case assignment 3 mba 614

 

The Case of the Pharmaceutical Joint Venture (Chapter 4)

Read the Case Study entitled The Case of the Pharmaceutical Joint Venture and then answer the question at the end of the case. 

Please be sure to back up your answer to the case with facts from the textbook.

Mr. Geddy Teok, an American-Chinese (second generation) employee of a large New Jersey pharmaceutical firm, was based in Tokyo. His main aim was to get a major join venture going with one of the largest Japanese pharmaceutical manufactures. After four year of negotiating, the supreme moment had come for signing contracts. Obviously the lawyers from HQ in New Jersey were well prepared, and they sent the contract to Geddy one week before the “ceremony.”

After four year of Japanese experience, Geddy was dumbfounded when he received the document form the US. He told us at the time, “I could not even count the number of pages. There were just too many. But I remember the number of inches it measured when I laid it on the table. I would guess that with every inch, one of the Japanese would leave the room in despair. I hope they will come with a group of then; then at least I will keep one person to talk to. The Japanese will sign contract, but you should not take it too far.”

Geddy Teok decided to call HQ and ask for some help. The legal department said that the relationship was so complex that the contract needed to cover many possible instances. Moreover, a consultancy firm that regularly advised the department said that Asians in general and Japanese in particular had a reputation of been loose in defining what was developed by them and what came from the US: “It is better to have some pain now and be clear in the terms of our relationship, than to run into problems later because of miscommunication. If they sign it, at least they show they are serious.”

Geddy was in despair, but he had only a day to decide what to do. The meeting was tomorrow. Should he perhaps call the Japanese CEO, with whom he had built a solid relationship? Or should he just go for it? Geddy framed his dilemma clearly to us: “Whatever I do, it would hurt my career. If I insist on the Japanese partners signing the contract, they will see it as proof of how little trust has been developed over the years of negotiation. This might mean a postponement of the discussions and, in the worst case, the end of the deal. If I reduce the contract to a couple of pages and present it as a “letter of intent,” HQ in general and, even worse, the whole legal department will jump on me, jeopardizing my career.”

If you were Geddy, what would you do?

Again, be sure to back up your answer to the case with facts from the textbook (please use APA format). Your case report should have a minimum of 500 words. Submit your case report as Word document.

Grading Rubric 

Your assignment will be graded according to the grading rubric.

Case Assignment

 Grading Rubric

Total Points Possible

Thoroughly answered the question

30

 References to course material

10 

Spelling/Grammar at the college level and reference to text or other material

10

 Total Points

                 50  

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