...2- Assess Business Environment a. Language, attitudes, religious beliefs, traditions, work ethic ( culture) The full name of Saudi Arabia is the Kingdom of Saudi Arabia. Arabic is the official language. In the 7th century, the successor of the Mohammed who was the founder of Islam established Arab empire. The 8th century is a heyday for Saudi Arabia, and its territory crosses Europe, Asia and Africa. However, in the 16th century, Arab empire was ruled by the Ottoman Empire. In the 19th century, The Great Britain invaded into Arab, it was divided into two parts, Hejaz and Nejd. In 1924, the chief of Hejaz in Saudi Arabia merged Nejd and then gradually unified the Arabian Peninsula. Finally, in September 1932, he declared the establishment of Saudi Arabia kingdom. Saudi Arabia is the birthplace of Islam. Islam has become the world’s second large religion. The founder Muhammad established Islam approximately A.D 600 in Mecca; the sacred city of Islam is located in Saudi Arabia. Islam prospers in northwestern Africa, the Middle East, Central Asia, Pakistan, and some Southeast cities. Religion strongly affects consumption behavior of Arabian. For example, Muslim consumers are not allowed to consume alcohol and pork, besides that, the nation is governed under the Law of Islamic. Muslim pray five times a day, the local people usually go to the mosque to do religious service. Women must wear black robes in that day. Some of the traditions and customs in Saudi Arabia are...
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...Sridhar Bhat, Shrivarsha @03282070 Culture and Business in Saudi Arabia 1. What forces that shape modern Saudi culture? How similar to different forces from those that shaped the culture of Western Nations? Historically Saudi Arabia is a conservative country where people desire to preserve religious values and ancient tradition of the region. Saudi culture can be traced back during 1744, the nomadic tribes who roamed around Arabian Peninsula. Even today the Saudi culture is based on Bedouins and also Islam influenced greatly to shape modern Saudi culture. The stores and restaurants still offer prayers daily as stated in the Koran and strict rules are followed especially women with fully covered dress code with little freedom unlike western culture where there is no discrimination between a man and women resulting in many women entrepreneurs and businesswomen. Even though majority of the western nations have similar religious and culture with Christianity spread across major countries, they do not allow this to have a negative impact on the business. Whereas in Saudi, the values based on religious teachings is still continued and are very strong. The Saudi carry out business with people after establishing trust through face to face meetings in relaxed fashion involving friends and family in the business and decision making. This is not seen in western culture as they are more success oriented valuing time and money. 2. What kind of misunderstanding or likely to arise between...
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...problems as perceived by Saudi Arabian and American managers, International Journal of Intercultural Relations, 5, Pergamon Press Ltd., 349-363. Retrieved 31 October 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/014717678190047X Ahmad, S. Z. (2011). Businesswomen in the Kingdom of Saudi Arabia. Equality, Diversity and Inclusion: An International Journal, 30(7), 610-614. Retrieved 1 November 2012 from www.emeraldinsight.com/2040-71-49.htm Ahmad, S. Z. (2011). Evidence of the characteristics of women entrepreneurs in the Kingdom of Saudi Arabia: An empirical investigation. International Journal of Gender and Entrepreneurship, 3(2), 123-143. Retrieved 2 November 2012 from www.emeraldinsight.com/1756-6266.htm. Al-Kandari, A., Gaither, T. K. (2011). Arabs, the west and public relations: A critical/cultural study of Arab cultural values. Public Relations Review, 37, 266-273. Retrieved 2 November 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/S0363811111000646 Al-Khatib, J. A., Malshe, A., Mazen, A., (2008), Perception of unethical negotiation tactics: A comparative study of U.S. and Saudi managers, International Business Review, 17(1), 78-102. Retrieved 31 October 2012 from http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/S0969593107001448 Al-Qahtany, M. D. (2002). Doing business in Saudi Arabia: Implication for ...
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...The Impact of multinational companies A case study of the energy industry in Saudi Arabia Abstract Contents 1. Introduction 4 1.1. Rationale of the Research 6 1.2. Aims & Objectives of the Research 7 1.3. Key Research Questions 7 2. Literature Review 9 3. Research Methodology 13 4. Key Findings & Discussion 13 5. Conclusion 16 6. References 16 7. Appendices 16 1. Introduction In this era of globalization, there has been a fundamental change in the way international business is being done. Due to the ease of communication and advances in the sophisticated communication systems more and more companies are becoming global and expanding their operations and creating production facilities away from their home countries. This trend has given rise to today’s Multinational Corporations (MNCs) whose role in the international scene is increasing rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries...
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...LOCATION: Saudi Arabia is a monarchy in southwestern Asia, and occupies most of the Arabian Peninsula. Saudi Arabia is bordered on the north by Jordan, Iraq, and Kuwait; on the east by the Persian Gulf and Qatar; on the southeast by the United Arab Emirates and Oman on the south by the Republic of Yemen; and on the west by the Red Sea and the Gulf of Aqaba. The southeast and southern boundaries are not precisely defined. The Middle East, bordering Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457 km, Yemen 1,458 km Capital: Riyadh Climate: harsh, dry desert with great temperature extremes Population: 25,795,938 including 5,576,076 non-nationals (July 2004 est.) Ethnic Make-up: Arab 90%, Afro-Asian 10% Religions: Muslim 100% Government: monarchy Language in Saudi Arabia Arabic is the official language of Saudi Arabia, but English is widely spoken. It is used in business and is a compulsory second language in schools. Among the non-Saudi population, many people speak Urdu, the official language of Pakistan, and other Asian languages such as Farsi and Turkish. Arabic is spoken by almost 200 million people in more than 22 countries. It is the language of the Qur'an, the Holy Book of Islam, and of Arab poetry and literature. While spoken Arabic varies from country to country, classical Arabic has remained unchanged for centuries. In Saudi, there are differences between the dialects spoken in urban areas and those spoken in rural areas. Saudi Society...
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...Difference Culture In International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in international...
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...Does Fedex deal with different two cultures? Saudi Arabia Culture: Working with Customs officials throughout the world, FedEx has developed innovative technology to eliminate many paperwork-handling steps and expedite the movement of international shipments. This is the FedEx Expressclear electronic Customs clearance system. Starting at the origin, state-of-the-art technology allows the processing of shipment paperwork and electronic transmission of documents to the designated FedEx hub and destination clearance location. The Expressclear system also keeps a database of regulatory information which includes importers numbers, broker designation, corporate contact names and telephone numbers. At a FedEx hub, international shipments are sorted, scanned and loaded onto an international flight. Vital shipment information is keyed into a worldwide manifest database, which is linked to computer systems operated by brokers and Customs officials in many countries. Even before the plane has taken off, or while it is in the air, Customs agents and brokers at the destination airport of entry can begin examining shipping manifests, querying air waybill data if they need more details, assessing duties and taxes and selecting which shipments they wish to examine. International shipments are scanned at all key points throughout the process and allows for up-to-date status reports including when Customs clearance is obtained. The importation of goods into Saudi Arabia is governed by a myriad of...
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...What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing business In order to avoid any misunderstandings...
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...Culture and Business in Saudi Arabia 1. What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing...
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...the Middle East area. In this point of view, late proofs have broadly confirm how despite the fact that Saudi Arabia is now considered as a growing economy which is trying to diversify its exports, mainly based on oil and natural gas, by framing and revising its legal and regulatory environment in order to foster entrepreneurship activities and the private sector interest. It leads to growing concern about the role of women in the economic environment, with legal and ethical consideration of the women’s role in the existing socio-cultural make-up of the country. The way in which countries like Saudi Arabia, have developed a domestic organized economy that is based on entrepreneurship is a hypothesis that has been widely tested and cited within the existing body of Literature. Although many academic experts believe that Middle East countries still retain a promising potential for growth (Shachmurove, 2004), major obstacles in terms of detrimental factors such as corruption, unclear regulations and reliance on oil have also recognized. Women are therefore believed to play a primary role in the entrepreneurial future of the region. In order to leverage on the untapped potential of economic growth of this country by utilizing and capitalizing on the potential contribution of the female entrepreneurs towards success of economic projects that are being carried out in Saudi Arabia, in compliance with the ethical dimensions that are deemed critical in the middle east region. Although...
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...Doing Business in Saudi Arabia 1) Prepare a short description of the most striking cultural characteristics that may affect business interaction in this country. Doing business in Saudi Arabia requires significant research if I expect to be successful. There are many cultural differences that must be taken in consideration prior to and during business interactions. The Saudi Arabian culture, its shared values and norms, is distinctly different from our western culture. Saudi Arabian social structure emphasizes a group rather than individualism. Saudi’s are more likely to identify themselves as a part of something (e.g., “I am from Exxon Mobil”) rather than identifying their individual role (e.g., “I am an engineer”). It will also be important to understand the social stratification within Saudi Arabia. Having a working knowledge of the significance of the tribal affiliations as well as the varied groups of which someone can be a part will help me to understand which individuals I need to approach and build relationships with in order to be successful in the region. It will also be incredibly important for me to understand the role of religion, specifically Islam, in the region and how it affects work ethic, business decisions, and simple logistics throughout the day. As Americans, we are focused on our work and we allow very little to get in the way of our accomplishments. Saudi’s are very different. Work is secondary to many things, most notably, religion...
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...1. What forces shaped modern Saudi culture? How similar or different are these forces form those that shaped the culture of Western nations? Saudi Arabia is a historically conservative country where a large segment of the population desires to preserve the religious values and ancient the business sector. The culture of the country has been shaped by combination of Islam and Bedouin traditions. The strict Wahhab sect of Islam still has a profound influence on Saudi culture, something that is very visible to foreign travelers. They follow Islamic rules that shapes difference from culture of western nations. For example-stores and restaurant close at the five of the daily prayer times, and many restaurants, including western ones such as McDonalds have separate dining areas for men and women. Women in Saudi Arabia are not allowed to drive a car, sail a boat, or fly a plan or to appear outdoors with hair, wrists or ankles exposed-something that western companies need to keep in mind when doing business in the country or with Saudis elsewhere. Indeed, women traveling on their won have generally needed government minders or permission slips. From the above statement we can say that, Saudi Arabia run their business on their religious culture norms and values, that has created a lot of differences between them and western nations. 2. What kinds of misunderstanding likely to arise between an American company and Saudi enterprise, if neither of which has experience dealing with...
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...Networks: The Arabian Challenge This case was written by Debapratim Purkayastha, IBS Center for Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2008, IBS Center for Management Research. All rights reserved. To order copies, call +91-8417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org www.icmrindia.org BSTR/294 MTV Networks: The Arabian Challenge “[…] MTV has a penchant for airing controversial material and making a mockery of convention. And of course, it’s an American brand… The challenge, therefore, is transforming a notoriously risqué channel into a Middle Eastern-friendly platform for music and creativity without stripping MTV of its edge. It isn’t without some irony that a channel known for angering religious, political, and conservative communities is operating in and catering to a region renowned for reacting (and sometimes overreacting) negatively to controversial content.”1 - Dana El Baltaji, Special Projects Manager, Trends magazine in Dubai, in 2008. “In many ways (MTV Arabia) is the epitome of our localization strategy. It’s a different audience (in the Middle East) but this is what we do -- we reflect culture and we respect culture. The programming...
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...Customer Service Manager 7 4.2 External Interactions 8 Saudi Arabian chambers of commerce 8 Customers 8 5.0 Nature and evaluation of interdependencies 8 6.0 Recommendations 11 7.0 References 12 1.0 Introduction The role of managers nowadays has evolved greatly over the past years and it has changed significantly in different industries. One thing that remains the same is that managers are always held responsible by their supervisors, to make sure the employees achieve their objectives with expectations. The key to a success and profitable business are neither the systems nor the strategies of the firm. It is the character and skill of individual managers, who practice what they preach are what counts, that is why hiring the right manager is essential in supervising and managing the overall performance of staff in their department (Robbins, 2001). ‘People in the organisation are your most important asset’ is an incorrect statement; because I believe the right people are the organisation’s most important asset. Therefore, companies should hire based on the correct individual’s attitude and behaviour for the company, then train and develop those who deem to have potential. 2.0 Organizational Background – Al-Rajhi Bank Al-Rajhi Bank is the world’s largest Islamic bank and is one of the largest joint stock companies in Saudi Arabia. Al-Rajhi Bank is a huge contributor in the investments of Saudi Arabia business world. The bank offers a wide range of banking and investment...
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...COMPANY PROFILE: Orange is a French telecommunications operator, previously known as France Telecom, it was operated and regulated by the French Ministry of Posts and Telecommunications. In an effort to create competition in the public services sector, France Telecom was ordered to privatize and comply with European directives in 1998. In order to expand globally, France Telecom acquired Orange, a UK mobile operator, in 2001. This led to a re-branding strategy and France Telecom grouped all its operations as well as its products and services under a single brand - Orange. Today, Orange provides a broad range of telecommunication services, including fixed-line and mobile telephony, internet, multimedia services such as television and digital services for both consumers and businesses. Orange is the eight largest telecommunications operator in the world with almost 210 million customers globally and €45.5 billion in sales. Orange operates in 32 countries, primarily focussing on Europe, Middle East and Africa and has 169 000 employees. In response to globalization, deregulation and the internet revolution, Orange’s management team have instituted a policy of proactive and continuous review of strategy, organization, and market position, which allows Orange to quickly anticipate and react to changes in the market. In less than two decades, Orange has managed to emerge from a local, government sponsored and regulated telephone operator to a successful, market leader in global...
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