45-3.30: Break, USSL to prepare the 3rd round
3.30-4.30: USSL to lead the third round of
negotiation
4.30 onward: NAC, USSL to be interviewed by
the reporter

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International Business

Negotiation mid-term exam

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