Culture and Business in Saudi Arabia
Based on the case, what major problem(s) a Canadian company entering Saudi Arabia may face?
Canadian values are different from Saudi values. Religion specifically plays a vital role in how Canadians associate it with there work while in Saudi it must be. Women also play a vital role. The offices must be segregated and employees will find it difficult living their normal lives. Doing business
Canadians very friendly and casual in business while in Saudi a more formal personal relationship will need to be made. Not all is business, they have their culture and tradition more important to one must not be to business talk all the time.
Companies that force change can be hard as they are very traditionalists and proud of there way of life. Dont insult them. Loyalty is key
Approximate time (aka inshallah - God willing) nothing set to certain will make them uncomfortable.
Won't be comfortable with sending their junior executive like how in Canada. They would need to consistently have their senior staff in contact with the Saudi dude.
Legally, if the enterprise is entering a non-innovative field (reference the policy number and other facts), it faces numerous restrictions as the Saudi are really strong in kicking out EXpats and letting Saudi taking the job. This is called Saudization as it's a trade theory in order to solve the over 30% youth unemployment.
When hiring and managing, different ethics, living standards and working conditions will cause friction both to the ethical obligation of the company and the media attention it will ge.t
What are the implications of the identified problem(s) on the organization, the personnel, and the environment?
If your Canadian company considers entering the Saudi market, which type of entry strategy would you favor in line with the identified problem(s) and considering the current context in Saudi Arabia and the region?
How would you implement it?