An inductive, holistic method of analysis of face-to-face communication is presented. Simulated business negotiations between Japanese and American businesspeople are videotaped and analyzed to demonstrate the utility of the methods. Briefly, the participants in the negotiations and trained observers review the videotapes and identify focal points (e.g., difficulties in communication) for in-depth analysis. Antecedents and consequences of the focal points are described. © 1987, Sage Publications. All rights reserved.