The title of the episode is a book about Japanese culture published in 1946 by an anthlopologist who wanted to understand the Japanese. They come calling in this episode as Honda, and at that time they mainly made motorcycles. They really wanted to test the waters for their brand new car line, and dangled the motorbike account to three firms (SCDP) being one in a ruse. (it was kinda a bait and switch) The winner got the side business of the car advertising.
We see a new rival for Don as another guy in a rival ad agency sees himself as the new Don Draper and lets Don know it. He took Jai Alai and Clearacil and was gloating about it to Don. He looked to get Honda too, but Don pulls off a caper that sinks his new rival at Grey.
SCDP almost blew Honda because Roger cannot let go of WWII and is prejudiced against the Japanese. However, deeper things were going on than that. He sees Pete is on the rise and Roger is fading with his one account, Lucky Strike. Although his name is on the door, Roger has a big client that is (unknowingly to them) a sinking ship, as regulations against tobacco will make their jobs harder and harder.
The caper was the best thing about this episode, as peggy driving around an empty set was the funniest moment in the show.
Also going on is Sally feeling ignored by both her parents and is acting out. On Don's one night with the kids, he leaves them with a babysitter. The whole season has been about Sally feeling ignored or worrying about it. Glen (the weird kid) warned her that once mommy has a baby with Henry, she will be on an ice flow, like Roger is feeling in his office. In psychiatry, what Sally is doing is common, better to do something bad and have her parents pay attention than be ignored.
Betty finally takes Sally to a child psychologist, where it is obvious Betty also needs some counseling. Its symbolic that a child psychologist would be perfect for Betty, as she has never grown up. Don also unloads some of his burdens on betty lookalike, the new researcher. My guess is her remark to Don in episode 2 will be true, he will be married in a year, to her..lol just you watch!