Cross-Cultural Management

MedTech went into the negotiation with Muhashi expecting to reach an agreement that would give it control over certain key decisions. For instance, it wanted a clear role in pricing, promoting, and distributing the product in Japan. Jeff felt that it would benefit MedTech to be an active partner in the deal rather than leaving everything to Muhashi. However, as the terms of the final agreement indicate (pp. 38-40), MedTech did not obtain control over any of the major decisions. On the contrary, the agreement gave Muhashi an effective control over all of the important decisions including the first rights over any other products developed by MedTech to be sold in Japan. Jeff decided to agree to the deal even though he felt that it will be an act of good faith to do so. 

• What factors explain the fact that MedTech failed to get the kind of deal that it wanted (resulting in not realizing its negotiating objectives)?
• What explains that Jeff had accepted the deal in good faith, although it comes across as obviously one-sided?

This is a two-part question. Address each part separately. Approach both questions from the bargaining power (BP) perspective.